Document:

Exhibit 102 - Prudential Note Purchase and Shelf Agreement

		
			Exhibit 10.2
		

		
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			Execution  Version
		

		
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			MSC Industrial  Direct  Co., Inc.
		

		
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			$50,000,000 3.04% Senior Notes, Series A, due January 12, 2023
		

		
			$200,000,000 Private Shelf Facility
		

		
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			Note  Purchase and Private  Shelf  Agreement
		

		
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			Dated January 12, 2018
		

		
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		Table of Contents
		

		
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						Section

					
					
						Heading

					
					
						Page

				
	
					
						Section 1.

					
					
						Authorization of  Notes

					1 
				
	
					
						Section 1.1.

					
					
						Series A Notes

					1 
				
	
					
						Section 1.2.

					
					
						Shelf Notes

					1 
				
	
					
						Section 2.

					
					
						Sale and  Purchase of  Notes

					2 
				
	
					
						Section 2.1.

					
					
						Series A Notes

					2 
				
	
					
						Section 2.2.

					
					
						Shelf Notes

					2 
				
	
					
						Section 2.3.

					
					
						Subsidiary Guaranty

					6 
				
	
					
						Section 3.

					
					
						Closing

					6 
				
	
					
						Section 3.1.

					
					
						Series A Closing

					6 
				
	
					
						Section 3.2.

					
					
						Facility Closings

					6 
				
	
					
						Section 3.3.

					
					
						Rescheduled Facility Closings

					7 
				
	
					
						Section 4.

					
					
						Conditions to  Closing

					7 
				
	
					
						Section 4.1.

					
					
						Representations and Warranties

					7 
				
	
					
						Section 4.2.

					
					
						Performance; No Default

					7 
				
	
					
						Section 4.3.

					
					
						Compliance Certificates

					8 
				
	
					
						Section 4.4.

					
					
						Opinions of Counsel

					8 
				
	
					
						Section 4.5.

					
					
						Purchase Permitted By Applicable Law, Etc

					8 
				
	
					
						Section 4.6.

					
					
						Sale of Other Notes

					8 
				
	
					
						Section 4.7.

					
					
						Payment of Special Counsel Fees

					8 
				
	
					
						Section 4.8.

					
					
						Private Placement Number

					9 
				
	
					
						Section 4.9.

					
					
						Changes in Corporate Structure

					9 
				
	
					
						Section 4.10.

					
					
						Funding Instructions

					9 
				
	
					
						Section 4.11.

					
					
						Material Adverse Effect

					9 
				
	
					
						Section 4.12.

					
					
						Subsidiary Guaranty

					9 
				
	
					
						Section 4.13.

					
					
						Other Fees

					9 
				
	
					
						Section 4.14.

					
					
						Proceedings and Documents

					9 
				
	
					
						Section 5.

					
					
						Representations and  Warranties of the  Company

					9 
				
	
					
						Section 5.1.

					
					
						Organization; Power and Authority

					10 
				
	
					
						Section 5.2.

					
					
						Authorization, Etc

					10 
				
	
					
						Section 5.3.

					
					
						Disclosure

					10 
				
	
					
						Section 5.4.

					
					
						Organization and Ownership of Shares of Subsidiaries; Affiliates

					10 
				
	
					
						Section 5.5.

					
					
						Financial Statements; Material Liabilities

					11 
				
	
					
						Section 5.6.

					
					
						Compliance with Laws, Other Instruments, Etc

					11 
				
	
					
						Section 5.7.

					
					
						Governmental Authorizations, Etc

					12 
				

		
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						Section 5.8.

					
					
						Litigation; Observance of Agreements, Statutes and Orders

					12 
				
	
					
						Section 5.9.

					
					
						Taxes

					12 
				
	
					
						Section 5.10.

					
					
						Title to Property; Leases

					12 
				
	
					
						Section 5.11.

					
					
						Licenses, Permits, Etc

					13 
				
	
					
						Section 5.12.

					
					
						Compliance with Employee Benefit Plans

					13 
				
	
					
						Section 5.13.

					
					
						Private Offering by the Company

					14 
				
	
					
						Section 5.14.

					
					
						Use of Proceeds; Margin Regulations

					14 
				
	
					
						Section 5.15.

					
					
						Existing Indebtedness; Future Liens

					15 
				
	
					
						Section 5.16.

					
					
						Foreign Assets Control Regulations, Etc

					15 
				
	
					
						Section 5.17.

					
					
						Status under Certain Statutes

					16 
				
	
					
						Section 5.18.

					
					
						Environmental Matters

					16 
				
	
					
						Section 6.

					
					
						Representations of the  Purchasers

					17 
				
	
					
						Section 6.1.

					
					
						Purchase for Investment

					17 
				
	
					
						Section 6.2.

					
					
						Source of Funds

					17 
				
	
					
						Section 7.

					
					
						Information as to  Company

					19 
				
	
					
						Section 7.1.

					
					
						Financial and Business Information

					19 
				
	
					
						Section 7.2.

					
					
						Officer’s Certificate

					21 
				
	
					
						Section 7.3.

					
					
						Visitation

					22 
				
	
					
						Section 7.4. 

					
					
						Electronic Delivery

					22 
				
	
					
						Section 8.

					
					
						Payment and  Prepayment of the Notes

					23 
				
	
					
						Section 8.1.

					
					
						Maturity

					23 
				
	
					
						Section 8.2.

					
					
						Optional Prepayments

					23 
				
	
					
						Section 8.3.

					
					
						Allocation of Partial Prepayments

					24 
				
	
					
						Section 8.4.

					
					
						Maturity; Surrender, Etc.

					24 
				
	
					
						Section 8.5.

					
					
						Purchase of Notes

					24 
				
	
					
						Section 8.6.

					
					
						Make‐Whole Amount

					24 
				
	
					
						Section 8.7.

					
					
						Change of Control

					26 
				
	
					
						Section 8.8.

					
					
						Payments Due on Non‐Business Days

					27 
				
	
					
						Section 9.

					
					
						Affirmative  Covenants.

					27 
				
	
					
						Section 9.1.

					
					
						Compliance with Laws

					27 
				
	
					
						Section 9.2.

					
					
						Maintenance of Properties; Insurance

					27 
				
	
					
						Section 9.3.

					
					
						Payment of Taxes and Claims

					28 
				
	
					
						Section 9.4.

					
					
						Corporate Existence, Etc

					28 
				
	
					
						Section 9.5.

					
					
						Books and Records

					28 
				
	
					
						Section 9.6.

					
					
						Subsidiary Guarantors

					28 
				
	
					
						Section 9.7.

					
					
						Designation of Subsidiaries

					30 
				
	
					
						Section 10.

					
					
						Negative  Covenants.

					30 
				
	
					
						Section 10.1.

					
					
						Line of Business

					30 
				

		
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						Section 10.2.

					
					
						Economic Sanctions, Etc

					30 
				
	
					
						Section 10.3.

					
					
						Financial Covenants

					31 
				
	
					
						Section 10.4.

					
					
						Indebtedness

					31 
				
	
					
						Section 10.5.

					
					
						Liens

					32 
				
	
					
						Section 10.6.

					
					
						Fundamental Changes

					35 
				
	
					
						Section 10.7.

					
					
						Disposition of Property

					36 
				
	
					
						Section 10.8.

					
					
						Investments

					37 
				
	
					
						Section 10.9.

					
					
						Transactions with Affiliates

					38 
				
	
					
						Section 10.10.

					
					
						Changes in Fiscal Periods

					38 
				
	
					
						Section 10.11.

					
					
						Clauses Restricting Subsidiary Distributions

					39 
				
	
					
						Section 11.

					
					
						Events of  Default

					39 
				
	
					
						Section 12.

					
					
						Remedies on  Default,  Etc

					43 
				
	
					
						Section 12.1.

					
					
						Acceleration

					43 
				
	
					
						Section 12.2.

					
					
						Other Remedies

					43 
				
	
					
						Section 12.3.

					
					
						Rescission

					43 
				
	
					
						Section 12.4.

					
					
						No Waivers or Election of Remedies, Expenses, Etc

					44 
				
	
					
						Section 13.

					
					
						Registration; Exchange; Substitution of  Notes

					44 
				
	
					
						Section 13.1.

					
					
						Registration of Notes

					44 
				
	
					
						Section 13.2.

					
					
						Transfer and Exchange of Notes

					44 
				
	
					
						Section 13.3.

					
					
						Replacement of Notes

					45 
				
	
					
						Section 14.

					
					
						Payments on  Notes

					45 
				
	
					
						Section 14.1.

					
					
						Place of Payment

					45 
				
	
					
						Section 14.2.

					
					
						Payment by Wire Transfer

					45 
				
	
					
						Section 14.3.

					
					
						Withholding Tax

					46 
				
	
					
						Section 15.

					
					
						Expenses, Etc

					46 
				
	
					
						Section 15.1.

					
					
						Transaction Expenses

					46 
				
	
					
						Section 15.2.

					
					
						Certain Taxes

					47 
				
	
					
						Section 15.3.

					
					
						Survival

					47 
				
	
					
						Section 16.

					
					
						Survival of  Representations and  Warranties; Entire  Agreement

					47 
				
	
					
						Section 17.

					
					
						Amendment and  Waiver

					48 
				
	
					
						Section 17.1.

					
					
						Requirements

					48 
				
	
					
						Section 17.2.

					
					
						Solicitation of Holders of Notes

					48 
				
	
					
						Section 17.3.

					
					
						Binding Effect, Etc

					49 
				
	
					
						Section 17.4.

					
					
						Notes Held by Company, Etc

					49 
				
	
					
						Section  18.

					
					
						Notices

					49 
				

		
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						Section 19.

					
					
						Reproduction of  Documents

					50 
				
	
					
						Section 20.

					
					
						Confidential  Information

					50 
				
	
					
						Section 21.

					
					
						Substitution of  Purchaser

					52 
				
	
					
						Section 22.

					
					
						Miscellaneous

					52 
				
	
					
						Section 22.1.

					
					
						Successors and Assigns

					52 
				
	
					
						Section 22.2.

					
					
						Accounting Terms

					52 
				
	
					
						Section 22.3.

					
					
						Severability

					53 
				
	
					
						Section 22.4.

					
					
						Construction, Etc

					53 
				
	
					
						Section 22.5.

					
					
						Counterparts

					54 
				
	
					
						Section 22.6.

					
					
						Governing Law

					54 
				
	
					
						Section 22.7.

					
					
						Jurisdiction and Process; Waiver of Jury Trial

					54 
				
	
					
						Section 22.8.

					
					
						Transaction References

					55 
				
	
					
						Signature

					
					
						 

					56 
				

		
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						Schedule A

					
					
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						Defined Terms

				
	
					
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						Schedule 5.3

					
					
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						Disclosure Materials

				
	
					
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						Schedule 5.4

					
					
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						Subsidiaries of the Company and Ownership of Subsidiary Stock

				
	
					
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						Schedule 5.5

					
					
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						Financial Statements

				
	
					
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						Schedule 5.15

					
					
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						Existing Indebtedness

				
	
					
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						Schedule 10.3

					
					
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						Original Entities

				
	
					
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						Schedule 10.5

					
					
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						Existing Liens

				
	
					
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						Schedule 10.8

					
					
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						Existing Investments

				
	
					
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						Schedule 10.9

					
					
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						Existing Transactions with Affiliates

				
	
					
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						Exhibit 1-A

					
					
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						Form of 3.04% Senior Note, Series A, due January 12, 2023

				
	
					
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						Exhibit 1-B

					
					
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						Form of Shelf Note

				
	
					
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						Exhibit 2.2(c)

					
					
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						Form of Request for Purchase

				
	
					
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						Exhibit 2.2(e)

					
					
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						Form of Confirmation of Acceptance

				
	
					
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						Exhibit 2.3

					
					
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						Form of Subsidiary Guaranty

				
	
					
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						Purchaser  Schedule 

					
					
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						Information Relating to Purchasers 

				

		
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		MSC Industrial Direct Co., Inc.
75 Maxess Road
		

		
			Melville, New York  11747
		

		
			$50,000,000 3.04% Senior Notes, Series A, due January 12, 2023
		

		
			$200,000,000 Private Shelf Facility
		

		
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			January 12, 2018
		

		
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			To PGIM, Inc. (“Prudential”), each Series A Purchaser and each other Prudential Party which becomes bound by this agreement as hereinafter provided (together with Prudential and the Series A Purchasers, each a “Purchaser” and collectively, the “Purchasers”):
		

		
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			Ladies and Gentlemen:
		

		
			MSC Industrial Direct Co., Inc., a New York corporation (the “Company”), agrees with each of the Purchasers as follows:
		

		
			Section 1.    Authorization of Notes.
		

		
			Section 1.1.    Series A Notes.  The Company will authorize the issue and sale of $50,000,000 aggregate principal amount of its 3.04% Senior Notes, Series A, due January 12, 2023 (the “Series A Notes”, such term to include any such notes issued in substitution therefor pursuant to Section 13).    The Series A Notes shall be substantially in the form set out in Exhibit 1-A.    Certain capitalized and other terms used in this Agreement are defined in Schedule A and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, references to a Schedule or Exhibit attached to this Agreement.
		

		
			Section 1.2.    Shelf Notes.    The Company may, from time to time, authorize the issue of its senior notes (the “Shelf Notes”, such term to include any such notes issued in substitution thereof pursuant to Section 13) in the aggregate principal amount at any time outstanding of up to the Available Facility Amount (as defined in Section 2.2 below), (a) to be dated the date of issue thereof, (b) to mature, in the case of each Shelf Note so issued, no more than 15 years after the date of original issuance thereof, (c) to have an average life, in the case of each Shelf Note so issued, of no more than 15 years after the date of original issuance thereof, (d) to bear interest on the unpaid balance thereof from the date thereof at the fixed rate per annum, and (e) to have such other particular terms, as shall be set forth, in the case of each Shelf Note so issued, in the 
		

		 

		

			 

		

 

			

					

						 

					

					

						 

				
	

					

						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Confirmation of Acceptance with respect to such Note delivered pursuant to Section 2.2(e), and to be substantially in the form of Exhibit 1‐B attached hereto.    The terms “Note” and “Notes” as used herein shall include each Series A Note and each Shelf Note delivered pursuant to any provision of this Agreement and each Note delivered in substitution or exchange for any such Note pursuant to any such provision.    Notes which have (i) the same final maturity, (ii) the same principal prepayment dates, (iii) the same principal prepayment amounts (as a percentage of the original principal amount of each Note), (iv) the same interest rate, (v) the same interest payment periods and (vi) the same date of issuance (which, in the case of a Note issued in exchange for another Note, shall be deemed for these purposes the date on which such Note’s ultimate predecessor Note was issued), are herein called a “Series” of Notes.
		

		
			Section 2.    Sale and  Purchase of  Notes.
		

		
			Section 2.1.    Series A Notes.    Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Series A Purchaser and each Series A Purchaser will purchase from the Company, at the Closing provided for in Section 3.1, the Series A Notes in the principal amount specified opposite such Series A Purchaser’s name in the Purchaser Schedule at the purchase price of 100% of the principal amount thereof.    The Series A Purchasers’ obligations hereunder are several and not joint obligations and no Series A Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Series A Purchaser hereunder.
		

		
			Section 2.2.    Shelf Notes.
		

		
			(a)    Facility.    Prudential is willing to consider, in its sole discretion and within limits which may be authorized for purchase by Prudential and/or Prudential Parties from time to time, the purchase of Shelf Notes pursuant and subject to the terms of this Agreement.    The willingness of Prudential to consider such purchase of Shelf Notes is herein called the “Facility”.    At any time, $200,000,000 minus the aggregate principal amount of Shelf Notes purchased and sold pursuant to this Agreement after the date hereof, minus the aggregate principal amount of Accepted Notes (as hereinafter defined) which have not yet been purchased and sold hereunder prior to such time, is herein called the “Available Facility Amount” at such time. Shelf Notes issued and outstanding under this Agreement shall not at any time exceed the Available Facility Amount.    NOTWITHSTANDING THE WILLINGNESS OF PRUDENTIAL TO CONSIDER PURCHASES BY ITSELF OR ANY OTHER PRUDENTIAL PARTY OF SHELF NOTES, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR ANY PRUDENTIAL PARTY SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL PARTY.
		

		
			(b)    Issuance Period.    Shelf Notes may be issued and sold pursuant to this Agreement until the earlier of (i) the third anniversary of the date of this Agreement (or if such anniversary date is not a Business Day, the Business Day next preceding such anniversary) and (ii) the thirtieth day after Prudential shall have given to the Company, or the Company shall have given to 
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Prudential a written notice stating that it elects to terminate the issuance and sale of Shelf Notes pursuant to this Agreement (or if such thirtieth day is not a Business Day, the Business Day next preceding such thirtieth day).    The period during which Shelf Notes may be issued and sold pursuant to this Agreement is herein called the “Issuance Period”.
		

		
			(c)    Request for Purchase.    The Company may from time to time during the Issuance Period make requests for purchases of Shelf Notes (each such request being herein called a “Request for Purchase”) up to, at any time outstanding, the Available Facility Amount.    Each Request for Purchase shall be made to Prudential in accordance with the notice provisions in Section 18, and shall (i) specify the aggregate principal amount of Shelf Notes covered thereby, which shall not be less than $10,000,000 (or, if less, the remaining Available Facility Amount at the time such Request for Purchase is made) and not be greater than the Available Facility Amount at the time such Request for Purchase is made, (ii) specify the principal amounts, final maturities (which shall be no more than 15 years from the date of issuance), principal prepayment dates and amounts (which shall result in an average life of no more than 15 years, including any and all “delay” or “forward rate-lock period” beyond 42 calendar days) and interest payment periods (monthly, quarterly or semi‐annually in arrears) of the Shelf Notes covered thereby, (iii) specify the use of proceeds of such Shelf Notes, (iv) specify the proposed day for the closing of the purchase and sale of such Shelf Notes, which shall be a Business Day during the Issuance Period not less than 10 days and not more than 25 days after the making of such Request for Purchase, (v) specify the number of the account and the name and address of the depository institution to which the purchase prices of such Shelf Notes are to be transferred on the Closing Day for such purchase and sale, (vi) certify that the representations and warranties contained in Section 5, as supplemented by such Request for Purchase, are true on and as of the date of such Request for Purchase and that there exists on the date of such Request for Purchase no Default or Event of Default, and (vii) be substantially in the form of Exhibit 2.2(c) attached hereto.    Each Request for Purchase shall be in writing signed by the Company and shall be deemed made when received by Prudential.    In connection with the submission of any Request for Purchase hereunder, the Company shall also provide a certificate from a Responsible Officer of the Company certifying as to the aggregate principal amount of the Notes that will be outstanding after giving effect to the issuance of the Shelf Notes requested thereby.
		

		
			(d)    Rate Quotes.  Not later than five Business Days after the Company shall have given Prudential a Request for Purchase pursuant to Section 2.2(c), Prudential may, but shall be under no obligation to, provide to the Company in accordance with the notice provisions in Section 18, in each case between 9:30 A.M. and 1:30 P.M. New York City local time (or such later time as Prudential may elect) interest rate or margin quotes for the principal amounts, maturities, principal prepayment schedules, if any, and interest payment periods of Shelf Notes specified in such Request for Purchase (each such interest rate quote provided in response to a Request for Purchase herein called a “Quotation”).    Each Quotation relating to a Shelf Note shall represent the interest rate per annum payable on the outstanding principal balance of such Shelf Notes at which Prudential or a Prudential Party would be willing to purchase such Shelf Notes at 100% of the principal amount thereof and any Make-Whole Amount in the case of any early prepayment of such Shelf Note. 
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		(e)    Acceptance.  Within the Acceptance Window, a Responsible Officer of the Company specified in such Request for Purchase may, subject to Section 2.2(f), elect to accept on behalf of the Company a Quotation as to not less than $10,000,000 of the aggregate principal amount of the Shelf Notes specified in the related Request for Purchase (each such Shelf Note being herein called an “Accepted Note” and such acceptance being herein called an “Acceptance”) in accordance with the notice provisions in Section 18.    The day the Company notifies Prudential of an Acceptance with respect to any Accepted Notes is herein called the “Acceptance Day” for such Accepted Notes.    Any Quotation as to which Prudential does not receive an Acceptance within the Acceptance Window shall expire, and no purchase or sale of Shelf Notes hereunder shall be made based on any such expired Quotation.    Subject to Section 2.2(f) and the other terms and conditions hereof, the Company agrees to sell to Prudential and/or a Prudential Party, and Prudential and/or such Prudential Party agrees to purchase and/or cause the purchase by a Prudential Party of, the Accepted Notes at 100% of the principal amount of such Notes.    As soon as practicable following the Acceptance Day, the Company, Prudential and each Prudential Party which is to purchase any such Accepted Notes will execute a confirmation of such Acceptance substantially in the form of Exhibit 2.2(e) attached hereto (herein called a “Confirmation of Acceptance”).    If the Company should fail to execute and return to Prudential within three Business Days following the Company’s receipt thereof a Confirmation of Acceptance with respect to any Accepted Notes, Prudential may at its election at any time prior to Prudential’s receipt thereof cancel the closing with respect to such Accepted Notes by so notifying the Company in writing.
		

		
			(f)    Market Disruption.    Notwithstanding the provisions of Section 2.2(e), any Quotation provided pursuant to Section 2.2(d) shall expire if prior to the time an Acceptance with respect to such Quotation shall have been notified to Prudential in accordance with Section 2.2(e): the domestic market for U.S. Treasury securities or derivatives shall have closed or there shall have occurred a general suspension, material limitation, or significant disruption of trading in securities generally on the New York Stock Exchange or in the domestic market for U.S. Treasury securities or derivatives.    No purchase or sale of Shelf Notes hereunder shall be made based on such expired Quotation.    If the Company thereafter notifies Prudential of the Acceptance of any such Quotation with respect to such Shelf Notes, such Acceptance shall be ineffective for all purposes of this Agreement, and Prudential shall promptly notify the Company that the provisions of this Section 2.2(f) are applicable with respect to such Acceptance.
		

		
			(g)    Fees.
		

		
			(i)     Delayed Delivery Fee.  If the closing of the purchase and sale of any Accepted Note is delayed for any reason beyond the original Closing Day for such Accepted Note, the Company will pay to each Purchaser which shall have agreed to purchase such Accepted Note on the Cancellation Date or actual closing date of such purchase and sale, an amount (herein called the “Delayed Delivery Fee”) equal to:
		

		
			the product of (1) the amount determined by Prudential to be the amount by which the bond equivalent yield per annum of such Accepted Note exceeds the investment rate per annum on an alternative investment of the highest quality selected by Prudential and having a maturity date or dates the same as, or closest to, the Rescheduled Closing Day from time to time fixed for the delayed delivery of such 
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Accepted Note, (2) the principal amount of such Accepted Note, and (3) a fraction the numerator of which is equal to the number of actual days elapsed from and including the original Closing Day for such Accepted Note to but excluding the date of such payment, and the denominator of which is 360.
		

		
			In no case shall the Delayed Delivery Fee be less than zero.    Nothing contained herein shall obligate any Purchaser to purchase any Accepted Note on any day other than the Closing Day for such Accepted Note, as the same may be rescheduled from time to time in compliance with Section 3.2.
		

		
			(ii)    Cancellation Fee.    If the Company at any time notifies Prudential in writing that the Company is canceling the closing of the purchase and sale of any Accepted Note to be sold by the Company, or if Prudential notifies the Company in writing under the circumstances set forth in the last sentence of Section 2.2(e) or the penultimate sentence of Section 3.2 that the closing of the purchase and sale of such Accepted Note is to be canceled, or if the closing of the purchase and sale of such Accepted Note is not consummated on or prior to the last day of the Issuance Period (the date of any such notification, or the last day of the Issuance Period, as the case may be, being herein called the “Cancellation Date”), the Company will pay to each Purchaser which shall have agreed to purchase such Accepted Note no later than one day after the Cancellation Date in immediately available funds an amount (the “Cancellation Fee”) equal to:
		

		
			the product of (1) the principal amount of such Accepted Note and (2) the quotient (expressed in decimals) obtained by dividing (y) the excess of the ask price (as determined by Prudential) of the Hedge Treasury Note(s) on the Cancellation Date over the bid price (as determined by Prudential) of the Hedge Treasury Note(s) on the Acceptance Day for such Accepted Note by (z) such bid price, with the foregoing bid and ask prices as reported on the Bridge\Telerate Service, or if such information ceases to be available on the Bridge\Telerate Service, any publicly available source of such market data selected by Prudential, and rounded to the second decimal place.
		

		
			In no case shall the Cancellation Fee be less than zero.
		

		
			(h)    Periodic Spread Information. Provided no Default or Event of Default exists, not later than 9:30 A.M. (New York City local time) on a Business Day during the Issuance Period if there is an Available Facility Amount on such Business Day, the Company may request by e-mail, telecopier or telephone, and Prudential will, to the extent reasonably practicable, provide to the Company on such Business Day (or, if such request is received after 9:30 A.M. (New York City local time) on such Business Day, on the following Business Day), information (by e mail, telecopier or telephone) with respect to various spreads at which Prudential Parties might be interested in purchasing Notes of different average lives; provided, however, that the Company may not make such requests more frequently than once in every five Business Days or such other period as shall be mutually agreed to by the Company and Prudential. The amount and content of information so provided shall be in the sole discretion of Prudential but it is the intent of Prudential to provide information which will be of use to the Company in determining whether to initiate 
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		procedures for use of the Facility. Information so provided shall not constitute an offer to purchase Notes, and neither Prudential nor any Prudential Party shall be obligated to purchase Notes at the spreads specified. Information so provided shall be representative of potential interest only for the period commencing on the day such information is provided and ending on the earlier of the fifth Business Day  after such day and the first day after such day on which further spread information is provided. Prudential may suspend or terminate providing information pursuant to this Section 2(h) for any reason or for no reason at all.
		

		
			Section 2.3.    Subsidiary Guaranty.  The payment by the Company of all amounts due with respect to the Notes and the performance by the Company of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantors pursuant to the Subsidiary Guaranty substantially in the form of Exhibit 2.3 attached hereto and made a part hereof.
		

		
			Section 3.    Closing.
		

		
			Section 3.1.    Series A Closing.  The sale and purchase of the Series A Notes to be purchased by each Series A Purchaser shall occur at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, IL  60603 prior to 10:00 a.m. Chicago time, at a closing (the “Series A Closing”) on January 12, 2018 or on such other Business Day thereafter on or prior to January 16, 2018 and/or such other place as may be agreed upon by the Company and the Series A Purchasers.  At the Series A Closing the Company will deliver to each Series A Purchaser the Series A Notes to be purchased by such Purchaser in the form of a single Series A Note purchased (or such greater number of Series A Notes in denominations of at least $100,000 as such Series A Purchaser may request) dated the date of the Series A Closing and registered in such Series A Purchaser’s name (or in the name of its nominee), against delivery by such Series A Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number [omitted] at [omitted].  If at the Series A Closing the Company shall fail to tender such Series A Notes to any Series A Purchaser as provided above in this Section 3.1, or any of the conditions specified in Section 4 shall not have been fulfilled to such Series A Purchaser’s satisfaction, such Series A Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Series A Purchaser may have by reason of such failure by the Company to tender such Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction.  The Series A Closing and each Shelf Closing are hereafter sometimes each referred to as a “Closing”.
		

		
			Section 3.2.    Facility Closings.  Not later than 10:00 A.M. Chicago time on the Closing Day for any Accepted Notes, the Company will deliver to each Purchaser listed in the Confirmation of Acceptance relating thereto at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, IL 60603 or at such other place pursuant to the directions of Prudential, the Accepted Notes to be purchased by such Purchaser in the form of one or more Notes in authorized denominations as such Purchaser may request for each Series of Accepted Notes to be purchased on the Closing Day, dated the Closing Day and registered in such Purchaser’s name (or in the name of its nominee), against payment of the purchase price thereof by transfer of immediately available funds for credit to the Company’s account specified in the Request for Purchase of such Notes.  
		

		
			
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

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		Section 3.3.    Rescheduled Facility Closings.  If the Company fails to tender to any Purchaser the Accepted Notes to be purchased by such Purchaser on the scheduled Closing Day for such Accepted Notes as provided above in Section 3.2, or any of the conditions specified in Section 4 shall not have been fulfilled by the time required on such scheduled Closing Day, the Company shall, prior to 10:00 A.M. Chicago time, on such scheduled Closing Day notify Prudential (which notification shall be deemed received by each Purchaser) in writing whether (i) such closing is to be rescheduled (such rescheduled date to be a Business Day during the Issuance Period not less than one Business Day and not more than 10 Business Days after such scheduled Closing Day (the “Rescheduled Closing Day”)) and certify to Prudential (which certification shall be for the benefit of each Purchaser) that the Company reasonably believes that it will be able to comply with the conditions set forth in Section 4 on such Rescheduled Closing Day and that the Company will pay the Delayed Delivery Fee in accordance with Section 2.2(g)(i) or Section 2.2(g)(ii) if such closing is to be canceled.  In the event that the Company shall fail to give such notice referred to in the second preceding sentence, Prudential (on behalf of each Purchaser) may at its election, at any time after 11:00 A.M., New York City local time, on such scheduled Closing Day, notify the Company in writing that such closing is to be canceled.  Notwithstanding anything to the contrary appearing in this Agreement, the Company may not elect to reschedule a closing with respect to any given Accepted Notes on more than one occasion, unless Prudential shall have otherwise consented in writing.
		

		
			Section 4.    Conditions to  Closing.
		

		
			Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at each Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at such Closing, the following conditions:
		

		
			Section 4.1.    Representations and Warranties.  (a)    The representations and warranties of the Company in this Agreement shall be correct when made and at such Closing:
		

		
			(b)    The representations and warranties of the Subsidiary Guarantors in this Agreement and the Subsidiary Guaranty, as applicable, shall be correct when made and at such Closing.
		

		
			Section 4.2.    Performance; No Default.    The Company and each Subsidiary Guarantor shall have performed and complied with all agreements and conditions contained in this Agreement, and the Subsidiary Guaranty, as appropriate, required to be performed or complied with by it prior to or at such Closing.  Before and after giving effect to the issue and sale of the Notes to be sold at such Closing (and the application of the proceeds thereof as contemplated by Section 5.14 in the case of the Series A Notes and in the Request for Purchase in the case of any Shelf Notes), no Default or Event of Default shall have occurred and be continuing.  With respect to the Series A Closing, the Company nor any Subsidiary shall have entered into any transaction since September 2, 2017 that would have been prohibited by Section 10 had such Section applied since such date.
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

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		Section 4.3.    Compliance Certificates.
		

		
			(a)    Officer’s Certificate.  The Company and each Subsidiary Guarantor shall have delivered to such Purchaser Officer’s Certificate, dated the date of such Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.
		

		
			(b)    Secretary’s Certificate.  The Company and each Subsidiary Guarantor shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of such Closing, certifying as to (i) the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement and (ii) the Company’s and each Subsidiary Guarantor’s organizational documents as then in effect.
		

		
			Section 4.4.    Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of such Closing (a) from Curtis, Mallet-Prevost, Colt & Mosle LLP, counsel for the Company and the Subsidiary Guarantors, and from special local counsel for one or more Subsidiary Guarantors, and in each case, in a form that is reasonably satisfactory to such Purchaser and covering such matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers) and (b) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, in a form that is reasonably satisfactory to such Purchaser and covering such other matters incident to such transactions as such Purchaser may reasonably request; or, in each case, similar opinions from such replacement counsel chosen by the Company and reasonably acceptable to the Purchasers.
		

		
			Section 4.5.    Purchase Permitted By Applicable Law, Etc.  On the date of such Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.
		

		
			Section 4.6.    Sale of Other Notes.  Contemporaneously with such Closing, the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at such Closing as specified in the Purchaser Schedule.
		

		
			Section 4.7.    Payment of Special Counsel Fees.  Without limiting Section 15.1, the Company shall have paid on or before each Closing the fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the date of such Closing.
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Section 4.8.    Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each Series of the Notes.
		

		
			Section 4.9.    Changes in Corporate Structure.  Neither Company nor any Subsidiary Guarantor shall have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.  
		

		
			Section 4.10.    Funding Instructions.  At least three Business Days prior to the date of such Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited.
		

		
			Section 4.11.    Material Adverse Effect.  Since September 2, 2017, in the case of the Series A Closing, or since the date of the most recent audited financials delivered pursuant to Section 7.1, in the case of any Shelf Closing, there has been no Material Adverse Effect.
		

		
			Section 4.12.    Subsidiary Guaranty.  Each Subsidiary Guarantor shall have duly authorized, executed and delivered the Subsidiary Guaranty attached hereto as Exhibit 2.3 and such Purchaser shall have received a copy thereof.
		

		
			Section 4.13.    Other Fees .  The Company shall have paid directly to Prudential or the Purchasers, as requested, any fees due to Prudential or the Purchasers in connection with any Delayed Delivery Fee due pursuant to Section 2.1(g)(i).
		

		
			Section 4.14.    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 Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.
		

		
			Section 5.    Representations and Warranties of the Company.
		

		
			The Purchasers and the holders of the Notes recognize and acknowledge that the Company may supplement the following representations and warranties in this Section 5, including the Schedules related thereto, pursuant to a Request for Purchase for Shelf Notes and the related Officer’s Certificate for such Shelf Closing; provided that no such supplement to any representation or warranty shall change or otherwise modify any representation or warranty given on any other Closing Day or any determination of the falseness or inaccuracy thereof pursuant to Section 11(e).  The Company represents and warrants to Prudential and to each Purchaser of the Notes to be issued at the applicable Closing that:
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Section 5.1.    Organization; Power and Authority.  The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation 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 corporate 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 and the Notes to be issued at the applicable Closing and to perform the provisions hereof and thereof.
		

		
			Section 5.2.    Authorization, Etc.  This Agreement, the Subsidiary Guaranty and the Notes to be issued at the applicable Closing have been duly authorized by all necessary company action on the part of the Company and the Subsidiary Guarantors, as applicable, and this Agreement and the Subsidiary Guaranty constitutes, and upon execution and delivery thereof each Note to be issued at the applicable Closing will constitute, a legal, valid and binding obligation of the Company or Subsidiary Guarantor, as applicable, enforceable against the Company or such Subsidiary Guarantor, as applicable, 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).
		

		
			Section 5.3.    Disclosure. This Agreement, the financial statements listed in Schedule 5.5 and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company prior to such Closing in connection with the transactions contemplated hereby and identified in Schedule 5.3 (this Agreement and such documents, certificates or other writings and such financial statements delivered to each Purchaser 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.  Except as disclosed in the Disclosure Documents, since September 2, 2017 with respect to the Series A Notes, and, with respect to any other Notes, since the date of the most recent audited financials delivered pursuant to Section 7.1, there has been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that could not, individually or in the aggregate, 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 of (i) the Company’s Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, whether such Subsidiary is a Subsidiary Guarantor and whether such Subsidiary is a Restricted or Unrestricted Subsidiary hereunder, (ii) the Company’s Affiliates, other than Subsidiaries, and (iii) the Company’s directors and senior officers.
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

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		(b)    All of the outstanding shares of capital stock or similar equity interests of each Restricted Subsidiary shown in Schedule 5.4 as being owned by the Company and its Restricted Subsidiaries have been validly issued, are fully paid and non‐assessable and are owned by the Company or another Subsidiary free and clear of any Lien that is prohibited by this Agreement.
		

		
			(c)    Each Restricted 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 Restricted 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 and to transact the business it transacts and proposes to transact.
		

		
			(d)    No Restricted Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or other restriction (other than 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 Restricted Subsidiary.
		

		
			Section 5.5.    Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  All of such 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 Restricted Subsidiaries do not have any Material liabilities that are not disclosed in the Disclosure Documents.
		

		
			Section 5.6.    Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company and each Subsidiary Guarantor of this Agreement, the Subsidiary Guaranty and the Notes to be issued at the applicable Closing and 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 in respect of any property of the Company or any Restricted Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter, regulations or by‐laws, shareholders agreement or any other agreement or instrument to which the Company or any Restricted Subsidiary is bound or by which the Company or any Restricted 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 Restricted Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Restricted Subsidiary. 
		

		

		

		 

		

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		Section 5.7.    Governmental Authorizations, Etc.  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 and each Subsidiary Guarantor of this Agreement, the Notes or the Subsidiary Guaranty 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 best knowledge of the Company, threatened against or affecting the Company or any Restricted Subsidiary or any property of the Company or any Restricted Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			(b)    Neither the Company nor any Restricted Subsidiary is (i) in default under 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, any arbitrator of any kind or any Governmental Authority or (iii) in violation of any applicable law, ordinance, rule or regulation of any Governmental Authority (including 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 could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			Section 5.9.    Taxes.  The Company and its Restricted Subsidiaries have filed all 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, individually or in the aggregate, is not 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 Restricted 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, individually or in the aggregate, 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 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 Restricted 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 September 1, 2012.
		

		
			Section 5.10.    Title to Property; Leases.  The Company and its Restricted 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 Restricted Subsidiary after such date (except as sold or otherwise disposed of in the ordinary course of business), 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. 
		

		

		

		 

		

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		Section 5.11.    Licenses, Permits, Etc.  (a)    The Company and its Restricted 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 best knowledge of the Company, no product or service of the Company or any of its Restricted Subsidiaries infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other 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 Restricted Subsidiaries with respect to any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned or used by the Company or any of its Restricted Subsidiaries.
		

		
			Section 5.12.    Compliance with Employee Benefit Plans.  (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, individually or in the aggregate, 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, individually or in the aggregate, 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 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 referred to, in each case, in this second sentence as would not be individually or in the aggregate Material.
		

		
			(b)    The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer 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 by an amount that is Material in the case of any single Plan or in the aggregate for all Plans.  The present value of the accrued benefit liabilities (whether or not vested) under each Non‐U.S. Plan that is funded, determined as of the end of the Company’s most recently ended fiscal year on the basis of reasonable actuarial assumptions, did not exceed the current value of the assets of such Non‐U.S. Plan allocable to such benefit liabilities by an amount that is Material.  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 (i) 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 or (ii) any 
		

		 

		

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		obligation in connection with the termination of or withdrawal from any Non‐U.S. Plan 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 Accounting Standards Codification Topic 715‐60, 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 and the issuance and sale of the Notes hereunder will 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 to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.
		

		
			(f)    All Non‐U.S. Plans have been established, operated, administered and maintained in compliance with all laws, regulations and orders applicable thereto, except where failure so to comply could not be reasonably expected to have a Material Adverse Effect.  All premiums, contributions and any other amounts required by applicable Non‐U.S. Plan documents or applicable laws to be paid or accrued by the Company and its Subsidiaries have been paid or accrued as required, except where failure so to pay or accrue could not be reasonably expected to have a Material Adverse Effect.
		

		
			Section 5.13.    Private Offering by the Company.  Neither the Company nor anyone acting on its behalf has offered the Notes to be issued at the applicable Closing or any similar Securities for sale to, or solicited any offer to buy such Notes or any similar Securities from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and no more than one (1) other Institutional Investor, each of which has been 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 be issued at the applicable Closing 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 will apply the proceeds of the sale of (a) the Series A Notes hereunder for repay existing indebtedness and/or general corporate purposes and (b) the Shelf Notes hereunder as set forth in the applicable Request for Purchase.  No part of the proceeds from the sale of the Notes hereunder will be 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 15% 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 
		

		 

		

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		more than 15% 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 Restricted Subsidiaries as of December 2, 2017 (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guaranty thereof), since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company or its Subsidiaries.  Neither the Company nor any Restricted 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 Restricted Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Restricted Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.
		

		
			(b)    Except as disclosed in Schedule 5.15, neither the Company nor any Restricted Subsidiary has agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired, to be subject to a Lien that secures Indebtedness or 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 that secures Indebtedness.
		

		
			(c)    Neither the Company nor any Restricted Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Restricted Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as disclosed in Schedule 5.15.
		

		
			Section 5.16.    Foreign Assets Control Regulations, Etc.  (a)    Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.
		

		
			(b)    Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws or Anti‐Corruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws or Anti‐Corruption Laws.
		

		
			(c)    No part of the proceeds from the sale of the Notes hereunder:
		

		
			(i)     constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. 
		

		 

		

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		Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws;
		

		
			(ii)    will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti‐Money Laundering Laws; or
		

		
			(iii)   will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti‐Corruption Laws.
		

		
			(d)    The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws and Anti‐Corruption Laws.
		

		
			Section 5.17.    Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, the Public Utility Holding Company Act of 2005, the ICC Termination Act of 1995, or the Federal Power Act.
		

		
			Section 5.18.    Environmental Matters.  (a)    Neither the Company nor any Restricted Subsidiary has knowledge of any claim or has received any notice of any claim and no proceeding has been instituted asserting any claim against the Company or any of its Restricted Subsidiaries or any of their respective real properties or other assets now or formerly owned, leased or operated by any of them, 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 Restricted Subsidiary has knowledge of any facts which would 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, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
		

		
			(c)    Neither the Company nor any Restricted Subsidiary has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
		

		
			(d)    Neither the Company nor any Restricted Subsidiary has disposed of any Hazardous Materials in a manner which is contrary to any Environmental Law that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
		

		

		

		 

		

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		(e)    All buildings on all real properties now owned, leased or operated by the Company or any Restricted Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
		

		
			Section 6.    Representations of the  Purchasers.  
		

		
			Section 6.1.    Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Notes 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 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 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 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
		

		

		

		 

		

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		(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 Part IV(h) of PTE 96‐23 (the “INHAM Exemption”)) managed by an “in‐house asset manager” or “INHAM” (within the meaning of Part IV(a) 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 Part IV(d)(3) of the INHAM Exemption) owns a 10% 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
		

		
			(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.
		

		

		

		 

		

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			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 (or such shorter period as is the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,
		

		
			(i)     an unaudited consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
		

		
			(ii)    unaudited consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,
		

		
			setting forth in each case in comparative form (excluding changes in shareholders’ equity) the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year‐end adjustments;
		

		
			(b)    Annual Statements — within 90 days (or such shorter period as is the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each fiscal year of the Company, duplicate copies of
		

		
			(i)     a consolidated balance sheet of the Company and its Subsidiaries as at the end of such year, and
		

		
			(ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,
		

		
			setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of Ernst & Young LLP or other independent public accountants of recognized national standing;
		

		

		

		 

		

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		(c)    SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice, proxy statement or similar document sent by the Company or any Subsidiary (x) to its creditors under any Material Credit Facility (excluding information sent to such creditors in the ordinary course of administration of a credit facility, such as information relating to pricing and borrowing availability) or (y) to its public Securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material; 
		

		
			(d)    Notice of Default or Event of Default — promptly, and in any event within ten (10) Business Days after a Responsible Officer 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;
		

		
			(e)    Employee Benefits Matters — promptly, and in any event within 10 days (or within 5 Business Days in the case of clause (ii) or clause (iv) below) after a Responsible Officer becoming aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
		

		
			(i)     with respect to any Plan, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof and which could be reasonably expected to result in the incurrence of any Material liability by the Company or any ERISA Affiliate;
		

		
			(ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; 
		

		
			(iii)   any event, transaction or condition that could reasonably be expected to result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect; or
		

		

		

		 

		

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		(iv)    receipt of notice of the imposition of a Material financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more Non‐U.S. Plans;
		

		
			(f)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Restricted Subsidiary from any Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; and
		

		
			(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 (including actual copies of the Company’s Form 10‐Q and Form 10‐K) or relating to the ability of the Company to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note.
		

		
			Section 7.2.    Officer’s 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 Senior Financial Officer:
		

		
			(a)    Covenant Compliance — setting forth the information from such financial statements that is required in order to establish whether the Company was in compliance with the requirements of Section 10 during the quarterly or annual period covered by the financial statements then being furnished (including with respect to each such provision that involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence.  In the event that the Company or any Restricted Subsidiary has made an election to measure any financial liability using fair value (which election is being disregarded for purposes of determining compliance with this Agreement pursuant to Section 22.2) as to the period covered by any such financial statement, such Senior Financial Officer’s certificate as to such period shall include a reconciliation from GAAP with respect to such election;
		

		
			(b)    Event of Default — certifying that such Senior 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 Restricted Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and such Senior Financial Officer has obtained no knowledge of 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 any such event or condition resulting from the failure of the Company or any Restricted 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)    Subsidiary Guarantors – setting forth a list of all Restricted Subsidiaries that are Subsidiary Guarantors and certifying that each Restricted Subsidiary that is required to be a 
		

		 

		

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		Subsidiary Guarantor pursuant to Section 9.6 is a Subsidiary Guarantor, in each case, as of the date of such certificate of Senior Financial Officer; and
		

		
			(d)    Unrestricted Subsidiaries -  the related consolidating financial statements reflecting the adjustments necessary to eliminate the accounts of Unrestricted Subsidiaries (if any) from such consolidated financial statements.
		

		
			Section 7.3.    Visitation.  The Company shall permit the representatives of Prudential (only during the Issuance Period) and each holder of a Note that is an Institutional Investor or their representatives, including, without limitation, their investment advisors:
		

		
			(a)    No Default — if no Default or Event of Default then exists, at the expense of Prudential or such holder, as the case may be, 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 Restricted Subsidiaries with the Company’s officers, and (with the consent of the Company, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Restricted Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and
		

		
			(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 Restricted 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), all at such times and as often as may be requested.
		

		
			Section 7.4.    Electronic Delivery.  Financial statements, opinions of independent certified public accountants, other information and Officer’s Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to have been delivered if the Company satisfies any of the following requirements with respect thereto:
		

		
			(a)    such financial statements satisfying the requirements of Section 7.1(a) or (b) and related Officer’s Certificate satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are delivered to each holder of a Note by e‐mail at the e‐mail address set forth in such holder’s Purchaser Schedule or as communicated from time to time in a separate writing delivered to the Company;
		

		
			(b)    the Company shall have timely filed such Form 10–Q or Form 10–K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC on EDGAR and shall have made such form and (unless the Officer’s Certificate referred to in Section 7.4(a) shall have otherwise been delivered pursuant to and in accordance with this Section 7), the related Officer’s Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at http://www.mscdirect.com as of the date of this Agreement; 
		

		

		

		 

		

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		(c)    such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer’s Certificate(s) satisfying the requirements of Section 7.2 and any other information required under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access; or 
		

		
			(d)    the Company shall have timely filed any of the items referred to in Section 7.1(c) with the SEC on EDGAR and shall have made such items available on its home page on the internet or on IntraLinks or on any other similar website to which each holder of Notes has free access;
		

		
			provided however, that in no case shall access to such financial statements, other information and Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 20 of this Agreement); provided, that upon request of any holder to receive paper copies of such forms, financial statements, other information and Officer’s Certificates or to receive them by e‐mail, the Company will promptly e‐mail them or deliver such paper copies, as the case may be, to Prudential and such holder.
		

		
			Section 8.    Payment and  Prepayment of the  Notes.
		

		
			Section 8.1.    Maturity.  (a)    As provided therein, the entire unpaid principal balance of each Series A Note shall be due and payable on the respective Maturity Date thereof.
		

		
			(b)    Shelf Notes.  Each Series of Shelf Notes shall be subject to required prepayments, if any, as set forth in the Notes of such Series, provided that upon any partial prepayment of the Shelf Notes of any Series pursuant to Sections 8.2 or 8.4, the principal amount of each required prepayment of the Shelf Notes of such Series becoming due under this Section 8.1(b) on and after the date of such prepayment shall be reduced in the same proportion as the aggregate unpaid principal amount of the Shelf Notes of such Series is reduced as a result of such prepayment.
		

		
			Section 8.2.    Optional Prepayments.  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 10% of the aggregate principal amount of such 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 10 Business Days and not more than 60 days prior to the date fixed for such prepayment unless the Company and the Required Holders agree to another time period pursuant to Section 17.  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 8.3), 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 Senior Financial Officer 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 Senior 
		

		 

		

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		Financial Officer specifying the calculation of such Make‐Whole Amount as of the specified prepayment date.
		

		
			Section 8.3.    Allocation of Partial Prepayments.  In the case of each partial prepayment of the Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes to be prepaid at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.
		

		
			Section 8.4.    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 any applicable Make‐Whole Amount.  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 any applicable Make‐Whole Amount, 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 8.5.    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 (a) upon the payment or prepayment of the Notes in accordance with this Agreement and the Notes or (b) pursuant to an offer 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. Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 15 Business Days.  If the holders of more than 25% of the principal amount of the Notes then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to this Agreement and no Notes may be issued in substitution or exchange for any such Notes.
		

		
			Section 8.6.    Make‐Whole Amount.
		

		
			The term “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: “Called Principal” means, with respect to any Note, the principal of such Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
		

		

		

		 

		

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		“Discounted Value” means, with respect to the Called Principal of any Note, the amount obtained by discounting 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, the sum of (a) .50% plus (b) the yield to maturity implied by the “Ask 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 (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (ii) interpolating linearly between the “Ask 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, the sum of (x) .50% plus (y) 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 comprised of twelve 30‐day months and calculated to two decimal places, 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 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 8.2 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 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.
		

		
			Section 8.7.    Change of Control.  (a)    Notice of Change in Control.  The Company will, within ten (10) Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control, give written notice of such Change in Control to each holder of Notes unless notice in respect of such Change in Control shall have been given pursuant to subparagraph (b) of this Section 8.7.  If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay Notes of each Series as described in subparagraph (b) of this Section 8.7 and shall be accompanied by the certificate described in subparagraph (e) of this Section 8.7.
		

		
			(b)    Offer to Prepay Notes.  The offer to prepay Notes contemplated by subparagraph (a) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, 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 Prepayment Date”).  If such Proposed Prepayment Date is in connection with an offer contemplated by subparagraph (a) of this Section 8.7, such date shall be not less than 20 days and not more than 60 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 45th day after the date of such offer).
		

		
			(c)    Acceptance; Rejection.  A holder of Notes may accept or reject the offer to prepay made pursuant to this Section 8.7 by causing a notice of such acceptance or rejection to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date.  A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.7, or to accept an offer as to all of the Notes held by such holder, in each case on or before the 5th Business Day preceding the Proposed Prepayment Date, shall be deemed to constitute a rejection of such offer by such holder.
		

		
			(d)    Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment, if any, but without any Make-Whole Amount.  The prepayment shall be made on the Proposed Prepayment Date.
		

		
			(e)    Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.7 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made 
		

		 

		

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		pursuant to this Section 8.7; (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 Prepayment Date; and (v) in reasonable detail, the nature and date or proposed date of the Change in Control.
		

		
			(f)    “Change in Control” Defined.    “Change in Control” means (i) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), excluding the Permitted Investors, shall become, or obtain rights to become, the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly, of voting stock of the Company representing more than 35% of the combined voting power of the Company’s outstanding voting stock ordinarily having the power to vote for the election of directors of the Company or (ii) the board of directors of the Company shall cease to consist of a majority of Continuing Directors.
		

		
			Section 8.8    Payments Due on Non‐Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y), any payment of interest on any Note that is due on a date that is not a Business Day 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; and (y) any payment of principal of or Make‐Whole Amount on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day 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 9.    Affirmative Covenants.
		

		
			The Company covenants that during the Issuance Period and so long as any of the Notes are outstanding:
		

		
			Section 9.1.    Compliance with Laws.  Without limiting Section 10.2, the Company will, and will cause each of its Restricted Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject (including 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.
		

		
			Section 9.2.    Maintenance of Properties; Insurance.  The Company will, and will cause each of its Restricted Subsidiaries to, keep all property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted, except to the extent that failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect, and (b) maintain with financially sound and reputable insurance companies insurance on all of its property in at least such amounts and against at least such risks (but including in any event 
		

		 

		

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		public liability, product liability and business interruption) as are usually insured against in the same general area by companies engaged in the same or similar business.
		

		
			Section 9.3.    Payment of Taxes and Claims.  The Company will, and will cause each of its Restricted Subsidiaries to, file all Material tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent the same have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Restricted Subsidiary, provided that neither the Company nor any Restricted Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount, applicability or validity thereof is contested by the Company or such Restricted Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Restricted Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Restricted Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
		

		
			Section 9.4.    Corporate Existence, Etc.  Subject to Section 10.6, the Company will at all times preserve and keep its corporate existence in full force and effect.  Subject to Section 10.6, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Restricted Subsidiaries (unless merged into the Company or a wholly‐owned Restricted Subsidiary) and all rights and franchises of the Company and its Restricted Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise could not, individually or in the aggregate, have a Material Adverse Effect. 
		

		
			Section 9.5.    Books and Records.  The Company will, and will cause each of its Restricted Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Restricted Subsidiary, as the case may be, in each case in all material respects.  The Company will, and will cause each of its Restricted Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets, in each case in all material respects.  
		

		
			Section 9.6.    Subsidiary Guarantors.    (a)    The Company will cause each of its Subsidiaries that guarantees or otherwise becomes liable at any time, whether as a borrower or an additional or co‐borrower or otherwise, for or in respect of any Indebtedness under any Material Credit Facility to concurrently therewith:
		

		
			(i)     execute a Subsidiary Guaranty Supplement attached as Annex A to the Subsidiary Guaranty in form and substance satisfactory to the Required Holders providing for the guaranty by such Subsidiary, on a joint and several basis with all other such Subsidiaries, of (x) the prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for principal, interest, Make‐Whole Amount or otherwise) and this Agreement, including all indemnities, fees and expenses payable by the 
		

		 

		

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		Company thereunder and (y) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement, undertaking and provision required pursuant to the Notes or this Agreement to be performed, observed or discharged by it (a “Subsidiary Guaranty Supplement”); and 
		

		
			(ii)     deliver the following to each holder of a Note:
		

		
			(A)an executed counterpart of such Subsidiary Guaranty;
		

		
			(B)a certificate signed by an authorized responsible officer of such Subsidiary containing representations and warranties on behalf of such Subsidiary to the same effect, mutatis mutandis, as those contained in Sections 5.1, 5.2, 5.6, 5.7 and 5.16 of this Agreement (but with respect to such Subsidiary and such Subsidiary Guaranty rather than the Company);
		

		
			(C)all documents as may be reasonably requested by the Required Holders to evidence the due organization, continuing existence and, where applicable, good standing of such Subsidiary and the due authorization by all requisite action on the part of such Subsidiary of the execution and delivery of such Subsidiary Guaranty and the performance by such Subsidiary of its obligations thereunder; and
		

		
			(D)if requested, an opinion of counsel reasonably satisfactory to the Required Holders covering such matters relating to such Subsidiary and such Subsidiary Guaranty as the Required Holders may reasonably request.
		

		
			(b)    At the election of the Company and by written notice to each holder of Notes, any Subsidiary Guarantor that has provided a Subsidiary Guaranty under subparagraph (a) of this Section 9.6 may be discharged from all of its obligations and liabilities under its Subsidiary Guaranty and shall be automatically released from its obligations thereunder without the need for the execution or delivery of any other document by the holders, provided that (i) if such Subsidiary Guarantor is a guarantor or is otherwise liable for or in respect of any Material Credit Facility, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of the Subsidiary Guarantor under its Subsidiary Guaranty) under such Material Credit Facility, (ii) at the time of, and after giving effect to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable under such Subsidiary Guaranty, (iv) if in connection with such Subsidiary Guarantor being released and discharged under a Material Credit Facility, any fee or other form of consideration is given to any holder of Indebtedness under such Material Credit Facility for such release, the holders of the Notes shall receive equivalent consideration substantially concurrently therewith and (v) each holder shall have received a certificate of a Responsible Officer certifying as to the matters set forth in clauses (i) through (iv).  In the event of any such release, for purposes of Section 10.6 and the definition of “Priority Debt”, all Indebtedness of such Subsidiary shall be deemed to have been incurred concurrently with such release.
		

		

		

		 

		

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		Section 9.7.    Designation of Subsidiaries.  Subject at all times to the provisions of Section 10.3(c), by action of its board of directors, the Company may at any time designate any Restricted Subsidiary or any newly created or acquired Subsidiary of the Company as an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary (each a “Designated Subsidiary”);  provided that (i) immediately before and after such designation on a pro forma basis, no Default or Event of Default shall have occurred and be continuing, (ii) immediately after giving effect to such designation, the Company shall be in compliance, on a pro forma basis, with the financial covenants set forth in Section 10.3,  (iii) in the case of any Unrestricted Designation, immediately after giving effect to such designation, (x) the remainder of (A) Consolidated EBITDA as of the last day of the most recently completed fiscal quarter for the Reference Period ending on such day after subtracting (B) the portion, if any, of such Consolidated EBITDA attributable to such Designated Subsidiary, is not less than (y) 85% of Consolidated EBITDA, determined as of the last day of the most recently completed fiscal quarter for the Reference Period ending on such day (and in the case of a newly created or  acquired Subsidiary designated as an Unrestricted Subsidiary, such calculation of Consolidated EBITDA shall include such new Subsidiary on a pro forma basis as if such new Subsidiary were a Restricted Subsidiary for such period), (iv) the Company shall have delivered to the holders of Notes a certificate of a Responsible Officer certifying as to the satisfaction of the conditions in clauses (i), (ii) and (iii) above and setting forth in reasonable detail the calculations necessary to determine compliance with the condition in clauses (ii) and (iii) above, (v) no Restricted Subsidiary may be designated as an Unrestricted Subsidiary if it was previously designated as an Unrestricted Subsidiary and (vi) no Subsidiary of an Unrestricted Subsidiary may be a Restricted Subsidiary.  The designation of any Subsidiary as an Unrestricted Subsidiary shall constitute an Investment by the Company therein at the date of designation in an amount equal to the fair market value of the Company’s or its Restricted Subsidiary’s (as applicable) Investment therein.  The designation of any Unrestricted Subsidiary as a Restricted Subsidiary shall constitute (a) the incurrence at the time of such designation of any Investment, Indebtedness or Liens of such Subsidiary existing at such time and (b) a return on any Investment by the Company in Unrestricted Subsidiaries pursuant to the preceding sentence in an amount equal to the fair market value at the date of such designation of the Company’s or its Restricted Subsidiary’s (as applicable) Investment in such Subsidiary.
		

		
			Section 10.    Negative Covenants.
		

		
			The Company covenants that during the Issuance Period and so long as any of the Notes are outstanding:
		

		
			Section 10.1.    Line of Business.  The Company will not and will not permit any Restricted Subsidiary to engage in any business if, as a result, the general nature of the business in which the Company and its Restricted Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Restricted Subsidiaries, taken as a whole, are engaged on the date of this Agreement.
		

		
			Section 10.2.    Economic Sanctions, Etc.  The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving 
		

		 

		

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		the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.
		

		
			Section 10.3.Financial Covenants.  
		

		
			(a)    Consolidated Leverage Ratio.  As of the last day of each fiscal quarter, the Company will not permit the Consolidated Leverage Ratio for the Reference Period ending on such day to exceed 3.00 to 1.00;  provided that, in the event that (i) the Company or any of its Restricted Subsidiaries completes a Material Acquisition and (ii) on or prior to the date of the consummation of such Material Acquisition, the Company delivers written notice to the holders of Notes of its intention to (A) consummate such Material Acquisition and (B) activate a Leverage Ratio Step-Up in connection therewith (any such written notice, a “Leverage Ratio Step-Up Notice”), the Consolidated Leverage Ratio set forth above shall be temporarily increased to 3.50 to 1.00 for four consecutive fiscal quarters, commencing with the fiscal quarter in which such Material Acquisition occurs (each such temporary increase, a “Leverage Ratio Step-Up Period”); provided that (i) the Company shall not deliver more than one Leverage Ratio Step-Up Notice during any period of eight consecutive fiscal quarters (and any Leverage Ratio Step-Up Notice delivered in violation of this proviso shall be deemed to be null and void), (ii) the Company shall not deliver more than three separate Leverage Ratio Step-Up Notices during the term of this Agreement (and any Leverage Ratio Step-Up Notice delivered in violation of this proviso shall be deemed to be null and void) and (iii) the Company shall be obligated to pay an additional 0.50% of interest on each Note during the Leverage Ratio Step-Up Period (the “Step-Up Interest”). For avoidance of doubt, no Step-Up Interest will be used in calculating any Make-Whole Amount.
		

		
			(b)    Consolidated Interest Coverage Ratio.  As of the last day of each fiscal quarter, the Company will not permit the Consolidated Interest Coverage Ratio for the Reference Period ending on such day to be less than 3.00 to 1.00.
		

		
			(c)    Restricted Group EBITDA for Original Entities.  As of the last day of each fiscal quarter, the Company will not permit Consolidated EBITDA attributable to Original Entities to be less than 85% of the sum of (i) Consolidated EBITDA attributable to Original Entities plus (ii) all adjustments to or exclusions from Consolidated EBITDA attributable to Unrestricted Subsidiaries which are Original Entities.
		

		
			Section 10.4.    Indebtedness.  The Company will not and will not permit any Restricted Subsidiary to:
		

		
			(a)    create, issue, incur, assume, become liable in respect of or suffer to exist any Indebtedness of the Company or any Subsidiary Guarantor if, after giving effect thereto, on a pro forma basis, the Company would not be in compliance with Section 10.3(a) as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1(a) and Section 7.1(b);  provided that (i) if such Indebtedness is incurred in connection with a Material Acquisition permitted under this Agreement, for purposes of complying with the Consolidated Leverage Ratio in Section 10.3(a),  (x) Consolidated EBITDA of the 
		

		 

		

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		Company and its Restricted Subsidiaries shall be calculated on a pro forma basis to give effect to such acquisition in the manner set forth in clause (ii) of the definition of “Consolidated EBITDA” hereunder and (y) if the Company has delivered a Leverage Ratio Step-Up Notice in connection with such Material Acquisition in accordance with Section 10.3(a) above, the maximum Consolidated Leverage Ratio for purposes of such compliance shall be 3.50 to 1.00 and and (ii) subject to Section 10.8(g),  the Company and the Subsidiary Guarantors shall be permitted to create, issue, incur, assume, become liable in respect of and suffer to exist Indebtedness owing to the Company or any Subsidiary of the Company.
		

		
			(b)    create, issue, assume, become liable in respect of or suffer to exist any Priority Debt, except:
		

		
			(i)     Indebtedness incurred in connection with Securitizations permitted by Section 10.7; 
		

		
			(ii)    subject to Section 10.8(g), (A) Indebtedness of the Company or any Subsidiary Guarantor owing to the Company or any Subsidiary of the Company, (B) Indebtedness of any Restricted Subsidiary that is not a Guarantor owing to the Company or any Subsidiary Guarantor and (C) Indebtedness of any Restricted Subsidiary that is not a Subsidiary Guarantor owing to any other Restricted Subsidiary that is not a Subsidiary Guarantor;  
		

		
			(iii)   other Priority Debt, provided that, at the time of creation, issuance, incurrence, assumption, becoming liable in respect thereof or existence thereof and after giving effect thereto, the sum of (x) the aggregate amount of Priority Debt (other than Priority Debt permitted by clauses (i), (ii) and (iv) of this Section 10.4(b)) then outstanding plus (y) the aggregate amount of Investments made pursuant to Section 10.8(g) by the Company and the Subsidiary Guarantors in Restricted Subsidiaries that are not Subsidiary Guarantors plus (z) the aggregate amount of Investments made pursuant to Section 10.8(g) by the Company and the Restricted Subsidiaries in Unrestricted Subsidiaries does not exceed the greater of $500,000,000 and 20% of Consolidated Tangible Assets as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1; and
		

		
			(iv)    secured Indebtedness outstanding under or pursuant to any Material Credit Facility incurred in compliance with Section 10.5(r) provided, that after giving effect thereto, on a pro forma basis, the Company would be in compliance with Section 10.3(a) as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1(a) and 7.1(b).
		

		
			Section 10.5.    Liens.  The Company will not, and will not permit any Restricted Subsidiary, to create, incur, assume or suffer to exist any Lien upon any of its property, whether now owned or hereafter acquired, except:
		

		
			(a)    Liens for taxes or other governmental charges or assessments not yet due or that are being contested in good faith by appropriate proceedings, provided that adequate reserves with 
		

		 

		

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		respect thereto are maintained on the books of the Company or its Restricted Subsidiaries, as the case may be, in conformity with GAAP;
		

		
			(b)    carriers’, warehousemen’s, mechanics’, materialmen’s, landlord’s, repairmen’s or other like Liens arising in the ordinary course of business that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings;
		

		
			(c)    pledges or deposits in connection with workers’ compensation, unemployment insurance and other social security legislation;
		

		
			(d)    deposits to secure the performance of bids, trade contracts (other than for borrowed money), leases, statutory obligations, obligations in favor of utility companies, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;
		

		
			(e)    easements, rights-of-way, restrictions, defects and irregularities in title and other similar encumbrances incurred in the ordinary course of business that, in the aggregate, are not substantial in amount and that do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the Company or any of its Restricted Subsidiaries;
		

		
			(f)    Liens in existence on the date hereof listed on Schedule 10.5, provided that no such Lien is spread to cover any additional property after the date hereof and that the amount of Indebtedness secured thereby is not increased above the original principal amount thereof;
		

		
			(g)    Liens securing Indebtedness of the Company or any Restricted Subsidiary (including, without limitation, Capital Lease Obligations) permitted under Section 10.4(a) to finance the acquisition, construction or improvement of fixed or capital assets or to secure the purchase price of fixed or capital assets, provided that (i) such Liens shall be created within 90 days of the acquisition, construction or improvement of such fixed or capital assets, (ii) such Liens do not at any time encumber any property other than such fixed or capital assets and (iii) the amount of Indebtedness or purchase price obligation secured thereby is not increased above the original principal amount thereof;
		

		
			(h)    any interest or title of a lessor under any lease entered into by the Company or any Restricted Subsidiary in the ordinary course of its business and covering only the assets so leased, and licenses and sublicenses granted by the Company or any Restricted Subsidiary in the ordinary course of business;
		

		
			(i)    Liens in favor of the holders of the Notes under the Note Documents;
		

		
			(j)    Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business; 
		

		

		

		 

		

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						Note Purchase and Private Shelf Agreement

				

		

			 

		

		(k)    Liens in favor of collecting banks arising by operation of law under the Uniform Commercial Code covering only the items being collected upon and Liens (including the right of set-off) in favor of a bank or other depository institution arising in the ordinary course of business as a matter of law encumbering deposits;
		

		
			(l)    Liens arising from the filing of UCC financing statements solely as a precautionary measure in connection with operating leases or consignments of goods;
		

		
			(m)    Liens arising out of conditional sale, title retention, consignment or similar arrangements for sales of goods (including Article 2 of the UCC), and Liens that are contractual rights of set-off relating to purchase orders and other similar agreements, in each case entered into in the ordinary course of business; 
		

		
			(n)    Liens created pursuant to attachment, garnishee orders or other process in connection with pre-judgment court proceedings, and Liens securing judgments for the payment of money not constituting an Event of Default under Section 11(j);
		

		
			(o)    Liens on assets subject to, and incurred under, merger agreements, stock or asset purchase agreements and similar purchase agreements in respect of the Disposition of such assets by the Company or its Restricted Subsidiaries in a Disposition permitted hereunder; 
		

		
			(p)    Liens on any asset at the time the Company or any of its Restricted Subsidiaries acquired such asset and Liens on the assets of a Person existing at the time such Person was acquired by the Company or any of its Restricted Subsidiaries, including any acquisition by means of a merger, amalgamation or consolidation with or into the Company or any of its Restricted Subsidiaries; subject to the condition that (i) any such Lien may not extend to any other asset of the Company or any of its Restricted Subsidiaries; and (ii) any such Lien shall not have been created in contemplation of or in connection with the transaction or series of transactions pursuant to which such asset or Person was acquired by the Company or any of its Restricted Subsidiaries;
		

		
			(q)    Liens on Securitization Assets in connection with Securitizations permitted by Section 10.7; 
		

		
			(r)    Liens securing Priority Debt permitted to be incurred by Section 10.4(b) provided, that such Liens incurred pursuant to this Section 10.5(r) shall not secure any Indebtedness outstanding under or pursuant to any Material Credit Facility unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including an intercreditor agreement and opinions of counsel to the Company and/or any such Restricted Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Required Holders; 
		

		
			(s)    Liens that secure Swap Agreements to which the Company or any Restricted Subsidiary is a party, provided that the aggregate fair market value of all assets subject to such Liens does not at any time exceed $30,000,000 in the aggregate; and
		

		

		

		 

		

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						Note Purchase and Private Shelf Agreement

				

		

			 

		

		(t)    Liens not otherwise permitted under this Section 10.5, provided that the aggregate fair market value of all assets subject to such Liens does not at any time exceed $30,000,000 in the aggregate, and, provided, that such Liens incurred pursuant to this Section 10.5(t) shall not secure any Indebtedness outstanding under or pursuant to any Material Credit Facility unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including an intercreditor agreement and opinions of counsel to the Company and/or any such Restricted Subsidiary, as the case may be, from counsel that is reasonably acceptable to the Required Holders.
		

		
			Section 10.6.    Fundamental Changes.  The Company will not, and will not permit any Restricted Subsidiary, to enter into any merger, consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), or Dispose of all or substantially all of its property or business, except that:
		

		
			(a)    (i) any Subsidiary of the Company may be merged or consolidated with or into the Company (provided that the Company shall be the continuing or surviving corporation) or with or into any Subsidiary Guarantor (provided that a Subsidiary Guarantor shall be the continuing or surviving corporation), (ii) any Restricted Subsidiary that is not a Subsidiary Guarantor may be merged or consolidated with or into any other Restricted Subsidiary of the Company that is not a Subsidiary Guarantor and (iii) any Unrestricted Subsidiary may be merged or consolidated with or into any Restricted Subsidiary that is not a Subsidiary Guarantor (provided that the Restricted Subsidiary shall be the continuing or surviving corporation);  
		

		
			(b)    (i) any Subsidiary of the Company may Dispose of any or all of its assets (A) to the Company or any Subsidiary Guarantor (upon voluntary liquidation or otherwise) or (B) pursuant to a Disposition permitted by Section 10.7 and (ii) any Restricted Subsidiary that is not a Subsidiary Guarantor may Dispose of any or all of its assets to any other Restricted Subsidiary that is not a Subsidiary Guarantor;
		

		
			(c)    any Disposition permitted by Section 10.7 may be effected through a merger, consolidation or amalgamation;
		

		
			(d)    any Investment expressly permitted by Section 10.8 may be effected through a merger, consolidation or amalgamation; and
		

		
			(e)    any Restricted Subsidiary (other than a Subsidiary Guarantor) may liquidate, wind up or dissolve if the Company determines in good faith that such liquidation, winding-up or dissolution is in the best interest of the Company and is not materially disadvantageous to the holders of the Notes;
		

		
			provided that immediately before and immediately after giving effect to any transaction or series of transactions permitted by this Section 10.6, no Default or Event of Default shall have occurred or be continuing
		

		

		

		 

		

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		Section 10.7.    Disposition of Property.  The Company will not, and will not permit any Restricted Subsidiary, to dispose of any of its property, whether now owned or hereafter acquired, or, in the case of any Restricted Subsidiary, issue or sell any shares of such Subsidiary’s Capital Stock to any Person, except:
		

		
			(a)    the Disposition of obsolete or worn out property in the ordinary course of business;
		

		
			(b)    the sale of inventory in the ordinary course of business;
		

		
			(c)    Dispositions permitted by clauses (i)(A) and (ii) of Section 10.6(b);
		

		
			(d)    the sale or issuance of any Restricted Subsidiary’s Capital Stock to the Company or any Subsidiary Guarantor;
		

		
			(e)    sales of Securitization Assets in Securitizations, provided that (i) each such Securitization is effected on market terms as reasonably determined by the management of the Company and (ii) the aggregate amount of Third Party Interests in respect of all such Securitizations does not exceed $100,000,000 at any time outstanding; 
		

		
			(f)    a sale-leaseback by the Company or its Restricted Subsidiaries of fixed assets for fair market value in a transaction not otherwise prohibited hereunder, provided that (x) such assets were first acquired by the Company or its Restricted Subsidiaries no earlier than 180 days prior to the date of such sale-leaseback and (y) the fair market value of assets Disposed of pursuant to this paragraph (f) shall not exceed $10,000,000 in the aggregate in any fiscal year; 
		

		
			(g)    the payment of cash dividends to the holders of the Company’s outstanding Capital Stock and the payment of cash dividends to the holders of any Restricted Subsidiary’s outstanding Capital Stock on a pro rata basis;
		

		
			(h)    Dispositions of Cash Equivalents and marketable securities for a purchase price that is not less than fair market value of the Investments being sold in connection with the cash management operations of the Company and its Restricted Subsidiaries in the ordinary course of business; 
		

		
			(i)    the sale or issuance of the Company’s or any Restricted Subsidiary’s Capital Stock under compensation arrangements and employee benefits plans approved by the board of directors of the Company or such Restricted Subsidiary;
		

		
			(j)    Dispositions of property by any Restricted Subsidiary that is not a Subsidiary Guarantor to any other Restricted Subsidiary that is not a Subsidiary Guarantor;
		

		
			(k)    Dispositions of property by the Company or any Restricted Subsidiary to the Company or any Subsidiary Guarantor; and
		

		
			(l)    the Disposition of other property, provided that, at the time of such Disposition, the fair market value of the property so Disposed, together with the fair market value of all other 
		

		 

		

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		property Disposed under this Section 10.7(l) during such fiscal year of the Company, shall not exceed 25% of Consolidated Tangible Assets (determined as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1).
		

		
			Section 10.8.    Investments.  The Company will not, and will not permit any Restricted Subsidiary, to make any advance, loan, extension of credit (by way of guaranty or otherwise) or capital contribution to, or purchase any Capital Stock, bonds, notes, debentures or other debt securities of, or any assets constituting a business unit of, or make any other investment in, any Person (all of the foregoing, “Investments”), except:
		

		
			(a)    extensions of trade credit in the ordinary course of business;
		

		
			(b)    Investments in Cash Equivalents;
		

		
			(c)    Guarantee Obligations permitted by Section 10.4;
		

		
			(d)    Investments consisting of Sellers’ Retained Interests in Securitizations permitted by Section 10.7;
		

		
			(e)    Investments listed in Schedule 10.8 committed on the date hereof;
		

		
			(f)    Investments received by the Company or any of its Restricted Subsidiaries in connection with the bankruptcy or reorganization of customers and suppliers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business;
		

		
			(g)    Investments by the Company or its Restricted Subsidiaries in the Company or any of its Subsidiaries; provided that, (i) the sum of (x) the aggregate amount of Investments made pursuant to this clause (g) by the Company and the Subsidiary Guarantors in Restricted Subsidiaries that are not Subsidiary Guarantors plus (y) the aggregate amount of Investments made pursuant to this clause (g) by the Company and its Restricted Subsidiaries in Unrestricted Subsidiaries plus (z) the aggregate amount of Priority Debt created, issued assumed or incurred by the Company or its Restricted Subsidiaries pursuant to Section 10.4(b)(iii) does not exceed the greater of $500,000,000 and 20% of Consolidated Tangible Assets as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1 and (ii) such Investments pursuant to this clause (g) by the Company and the Subsidiary Guarantors in Restricted Subsidiaries that are not Subsidiary Guarantors and such Investments pursuant to this clause (g) by the Company and its Restricted Subsidiaries in Unrestricted Subsidiaries may only be made so long as no Default or Event of Default shall then exist or would exist after giving effect thereto; provided,  further, that the sum of (i) the aggregate principal amount of Indebtedness of the Unrestricted Subsidiaries outstanding at any time with respect to which the Company and its Restricted Subsidiaries have Guarantee Obligations that were incurred pursuant to this clause (g) plus (ii) the aggregate principal amount of Indebtedness of the Unrestricted Subsidiaries outstanding at such time with respect to which Company and its 
		

		 

		

			-37-

		

 

			

					

						 

					

					

						 

				
	

					

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						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Restricted Subsidiaries have Guarantee Obligations that were incurred pursuant to Section 10.8(i) does not exceed $300,000,000;
		

		
			(h)    Investments consisting of loans to employees and officers for travel, housing, relocation and other similar expenses incurred in the ordinary course of business not to exceed $5,000,000 at any time outstanding (so long as such loans do not violate the Sarbanes-Oxley Act of 2002 or any other Requirement of Law); and
		

		
			(i)    other Investments, provided that (i) no Default or Event of Default shall have occurred and be continuing or would result therefrom, (ii) the Company shall be in compliance with the covenants set forth in Section 10.3 as of the last day of the immediately preceding fiscal quarter for which financial statements have been delivered pursuant to Section 7.1 after giving effect, on a pro forma basis, to such Investment as if it had occurred on the first day of the relevant period and (iii) in the case of Investments in excess of $100,000,000, the Company shall have delivered to the holders of the Notes a certificate of a Responsible Officer certifying the satisfaction of the foregoing conditions and setting forth in reasonable detail the calculations necessary to determine compliance with clause (ii) above and (iv) the sum of (A) the aggregate principal amount of Indebtedness of the Unrestricted Subsidiaries outstanding at such time with respect to which the Company and its Restricted Subsidiaries have Guarantee Obligations that were incurred pursuant to this clause (i) plus (B) the aggregate principal amount of Indebtedness of the Unrestricted Subsidiaries outstanding at such time with respect to which the Company and its Restricted Subsidiaries have Guarantee Obligations that were incurred pursuant to Section 10.8(g) does not exceed $300,000,000.
		

		
			Section 10.9.    Transactions with Affiliates.  The Company will not, and will not permit any Restricted Subsidiary, to enter into any transaction, including any purchase, sale, lease or exchange of property, the rendering of any service or the payment of any management, advisory or similar fees, with any Affiliate (other than the Company or any Subsidiary Guarantor) unless such transaction is (a)(i) not otherwise prohibited hereunder and (ii) upon fair and reasonable terms no less favorable to the relevant Group Member than it could obtain in a comparable arm’s length transaction with a Person that is not an Affiliate; (b) disclosed or reflected on Schedule 10.9, (c) compensation arrangements, indemnification agreements and employee benefits plans for officers and directors duly approved by the board of directors of the Company or such Restricted Subsidiary, or (d) in connection with transactions made in accordance with Section 10.6 or 10.8, provided that this Section 10.9 shall not prohibit any sale of Securitization Assets and other transactions effected as part of Securitizations permitted by Section 10.7.
		

		
			Section 10.10.    Changes in Fiscal Periods. The Company will not, and will not permit any Restricted Subsidiary to, except as may be required by GAAP, permit the fiscal year of the Company to end on a day other than the Saturday closest to August 31 or change the Company’s method of determining fiscal quarters except, in each case, where (i) the Company has given not less than six (6) months prior written notice to each holder of Notes of any change of the foregoing, and (ii) at the time of any such change and immediately after giving effect thereto, no Default or Event of Default has occurred and is continuing (it being understood that, if any such change shall cause any fiscal year to be shorter or longer than 12 months or any fiscal quarter to be shorter or 
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		longer than three months, any monetary limitations per fiscal year or per fiscal quarter, as applicable, set forth in this Agreement shall be adjusted ratably for such shorter or longer period).
		

		
			Section 10.11.    Clauses Restricting Subsidiary Distributions.  The Company will not, and will not permit any Restricted Subsidiary, to enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary of the Company to (a) make Restricted Payments in respect of any Capital Stock of such Restricted Subsidiary held by, or pay any Indebtedness owed to, the Company or any other Restricted Subsidiary of the Company, (b) make loans or advances to, or other Investments in, the Company or any other Restricted Subsidiary of the Company or (c) transfer any of its assets to the Company or any other Restricted Subsidiary of the Company, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under the Note Documents, (ii) any restrictions or conditions imposed by any law, rule, regulation, ordinance, order, code, interpretation, judgment, decree, directive, guidelines, policy or similar form of decision of any Governmental Authority, (iii) customary restrictions and conditions contained in licenses, leases and franchise agreements, (iv) restrictions or conditions in respect of transfers or distributions affecting property or assets subject to a Lien permitted under Section 10.5, (v) restrictions or conditions contained in instruments and agreements evidencing Indebtedness for borrowed money permitted to be incurred under Section 10.4, that are taken as a whole no more restrictive than such restrictions and conditions contained in this Agreement, (vi) restrictions or conditions contained in (A) any joint venture agreements, partnership agreements and other agreements relating to any Joint Venture, provided such restrictions or conditions apply only to the assets or property owned by such Joint Venture or (B) any instruments or agreements evidencing third party Indebtedness for borrowed money incurred by any Joint Venture, provided that such restrictions apply only to the assets or property owned by such Joint Venture and such Indebtedness is not otherwise prohibited by this Agreement, (vii) any restrictions with respect to a Restricted Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Capital Stock or assets of such Restricted Subsidiary and (viii) customary restrictions contained in any documents relating to any Securitizations, provided such restrictions only apply to the applicable Securitization Vehicle and its assets or the Securitization Assets.
		

		
			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)    the Company defaults in the performance of or compliance with any term contained in Section 7.1(d), Section 9.5 (with respect to the Company only) or Section 10; or
		

		

		

		 

		

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		(d)    the Company or any Subsidiary Guarantor 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 the Subsidiary Guaranty and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer 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(d)); or
		

		
			(e)    (i) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any certificate, document or financial statement or writing furnished under or in connection with this Agreement proves to have been false or incorrect in any material respect on the date as of which made, or (ii) any representation or warranty made in writing by or on behalf of any Subsidiary Guarantor or by any officer of such Subsidiary Guarantor in the Subsidiary Guaranty or any writing furnished in connection with such Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or
		

		
			(f)    (i) the Company or any Restricted 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 $50,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Restricted Subsidiary is in default in the performance of or compliance with any agreement or instrument evidencing Indebtedness in an aggregate outstanding principal amount of at least $50,000,000 (or its equivalent in the relevant currency of payment) 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 (iii) as a consequence of the occurrence or continuation of any event or condition (other than (1) the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests or (2) any payment or prepayment of Indebtedness of a Person required as a result of (A) the acquisition of such Person (or of all or substantially all of the property of such Person) by the Company or any Restricted Subsidiary or (B) a due on sale provision becoming applicable in connection with a disposition by the Company or a Restricted Subsidiary, provided, that, in each case, (i) such payment or prepayment is consummated within 30 days after such acquisition or disposition and (ii) at the time of such payment or prepayment and immediately after giving effect thereto, no Default or Event of Default otherwise exists hereunder), (x) the Company or any Restricted Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $50,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Restricted Subsidiary so to purchase or repay such Indebtedness; or
		

		
			(g)    the Company or any Restricted Subsidiary (excluding any Immaterial Restricted Subsidiary that is not a Subsidiary Guarantor) (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 
		

		 

		

			-40-

		

 

			

					

						 

					

					

						 

				
	

					

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						Note Purchase and Private Shelf Agreement

				

		

			 

		

		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 Restricted Subsidiaries (excluding any Immaterial Restricted Subsidiary that is not a Subsidiary Guarantor), a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property and such order shall not be dismissed within 60 days, or an order 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 Restricted Subsidiaries (excluding any Immaterial Restricted Subsidiary that is not a Subsidiary Guarantor), or any such petition shall be filed against the Company or any of its Restricted Subsidiaries (excluding any Immaterial Restricted Subsidiary that is not a Subsidiary Guarantor) and such petition shall not be dismissed within 60 days; or
		

		
			(i)    any event occurs with respect to the Company or any Restricted Subsidiary (excluding any Immaterial Restricted Subsidiary that is not a Subsidiary Guarantor) which under the laws of any jurisdiction is analogous to any of the events described in Section 11(g) or Section 11(h), provided that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely corresponds to the proceeding described in Section 11(g) or Section 11(h); or
		

		
			(j)    one or more final judgments or orders for the payment of money aggregating in excess of $50,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding arbitration decision, are rendered against one or more of the Company and its Restricted Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or
		

		
			(k)    if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) there is any “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under one or more Plans, determined in accordance with Title IV of ERISA, (iv) the aggregate present value of accrued benefit liabilities under all funded Non‐U.S. Plans exceeds the aggregate current value of the assets of such Non‐U.S. Plans allocable to such liabilities, (v) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or 
		

		 

		

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						Note Purchase and Private Shelf Agreement

				

		

			 

		

		IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (vi) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, (vii) the Company or any Restricted Subsidiary establishes or amends any employee welfare benefit plan that provides post‐employment welfare benefits in a manner that would increase the liability of the Company or any Restricted Subsidiary thereunder, (viii) the Company or any Restricted Subsidiary fails to administer or maintain a Non‐U.S. Plan in compliance with the requirements of any and all applicable laws, statutes, rules, regulations or court orders or any Non‐U.S. Plan is involuntarily terminated or wound up, or (ix) the Company or any Restricted Subsidiary becomes subject to the imposition of a financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more Non‐U.S. Plans; and any such event or events described in clauses (i) through (ix) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect.  As used in this Section 11(k), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA; or
		

		
			(l)    except as a result of a transaction expressly permitted by this Agreement, the Subsidiary Guaranty shall cease to be in full force and effect, any Subsidiary Guarantor or any Person acting on behalf of any Subsidiary Guarantor shall contest in any manner the validity, binding nature or enforceability of the Subsidiary Guaranty, or the obligations of any Subsidiary Guarantor under the Subsidiary Guaranty are not or cease to be legal, valid, binding and enforceable in accordance with the terms of such Subsidiary Guaranty.
		

		

		

		 

		

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			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), (h) or (i) (other than an Event of Default described in clause (i) of 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 this 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 interest accrued thereon at the Default Rate) and (y) the Make‐Whole Amount determined in respect of such principal amount, 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 may proceed to protect and enforce the rights of such holder 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 Subsidiary Guaranty, 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.
		

		
			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 
		

		 

		

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		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 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, the Subsidiary Guaranty or any Note upon any holder thereof 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 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.  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 (a) 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 and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement, except as otherwise provided in Section 14.3.  Prior to due presentment for registration of transfer, the Person in whose name any Note 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 10 Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes of the same Series (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‐A or 
		

		 

		

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		Exhibit 1-B, as appropriate.  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 stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not 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 of a Series, one Note of such Series 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 of such Notes 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 $100,000,000 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 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note of the same Series, 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.    Payment by Wire Transfer.  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, but subject to Section 14.3, 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 the Purchaser Schedule, 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 
		

		 

		

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		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, 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.  Subject to Section 14.3, 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 14.3.    Withholding Tax.  By acceptance of any Note, the holder of such Note (including any Substitute Purchaser, successor or assignee), agrees that such holder (including any Substitute Purchaser, successor or assignee) is the beneficial owner or a nominee of the beneficial owner  (each such beneficial owner, a  “Beneficial Owner”) of all payments under such Note and will prior to the applicable Closing (or prior to becoming a Substitute Purchaser, successor or assignee) duly complete and deliver (or, in the case of a nominee, cause the Beneficial Owner to duly complete and deliver) to the Company, or to such other Person as may be reasonably requested by the Company from time to time, such Beneficial Owner’s United States tax identification number on Internal Revenue Service Form W-9 or other Forms reasonably requested by the Company necessary to establish such Beneficial Owner’s status as a United States Person under the Code and the Treasury regulations thereunder and as may otherwise be necessary for the Company to comply with its obligations under the Code and the Treasury regulations thereunder.  If the Beneficial Owner (or its nominee) is unable or fails to provide the documents described in the preceding sentence, the Company shall have the right to deduct any withholding tax required by law from any payment made under such Note, provided that, if the Beneficial Owner (or its nominee) provides additional documentation satisfactory to the Company that such payment is entitled to a reduced or zero withholding tax rate the Company may deduct at such reduced or zero rate.  Any withholding tax deducted by the Company pursuant to this Section 14.3 shall be deemed to have been paid to the holder in full satisfaction of the Company’s payment obligations under such Note and 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, supplements, waivers or consents under or in respect of this Agreement, the Subsidiary Guaranty or the Notes (whether or not such amendment, waiver or consent becomes effective), including: (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 Subsidiary Guaranty or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement, the Subsidiary Guaranty or the Notes, or by reason of being a holder of any Note, (b) the costs and 
		

		 

		

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		expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Restricted Subsidiary or in connection with any work‐out or restructuring of the transactions contemplated hereby and by the Notes and the Subsidiary Guaranty 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 $3,500 per Series of Note.  If required by the NAIC, the Company shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).    
		

		
			The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) 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), (ii) any and all wire transfer fees that any bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys’ fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby, including the use of the proceeds of the Notes by the Company.
		

		
			Section 15.2.    Certain Taxes.  The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or the Subsidiary Guaranty or the execution and delivery (but not the transfer) or the enforcement of any of the Notes in the United States or any other jurisdiction where the Company or any Subsidiary Guarantor has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or the Subsidiary Guaranty or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 15, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid by the Company hereunder.
		

		
			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 Subsidiary Guaranty or the Notes, and the termination of this Agreement.
		

		
			Section 16.    Survival of  Representations and  Warranties; Entire Agreement.
		

		
			All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, 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 pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement.  Subject to the preceding sentence, this Agreement, the Notes and any Subsidiary Guaranties embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.
		

		

		

		 

		

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		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 prospectively), only with the written consent of the Company and the Required Holders, except that:
		

		
			(a)    no amendment or waiver of any of Sections 2 (other than Section 2.1 and 2.2), 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)    (1) with the written consent of the Company and Prudential (and without the consent of any other holder of Notes), the provisions of Section 1, 2.1 or 2.2 may be amended or waived (except insofar as any such amendment or waiver would affect any rights or obligations with respect to the purchase and sale of Notes which shall have become Accepted Notes prior to such amendment or waiver), and (2) with the written consent of the Company and all of the Purchasers which shall have become obligated to purchase Accepted Notes of any Series (and not without the written consent of all such Purchasers), any of the provisions of Sections 2.1, 2.2 and 4 may be amended or waived insofar as such amendment or waiver would affect only rights or obligations with respect to the purchase and sale of the Accepted Notes of such Series or the terms and provisions of such Accepted Notes; and
		

		
			(c)     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 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 Sections 8 (except as set forth in the second sentence of Section 8.2), 11(a), 11(b), 12, 17 or 20.
		

		
			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 or of the Notes or the Subsidiary Guaranty.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 17 or the Subsidiary Guaranty 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 the Subsidiary Guaranty or any Note unless such remuneration is 
		

		 

		

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		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 given pursuant to this Section 17 or the Subsidiary Guaranty by a holder of a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Restricted Subsidiary or any other Affiliate or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates, in each case in connection with such consent, 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 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 or the Subsidiary Guaranty 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 and no delay in exercising any rights hereunder or under any Note or Subsidiary Guaranty 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 Subsidiary Guaranty or the Notes, or have directed the taking of any action provided herein or in the Subsidiary Guaranty or the Notes 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.
		

		
			Except to the extent otherwise provided in Section 7.4, all notices and communications provided for hereunder shall be in writing and sent (a) by fax 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 (charges prepaid).  Any such notice must be sent:
		

		
			(i)     if to Prudential, to Prudential at the address specified below, or at such other address as Prudential shall have specified to the Company in writing:
		

		

		

		 

		

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		PGIM, Inc.
		

		
			c/o Prudential Capital Group
		

		
			1114 Avenue of the Americas, 30th Flr.
		

		
			New York, NY 10036
		

		
			Attention:  Managing Director
		

		
			Fax:  [omitted]
		

		
			(ii)    if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in the Purchaser Schedule, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,
		

		
			(iii)   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
		

		
			(iv)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of General Counsel, Fax: [omitted], 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.
		

		
			Section 19.    Reproduction of  Documents.
		

		
			This Agreement and all documents relating thereto, including (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing applicable to such Purchaser (except the Notes themselves), 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 Prudential or 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 as being confidential information of the Company or such Subsidiary when received by Prudential or such Purchaser (or is readily apparent as being confidential information of the Company or such Subsidiary) provided that such term does not include information that (a) was publicly known or 
		

		 

		

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		otherwise known to Prudential or such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by Prudential or such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to Prudential or such Purchaser other than through disclosure by the Company or any Subsidiary or any third party which is bound by a confidentiality agreement in respect of such information and Prudential or such Purchaser knows such disclosure is a breach of such confidentiality agreement of such third party or (d) constitutes financial statements delivered to Prudential or 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 Prudential or such Purchaser in good faith to protect confidential information of third parties delivered to Prudential or such Purchaser, provided that Prudential or 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 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 this Section 20), (v) any Person from which it offers to purchase any Security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by this Section 20), (vi) any federal or state regulatory authority having jurisdiction over Prudential or 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 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 Prudential or such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent Prudential or 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 Prudential or such Purchaser’s Notes, this Agreement or the Subsidiary Guaranty.  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 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, Prudential, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other confidentiality undertaking.
		

		

		

		 

		

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		Section 21.    Substitution of  Purchaser.
		

		
			Subject to Section 14.3, each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or any one of such other Purchaser’s Affiliates (a “Substitute Purchaser”) 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 Substitute Purchaser, shall contain such Substitute Purchaser’s agreement to be bound by this Agreement and shall contain a confirmation by such Substitute Purchaser 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 Substitute Purchaser in lieu of such original Purchaser.  In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such Substitute Purchaser, 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 any subsequent holder of a Note) whether so expressed or not, except that, subject to Section 10.6, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.
		

		
			Section 22.2.    Accounting Terms.  Except as otherwise expressly provided herein, 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 this Agreement (including Section 9, Section 10 and the definition of “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic No. 825‐10‐25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made.
		

		
			If the Company notifies the holders of the Notes that the Company requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Required Holders notify the Company that the Required Holders request an amendment to any provision hereof for 
		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith; provided, further that for purposes of calculating the ratios, requirements or covenants under this Agreement, any obligations of a Person under a lease (whether existing on the date of Closing or entered into thereafter) that is not (or would not be) required to be classified and accounted for as a Capital Lease Obligation on a balance sheet of such Person prepared in accordance with GAAP as in effect on the date of Closing shall not be treated as a Capital Lease Obligation or Indebtedness pursuant to this Agreement solely as a result of (x) the adoption of changes in GAAP after the date of Closing (including, for the avoidance of doubt, any changes in GAAP as set forth in the FASB Accounting Standards Update 2016‐2 Leases (Topic 842) issued in February 2016), or (y) changes in the application of GAAP after the date of Closing (including, for the avoidance of doubt, any changes in GAAP as set forth in the FASB Accounting Standards Update 2016‐2 Leases (Topic 842) issued in February 2016).
		

		
			Section 22.3.    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 22.4.    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.
		

		
			Defined terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall also include any such notes issued in substitution therefor pursuant to Section 13, (b) subject to Section 22.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Section 22.5.    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 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 22.6.    Governing Law.  This Agreement and the Notes 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 22.7.    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 or the Notes.  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 agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment.
		

		
			(c)    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 22.7(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation 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.
		

		
			(d)    Nothing in this Section 22.7 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.
		

		
			(e)    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. 
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		Section 22.8.    Transaction References.    The Company agrees that each of Prudential, the Purchasers and their respective Affiliates may (a) refer to its or their role in purchasing the Notes, as well as the identity of the Company and the aggregate principal amount and the date of the applicable Closing in respect of the Notes on its internet site or in marketing materials, press releases, published “tombstone” announcements or any other print or electronic medium and (b) display the Company’s corporate logo in conjunction with any such reference.
		

		
			﻿
		

		
			*    *    *    *    *
		

		
			﻿
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		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,

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						MSC Industrial  Direct  Co., Inc.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						/s/ Rustom Jilla

				
	
					
						﻿

					
					
						 

					
					
						Name:

					
					
						Rustom Jilla

				
	
					
						﻿

					
					
						 

					
					
						Title:

					
					
						Executive Vice President and Chief Financial Officer

				

		
			﻿
		

		

		

		 

		

			-56-

		

 

			

					

						 

					

					

						 

				
	

					

						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		This Agreement is hereby
		

		
			accepted and agreed to as 
		

		
			of the date hereof.
		

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Prudential  Retirement  Insurance and  Annuity  Company

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						PGIM, Inc.,

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						as investment manager

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						/s/ Eric Seward

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Vice President

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Farmers  New  World Insurance  Company

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, L.P. (as Investment Advisor)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, Inc. (as its General Partner)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						/s/ Eric Seward

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Vice President

				

		
			﻿
		

		

		

		 

		

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						MSC Industrial Direct Co., Inc.

					

					

						Note Purchase and Private Shelf Agreement

				

		

			 

		

		
		

		
			﻿
		

		
			This Agreement is hereby
		

		
			accepted and agreed to as 
		

		
			of the date hereof.
		

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						The  Independent Order of  Foresters

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, L.P.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						(as Investment Advisor)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, Inc. (as its General Partner)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						s/ Eric Seward

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Vice President

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						United of  Omaha  Life  Insurance  Company

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, L.P.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						(as Investment Advisor)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						Prudential Private Placement Investors, Inc. (as its General Partner)

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						By:

					
					
						/s/ Eric Seward

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Vice President

				

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			-58-

		

 

		

			 

		

		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:
		

		
			“Acceptance” is defined in Section 2.2(e).
		

		
			“Acceptance Day” is defined in Section 2.2(e).
		

		
			“Acceptance Window” means, with respect to any Quotation, the time period designated by Prudential during which the Company may elect to accept such Quotation, which shall be given by Prudential in connection with their furnishing of a Quotation to the Company.
		

		
			“Accepted Note” is defined in Section 2.2(e).
		

		
			“Affiliate” means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.
		

		
			“Agreement” means this Note Purchase Agreement, including all Schedules attached to this Agreement, as it may be amended, restated, supplemented or otherwise modified from time to time and includes any applicable Request for Purchase or Confirmation of Acceptance delivered in connection with this Agreement.
		

		
			“Anti‐Corruption Laws” means any law or regulation in a U.S. or any non‐U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.
		

		
			“Anti‐Money Laundering Laws” means any law or regulation in a U.S. or any non‐U.S. jurisdiction regarding money laundering, drug trafficking, terrorist‐related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act.
		

		
			“Available Facility Amount” is defined in Section 2.2(a).
		

		
			“Beneficial Owner” is defined in Section 14.3.
		

		
			“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).
		

		

		

		 

		

			Schedule  A
(to Note Purchase Agreement)

		

 

		

			 

		

		“Business Day” means 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.
		

		
			“Called Principal” is defined in Section 8.6.
		

		
			“Cancellation Date” is defined in Section 2.2(g)(ii).
		

		
			“Cancellation Fee” is defined in Section 2.2(g)(ii).
		

		
			“Capital Lease Obligations” means, 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 Agreement, the amount of such obligations at any time shall be the capitalized amount thereof at such time determined in accordance with GAAP.
		

		
			“Capital Stock” means, any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing.
		

		
			“Cash Equivalents” means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition; (b) certificates of deposit, time deposits, eurodollar time deposits or overnight bank deposits having maturities of twelve months or less from the date of acquisition issued by any Lender (as defined in the Credit Agreement) or by any commercial bank organized under the laws of the United States or any state thereof having combined capital and surplus of not less than $500,000,000; (c) commercial paper of an issuer rated at least A-1 by Standard & Poor’s Financial Services LLC (“S&P”) or P-1 by Moody’s Investors Service, Inc. (“Moody’s”), or carrying an equivalent rating by a nationally recognized rating agency, if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally, and maturing within six months from the date of acquisition; (d) repurchase obligations of any Lender (as defined in the Credit Agreement) or of any commercial bank satisfying the requirements of clause (b) of this definition, having a term of not more than 30 days, with respect to securities issued or fully guaranteed or insured by the United States government; (e) securities with maturities of one year 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 six months or less from the date of acquisition backed by standby letters of credit issued by any Lender (as defined in the Credit Agreement) or any commercial bank satisfying the requirements of clause (b) of this definition; (g) money market mutual or similar funds that invest exclusively in assets satisfying the requirements of clauses (a) through (f) of this definition; or (h) money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as 
		

		 

		

			A-2

		

 

		

			 

		

		amended, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000.
		

		
			“Change in Control”  is defined in Section 8.7(f).
		

		
			“Closing” is defined in Section 3.1.
		

		
			“Closing Day” means, with respect to the Series A Notes, the date set for closing pursuant to Section 3.1 and, with respect to any Accepted Note, the Business Day specified for the closing of the purchase and sale of such Accepted Note in the Confirmation of Acceptance for such Accepted Note, provided that (i) if the Company and the Purchaser which is obligated to purchase such Accepted Note agree on an earlier Business Day for such closing, the “Closing Day” for such Accepted Note shall be such earlier Business Day, and (ii) if the closing of the purchase and sale of such Accepted Note is rescheduled pursuant to Section 3.3, the Closing Day for such Accepted Note, for all purposes of this Agreement except references to “original Closing Day” in Section 2.2(g)(i), shall mean the Rescheduled Closing Day with respect to such Accepted Note.
		

		
			“Code” means the Internal Revenue Code of 1986 and the rules and regulations promulgated thereunder from time to time.
		

		
			“Company” is defined in the first paragraph of this Agreement.
		

		
			“Confidential Information” is defined in Section 20.
		

		
			“Confirmation of Acceptance” is defined in Section 2.2(e).
		

		
			“Consolidated EBITDA” means for any period: 
		

		
			(1)    Consolidated Net Income for such period;
		

		
			plus, 
		

		
			(2)    without duplication and to the extent reflected as a charge in the statement of such Consolidated Net Income for such period, the sum of (a) income tax expense, (b) interest expense, amortization or writeoff of debt discount and debt issuance costs and commissions, discounts and other fees and charges associated with Indebtedness, (c) depreciation and amortization expense, (d) amortization of intangibles (including, but not limited to, goodwill) and organization costs, (e) any non-cash charges or expenses (including for employee stock compensation) (excluding any non-cash charges or expenses representing accruals or reserves in the ordinary course of business for cash charges in a future period) and (f) any extraordinary, unusual or non-recurring expenses or losses;
		

		
			minus, 
		

		
			(3)    to the extent included in the statement of such Consolidated Net Income for such period, the sum of (i) interest income, (ii) any extraordinary, unusual or non-recurring 
		

		 

		

			A-3

		

 

		

			 

		

		income or gains (including, whether or not otherwise includable as a separate item in the statement of such Consolidated Net Income for such period, gains on the sales of assets outside of the ordinary course of business), (iii) income tax credits (to the extent not netted from income tax expense) and (iv) any other non-cash income (including the reversal of any reserve in respect of items described in clause (e) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income),
		

		
			minus, 
		

		
			(4)    any cash payments made during such period in respect of items described in clause (2)(e) above subsequent to the fiscal quarter in which the relevant non-cash expenses or losses were reflected as a charge in the statement of Consolidated Net Income (but only to the extent the relevant non-cash expenses or losses were added back to Consolidated Net Income in accordance with clause (2)(e) above). 
		

		
			For the purposes of calculating Consolidated EBITDA for any Reference Period, (i) if at any time during such Reference Period the Company or any Restricted Subsidiary shall have made any Material Disposition, the Consolidated EBITDA for such Reference Period shall be reduced by an amount equal to the Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such Reference Period or increased by an amount equal to the Consolidated EBITDA (if negative) attributable thereto for such Reference Period and (ii) if during such Reference Period the Company or any Restricted Subsidiary shall have made a Material Acquisition (as defined below), Consolidated EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such Reference Period and after giving pro forma effect to any adjustments (including, without limitation, operating and expense reductions) as would be permitted to be reflected in pro forma financial information complying with the requirements of Article 11 of Regulation S‐X under the Securities Act of 1933, as amended (and the interpretations of the SEC thereunder).
		

		
			“Consolidated Interest Coverage Ratio” means, for any period, the ratio of (a) Consolidated EBITDA for such period to (b) Consolidated Interest Expense for such period.
		

		
			“Consolidated Interest Expense” means, for any period, total cash interest expense (including that attributable to Capital Lease Obligations) of the Company and its Restricted Subsidiaries for such period determined on a consolidated basis in accordance with GAAP (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and Securitizations 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).  For purposes of the foregoing, gross interest expense shall be determined after giving effect to any net payments received or paid by the Company or its Restricted Subsidiaries under interest rate protection agreements, the effect of which is required to be reflected in the Company’s income statement under “Interest Expense”.
		

		
			“Consolidated Leverage Ratio” means, as at the last day of any period, the ratio of (a) Consolidated Total Debt on such day to (b) Consolidated EBITDA for such period.
		

		

		

		 

		

			A-4

		

 

		

			 

		

		“Consolidated Net Income” means, for any period, the consolidated net income (or loss) of the Company and its Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP; provided that (i) there shall be excluded (a) except as provided in the definition of Consolidated EBITDA, the income (or deficit) of any Person accrued prior to the date it becomes a Restricted Subsidiary of the Company or is merged into or consolidated with the Company or any of its Restricted Subsidiaries, (b) the income (or deficit) of any Person (other than a Restricted Subsidiary of the Company) in which the Company or any of its Restricted Subsidiaries has an ownership interest, except to the extent that any such income is actually received by the Company or such Restricted Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Restricted Subsidiary of the Company to the extent that the declaration or payment of dividends or similar distributions by such Restricted Subsidiary is not at the time permitted by the terms of any Contractual Obligation (other than any restrictions permitted pursuant to clause (vi) of Section 10.11 or arising under any Note Document) or Requirement of Law applicable to such Restricted Subsidiary and (ii) there shall be no exclusion for the consolidated net income attributable to the non-controlling interest (minority interest) in any Joint Venture which is a Restricted Subsidiary.
		

		
			“Consolidated Tangible Assets” means, at any date, the total assets of the Company and its Restricted Subsidiaries at such date, as determined on a consolidated basis in accordance with GAAP, less the Intangible Assets of the Company and its Restricted Subsidiaries.  For purposes of this definition, “Intangible Assets” means the amount of (i) all write-ups in the book value of any asset owned by the Company or a Restricted Subsidiary and (ii) all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights and other intangible assets of the Company and its Restricted Subsidiaries, determined on a consolidated basis in accordance with GAAP.  For clarity, Consolidated Tangible Assets shall not include assets of Unrestricted Subsidiaries except to the extent of the value of the equity investment of the Company therein.
		

		
			“Consolidated Total Debt” means, at any date, the aggregate principal amount of all Indebtedness of the Company and its Restricted Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP and set forth on the consolidated balance sheet of the Company and its Restricted Subsidiaries (excluding any items that appear solely in the footnotes thereto in accordance with GAAP).
		

		
			“Continuing Directors” means the directors of the Company on the date hereof and each other director, if, in each case, either (x) such other director’s nomination for election to the board of directors of the Company is recommended by a majority  of the then Continuing Directors or (y) such other director’s appointment to the board of directors of the Company was approved by at least a majority of the then Continuing Directors.
		

		
			“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
		

		
			“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 
		

		 

		

			A-5

		

 

		

			 

		

		securities, by contract or otherwise; and the terms “Controlled” and “Controlling” shall have meanings correlative to the foregoing.
		

		
			“Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.
		

		
			“Credit Agreement” means the Credit Agreement dated as of April 14, 2017 among the Company, JPMorgan Chase Bank, N.A., as administrative agent and, the other Lenders (as defined therein) which are party thereto, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof.
		

		
			“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,” for any Series of Note, means that rate of interest per annum that is the greater of (a) 2% above the rate of interest stated in clause (a) of the first paragraph of the Notes of such Series or (b) 2% over the rate of interest publicly announced by JPMorgan Chase Bank N.A. in New York, New York as its “base” or “prime” rate.
		

		
			“Delayed Delivery Fee” is defined in Section 2.2(g)(i).
		

		
			“Designated Subsidiary” is defined in Section 9.7.
		

		
			“Disclosure Documents” is defined in Section 5.3.
		

		
			“Discounted Value” is defined in Section 8.6.
		

		
			“Disposition” means, with respect to any property, any sale, lease, sale and leaseback, assignment, conveyance, transfer or other disposition thereof.  The terms “Dispose” and “Disposed of” shall have correlative meanings.
		

		
			“EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval System or any successor SEC electronic filing system for such purposes.
		

		
			“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including those related to Hazardous Materials.
		

		
			“ERISA” means the Employee Retirement Income Security Act of 1974 and the rules and regulations promulgated thereunder from time to time in effect. 
		

		
			“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Company under section 414 of the Code.
		

		

		

		 

		

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		“Event of Default” is defined in Section 11.
		

		
			“Facility” is defined in Section 2.2(a).
		

		
			“GAAP” means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.6, with respect to any Subsidiary, generally accepted accounting principles (including International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Subsidiary.
		

		
			“Governmental Authority” means
		

		
			(a)    the government of
		

		
			(i)     the United States of America or any state or other political subdivision thereof, or
		

		
			(ii)    any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or
		

		
			(b)    any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.
		

		
			“Governmental Official” means any governmental official or employee, employee of any government‐owned or government‐controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.
		

		
			“Group Members” means the Company and its Restricted Subsidiaries.
		

		
			“Guarantee Obligation” means, as to any Person (the “guaranteeing Person”), any obligation, including a reimbursement, counterindemnity or similar obligation, of the guaranteeing Person that guarantees or in effect guarantees, or which is given to induce the creation of a separate obligation by another Person (including any bank under any letter of credit) that guarantees or in effect guarantees, any Indebtedness, leases, dividends or other obligations (the “primary obligations”) of any other third Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of the guaranteeing Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) 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 (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business.  The amount of any 
		

		 

		

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		Guarantee Obligation of any guaranteeing Person shall be deemed to be the lower of (a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing Person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be such guaranteeing Person’s maximum reasonably anticipated liability in respect thereof as determined by the Company in good faith.
		

		
			“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:
		

		
			(a)    to purchase such indebtedness or obligation or any property constituting security therefor;
		

		
			(b)    to advance or supply funds (i) for the purchase or payment of such indebtedness or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such indebtedness or obligation;
		

		
			(c)    to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such indebtedness or obligation of the ability of any other Person to make payment of the indebtedness or obligation; or
		

		
			(d)    otherwise to assure the owner of such indebtedness or obligation against loss in respect thereof.
		

		
			In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.
		

		
			“Hazardous Materials” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.
		

		
			“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 
		

		 

		

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		and any related definitions in this Schedule A, “holder” shall mean the beneficial owner of such Note whose name and address appears in such register.
		

		
			“Immaterial Restricted Subsidiary” means any Restricted Subsidiary of the Company the revenues (excluding intercompany revenues) of which for the Reference Period ended as of the end of the most recently completed fiscal quarter for which financial statements have been delivered pursuant to Section 7.1 do not exceed $50,000,000.
		

		
			“INHAM Exemption” is defined in Section 6.2(e).
		

		
			“Indebtedness” of any Person at any date, without duplication, means (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than current trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations of such Person, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of acceptances, letters of credit, surety bonds or similar arrangements, (g) all Guarantee Obligations of such Person in respect of obligations of the kind referred to in clauses (a) through (f), (h) all obligations of the kind referred to in clauses (a) through (g) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation, (i) all Securitization Attributable Indebtedness incurred in by such Person connection with any Securitization in which such Person participates, and (j) for the purposes of Section 11(f) only, the Swap Termination Value (but in no event to be an amount less than zero) in respect of Swap Agreements to which such Person is a party;  provided, however, that “Indebtedness” of the Company and its Restricted Subsidiaries shall not include any amounts owed or other obligations of the Company or any Restricted Subsidiary related to the Taxable Special Obligation Development Lease Revenue Bonds (Sid Tool Co., Inc. Project) dated December 4, 2012 in the aggregate principal amount of up to $35,000,000 pursuant to that certain Bond Advance Agreement and Assignment of Lease and Rental Payments, dated as of December 4, 2012. The Indebtedness of any Person shall include the Indebtedness of any other entity (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 expressly provide that such Person is not liable therefor.
		

		
			“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 10% 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.
		

		

		

		 

		

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		“Issuance Period” is defined in Section 2.2(b).
		

		
			“Investments” is defined in Section 10.8.
		

		
			“Joint Venture” means (a) a Subsidiary a portion of the Capital Stock of which is owned by a Person or Persons other than (x) the Group Members and (y) Persons holding directors’ qualifying shares or other similar interests and (b) any Person owned directly or indirectly, in whole or in part, by any Subsidiary described in the foregoing clause (a).
		

		
			“Leverage Ratio Step-Up Notice”  is defined in Section 10.3(a).
		

		
			“Leverage Ratio Step-Up Period”  is defined in Section 10.3(a).
		

		
			“Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other security interest or any preference, priority or other security agreement or preferential arrangement in the nature of a security interest of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any capital lease having substantially the same economic effect as any of the foregoing).
		

		
			“Make‐Whole Amount” is defined in Section 8.6.
		

		
			“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties, of the Company and its Subsidiaries taken as a whole.
		

		
			“Material Acquisition” means any acquisition of property or series of related acquisitions of property that (a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (b) involves the payment of consideration by the Company and its Restricted Subsidiaries in excess of $100,000,000. 
		

		
			“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Restricted Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement and the Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under its Subsidiary Guaranty, or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary Guaranty.
		

		
			“Material Credit Facility” means, as to the Company and its Subsidiaries:
		

		
			(a)    the Credit Agreement;
		

		
			(b)    the Amended and Restated Note Purchase Agreement dated as of April 14, 2017 among the Company, New York Life Insurance Company and the other institutional investors party thereto, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof;
		

		

		

		 

		

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		(c)    the Note Purchase and Private Shelf Facility Agreement dated as of January 12, 2018 among the Company, MetLife Investment Advisors, LLC and the other institutional investors party thereto, including any renewals, extensions, amendments, supplements, restatements, replacement or refinancing; and
		

		
			(d)    any other note purchase agreement, shelf facility or other similar institutional private placement financing providing for the issuance or sale of debt securities, including any renewals, extensions, amendments, supplements, restatements, replacements or refinancings thereof.
		

		
			“Material Disposition” means any Disposition of property or series of related Dispositions of property that yields gross proceeds to the Company or any of its Restricted Subsidiaries in excess of $100,000,000.
		

		
			“Maturity Date” is defined in the first paragraph of each Note.
		

		
			“Prudential” is defined in the first paragraph of this Agreement.
		

		
			“Prudential Party” means any affiliate of Prudential and any Related Purchaser.
		

		
			“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).
		

		
			“NAIC” means the National Association of Insurance Commissioners.
		

		
			“NAIC Annual Statement” is defined in Section 6.2(a).
		

		
			“Non‐U.S. Plan” means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Restricted Subsidiary primarily for the benefit of employees of the Company or one or more Restricted Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.
		

		
			“Note Documents” means this Agreement, the Subsidiary Guaranty, the Notes and any amendment, supplement or other modification to any of the foregoing.
		

		
			“Notes” is defined in Section 1.2.
		

		
			“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
		

		
			“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.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.
		

		

		

		 

		

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		“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate.
		

		
			“Original Entities” means those the Company and the Subsidiaries listed on Schedule 10.3 hereto. 
		

		
			“Overnight Interest Rate” means with respect to an Accepted Note, the actual rate of interest, if any, received by the Purchaser which intends to purchase such Accepted Note on the overnight deposit of the funds intended to be used for the purchase of such Accepted Note, it being understood that reasonable efforts will be made by or on behalf of the Purchaser to make any such deposit in an interest bearing account.
		

		
			“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA.
		

		
			“Permitted Investors” means the collective reference to (a) Mitchell Jacobson, (b) Marjorie Gershwind Fiverson, (c) Erik Gershwind, (d) Stacey Bennett, (e) the heirs, executors, administrators, testamentary trustees, legatees or beneficiaries of Mitchell Jacobson, Marjorie Gershwind Fiverson, Erik Gershwind or Stacey Bennett including, but not limited to, such one or more organizations to which transfers are deductible for Federal, estate, gift or income tax purposes and (f) any trust, business trust, limited liability company or other entity, the beneficiaries, beneficial owners or equity holders of which include only Mitchell Jacobson, Marjorie Gershwind Fiverson, Erik Gershwind, Stacey Bennett, their spouses, their lineal descendants and any other members of their families, and such one or more organizations to which transfers are deductible for Federal, estate, gift, or income tax purposes.
		

		
			“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.
		

		
			“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.
		

		
			“Priority Debt” without duplication, means (a) all Indebtedness of Restricted Subsidiaries which are not Subsidiary Guarantors, (b) all Indebtedness of the Company or any of its Restricted Subsidiaries secured by a Lien other than Liens permitted by Section 10.5(d) through Section 10.5(o) and (c) all Indebtedness of the Company or any of its Restricted Subsidiaries incurred in connection with any Securitization.
		

		
			“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
		

		
			“Proposed Prepayment Date”  is defined in Section 8.7(b).
		

		

		

		 

		

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		“PTE” is defined in Section 6.2(a).
		

		
			“Purchaser” or “Purchasers” is defined in the first paragraph of this Agreement and also includes 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.
		

		
			“Purchaser Schedule” means collectively (a) the Purchaser Schedule to this Agreement in the case of the Series A Notes and (b) each Purchaser Schedule attached to the applicable Confirmation of Acceptance in the case of any Shelf Notes.
		

		
			“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.
		

		
			“QPAM Exemption” is defined in Section 6.2(d).
		

		
			“Quotation” shall have the meaning provided in Section 2.2(d).
		

		
			“Reference Period” means any period of four consecutive fiscal quarters.
		

		
			“Related Fund” means, with respect to any holder of any Note, any fund or entity that (a) invests in Securities or bank loans, and (b) 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 Purchaser” means any client that is advised or managed by Prudential, any Affiliate of Prudential or any client, managed account, investment fund or other vehicle for which Prudential or any Affiliate of Prudential acts as investment advisor or portfolio manager.
		

		
			“Reinvestment Yield” is defined in Section 8.6.
		

		
			“Remaining Average Life” is defined in Section 8.6.
		

		
			“Remaining Scheduled Payments” is defined in Section 8.6.
		

		
			“Reported” is defined in Section 8.6.
		

		
			“Request for Purchase” is defined in Section 2.2(c).
		

		
			“Required Holders” means at any time on or after the Series A Closing, the holders of at least 51% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates).  If, at any time, there are no issued and outstanding Notes under this Agreement, then Required Holders shall mean Prudential.
		

		

		

		 

		

			A-13

		

 

		

			 

		

		“Requirement of Law” means, as to any Person, the Certificate of Incorporation and By‐Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, 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.
		

		
			“Rescheduled Closing Day” is defined in Section 3.3.
		

		
			“Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement.
		

		
			“Restricted Payment” means any payment of dividends, any payment on account of the purchase, redemption, defeasance, retirement or other acquisition of any Capital Stock and any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of any Group Member.
		

		
			“Restricted Subsidiary” means any Subsidiary of the Company other than an Unrestricted Subsidiary.
		

		
			“SEC” means the Securities and Exchange Commission of the United States of America.
		

		
			“Securities” or “Security” shall have the meaning specified in section 2(1) of the Securities Act. 
		

		
			“Securities Act” means the Securities Act of 1933 and the rules and regulations promulgated thereunder from time to time in effect.
		

		
			“Securitization” means any transaction or series of transactions entered into by the Company or any Restricted Subsidiary pursuant to which the Company or such Restricted Subsidiary, as the case may be, sells, conveys or otherwise transfers to a Securitization Vehicle Securitization Assets of the Company or such Restricted Subsidiary (or grants a security interest in such Securitization Assets transferred or purported to be transferred to such Securitization Vehicle), and which Securitization Vehicle finances the acquisition of such Securitization Assets (i) with proceeds from the issuance or sale of Third Party Interests, (ii) with Sellers’ Retained Interests and/or (iii) with proceeds from the sale or collection of Securitization Assets previously purchased by such Securitization Vehicle.
		

		
			“Securitization Assets” means any accounts receivable owed to or owned by the Company or any Restricted Subsidiary (whether now existing or arising or acquired in the future) arising in the ordinary course of business from the sale of goods or services, all collateral securing such accounts receivable, all contracts and contract rights and all guarantees or other obligations in respect of such accounts receivable, all proceeds of such accounts receivable and other assets (including contract rights) which are of the type customarily transferred in connection with securitizations of accounts receivable and which are sold, transferred or otherwise conveyed by the Company or a Restricted Subsidiary to a Securitization Vehicle in connection with a Securitization permitted by Section 10.7.
		

		

		

		 

		

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		“Securitization Attributable Indebtedness” means the amount of obligations outstanding under the legal documents entered into as part of any accounts receivable securitization or similar transaction relating to accounts receivable originated by the Company or any Restricted Subsidiary on any date of determination that corresponds to the outstanding net investment (including loans) of, or cash purchase price paid by, the unaffiliated third party purchasers or financial institutions participating in such transaction and, as such, would be characterized as principal if such securitization were structured as a secured lending transaction rather than as a purchase (or, to the extent structured as a secured lending transaction, is principal).  For the avoidance of doubt, “Securitization Attributable Indebtedness” shall not include (a) obligations that correspond to a deferred purchase price or other consideration owing to the Company or any Restricted Subsidiary funded on a deferred basis from the proceeds of the collections on such receivables, a subordinated interest held by the Company or any Restricted Subsidiary or the reserve or over-collateralization established or maintained for the benefit of the unaffiliated third party purchasers or financial institutions participating in such transaction, and (b) obligations arising under uncommitted factoring arrangements and similar uncommitted sale transactions.
		

		
			“Securitization Vehicle” means a Person that is a direct wholly owned Subsidiary of the Company or a Restricted Subsidiary formed for the purpose of effecting one or more Securitizations to which the Company or its Restricted Subsidiaries transfer Securitization Assets and which, in connection therewith, issues or sells Third Party Interests or Sellers’ Retained Interests; provided that such Securitization Vehicle shall engage in no business other than the purchase of Securitization Assets pursuant to Securitizations permitted by Section 10.7, the issuance or sale of Third Party Interests or other funding of such Securitizations and any activities reasonably related thereto, and provided further that:
		

		
			(x)    no portion of the Indebtedness or any other obligations (contingent or otherwise) of such Securitization Vehicle (i) is guaranteed by the Company or any Restricted Subsidiary (excluding guarantees of obligations (other than the principal of and interest on Indebtedness) pursuant to Standard Securitization Undertakings), (ii) is with recourse to or obligates the Company or any Restricted Subsidiary (other than such Securitization Vehicle) of the Company in any way other than pursuant to Standard Securitization Undertakings, or (iii) subjects any property or asset of the Company or any Restricted Subsidiary (other than such Securitization Vehicle)of the Company, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings; 
		

		
			(y)    neither the Company nor any Restricted Subsidiary has any material contract, agreement, arrangement or understanding with such Securitization Vehicle other than on terms which the Company reasonably believes to be no less favorable to the Company or such Restricted Subsidiary than those that might be obtained at the time from Persons that are not Affiliates of the Company and other than Standard Securitization Undertakings; and
		

		

		

		 

		

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		(z)    neither the Company nor any Restricted Subsidiary has any obligation to maintain or preserve such Securitization Vehicle’s financial condition or cause such Securitization Vehicle to achieve certain levels of operating results.
		

		
			“Sellers’ Retained Interests” means the debt or equity interests held by or deferred purchase price payable to the Company or any Restricted Subsidiary in a Securitization Vehicle to which Securitization Assets have been transferred in a Securitization permitted by Section 10.7, including any such debt, equity or deferred purchase price received in consideration for the Securitization Assets transferred.
		

		
			“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.
		

		
			“Series” is defined in Section 1.2.
		

		
			“Series A Closing” is defined in Section 3.1.
		

		
			“Series A Notes” is defined in Section 1.1.
		

		
			“Series A Purchasers” are the entities as listed in the Purchaser Schedule hereto.
		

		
			“Settlement Date” is defined in Section 8.6.
		

		
			“Shelf Closing” means, with respect to any Accepted Note, the closing of the sale and purchase for such Accepted Note on the applicable Closing Day for such Accepted Note as provided for in Section 3.2.
		

		
			“Shelf Notes” is defined in Section 1.2.
		

		
			“Source” is defined in Section 6.2.
		

		
			“State Sanctions List” means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.
		

		
			“Step-Up Interest” is defined in Section 10.3(a).
		

		
			“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its 
		

		 

		

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		Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.
		

		
			“Subsidiary Guarantor” means each Restricted Subsidiary that has executed and delivered the Subsidiary Guaranty or joined such Subsidiary Guaranty by executing a joinder thereto.
		

		
			“Subsidiary Guaranty” means that certain guaranty dated as of the date hereof by the Subsidiary Guarantors party thereto for the benefit of the holders of the Notes substantially in the form of Exhibit 2.3, as amended, restated or otherwise modified from time to time.
		

		
			“Subsidiary Guaranty Supplement” is defined in Section 9.6(a)(i).
		

		
			“Substitute Purchaser” is defined in Section 21.
		

		
			“SVO” means the Securities Valuation Office of the NAIC.
		

		
			“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar 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; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Company or any of its Subsidiaries shall be a “Swap Agreement”.
		

		
			  “Swap Termination Value” means, in respect of any Swap Agreement, after taking into account the effect of any legally enforceable netting agreement relating thereto, (a) for any date on or after the date such Swap Agreement has been closed out and the termination value has been determined in accordance therewith, such termination value and (b) for any date prior to the date referenced in clause (a), the amount determined as the mark-to-market value for such Swap Agreement, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Agreement.
		

		
			“Third Party Interests” means, with respect to any Securitization, notes, bonds or other debt instruments, beneficial interests in a trust, undivided ownership interests in receivables or other securities issued or sold for cash consideration by the relevant Securitization Vehicle to banks, financing conduits, investors or other financing sources (other than the Company and its Restricted Subsidiaries) the proceeds of which are used to finance, in whole or in part, the purchase by such Securitization Vehicle of Securitization Assets in a Securitization. The amount of any Third Party Interests shall be deemed to equal the aggregate principal, stated or invested amount of such Third Party Interests which are outstanding at such time.
		

		
			“United States Person” has the meaning set forth in Section 7701(a)(30) of the Code.
		

		

		

		 

		

			A-17

		

 

		

			 

		

		“Unrestricted Subsidiary” means any Subsidiary of the Company designated by the board of directors of the Company as an Unrestricted Subsidiary pursuant to Section 9.7.
		

		
			“Unrestricted Designation” means the designation in accordance with Section 9.7 of (i) any Restricted Subsidiary as an Unrestricted Subsidiary and (ii) any designation of a newly created or acquired Subsidiary as an Unrestricted Subsidiary.
		

		
			“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 and the rules and regulations promulgated thereunder from time to time in effect.
		

		
			“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program.
		

		
			 
		

		

		

		 

		

			A-18

		

 

		

			 

		

		Schedule 5.3
		

		
			Disclosure  Materials
		

		
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			None.
		

		
			 
		

		

		

		 

		

			Schedule 5.3
(to Note Purchase Agreement)

		

 

		

			 

		

		Schedule 5.4
		

		
			﻿
		

		
			Subsidiaries of the Company and
Ownership of Subsidiary Stock
		

		
			﻿
		

		
			(i)     Subsidiaries
		

		
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						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
						 

					
						 

				
	
					
						Name of  Subsidiary

					
					
						Jurisdiction

					
					
						Percentage of each class of  Capital  Stock owned by the  Company or any  Subsidiary

					
					
						Subsidiary  Guarantor
(Yes/No)

					
					
						Restricted

					
						Subsidiary

					
						(Yes/No)

				
	
					
						MSC Acquisition Corp III

					
					
						New York

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						MSC Acquisition Corp VI

					
					
						New York

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						MSC Acquisition Corp VII

					
					
						New York

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						MSC Foreign Properties Corporation

					
					
						Delaware

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						MSC Services Corp.

					
					
						New York

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						Primeline International, Inc.

					
					
						New York

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						Sid Tool Co., Inc.

					
					
						New York

					
					
						100% owned by the Company

					
					
						Yes

					
					
						Yes

				
	
					
						Mission Real Estate Acquisition Company

					
					
						Delaware

					
					
						100% owned by Sid Tool Co., Inc. 

					
					
						No

					
					
						Yes

				
	
					
						Swiss Precision Instruments Inc.

					
					
						California

					
					
						100% owned by the Company

					
					
						No

					
					
						Yes

				
	
					
						J&L America, Inc.

					
					
						Michigan

					
					
						100% owned by MSC Acquisition Corp VI

					
					
						Yes

					
					
						Yes

				
	
					
						American Specialty Grinding Co., Inc.

					
					
						Massachusetts

					
					
						100% owned by Sid Tool Co., Inc.

					
					
						No

					
					
						Yes

				
	
					
						MSC Contract Management, Inc.

					
					
						New York

					
					
						100% owned by Sid Tool Co., Inc.

					
					
						Yes

					
					
						Yes

				
	
					
						MSC Industrial Supply ULC

					
					
						British Columbia, Canada

					
					
						100% owned by Sid Tool Co., Inc.

					
					
						No

					
					
						Yes

				
	
					
						MSC Industrial Supply Co.

					
					
						UK

					
					
						100% owned by J & L America, Inc.

					
					
						No

					
					
						Yes

				

		

		

		 

		

			Schedule 5.4
(to Note Purchase Agreement)

		

 

		

			 

		

		﻿
		

			
					
						Name of  Subsidiary

					
					
						Jurisdiction

					
					
						Percentage of each class of  Capital  Stock owned by the  Company or any  Subsidiary

					
					
						Subsidiary  Guarantor
(Yes/No)

					
					
						Restricted

					
						Subsidiary

					
						(Yes/No)

				
	
					
						Deco Tool, an MSC Company, LLC

					
					
						Delaware

					
					
						100% owned by Sid Tool Co., Inc.

					
					
						Yes

					
					
						Yes

				
	
					
						MSC Acquisition Subsidiary LLC

					
					
						Delaware

					
					
						100% owned by Sid Tool Co., Inc.

					
					
						No

					
					
						Yes

				

		
			﻿
		

		
			(ii)    Affiliates:
		

		
			1.    Each of Mitchell Jacobson, Marjorie Gershwind Fiverson and the Mitchell L. Jacobson 2005 GRAT No. 2 Trust own more than 10% of voting power of the Company’s outstanding equity securities. For additional detail regarding beneficial ownership of the Company’s securities, please refer to the “Security Ownership Of Certain Beneficial Owners And Management” section of the Company’s most recent proxy statement.
		

		
			2.    The Directors and Senior Officers of the Company.
		

		
			(iii)   Company’s Directors and Senior Officers:
		

		
			Directors
		

		
			﻿
		

		
			Jonathan Byrnes 
		

		
			Roger Fradin
		

		
			Erik Gershwind
		

		
			Louise Goeser
		

		
			Mitchell Jacobson
		

		
			Michael Kaufmann
		

		
			Denis Kelly
		

		
			Steven Paladino 
		

		
			Philip Peller
		

		

		

		 

		

			5.4-2

		

 

		

			 

		

		
		

		
			Senior Officers
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						Erik Gershwind 

					
					
						President and Chief Executive Officer

				
	
					
						Rustom Jilla 

					
					
						Executive Vice President and Chief Financial Officer

				
	
					
						Douglas Jones 

					
					
						Executive Vice President and Chief Supply Chain Officer

				
	
					
						Steven Baruch 

					
					
						Executive Vice President, Chief Strategy and Marketing Officer

				
	
					
						Steve Armstrong 

					
					
						Senior Vice President, General Counsel and Corporate Secretary

				
	
					
						Charles Bonomo 

					
					
						Senior Vice President and Chief Information Officer

				
	
					
						Christopher Davanzo 

					
					
						Senior Vice President, Finance and Corporate Controller

				
	
					
						Kari Heerdt 

					
					
						Senior Vice President and Chief People Officer

				
	
					
						Gregory Polli 

					
					
						Senior Vice President, Product Management

				
	
					
						David Wright 

					
					
						Senior Vice President, Sales

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			5.4-3

		

 

		

			 

		

		Schedule 5.5
		

		
			﻿
		

		
			Financial  Statements
		

		
			1.    Audited consolidated financial statements of the Company for the fiscal years ending August 31, 2013, August 30, 2014, August 29, 2015, September 3, 2016, and September 2, 2017.
		

		
			2.    Unaudited consolidated interim financial statements of the Company for the fiscal quarter ending December 2, 2017.
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 5.5
(to Note Purchase Agreement)

		

 

		

			 

		

		Schedule 5.15
		

		
			﻿
		

		
			Existing  Indebtedness
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Instrument

					
					
						Obligor(s)

					
					
						Obligee

					
					
						Principal  Amount Outstanding1

					
					
						Collateral

				
	
					
						Note Purchase Agreement dated July 28, 2016, for 2.65% Senior Notes, Series A, due July 28, 2023 and 2.90% Senior Notes, Series B, due July 28, 2026

					
					
						MSC Industrial Direct Co., Inc. (Issuer)

					
						MSC Contract Management, Inc. (Guarantor)

					
						Sid Tool Co., Inc. (Guarantor)

					
						J&L America, Inc. (Guarantor)

					
						Deco Tool, an MSC Company, LLC (Guarantor)

					
					
						New York Life Insurance Company 

					
						and

					
						The other noteholders from time to time party thereto

					
					
						Series A: 

					
						$75,000,000

					
						 

					
						Series B:

					
						$100,000,000

					
					
						None.

				
	
					
						Credit Agreement dated April 14, 2017

					
					
						MSC Industrial Direct Co., Inc. (Borrower)

					
						MSC Contract Management, Inc. (Guarantor)

					
						Sid Tool Co., Inc. (Guarantor)

					
						J&L America, Inc. (Guarantor)

					
						Deco Tool, an MSC Company, LLC (Guarantor)

					
					
						JPMorgan Chase Bank, N.A.

					
						and

					
						The several Lenders from time to time party thereto

					
					
						$291,000,000

					
					
						None.

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			________________________
		

		
			1 As of December 2, 2017.
		

		

		

		 

		

			Schedule 5.15
(to Note Purchase Agreement)

		

 

		

			 

		

		
		

		
			﻿
		

			
					
						Instrument

					
					
						Obligor(s)

					
					
						Obligee

					
					
						Principal  Amount Outstanding

					
					
						Collateral

				
	
					
						MSC Contract Management, Inc. has entered into various equipment leases with International Business Machines Corporation – Lease agreements dated October 30, 2015, for hardware, software maintenance, and software licenses for the Power Series Hardware located in Atlanta to run the platform for our Legacy Development, Quality Assurance and Disaster Recovery systems.

					
					
						MSC Contract Management, Inc.

					
					
						IBM Corporation

					
					
						$689,208

					
					
						The respective leased property

				
	
					
						MSC Contract Management, Inc. has entered into a deferred financing arrangement with International Business Machines Corporation where terms provide installment payments under the Sirius Purchase Agreement. 

					
					
						MSC Contract Management, Inc.

					
					
						IBM Credit LLC

					
					
						$721,337

					
					
						The respective leased property

				

		
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			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			-2-

		

 

		

			 

		

		Schedule 10.3
		

		
			Original  Entities
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						Name of Entity

					
					
						Jurisdiction

				
	
					
						MSC Industrial Direct Co., Inc.

					
					
						New York

				
	
					
						MSC Acquisition Corp III

					
					
						New York

				
	
					
						MSC Acquisition Corp VI

					
					
						New York

				
	
					
						MSC Acquisition Corp VII

					
					
						New York

				
	
					
						MSC Foreign Properties Corporation

					
					
						Delaware

				
	
					
						MSC Services Corp.

					
					
						New York

				
	
					
						Primeline International, Inc.

					
					
						New York

				
	
					
						Sid Tool Co., Inc.

					
					
						New York

				
	
					
						Mission Real Estate Acquisition Company

					
					
						Delaware

				
	
					
						Swiss Precision Instruments Inc.

					
					
						California

				
	
					
						J&L America, Inc.

					
					
						Michigan

				
	
					
						American Specialty Grinding Co., Inc.

					
					
						Massachusetts

				
	
					
						MSC Contract Management, Inc.

					
					
						New York

				
	
					
						MSC Industrial Supply ULC

					
					
						British Columbia, Canada

				
	
					
						MSC Industrial Supply Co.

					
					
						UK

				
	
					
						Deco Tool, an MSC Company, LLC

					
					
						Delaware

				
	
					
						MSC Acquisition Subsidiary LLC

					
					
						Delaware

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 10.3
(to Note Purchase Agreement)

		

 

		

			 

		

		Schedule 10.5
		

		
			Existing  Liens
		

		
			Those Liens described in UCC financing statements filed against MSC Industrial Direct Co., Inc., Sid Tool Co., Inc. and MSC Contract Management, Inc. and in effect as of November 13, 2017, in each case, as debtor, securing leased equipment, hardware and software from various companies including IBM Credit LLC, SG Equipment Finance USA Corp., HYG Financial Services, Inc., and TCF Equipment Finance.  The aggregate amount of the obligations secured by such Liens as of the date hereof does not exceed $20,000,000.
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 10.5
(to Note Purchase Agreement)

		

 

		

			 

		

		Schedule 10.8
		

		
			Existing  Investments
		

		
			1.    Taxable Special Obligation Development Lease Revenue Bonds (Sid Tool Co., Inc. Project) dated December 4, 2012 in the aggregate principal amount of up to $35,000,000 pursuant to that certain Bond Advance Agreement and Assignment of Lease and Rental Payments, dated as of December 4, 2012.
		

		
			2.    Guarantee by Sid Tool Co., Inc., MSC Contract Management, Inc., J & L America, and Deco Tool, an MSC Company, LLC of the Note Purchase Agreement dated July 28, 2016, between MSC Industrial Direct Co., Inc. and New York Life Insurance Company and the other noteholders, for 2.65% Senior Notes, Series A, due July 28, 2023, in the aggregate principal amount of $75,000,000 and 2.90% Senior Notes, Series B, due July 28, 2026, in the aggregate principal amount of $100,000,000.
		

		
			3.    Guarantee by Sid Tool Co., Inc., MSC Contract Management, Inc., J & L America, and Deco Tool, an MSC Company, LLC of the Credit Agreement dated April 14, 2017, between MSC Industrial Direct Co., Inc., J.P. Morgan, as Administrative Agent and the lenders from time to time party thereto, for a five-year unsecured revolving loan facility in the aggregate amount of $600,000,000.
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 10.8
(to Note Purchase Agreement)

		

 

		

			 

		

		Schedule 10.9
		

		
			Existing  Transactions  with  Affiliates
		

		
			None.
		

		
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			﻿
		

		
			 
		

		

		

		 

		

			Schedule 10.9
(to Note Purchase Agreement)

		

 

		

			 

		

		[Form of  Series A Note]
		

		
			MSC Industrial  Direct  Co., Inc.
		

		
			3.04% Senior  Note, Series A, Due  January 12, 2023
		

		
			﻿
		

		
			No. [_____]
PPN [______________]
ORIGINAL PRINCIPAL AMOUNT:
ORIGINAL ISSUE DATE: January 12, 2018
INTEREST RATE: 3.04%
INTEREST PAYMENT DATES: January 12th and July 12th of each year
MATURITY DATE: January 12, 2023

		

		
			For Value Received, the undersigned, MSC Industrial Direct Co., Inc.  (herein called the “Company”), a corporation organized and existing under the laws of the State of New York, hereby promises to pay to [____________], or its registered assigns, the principal sum of [_____________________] Dollars (or so much thereof as shall not have been prepaid) on the Maturity Date specified above (or so much thereof as shall not have been prepaid), with interest (computed on the basis of a 360‐day year of twelve 30 day months) (a) on the unpaid balance hereof at the Interest Rate per annum specified above (subject to adjustment as provided in Section 10.3 of the Note Purchase Agreement referred to below), payable on each Interest Payment Date next succeeding the date hereof, and 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 (y) 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 (the “Default Rate”) from time to time equal to the greater of (i) 2% over the Interest Rate specified above (subject to adjustment as provided in Section 10.3 of the Note Purchase Agreement referred to below) or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York City, New York as its “base” or “prime” rate, payable on each Interest Payment Date 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 JPMorgan Chase Bank, N.A. in New York City, New York or at such other place 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 Notes (herein called the “Notes”) issued pursuant to the Note Purchase and Private Shelf Agreement, dated as of January 12, 2018 (as from time to time amended, the “Note Purchase Agreement”), between MSC Industrial Direct Co., Inc.,  PGIM, Inc. and each Prudential Party which becomes a party thereto 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 
		

		 

		

			Exhibit 1-A
(to Note Purchase Agreement)

		

 

		

			 

		

		indicated, capitalized terms used in this Note shall have the respective meanings ascribed to such terms in the 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, duly endorsed, or 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.
		

		
			Pursuant to the Subsidiary Guaranty, the Subsidiary Guarantors have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of all of its obligations contained in the Note Purchase Agreement all as more fully set forth in the Subsidiary Guaranty.
		

		
			This Note is 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.
		

		
			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.
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						MSC Industrial  Direct Co., Inc.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						[Title]

					
					
						 

				

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			1-A-2

		

 

		

			 

		

		[Form of  Shelf  Note]
		

		
			MSC Industrial  Direct  Co., Inc.
		

		
			[___%] Senior  Note, Series [___], due _______ __, ____
		

		
			﻿
		

		
			No. [_____]
PPN [______________]
ORIGINAL PRINCIPAL AMOUNT:
ORIGINAL ISSUE DATE:
INTEREST RATE:
INTEREST PAYMENT DATES:
MATURITY DATE:
PRINCIPAL PREPAYMENT DATES AND AMOUNTS:
		

		
			﻿
		

		
			For Value Received, the undersigned, MSC Industrial Direct Co., Inc.  (herein called the “Company”), a corporation organized and existing under the laws of the State of New York, hereby promises to pay to [____________], or its registered assigns, the principal sum of [_____________________] Dollars (or so much thereof as shall not have been prepaid) on [___________] [on the Maturity Date specified above (or so much thereof as shall not have been prepaid),][payable on the Principal Prepayment Dates and in the amounts specified above, and on the Maturity Date specified above in an amount equal to the unpaid balance of the principal hereof], with interest (computed on the basis of a 360‐day year of twelve 30 day months) (a) on the unpaid balance hereof at the Interest Rate per annum specified above (subject to adjustment as provided in Section 10.3 of the Note Purchase Agreement referred to below), payable on each Interest Payment Date next succeeding the date hereof, and 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 (y) 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 (the “Default Rate”) from time to time equal to the greater of (i) 2% over the Interest Rate specified above (subject to adjustment as provided in Section 10.3 of the Note Purchase Agreement referred to below) or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. from time to time in New York City, New York as its “base” or “prime” rate, payable on each Interest Payment Date 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 JPMorgan Chase Bank, N.A. in New York City, New York or at such other place 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 Notes (herein called the “Notes”) issued pursuant to the Note Purchase and Private Shelf Agreement, dated as of January 12, 2018 (as from time to time amended, the “Note Purchase Agreement”), between MSC Industrial Direct Co., Inc.,  PGIM, Inc. and each Prudential Party which becomes a party thereto and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance hereof, to have (i) agreed to 
		

		 

		

			Exhibit 1-B

		

		

			(to Note Purchase and Private Shelf Agreement)

		

 

		

			 

		

		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.
		

		
			This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or 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.
		

		
			Pursuant to the Subsidiary Guaranty, the Subsidiary Guarantors have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of all of its obligations contained in the Note Purchase Agreement all as more fully set forth in the Subsidiary Guaranty.
		

		
			[The Company will make required prepayments of principal on the dates and in the amounts specified above and 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.
		

		
			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.
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						MSC Industrial  Direct Co., Inc.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						[Title]

					
					
						 

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			1-B-2

		

		

			 

		

 

		

			 

		

		[Form of  Request for  Purchase]
		

		
			MSC Industrial  Direct  Co., Inc.
		

		
			﻿
		

		
			Reference is made to the Note Purchase and Private Shelf Agreement (the “Agreement”), dated as of January 12, 2018, between MSC Industrial Direct Co., Inc., a New York corporation (herein called the “Company”), PGIM, Inc. and each Prudential Party (as defined in the Agreement) which becomes a party thereto.  Capitalized terms used and not otherwise defined herein shall have the respective meanings specified in the Agreement.
		

		
			Pursuant to Section 2.1(c) of the Agreement, the Company hereby makes the following Request for Purchase:
		

		
			1.         Aggregate principal amount of
		

		
			the Shelf Notes covered hereby
		

		
			(the “Notes”)  ...................  [$__________]2
		

		
			2.         Interest Rate
		

		
			Interest Payment Period:  [quarterly or semiannually in arrears]
		

		
			3.         Individual specifications of the Notes:
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Principal Amount

					
					
						Final Maturity Date

					
					
						Principal Prepayment 
Dates and Amounts

					
					
						Interest 
Payment Period

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						[quarterly] 
[semi‐annual]

				

		
			﻿
		

		
			4.         Use of proceeds of the Notes:
		

		
			5.         Proposed day for the closing of the purchase and sale of the Notes: 
		

		
			6.         The purchase price of the Notes is to be transferred to:
		

		
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						﻿

					
						 

					
						 

					
					
						 

					
					
						 

				
	
					
						Name and Address 
and ABA Routing 
Number of Bank

					
					
						Number of Account

					
					
						Name & Telephone
 No. of Bank Officer

				
	
					
						﻿

					
					
						 

					
					
						 

				

		
			______________________
		

		
			2 Minimum principal amount of Notes is $10,000,000 and maximum principal amount shall not to exceed the Available Facility Amount.
		

		

		

		 

		

			Exhibit 2.2(c)

		

		

			(to Note Purchase and Private Shelf Agreement)

		

 

		

			

		

		
		

		
			7.         The Company certifies that (a) [except as set forth on Exhibit A hereto,] the representations and warranties contained in Section 5 of the Agreement are true on and as of the date of this Request for Purchase and (b) that there exists on the date of this Request for Purchase no Event of Default or Default.
		

		
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						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Dated:

					
					
						MSC Industrial  Direct Co., Inc.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						[Authorized Officer]

				

		
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			2.2(c)-2

		

		

			 

		

 

		

			

		

		
		

		
			[Exhibit A]
		

		
			﻿
		

		
			[Updated  Representations & Warranties]
		

		
			﻿
		

		
			The Section references hereinafter set forth correspond to the similar sections of the Agreement which are supplemented hereby:
		

		
			﻿
		

		
			 
		

		

		

		 

		

			2.2(c)-3

		

		

			 

		

 

		

			 

		

		[Form of  Confirmation of  Acceptance]
		

		
			MSC Industrial Direct  Co., Inc.
		

		
			﻿
		

		
			Reference is made to the Note Purchase and Private Shelf Agreement (the “Agreement”), dated as of January 12, 2018, between MSC Industrial Direct Co., Inc., a New York corporation (herein called the “Company”), PGIM, Inc. and each Prudential Party as defined in the Agreement which becomes a party thereto.  Capitalized terms used and not otherwise defined herein shall have the respective meanings specified in the Agreement.
		

		
			Prudential or the Prudential Party which is named below as a Purchaser of Shelf Notes hereby confirms the representations as to such Shelf Notes set forth in Section 6 of the Agreement, and agrees to be bound by the provisions of the Agreement applicable to the Purchasers or holders of the Notes.
		

		
			Pursuant to Section 2.1(e) of the Agreement, an Acceptance with respect to the following Accepted Shelf Notes is hereby confirmed:
		

		
			I.          Accepted Shelf Notes:  Aggregate principal amount of
		

		
			the Shelf Notes covered hereby
		

		
			(the “Notes”)  ...................  [$__________] 
		

		
			(A)      (a)       Name of Purchaser:
		

		
			(b)       Principal amount:
		

		
			(c)       Final maturity date:
		

		
			(d)       Interest rate:
		

		
			(e)       Notes payment period:  [_______] in arrears
		

		
			(f)       Payment and notice instructions: As set forth on attached Purchaser Schedule
		

		
			(B)       (a)       Name of Purchaser:
		

		
			(b)       Principal amount:
		

		
			(c)       Final maturity date:
		

		
			(d)       Interest rate:
		

		
			(e)       Notes payment period:  [_______] in arrears
		

		

		

		 

		

			Exhibit 2.2(e)

		

		

			(to Note Purchase and Private Shelf Agreement)

		

 

		

			 

		

		(f)       Payment and notice instructions: As set forth on attached Purchaser Schedule
		

		
			[(C), (D)..... same information as above.]
		

		
			II.         Closing Day:
		

		
			﻿
		

			
					
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						Dated: ______________

					
					
						MSC Industrial  Direct Co., Inc.

				
	
					
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						By: 

					
					
						 

				
	
					
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						Name: 

					
					
						 

				
	
					
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						Title: 

					
					
						 

				
	
					
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						Dated: 

					
					
						 

				
	
					
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						Dated: ______________

					
					
						 

					
					
						 

				
	
					
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						PGIM, Inc.

				
	
					
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						By: 

					
					
						 

				
	
					
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						Name: 

					
					
						 

				
	
					
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						Title: 

					
					
						 

				
	
					
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						[Purchasers of  Shelf  Notes]

				
	
					
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						By: 

					
					
						 

				
	
					
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						Name: 

					
					
						 

				
	
					
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						Title: 

					
					
						 

				

		
			﻿
		

		
			﻿
		

		
			[Attach Purchaser Schedules]
		

		
			 
		

		

		

		 

		

			2.2(e)-2

		

 

		

			 

		

		[Form of  Subsidiary  Guaranty]
		

		
			Subsidiary  Guaranty
		

		
			Subsidiary  Guaranty, dated as of January 12, 2018 made by each of the companies that are signatories hereto (the “Subsidiary Guarantors”), in favor of the holders (the “Noteholders”) of Notes (as defined below) issued pursuant to the Note Purchase and Private Shelf Agreement dated as of January 12, 2018 (as amended, supplemented or otherwise modified, from time to time, the “Note Purchase Agreement”), among MSC Industrial Direct Co., Inc. (the “Company”) PGIM, Inc. (“Prudential”) and the Noteholders.
		

		
			W  i t n e s s e t h:
		

		
			Whereas, pursuant to the Note Purchase Agreement, the Noteholders have purchased (i) $50,000,000 aggregate principal amount of the Company’s Senior Notes, Series A, due January 12, 2023 (the “Series A Notes”) upon the terms and subject to the conditions set forth therein; and (ii) Prudential along with any other Prudential Party which becomes a party to the Note Purchase Agreement may purchase additional shelf notes pursuant to the terms thereof (the “Shelf Notes”, and together with the Series A Notes, the “Notes”). 
		

		
			Whereas, the Company is a member of an affiliated group of companies that includes each Subsidiary Guarantor;
		

		
			Whereas, the proceeds of the Series A Notes and possible future proceeds from the Shelf Notes purchased under the Note Purchase Agreement will be used in part to enable the Company to make valuable transfers to each Subsidiary Guarantor in connection with the operation of its business;
		

		
			Whereas, the Company and the Subsidiary Guarantors are engaged in related businesses, and each Subsidiary Guarantor will derive substantial direct and indirect benefit from the making of the extensions of credit under the Note Purchase Agreement; and
		

		
			Whereas, it is a condition precedent to the obligation of the Noteholders to purchase the Series A Notes from the Company under the Note Purchase Agreement and their consent to execute and deliver the Note Purchase Agreement  that the Subsidiary Guarantors shall have executed and delivered this Subsidiary Guaranty to the Noteholders.
		

		
			Now, Therefore, in consideration of the premises and to induce the Noteholders to enter into the Note Purchase Agreement and to induce the Noteholders to purchase the Notes from the Company pursuant to the Note Purchase Agreement, the Subsidiary Guarantors hereby agree with the Noteholders, as follows:
		

		

		

		 

		

			Exhibit 2.3

		

		

			(to Note Purchase and Private Shelf Agreement)

		

 

		

			 

		

		
		

		
			Section 1.    Defined  Terms.  
		

		
			(a)    “Note Documents” means the Note Purchase Agreement, this Subsidiary Guaranty, the Notes and any amendment, waiver, supplement or other modification to any of the foregoing.
		

		
			         “Obligations” means the unpaid principal of, interest on  (including interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Company, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) or any Make-Whole Amount on the Notes and all other obligations and liabilities of the Company to any Noteholder, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, the Note Purchase Agreement, any Note Document or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including all fees, charges and disbursements of counsel to the Noteholders that are required to be paid by the Company pursuant hereto) or otherwise.
		

		
			(b)    Unless otherwise defined herein, terms defined in the Note Purchase Agreement and used herein shall have the meanings given to them in the Note Purchase Agreement. 
		

		
			(c)    The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Subsidiary Guaranty shall refer to this Subsidiary Guaranty as a whole and not to any particular provision of this Subsidiary Guaranty, and section and paragraph references are to this Subsidiary Guaranty unless otherwise specified.
		

		
			(d)    The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.
		

		
			Section 2.    Subsidiary  Guaranty.
		

		
			(a)    Each of the Subsidiary Guarantors hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Noteholders for the ratable benefit of such Noteholders and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by the Company when due (whether at the stated maturity, by acceleration or otherwise) of the Note Purchase Agreement and the Obligations.
		

		
			(b)    Anything herein or in any other Note Document to the contrary notwithstanding, the maximum liability of each Subsidiary Guarantor hereunder and under the other Note Documents shall in no event exceed the amount which can be guaranteed by such Subsidiary Guarantor under applicable federal and state laws relating to the insolvency of debtors (after giving effect to the right of contribution established in Section 3).
		

		
			(c)    Each Subsidiary Guarantor agrees that the Obligations may at any time and from time to time exceed the amount of the liability of such Subsidiary Guarantor hereunder without impairing this Subsidiary Guaranty or affecting the rights and remedies of any Noteholder hereunder.
		

		

		

		 

		

			-2-

		

 

		

			 

		

		(d)    This Subsidiary Guaranty shall remain in full force and effect until all the Obligations and the obligations of each Subsidiary Guarantor under this Subsidiary Guaranty shall have been satisfied by payment in full.  
		

		
			(e)    No payment made by the Company, any of the Subsidiary Guarantors, any other Subsidiary Guarantor or any other Person or received or collected by any Noteholder from the Company, any of the Subsidiary Guarantors, any other Subsidiary Guarantor or any other Person by virtue of any action or proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Subsidiary Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by such Subsidiary Guarantor in respect of the Obligations or any payment received or collected from such Subsidiary Guarantor in respect of the Obligations), remain liable for the Obligations up to the maximum liability of such Subsidiary Guarantor hereunder until the Obligations are paid in full.
		

		
			Section 3.    Right of  Contribution.  
		

		
			Each Subsidiary Guarantor hereby agrees that to the extent that a Subsidiary Guarantor shall have paid more than its proportionate share of any payment made hereunder, such Subsidiary Guarantor shall be entitled to seek and receive contribution from and against any other Subsidiary Guarantor hereunder which has not paid its proportionate share of such payment.  Each Subsidiary Guarantor’s right of contribution shall be subject to the terms and conditions of Section 4.  The provisions of this Section 3 shall in no respect limit the obligations and liabilities of any Subsidiary Guarantor to the Noteholders, and each Subsidiary Guarantor shall remain liable to the Noteholders for the full amount guaranteed by such Subsidiary Guarantor hereunder.
		

		
			Section 4.    No  Subrogation.  
		

		
			Notwithstanding any payment made by any Subsidiary Guarantor hereunder or any set-off or application of funds of any Subsidiary Guarantor by any Noteholder, no Subsidiary Guarantor shall be entitled to be subrogated to any of the rights of any Noteholder against the Company or any other Subsidiary Guarantor or any collateral security or guarantee or right of offset held by any Noteholder for the payment of the Obligations, nor shall any Subsidiary Guarantor seek or be entitled to seek any contribution or reimbursement from the Company or any other Subsidiary Guarantor in respect of payments made by such Subsidiary Guarantor hereunder, until all amounts owing to the Noteholders by the Company on account of the Obligations are paid in full.  If any amount shall be paid to any Subsidiary Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by such Subsidiary Guarantor in trust for the Noteholders, segregated from other funds of such Subsidiary Guarantor, and shall, forthwith upon receipt by such Subsidiary Guarantor, be turned over to the Noteholders in the exact form received by such Subsidiary Guarantor (duly indorsed by such Subsidiary Guarantor to the Noteholders, if required), to be applied against the Obligations, whether matured or unmatured, in pro rata amounts respective to the aggregate principal.
		

		

		

		 

		

			-3-

		

 

		

			 

		

		Section 5.    Amendments, Etc. with Respect to the  Obligations.  
		

		
			Each Subsidiary Guarantor shall remain obligated hereunder notwithstanding that, without any reservation of rights against any Subsidiary Guarantor and without notice to or further assent by any Subsidiary Guarantor, any demand for payment of any of the Obligations made by any Noteholder may be rescinded by such Noteholder and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by any Noteholder, and the Note Purchase Agreement and the other Note Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Required Noteholders or all Noteholders, as the case may be, may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by any Noteholder for the payment of the Obligations may be sold, exchanged, waived, surrendered or released.  No Noteholder shall have any obligation to protect, secure, perfect or insure any Lien at any time held by it as security for the Obligations or for this Subsidiary Guaranty or any property subject thereto.
		

		
			Section 6.    Subsidiary  Guaranty  Absolute and  Unconditional.  
		

		
			Each Subsidiary Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by any Noteholder upon this Subsidiary Guaranty or acceptance of this Subsidiary Guaranty; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Subsidiary Guaranty; and all dealings between the Company and any of the Subsidiary Guarantors, on the one hand, and the Noteholders, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Subsidiary Guaranty.  Each Subsidiary Guarantor waives diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Company or any of the Subsidiary Guarantors with respect to the Obligations.  Each Subsidiary Guarantor understands and agrees that this Subsidiary Guaranty shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of the Note Purchase Agreement or any other Note Document, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by any Noteholder, (b) any defense, set-off or counterclaim (other than a defense of payment or performance) which may at any time be available to or be asserted by the Company or any other Person against any Noteholder, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Company or such Subsidiary Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Company for the Obligations, or of such Subsidiary Guarantor under this Subsidiary Guaranty, in bankruptcy or in any other instance.  When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Subsidiary Guarantor,  or any Noteholder may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Company, any other Subsidiary Guarantor or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by any Noteholder to make any such demand, to pursue such other rights or remedies 
		

		 

		

			-4-

		

 

		

			 

		

		or to collect any payments from the Company, any other Subsidiary Guarantor or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Company, any other Subsidiary Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Subsidiary Guarantor of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of any Noteholder against any Subsidiary Guarantor.  For the purposes hereof “demand” shall include the commencement and continuance of any legal proceedings.
		

		
			Section 7.    Reinstatement.  
		

		
			This Subsidiary Guaranty shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by any Noteholder upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company or any Subsidiary Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Company or any Subsidiary Guarantor or any substantial part of its property, or otherwise, all as though such payments had not been made.
		

		
			Section 8.    Payments.  
		

		
			Each Subsidiary Guarantor hereby guarantees that payments hereunder will be paid to the Noteholders without set-off or counterclaim in Dollars as directed by the Purchaser Schedule.
		

		
			Section 9.    Representations and  Warranties.  
		

		
			Each Subsidiary Guarantor hereby represents and warrants that:
		

		
			(a)    it is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the power and authority and the legal right to own and operate its property, to lease the property it operates and to conduct the business in which it is currently engaged; 
		

		
			(b)    it has the power and authority and the legal right to execute and deliver, and to perform its obligations under, this Subsidiary Guaranty, and has taken all necessary action to authorize its execution, delivery and performance of this Subsidiary Guaranty;
		

		
			(c)    this Subsidiary Guaranty constitutes a legal, valid and binding obligation of such Subsidiary Guarantor enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing;
		

		
			(d)    the execution, delivery and performance of this Subsidiary Guaranty will not violate any Requirement of Law or Contractual Obligation of such Subsidiary Guarantor and will not 
		

		 

		

			-5-

		

 

		

			 

		

		result in or require the creation or imposition of any Lien on any of the properties or revenues of such Subsidiary Guarantor pursuant to any Requirement of Law or Contractual Obligation of the Subsidiary Guarantor;
		

		
			(e)    no consent or authorization of, filing with, notice to or other act by or in respect of, any arbitrator or Governmental Authority and no consent of any other Person (including, without limitation, any stockholder or creditor of such Subsidiary Guarantor) is required in connection with the execution, delivery, performance, validity or enforceability of this Subsidiary Guaranty; and
		

		
			(f)    no litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of such Subsidiary Guarantor, threatened by or against such Subsidiary Guarantor or against any of its properties or revenues (1) with respect to this Subsidiary Guaranty or any of the transactions contemplated hereby, or (2) which could reasonably be expected to have a Material Adverse Effect.
		

		
			Each Subsidiary Guarantor agrees that the foregoing representations and warranties shall be deemed to have been made by such Subsidiary Guarantor on the date of each borrowing by the Company under the Note Purchase Agreement on and as of such date of borrowing as though made hereunder on and as of such date.
		

		
			Section 10.    Notices.  
		

		
			All notices, requests and demands to or upon any Noteholder or any Subsidiary Guarantor hereunder shall be effected in the manner provided for in Section 18 of the Note Purchase Agreement;  provided that any such notice, request or demand to or upon any Subsidiary Guarantor shall be addressed to such Subsidiary Guarantor at its notice address set forth under its signature below.
		

		
			Section 11.    Counterparts.  
		

		
			This Subsidiary Guaranty may be executed by one or more of the Subsidiary Guarantors on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  
		

		
			Section 12.    Severability.  
		

		
			Any provision of this Subsidiary Guaranty 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.
		

		

		

		 

		

			-6-

		

 

		

			 

		

		Section 13.    Integration.    
		

		
			This Subsidiary Guaranty represents the agreement of each Subsidiary Guarantor with respect to the subject matter hereof and there are no promises or representations by any Noteholder relative to the subject matter hereof not reflected herein.
		

		
			Section 14.    Amendments in  Writing; No  Waiver; Cumulative  Remedies.  
		

		
			(a)    None of the terms or provisions of this Subsidiary Guaranty may be waived, amended, supplemented or otherwise modified except in accordance with Section 17 of the Note Purchase Agreement.
		

		
			(b)    No Noteholder shall by any act (except by a written instrument pursuant to Section 14(a) hereof), 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 or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in exercising, on the part of any Noteholder, any right, power or privilege hereunder shall operate as a waiver thereof.  No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  A waiver by any Noteholder of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which such Noteholder would otherwise have on any future occasion.
		

		
			(c)    The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.
		

		
			Section 15.    Section  Headings.  
		

		
			The section headings used in this Subsidiary Guaranty are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.
		

		
			Section 16.    Successors and  Assigns.  
		

		
			This Subsidiary Guaranty shall be binding upon the successors and assigns of each Subsidiary Guarantor and shall inure to the benefit of the Noteholders and their successors and assigns.
		

		
			Section 17.    Governing  Law.  
		

		
			This Subsidiary Guaranty shall be governed by, and construed and interpreted in accordance with, 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.
		

		

		

		 

		

			-7-

		

 

		

			 

		

		Section 18.    Submission to  Jurisdiction; Waivers.    
		

		
			Each Subsidiary Guarantor hereby irrevocably and unconditionally:
		

		
			(i)     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 Subsidiary Guaranty or any other Note Document;
		

		
			(ii)    waives and agrees not to assert, to the fullest extent permitted by applicable law, 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;
		

		
			(iii)   agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 18(i) hereof brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment;
		

		
			(iv)    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 18(i) hereof by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 18 of the Note Purchase Agreement or at such other address of which such holder shall then have been notified pursuant to said Section;
		

		
			(v)     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;
		

		
			(vi)    agrees that nothing in this Section 18 shall affect the right of any Noteholder 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; and
		

		
			(vii)   waives 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. 
		

		

		

		 

		

			-8-

		

 

		

			 

		

		Section 19.    Acknowledgements.  
		

		
			Each Subsidiary Guarantor hereby acknowledges that:
		

		
			(i)     it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Note Documents to which it is a party;
		

		
			(ii)    no Noteholder has any fiduciary relationship with or duty to any Subsidiary Guarantor arising out of or in connection with this Agreement or any of the other Note Documents, and the relationship between the Subsidiary Guarantors, on the one hand, and the Noteholders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and
		

		
			(iii)   no joint venture is created hereby or by the other Note Documents or otherwise exists by virtue of the transactions contemplated hereby among the Noteholders or among the Subsidiary Guarantors and the Noteholders.
		

		
			Section 20.    Additional Subsidiary  Guarantors.    
		

		
			Each Subsidiary of the Company that is required to become a party to this Agreement pursuant to Section 9.6 of the Note Purchase Agreement shall become a Subsidiary Guarantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of a Subsidiary Guarantor Supplement in the form of Annex A hereto.
		

		
			﻿
		

		

		

		 

		

			-9-

		

 

		

			 

		

		
		

		
			In  Witness  Whereof, each of the undersigned has caused this Subsidiary Guaranty to be duly executed and delivered by its duly authorized officer as of the day and year first above written.
		

		
			[signatures follow]
		

		
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			-10-

		

 

		

			 

		

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						Deco  Tool,  an MSC Company, LLC

				
	
					
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						By:

					
					
						 

					
					
						 

				
	
					
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						Address for Notices:

				
	
					
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						75 Maxess Road

				
	
					
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						Melville, New York 11747

				
	
					
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						Attention: General Counsel

				
	
					
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						Telephone:  [omitted]

				
	
					
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						Telecopy:  [omitted]

				

		
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			﻿
		

		
			﻿
		

		

		

		 

		

			[Signature Page to Subsidiary Guaranty]

		

 

		

			 

		

		
		

			
					
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						Sid  Tool  Co., Inc.

				
	
					
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						By:

					
					
						 

					
					
						 

				
	
					
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						Address for Notices:

				
	
					
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						75 Maxess Road

				
	
					
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						Melville, New York 11747

				
	
					
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						Attention: General Counsel

				
	
					
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						Telephone:  [omitted]

				
	
					
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						Telecopy:  [omitted]

				

		
			﻿
		

		
			﻿
		

		

		

		 

		

			[Signature  Page to Subsidiary  Guaranty]

		

 

		

			 

		

		
		

			
					
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						J&L America, Inc.

				
	
					
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						By:

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Address for Notices:

				
	
					
						﻿

					
					
						75 Maxess Road

				
	
					
						﻿

					
					
						Melville, New York 11747

				
	
					
						﻿

					
					
						Attention: General Counsel

				
	
					
						﻿

					
					
						Telephone:  [omitted]

				
	
					
						﻿

					
					
						Telecopy:  [omitted]

				

		
			﻿
		

		
			﻿
		

		

		

		 

		

			[Signature  Page to Subsidiary  Guaranty]

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						MSC Contract  Management, Inc.

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Name:

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						Title:

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Address for Notices:

				
	
					
						﻿

					
					
						75 Maxess Road

				
	
					
						﻿

					
					
						Melville, New York 11747

				
	
					
						﻿

					
					
						Attention: General Counsel

				
	
					
						﻿

					
					
						Telephone:  [omitted]

				
	
					
						﻿

					
					
						Telecopy:  [omitted]

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			[Signature  Page to Subsidiary  Guaranty]

		

 

		

			 

		

		Annex A  
		

		
			Form of  Subsidiary  Guarantor  Supplement
		

		
			﻿
		

		
			﻿
		

		
			_____________, 201_
		

		
			[Noteholders]
		

		
			Re:     Subsidiary Guaranty, dated as of January 12, 2018 (as amended,
		

		
			supplemented or otherwise modified from time to time,
		

		
			the “Subsidiary Guaranty”), made by certain subsidiaries of MSC Industrial 
		

		
			Direct Co., Inc. in favor of the hereinafter defined Noteholders
		

		
			﻿
		

		
			Ladies and Gentlemen:
		

		
			Reference is made to the Subsidiary Guaranty.  Terms defined in the Subsidiary Guaranty shall be used herein as therein defined.    
		

		
			The undersigned, ___________________________, a ________________ [corporation/limited liability company/partnership] and a Subsidiary of the Company, in consideration of the purchase of $50,000,000 aggregate principal amount of the Company’s Senior Notes, Series A, due January 12, 2023 [and ___________________] (the “Notes”; holders of such Notes to be referred to as the “Noteholders”)  by the Noteholders from the Company pursuant to the Note Purchase Agreement, which proceeds of such Notes benefit the undersigned by making funds available to the undersigned and by enhancing the financial strength of the consolidated group of which the undersigned is a member, hereby agrees to become an additional Subsidiary Guarantor for the purposes of the Subsidiary Guaranty and to perform all the obligations of a Subsidiary Guarantor under, and to be bound in all respects by the terms of, the Subsidiary Guaranty as if the undersigned were a signatory party thereto, effective from the date hereof.
		

		
			The undersigned hereby certifies that (a) this Subsidiary Guarantor Supplement has been duly authorized, executed and delivered by the undersigned and constitute its legal, valid and binding obligation enforceable against the undersigned in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing and (b) the representations and warranties contained in Section 9 of the Subsidiary Guaranty insofar as they relate to the undersigned are true and correct on and as of the date hereof, with the same effect as if made on and as of such date (except to the extent such representations and warranties expressly relate to an earlier date, in which case they are true and correct as of such earlier date).
		

		

		

		 

		

			 

		

 

		

			 

		

		The undersigned hereby certifies that attached hereto as Annex I is a copy of the resolutions of the Board of Directors of the undersigned, authorizing the undersigned to become a Subsidiary Guarantor under the Subsidiary Guaranty and to perform its obligations thereunder and to execute, deliver and perform this Subsidiary Guarantor Supplement.
		

		
			The undersigned confirms that it has received a copy of the Subsidiary Guaranty including all amendments thereto, if any.
		

		
			The address to which all notices to the undersigned under the Subsidiary Guaranty should be directed is:
		

		
			[____________________]
		

		
			This Subsidiary Guarantor Supplement shall be effective on and as of the date first written above.  This Subsidiary Guarantor supplement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.
		

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						Very truly yours,

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						[Name of  Subsidiary  Company]

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						By:

					
					
						 

				
	
					
						﻿

					
					
						Title:

					
					
						 

				

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		Annex  I
		

		
			Resolutions
		

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		MSC Industrial  Direct  Co., Inc.
		

		
			Information  Relating to  Purchasers
		

		
			﻿
		

			
					
						 

					
					
						 

				
	
					
						Name and Address of Purchaser
 
Prudential Retirement Insurance and Annuity Company

					
					
						Principal Amount
of Notes to Be Purchased
 
$25,000,000

				

		
			 
		

		
			 
		

			
					
						﻿

					
					
						 

				
	
					
						(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, NA3

					
						New York, NY

					
						ABA No. 021000021

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Account Name:  [omitted]

					
						Account No. [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Each such wire transfer shall set forth the name of the Company, a reference to "3.04% Senior Notes due 2023, PPN 553530 A#3" and the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made. 

					
						 

				

		
			﻿
		

		
			________________________
		

		
			3 If Borrower's account is with JPMorgan Chase, use the following wiring instructions:
		

		
			JPMorgan Chase Bank New York
		

		
			New York, NY
		

		
			ABA No.:  021-000-021
		

		
			Account No.:  [omitted]
		

		
			Account Name:  [omitted]
		

		
			FFC:  ["P" Account Number for appropriate account]
		

		
			FFC Account Name: [Account Name for appropriate "P" account]
		

		 

		

			Purchaser  Schedule
(to Note Purchase Agreement)

		

 

		

			 

		

		
		

			
					
						(2)

					
					
						Address for all communications and notices:

				
	
					
						﻿

					
					
						Prudential Retirement Insurance and Annuity Company

					
						c/o Prudential Capital Group

					
						1114 Avenue of the Americas, 30th Floor

					
						New York, NY  10036

					
						 

					
						Attention:  Managing Director

					
						 

					
						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: [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(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:  [omitted]- Trade Management manager

					
						 

					
						(b)       Send copy by email to:

					
						 

					
						[omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(4)

					
					
						Tax Identification No.:  [omitted]

				

		
			﻿
		

		

		

		 

		

			-2-

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						Name and Address of Purchaser
 
Farmers  New  World  Life Insurance 
  Company

					
					
						Principal Amount
of Notes to Be Purchased
 
$6,170,000

				

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						(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.:  021000021

					
						Account No.:  [omitted]

					
						Account Name:  [omitted]

					
						For further credit to Account [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Each such wire transfer shall set forth the name of the Company, a reference to "3.04% Senior Notes due 2023, PPN 553530 A#3" 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 Private Placement Investors, L.P.

					
						c/o Prudential Capital Group

					
						1114 Avenue of the Americas, 30th Floor

					
						New York, NY  10036

					
						 

					
						Attention:  Managing Director

					
						 

					
						and for all notices relating solely to scheduled principal and interest payments and written confirmations of wire transfers to:

					
						 

					
						investment.accounting@farmersinsurance.com

					
						   or

					
						Farmers Insurance Company

					
						Attention:  Investment Accounting Team

					
						4680 Wilshire Blvd., 4th Floor

					
						Los Angeles, CA 90010

					
						 

					
						and

					
						 

					
						 

					
						[omitted]

					
						   or

					
						 

				

		
			﻿
		

		 

		

			-3-

		

 

		

			 

		

			
					
						﻿

					
					
						Farmers New World Life Insurance Company

					
						Attention:  Investment Operations Team

					
						3003 77th Avenue Southeast, 5th Floor

					
						Mercer Island, WA 98040-2837

				
	
					
						﻿

					
					
						 

				
	
					
						(3)

					
					
						Address for Delivery of Notes:

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						(a)       Send physical security to:

					
						 

					
						If sending by overnight delivery:

					
						 

					
						JPMorgan Chase Bank, N.A.

					
						4 Chase Metrotech Center, 3rd Floor

					
						Brooklyn, NY 11245-0001

					
						 

					
						Attention:  Physical Receive Department

					
						[omitted]

					
						Telephone:  [omitted]

					
						 

					
						If sending by messenger:

					
						 

					
						JPMorgan Chase Bank, N.A.

					
						4 Chase Metrotech Center

					
						1st Floor, Window 5

					
						Brooklyn, NY 11245-0001

					
						 

					
						Attention:  Physical Receive Department

					
						(Use Willoughby Street Entrance)

					
						 

					
						Please include in the cover letter accompanying the Notes a reference to the Purchaser's account number ("P58834 – Farmers New World Life Private Placement") and CUSIP information.

					
						 

					
						(b)      Send copy by email:

					
						 

					
						[omitted]

					
						 

					
						and

					
						 

					
						[omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(4)

					
					
						Tax Identification No.:  [omitted]

				

		

		

		 

		

			-4-

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						Name and Address of Purchaser
 
The  Independent  Order of  Foresters

					
					
						Principal Amount
of Notes to Be Purchased
 
$3,970,000

				

		
			﻿
		

		
			﻿
		

			
					
						﻿

					
					
						 

				
	
					
						(1)

					
					
						All payments on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to: 

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						State Street Bank and Trust Co

					
						801 Pennsylvania Ave.

					
						Kansas City, MO 64105

					
						ABA No.:  011000028

					
						DDA Account No.:  [omitted]

					
						Ref:  IOF Trust Prvt Placements - DT1Z

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Each such wire transfer shall set forth the name of the Company, a reference to "3.04% Senior Notes due 2023, PPN 553530 A#3" 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 Private Placement Investors, L.P.

					
						c/o Prudential Capital Group

					
						1114 Avenue of the Americas, 30th Floor

					
						New York, NY  10036

					
						 

					
						Attention:  Managing Director

					
						 

					
						and for all notices relating solely to scheduled principal and interest payments and written confirmations of wire transfers to:

					
						 

					
						The Independent Order of Foresters

					
						789 Don Mills Road

					
						Toronto, Ontario, Canada

					
						M3C 1T9

					
						 

					
						Attention:  Investment Services Department

				

		
			﻿
		

		

		

		 

		

			-5-

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						(3)

					
					
						Address for Delivery of Notes:

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						(a)       Send physical security by nationwide overnight delivery

					
						            service to:

					
						 

					
						            DTCC

					
						            Newport Office Center

					
						570 Washington Blvd
Jersey City, NJ 07310
Attention:  5th floor/NY Window/Robert Mendez

					
						 

					
						FBO:               State Street Bank and Trust Company

					
						DTC:               [omitted]

					
						Agent Bank #: [omitted]

					
						BIC:                 [omitted]

					
						 

					
						(b)       Send copy by email:

					
						 

					
						[omitted]

					
						 

					
						and

					
						 

					
						[omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(4)

					
					
						Tax Identification No.:  [omitted]

				

		
			﻿
		

		

		

		 

		

			-6-

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						Name and Address of Purchaser
 
United of  Omaha  Life  Insurance  Company

					
					
						Principal Amount
of Notes to Be Purchased
 
$14,860,000

				

		
			 
		

		
			 
		

			
					
						﻿

					
					
						 

				
	
					
						(1)

					
					
						All principal, interest and Make-Whole Amount 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

					
						4 Metro Tech - 16th floor - Mail Code NY1-C512

					
						Brooklyn, NY 11245

					
						ABA No. 021-000-021

					
						Private Income Processing

					
						For Credit to account:  [omitted]

					
						For further credit to Account Name:  [omitted]

					
						For further credit to Account Number:  [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Each such wire transfer shall set forth the name of the Company, a reference to "3.04% Senior Notes due 1/12/2023, PPN 553530 A#3" and the due date and application (as among principal, interest and Make-Whole Amount) of the payment being made.

				
	
					
						﻿

					
					
						 

				
	
					
						(2)

					
					
						All payments, other than principal, interest or Make-Whole Amount, on account of Notes held by such purchaser shall be made by wire transfer of immediately available funds for credit to:

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						JPMorgan Chase Bank

					
						4 Metro Tech - 16th floor - Mail Code NY1-C512

					
						Brooklyn, NY 11245

					
						ABA No. 021-000-021

					
						Account No. [omitted]

					
						Account Name:  [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Each such wire transfer shall set forth the name of the Company, a reference to "3.04% Senior Notes due 1/12/2023, PPN ___" and the due date and application (e.g., type of fee) of the payment being made.

				

		

		

		 

		

			-7-

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

				
	
					
						(3)

					
					
						Address for all communications and notices:

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						Prudential Private Placement Investors, L.P.

					
						c/o Prudential Capital Group

					
						1114 Avenue of the Americas, 30th Floor

					
						New York, NY  10036

					
						Attention:  Managing Director

					
						 

					
						and for all notices relating solely to scheduled principal and interest payments and written confirmations of wire transfers to:

					
						 

					
						JPMorgan Chase Bank

					
						14201 Dallas Parkway - 13th Floor

					
						Dallas, TX 75254-2917

					
						 

					
						Attn:  Income Processing - G. Ruiz

					
						a/c:  [omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(4)

					
					
						Address for Delivery of Notes:

				
	
					
						﻿

					
					
						 

				
	
					
						﻿

					
					
						(a)       Send physical security by nationwide overnight delivery

					
						            service to:

					
						 

					
						JPMorgan Chase Bank

					
						4 Chase Metrotech Center, 3rd Floor

					
						Brooklyn, NY 11245-0001

					
						 

					
						Attention:  Physical Receive Department

					
						 

					
						Please include in the cover letter accompanying the

					
						Notes a reference to the Purchaser's account number

					
						(United of Omaha Life Insurance Company; Account

					
						Number:  [omitted]).

					
						 

					
						(b)       Send copy by email:

					
						 

					
						[omitted]

					
						 

					
						and

					
						 

					
						[omitted]

				
	
					
						﻿

					
					
						 

				
	
					
						(5)

					
					
						Tax Identification No.:  [omitted]

				

		
			﻿
		

		 

		

			-8-Exhibit 10.1

 

Execution Version

 

NABORS INDUSTRIES, INC.

 

$800,000,000 5.75% SENIOR NOTES DUE 2025

 

GUARANTEED BY NABORS INDUSTRIES LTD

 

PURCHASE AGREEMENT

 

GOLDMAN SACHS & CO. LLC

CITIGROUP GLOBAL MARKETS INC.

DEUTSCHE BANK SECURITIES INC.

MORGAN STANLEY & CO. LLC

WELLS FARGO SECURITIES, LLC

 

January 16, 2018

 

 

January 16, 2018

 

Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282-2198

 

Citigroup Global Markets Inc.

388 Greenwich Street

New York, New York 10013

 

Deutsche Bank Securities Inc.

60 Wall Street

New York, New York

 

Morgan Stanley & Co. LLC

1585 Broadway
 New York, New York 10036

 

Wells Fargo Securities, LLC

375 Park Avenue
 New York, New York  10152

 

As Representatives of the Initial Purchasers

named in Schedule A hereto

 

Dear Ladies and Gentlemen:

 

Nabors Industries, Inc., a Delaware corporation (the “Company”), proposes, upon the terms and conditions set forth in this agreement (the “Agreement”), to issue and sell to the several initial purchasers named in Schedule A hereto (the “Initial Purchasers”) $800,000,000 aggregate principal amount of its 5.75% Senior Notes due 2025 (the “Notes”) to be issued pursuant to the provisions of an Indenture to be dated as of the Closing Date (as defined in Section 4) (the “Indenture”) among the Company, the Guarantor (as defined below), Wilmington Trust National Association, as Trustee (the “Trustee”) and Citibank, N.A., as Securities Administrator (the “Securities Administrator”).  The Notes will be fully and unconditionally guaranteed (the “Guarantees”) by Nabors Industries Ltd., a Bermuda exempted company (the “Guarantor”).  The Notes and the Guarantees are hereinafter collectively referred to as the “Securities.”

 

The Securities will be offered by the Initial Purchasers without being registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), (i) to persons whom the Initial Purchasers reasonably believe to be qualified institutional buyers (as defined in Rule 144A under the Securities Act (“Rule 144A”)) in compliance with the exemption from registration provided by Rule 144A, and (ii) to certain persons who are not U.S. Persons (as defined in Regulation S promulgated under the Securities Act (“Regulation S”)) (such persons, “Non-U.S. Persons”) in offshore transactions in reliance on Regulation S.

 

1

 

The Initial Purchasers and their direct and indirect transferees will be entitled to the benefits and subject to the obligations of a Registration Rights Agreement to be dated the Closing Date among the Company, the Guarantor and Goldman Sachs & Co. LLC, as representative of the Initial Purchasers (the “Registration Rights Agreement”).  Pursuant to the Registration Rights Agreement, the Company and the Guarantor will agree to file with the U.S. Securities and Exchange Commission (the “Commission”) under the circumstances set forth therein, a registration statement or an amendment thereto under the Securities Act relating to the Company’s 5.75% Senior Notes due 2025 (the “Exchange Notes”) and the Guarantor’s Guarantees (the “Exchange Guarantees”) to be offered in exchange for the Notes and the Guarantees (the “Exchange Offer”).

 

In connection with the sale of the Securities, the Company has prepared and delivered to the Initial Purchasers a preliminary offering memorandum, dated January 16, 2018 (together with any exhibits thereto and the documents incorporated by reference therein, the “Offering Memorandum”) and has prepared and delivered a pricing supplement (the “Pricing Supplement”) dated January 16, 2018, in the form attached hereto as Schedule I, describing the terms of the Securities, the terms of the offering and the Company and the Guarantor, each for use by the Initial Purchasers in connection with their solicitation of offers to purchase the Securities.  As used herein, “Disclosure Package” shall mean the Offering Memorandum, as supplemented by the Pricing Supplement and any written communications (as defined in Rule 405 under the Securities Act) authorized for use pursuant to Section 6(j), each in the most recent form that has been prepared and delivered by the Company to the Initial Purchasers in connection with their solicitation of offers to purchase the Securities as of the Applicable Time.  “Applicable Time” means 5:00 P.M. (New York time) on January 16, 2018.  Promptly after the Applicable Time and in any event no later than the Closing Date, the Company will prepare and deliver to the Initial Purchasers a final offering memorandum (the “Final Offering Memorandum”), which will consist of the Offering Memorandum with only such changes therein as are required to reflect the information contained in the Pricing Supplement, unless the Initial Purchasers consent to such changes.  The Offering Memorandum and the Final Offering Memorandum are each sometimes referred to herein as a “Memorandum.”  As used herein (including the schedule and annexes hereto), the term “Memorandum” shall include in each case the documents incorporated by reference therein.  The terms “supplement”, “amendment” and “amend” as used herein with respect to the Memorandum shall include all documents deemed to be incorporated by reference in the Memorandum that are filed subsequent to the date of the Memorandum with the Commission pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

 

1.              Representations and Warranties.  The Guarantor and the Company, jointly and severally, represent and warrant to, and agree with each of the Initial Purchasers as of the Applicable Time and as of the Closing Date (as defined herein) that:

 

(a)                                 (i)                                     Each document filed or to be filed pursuant to the Exchange Act and incorporated by reference in the Memorandum complied or will comply when so filed in all material respects with the Exchange Act and the applicable rules and regulations of the Commission thereunder, and (ii) as of its date, the Offering Memorandum did not contain, as of the Applicable Time, the Disclosure Package did not contain, and on and, as of its date and the Closing Date, the Final Offering Memorandum will not contain, any untrue statement of a material fact or omit to state a material fact necessary to make the statements

 

2

 

therein, in the light of the circumstances under which they were made, not misleading, except that the representations and warranties set forth in this paragraph do not apply to statements in or omissions from the Offering Memorandum, Disclosure Package or the Final Offering Memorandum based upon information relating to the Initial Purchasers furnished to the Company in writing by the Initial Purchasers through the Representatives expressly for use therein, it being understood and agreed that the only such information is that described in Section 8(b).

 

(b)                                 Each of the Guarantor and the Company has been duly incorporated, organized or formed, is validly existing as a Bermuda exempted company and Delaware corporation, respectively, in good standing under the laws of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Offering Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Guarantor and its subsidiaries, taken as a whole (a “Material Adverse Effect”).

 

(c)                                  Each Significant Subsidiary (as defined below) has been duly organized, is validly existing as a corporation or limited partnership in good standing under the laws of the jurisdiction of its organization, has the corporate or limited partnership power and authority to own its property and to conduct its business to the extent described in the Offering Memorandum and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.  All of the issued shares of capital stock (or limited partnership interests) of each Significant Subsidiary have been duly and validly authorized and issued, are fully paid and non-assessable and are owned by the Guarantor, directly or indirectly, free and clear of all liens, encumbrances, equities or claims other than any liens, encumbrances, equities or claims in favor of the Guarantor or another Significant Subsidiary.  “Significant Subsidiaries” shall mean the Company, Nabors International Finance Inc., Nabors Holdings Ltd., Nabors International Management Limited., Nabors Drilling International Limited, Nabors Drilling International II Limited., Nabors Global Holdings Limited, Nabors Blue Shield Ltd., Nabors Lux Finance 1, Nabors Lux 2, Nabors Drilling Technologies USA, Inc., Nabors Drilling Holdings Inc., Nabors Yellow Reef Ltd., Nabors Drilling International Gulf FZE and Nabors Arabia Company Ltd.

 

(d)                                 This Agreement has been duly authorized, executed and delivered by the Company and the Guarantor.

 

(e)                                  The issuance of the Securities has been duly authorized and, when the Notes have been executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers in accordance with the terms of this Agreement, the Securities will be valid and binding obligations of the Company and the Guarantor, as the case may be, enforceable in accordance with their respective terms,

 

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subject to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance or similar laws affecting creditors’ rights generally, general principles of equity and implied covenants of good faith and fair dealing, and will be entitled to the benefits of the Indenture and the Registration Rights Agreement.

 

(f)                                   The issuance of the Exchange Notes has been duly authorized and, when the Exchange Notes have been executed and authenticated in accordance with the provisions of the Indenture and delivered in the Exchange Offer as contemplated in the Registration Rights Agreement, will be valid and binding obligations of the Company enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance or similar laws affecting creditors’ rights generally, general principles of equity and implied covenants of good faith and fair dealing.

 

(g)                                  The issuance of the Exchange Guarantees has been duly authorized and, upon the due execution and authentication of the Exchange Notes in accordance with the Indenture and the issuance and delivery of the Exchange Notes in the Exchange Offer contemplated by the Registration Rights Agreement, will be valid and binding obligations of the Guarantor enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, moratorium, fraudulent conveyance or similar laws affecting creditors’ rights generally, general principles of equity and implied covenants of good faith and fair dealing.

 

(h)                                 Each of the Indenture and the Registration Rights Agreement has been duly authorized and, on or prior to the Closing Date will have been, executed and delivered by, and, assuming due authorization, execution and delivery of the Indenture by the Trustee and the Securities Administrator and of the Registration Rights Agreement by Goldman Sachs & Co. LLC, as representative of the Initial Purchasers, will be a valid and binding agreement of, the Company and the Guarantor, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and general principles of equity and implied covenants of good faith and fair dealing and except as rights to indemnification and contribution may be limited under applicable law.

 

(i)                                     The execution and delivery by the Company and the Guarantor of, and the performance by the Company and the Guarantor of their respective obligations under, this Agreement, the Indenture, the Registration Rights Agreement, the Securities, the Exchange Notes and the Exchange Guarantees (the “Transaction Documents”) will not contravene any provision of (i) the restated certificate of incorporation, as amended, or by-laws, as amended, of the Company or the Memorandum of Association or Bye-laws, as amended, of the Guarantor, (ii) any agreement or other instrument binding upon the Guarantor, the Company or any of the Significant Subsidiaries that is material to the Guarantor and its subsidiaries, taken as a whole or (iii) any judgment, order, applicable law or decree of any governmental body, agency or court having jurisdiction over the Guarantor, the Company or any Significant Subsidiary, except, in the cases of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

 

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(j)                                    Assuming compliance by the Initial Purchasers with this Agreement, no consent, approval, authorization or order of, or filing or qualification with, any governmental body or agency is required for the execution, delivery and performance by the Company and the Guarantor of their obligations under the Transaction Documents, except such as may be required by the securities or Blue Sky laws of the various states in connection with the purchase and resale of the Securities by the Initial Purchasers and with respect to the Company’s and the Guarantor’s obligations under the Registration Rights Agreement.

 

(k)                                 There are no material legal or governmental proceedings pending or, to the knowledge of the Guarantor or the Company, threatened to which the Company or any of the Significant Subsidiaries is a party or to which any of the properties of the Guarantor or the Company or any of their subsidiaries is subject other than proceedings accurately described in all material respects in the Offering Memorandum and proceedings that would not have a Material Adverse Effect or material adverse effect on the power or ability of the Guarantor or the Company to perform its obligations under the Transaction Documents or to consummate the transactions contemplated by the Offering Memorandum.

 

(l)                                     Except as described in the Offering Memorandum, the Company, the Guarantor and the Significant Subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses as described in the Memorandum and (iii) are in compliance with all terms and conditions of any such permit, license or approval, except in the case of clause (i), (ii) and (iii), where such noncompliance would not, singly or in the aggregate, have a Material Adverse Effect.

 

(m)                             Except as described in the Offering Memorandum, there are no costs or liabilities associated with Environmental Laws (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws or any permit, license or approval, any related constraints on operating activities and any potential liabilities to third parties) which would, singly or in the aggregate, have a Material Adverse Effect.

 

(n)                                 Neither the Company, the Guarantor or any of the Significant Subsidiaries, nor any of their respective directors or officers, nor, to the Company’s or the Guarantor’s knowledge, any agent or employee acting at the direction of the Company, the Guarantor or any Significant Subsidiary, has taken any action in furtherance of an offer, payment, promise to pay, or authorization or approval of the payment or giving of money, property, gifts or anything else of value, directly or indirectly, to any “government official” (including any officer or employee of a government or government-owned or controlled entity or of a public international organization, or any person acting in an official capacity for or on behalf of any of the foregoing, or any political party or party official or candidate for political office) to influence official action or secure an improper advantage in material violation of applicable anti-corruption laws; and the Company, the Guarantor and the

 

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Significant Subsidiaries have conducted their businesses in compliance with applicable anti-corruption laws and have instituted and maintained and will continue to maintain policies and procedures designed to promote and achieve compliance with such laws and with the representation and warranty contained herein.

 

(o)                                 The operations of the Company, the Guarantor and the Significant Subsidiaries are and have been conducted at all times in material compliance with all applicable financial recordkeeping and reporting requirements, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), and the applicable anti-money laundering statutes of jurisdictions where the Company, the Guarantor and the Significant Subsidiaries conduct business, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, the Guarantor or any Significant Subsidiary with respect to the Anti-Money Laundering Laws is pending or, to the best knowledge of the Company and the Guarantor, threatened.

 

(p)                                 (i) Neither the Company, the Guarantor nor any of the Significant Subsidiaries, nor any of their respective directors or officer, nor, to the Company’s and the Guarantor’s knowledge, any agent, affiliate or employee  of the Company, the Guarantor or any of the Significant Subsidiaries, is an individual or entity (“Person”) that is, or is owned or controlled by a Person that is:

 

(A)  the subject of any sanctions administered or enforced by the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”), the United Nations Security Council (“UNSC”), the European Union (“EU”), Her Majesty’s Treasury (“HMT”), or other relevant sanctions authority with jurisdiction over the Company, the Guarantor or any of the Significant Subsidiaries (collectively, “Sanctions”); nor

 

(B)  domiciled, organized or ordinarily resident in a country or territory that is the subject of comprehensive Sanctions (including, as of the date hereof, Cuba, Iran, North Korea, Sudan and Syria).

 

(ii)  The Company will not, directly or indirectly, use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person:

 

(A)  to fund or facilitate any activities or business of or with any Person or in any country or territory that, at the time of such funding or facilitation, is the subject of Sanctions (except to the extent permissible under applicable Sanctions); or

 

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(B)  in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the offering, whether as underwriter, advisor, investor or otherwise).

 

(iii)  For the past five years, the Company, the Guarantor and the Significant Subsidiaries have not knowingly engaged in, are not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions, in each case, in a manner that would constitute a violation of applicable Sanctions.

 

(q)                                 The Company, the Guarantor and each of the Significant Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences; and (v) the interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Offering Memorandum is accurate. Except as described in the Offering Memorandum, since the end of the Company’s and the Guarantor’s most recent audited fiscal year, there has been (i) no material weakness in the Company’s or the Guarantor’s internal control over financial reporting (whether or not remediated) and (ii) no change in the Company’s or the Guarantor’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s or the Guarantor’s internal control over financial reporting.

 

(r)                                    None of the Company, the Guarantor nor any affiliate (as defined in Rule 501(b) of Regulation D under the Securities Act, an “Affiliate”) of the Company or the Guarantor has directly, or through any agent, (i) sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act) which is or will be integrated with the sale of the Securities in a manner that would require the registration under the Securities Act of the Securities, (ii) engaged in any form of general solicitation or general advertising in connection with the offering of the Securities (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act or (iii) engaged in any directed selling efforts within the meaning of Regulation S, and all such persons have complied with the offering restrictions requirement of Regulation S.

 

(s)                                   Assuming the accuracy of the representations and warranties of the Initial Purchasers in Section 7 and their compliance with the agreements set forth therein, it is not necessary in connection with the offer, sale and delivery of the Securities to the Initial Purchasers in the manner contemplated by this Agreement to register the Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended.

 

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(t)                                    The Securities satisfy the requirements set forth in Rule 144A(d)(3) under the Securities Act.

 

(u)                                 Neither the Company nor the Guarantor is, and after giving effect to the offering and sale of the Notes and the application of the proceeds thereof as described in the Disclosure Package and the Final Offering Memorandum neither will be, an “investment company” as defined in the Investment Company Act of 1940.

 

(v)                                 Other than (i) the Offering Memorandum, the Disclosure Package and the Final Offering Memorandum and (ii) any electronic road show or other written communications authorized for use pursuant to Section 6(j), neither the Company nor the Guarantor (including their respective agents and representatives, other than the Initial Purchasers in their capacity as such) has made, used or prepared, authorized, approved or referred to nor will they prepare, make, use, authorize, approve or refer to any written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities without the prior written consent of the Initial Purchasers. Each such communication by the Company, the Guarantor or their agents and representatives pursuant to clause (ii) of the preceding sentence (each, an “Additional Written Communication”), when taken together with the Disclosure Package, did not as of the Applicable Time, and at the Closing Date will not, include any untrue statement of a material fact or omit to state a material fact necessary to make the statements, in the light of the circumstances under which they were made, not misleading; except that this representation and warranty does not apply to statements in or omissions from each such Additional Written Communication based upon information relating to the Initial Purchasers furnished to the Company in writing by the Initial Purchasers through the Representatives expressly for use therein, it being understood and agreed that the only such information is that described in Section 8(b).

 

(w)                               Any required United States federal income tax returns of the Guarantor and its subsidiaries required by law to be filed have been filed and all taxes shown by such returns or otherwise assessed, which are due and payable, have been paid, except assessments against which appeals have been or will be promptly taken and as to which adequate reserves have been provided.  The Guarantor and its subsidiaries have filed all other tax returns that are required to have been filed by them pursuant to applicable foreign, state, local or other law except insofar as the failure to file such return would not result in a Material Adverse Effect, and have paid all taxes shown on such returns or pursuant to any assessment received by the Guarantor and its subsidiaries, except for such taxes, if any, as are being contested in good faith and as to which adequate reserves have been established by the Guarantor.  The Guarantor has maintained the charges, accruals and reserves on the books of the Guarantor in respect of any income and corporation tax liability in accordance with accounting principles generally accepted in the United States of America, except to the extent that would not result in a Material Adverse Effect.

 

2.              Agreements to Sell and Purchase.  The Company hereby agrees to sell to the Initial Purchasers, and the Initial Purchasers, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agree, severally and not jointly, to purchase from the Company the principal amount of the Notes set forth opposite

 

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such Initial Purchaser’s name on Schedule A hereto at the purchase price set forth on Schedule II hereto, payable on the Closing Date (the “Purchase Price”).

 

The Company and the Guarantor hereby agree that, without the prior written consent of the Initial Purchasers, they will not, during the period beginning on the date hereof and continuing to and including the Closing Date, offer, sell, contract to sell or otherwise dispose of any debt of the Company or warrants to purchase debt of the Company in each case of a type substantially similar to the Securities (other than the sale of the Securities under this Agreement and the exchange of the Securities for the Exchange Notes and the Exchange Guarantees in connection with the Exchange Offer).

 

3.              Terms of Offering.  You have advised the Company and the Guarantor that the Initial Purchasers will make an offering of the Securities to be purchased by the Initial Purchasers hereunder on the terms set forth in this Agreement and the Offering Memorandum.

 

4.              Payment and Delivery.  Payment of the Purchase Price for the Notes shall be made to the Company in Federal or other funds immediately available in New York City against delivery of such Notes for the account of the Initial Purchasers at 10:00 A.M., New York City time, on January 23, 2018, or at such other time on the same or such other date, as shall hereafter be agreed upon by the Company and the Initial Purchasers.  The time and date of such payment are hereinafter referred to as the “Closing Date.”

 

Delivery of the Notes shall be made through the facilities of The Depository Trust Company (“DTC”) pursuant to its Full-Fast Delivery Program unless the Initial Purchasers shall otherwise instruct, and Notes sold by the Initial Purchasers in reliance on Rule 144A or Regulation S shall be represented by one or more global certificates.

 

5.              Conditions to the Initial Purchasers’ Obligations.  The obligations of the several Initial Purchasers to purchase and pay for the Notes and related Guarantees on the Closing Date are subject to the following conditions:

 

(a)                                 Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:

 

(i)                                                             There shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading, below Ba3(Negative) from Moody’s Investors Service, Inc., BB(Negative) from S&P Global Ratings Services, a division of S&P Global, Inc. and BB(Negative) from Fitch Inc., in the senior unsecured rating accorded the Company or the Guarantor or any of the Company’s or the Guarantor’s senior unsecured securities or in the rating outlook for the Company or the Guarantor by any “nationally recognized statistical rating organization,” as that term is defined in Section 3(a)(62) of the Exchange Act; and

 

(ii)                                                          There shall not have occurred any change, or any development involving a prospective change, in the financial position, or in the earnings, business or operations of the Guarantor and its subsidiaries, taken as a whole, from that set forth in the Offering Memorandum (exclusive of any amendments or supplements thereto subsequent to the date of this Agreement) that, in your judgment, is material and adverse and that

 

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makes it, in your judgment, impracticable to market the Securities on the terms and in the manner contemplated in the Offering Memorandum.

 

(b)                                 The Initial Purchasers shall have received on the Closing Date a certificate, dated the Closing Date and signed by an executive officer of each of the Company, with respect to the Company, and the Guarantor, with respect to the Guarantor, to the effect set forth in Section 5(a) and to the effect that the representations and warranties of the Company and the Guarantor contained in this Agreement are true and correct as of the Closing Date and that each of the Company and the Guarantor has complied with all of the agreements and satisfied all of the conditions on its part to be performed or satisfied hereunder on or before the Closing Date.

 

The officer signing and delivering such certificate may rely upon the best of his or her knowledge as to proceedings threatened.

 

(c)                                  The Company and the Guarantor shall have furnished to the Initial Purchasers the opinion of Julia Wright, Vice President and General Counsel of the Company, dated the Closing Date, substantially to the effect set forth on Annex 5(c) hereto.  In giving such opinion, such counsel may rely as to matters of fact, to the extent such counsel deems proper, on certificates of responsible officers of the Company or the Guarantor and the Significant Subsidiaries and of public officials.  Such opinion may be relied upon only by the Initial Purchasers in connection with the transactions contemplated by this Agreement, and may not be used or relied upon by the Initial Purchasers for any other purpose, or by any other person, firm, corporation or entity for any purpose whatsoever, without the prior written consent of such counsel.  Such opinion may be limited to the laws of the State of Texas and the corporation, limited partnership and limited liability company statutes of the State of Delaware.

 

(d)                                 The Company and the Guarantor shall have furnished to the Initial Purchasers the opinion of Milbank, Tweed, Hadley & McCloy LLP (“MTHM”), special United States counsel for the Company and the Guarantor, dated the Closing Date, substantially to the effect set forth on Annex 5(d)-1 hereto.

 

In rendering their opinions pursuant to this Section 5(d), such counsel may rely, to the extent deemed advisable by such counsel, (i) as to factual matters on certificates of officers of the Company or the Guarantor and (ii) upon certificates of public officials.

 

Such opinion shall be limited to the laws of the State of New York, the Federal laws of the United States and the General Corporation Law of the State of Delaware. In addition, the Company shall have furnished to the Initial Purchasers the negative assurance letter of MTHM, dated the Closing Date, substantially to the effect set forth on Annex 5(d)-2.  Such opinion and negative assurance letter shall be rendered as of the Closing Date only in connection with this Agreement and will be solely for the benefit of the Initial Purchasers, and may not be relied upon, nor shown to or quoted from, for any other purpose, or to any other person, firm or corporation.

 

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(e)                                  The Company and the Guarantor shall have furnished to the Initial Purchasers the opinion of Conyers Dill & Pearman, special counsel for the Guarantor, dated the Closing Date, in the form set forth on Annex 5(e) hereto.  Such opinion shall be limited to the laws of Bermuda.  Such opinion shall be rendered as of the Closing Date only in connection with the Agreement and will be solely for the benefit of the Initial Purchasers, and may not be relied upon, nor shown to or quoted from, for any other purpose, or to any other person, firm or corporation.

 

(f)                                   The Initial Purchasers shall have received from Vinson & Elkins L.L.P., counsel for the Initial Purchasers, such opinion or opinions, dated the Closing Date, with respect to the issuance and sale of the Securities, the Disclosure Package, the Final Offering Memorandum and other related matters as the Initial Purchasers may reasonably require, and the Company and the Guarantor shall have furnished to such counsel such documents as such counsel reasonably requests for the purpose of enabling such counsel to pass upon such matters.

 

(g)                                  The Initial Purchasers shall have received on the date of the Applicable Time and on the Closing Date letters, dated the date of the Applicable Time and Closing Date, respectively, in form and substance satisfactory to the Initial Purchasers, from PricewaterhouseCoopers LLP, independent public accountants, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained in or incorporated by reference into each Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than three days from the date hereof.

 

6.              Covenants of the Company and the Guarantor.  In further consideration of the agreements of the Initial Purchasers contained in this Agreement, the Company and the Guarantor, jointly and severally, covenant with the Initial Purchasers as follows:

 

(a)                                 To furnish to the Initial Purchasers in New York City, without charge, prior to 10:00 A.M. New York City time on January 23, 2018 and during the period mentioned in Section 6(c), as many copies of the Disclosure Package, the Memorandum, any documents incorporated by reference therein and any supplements and amendments thereto as the Initial Purchasers may reasonably request.

 

(b)                                 Before amending or supplementing the Disclosure Package or the Memorandum, to furnish to the Initial Purchasers a copy of each such proposed amendment or supplement and not to use any such proposed amendment or supplement to which the Initial Purchasers reasonably object.

 

(c)                                  If, during such period after the date hereof and prior to the date on which all of the Securities shall have been sold by the Initial Purchasers, any event shall occur or condition exist as a result of which it is necessary to amend or supplement the Disclosure Package or the Memorandum in order to make the statements therein, in the light of the circumstances when the Disclosure Package or the Memorandum is delivered to a purchaser, not misleading, or if, in the opinion of counsel for the Initial Purchasers, it is

 

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necessary to amend or supplement the Disclosure Package or the Memorandum to comply with applicable law, forthwith to prepare and furnish, at its own expense, to the Initial Purchasers, either amendments or supplements to the Disclosure Package or the Memorandum so that the statements in the Disclosure Package or the Memorandum as so amended or supplemented will not, in the light of the circumstances when the Disclosure Package or the Memorandum is delivered to a purchaser, be misleading or so that the Disclosure Package or the Memorandum, as amended or supplemented, will comply with applicable law.

 

(d)                                 To endeavor to qualify the Securities for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Initial Purchasers shall reasonably request; provided, however that neither the Company nor the Guarantor shall be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject.

 

(e)                                  During the period from the date hereof through and including the date that is 30 days after the date hereof, each of the Company and the Guarantor will not, without the prior written consent of Goldman Sachs & Co. LLC, offer, sell, contract to sell or otherwise dispose of any debt securities (other than any exchangeable or convertible debt securities or the Exchange Notes) issued or guaranteed by the Company or the Guarantor and having a tenor of more than one year (which, for the avoidance of doubt, does not include indebtedness drawn under the Company’s revolving credit facility or issued as commercial paper).

 

(f)                                   Whether or not the transactions contemplated in this Agreement are consummated or this Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of their respective obligations under this Agreement, including: (i) the fees, disbursements and expenses of the Company’s and the Guarantor’s counsel and the Company’s and the Guarantor’s accountants in connection with the issuance and sale of the Securities and all other fees or expenses of the Company and the Guarantor in connection with the preparation of the Disclosure Package and the Memorandum and all amendments and supplements thereto, including all printing costs associated therewith, and the delivery of copies thereof to the Initial Purchasers, in the quantities herein above specified, (ii) all costs and expenses related to the issuance, transfer and delivery of the Securities to the Initial Purchasers, including any transfer or other taxes payable thereon, (iii) the cost of printing or producing any blue sky or legal investment memorandum in connection with the offer and sale of the Securities under state securities laws and all expenses in connection with the qualification of the Securities for offer and sale under state securities laws as provided in Section 6(d) hereof, including filing fees and the reasonable fees and disbursements of counsel for the Initial Purchasers in connection with such qualification and in connection with the Blue Sky or legal investment memorandum, (iv) any fees charged by rating agencies for the rating of the Securities, (v) the costs and charges of the Trustee and any transfer agent, registrar, depositary, or the Securities Administrator, (vi) the costs and expenses of the Company and the Guarantor relating to investor presentations on any “road show” undertaken in connection with the marketing of the offering of the Securities, including, without limitation, expenses associated with the

 

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preparation or dissemination of any electronic road show, expenses associated with the production of road show slides and graphics, fees and expenses of any consultants engaged in connection with the road show presentations with the prior approval of the Company or the Guarantor, travel and lodging expenses of the representatives and officers of the Company and the Guarantor and any such consultants, and the cost of any aircraft chartered in connection with the road show and (vii) all other costs and expenses incident to the performance of the obligations of the Company and the Guarantor hereunder for which provision is not otherwise made in this Section.  It is understood, however, that except as provided elsewhere in this Agreement, the Initial Purchasers will pay all of their costs and expenses, including fees and disbursements of their counsel, transfer taxes payable upon their resale of any of the Securities by them and any advertising expenses connected with any offers they may make.

 

(g)                                  Neither the Guarantor nor any Affiliate of the Guarantor will sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in the Securities Act) which could be integrated with the sale of the Securities in a manner that would require the registration under the Securities Act of the Securities.

 

(h)                                 Not to solicit any offer to buy or offer or sell the Securities by means of any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

 

(i)                                     While any of the Securities remain “restricted securities” within the meaning of Rule 144(c)(3), to make available, upon request, to any seller of such Securities the information specified in Rule 144A(d)(4) under the Securities Act, unless the Guarantor is then subject to Section 13 or 15(d) of the Exchange Act.

 

(j)                                    Until the issuance of the Exchange Notes or the effectiveness of the shelf registration statement contemplated by the Registration Rights Agreement, the Guarantor will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities Act) to resell any of the Securities which constitute “restricted securities” under Rule 144(c)(3) that have been reacquired by any of them.

 

(k)                                 Before using, authorizing, approving or referring to any written communication that constitutes an offer to sell or a solicitation to buy the Notes or the Guarantees (other than the Disclosure Package and the Final Offering Memorandum), the Company will furnish to the Initial Purchasers a copy of such written communication for review and will not use, authorize, approve or refer to any such written communication to which the Initial Purchasers reasonably object.

 

7.              Offering of Securities; Restrictions on Transfer.  (a)  Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that (i) it is a qualified institutional buyer as defined in Rule 144A under the Securities Act (a “QIB”), and an “accredited investor” within the meaning of Rule 501 under the Securities Act, (ii) it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, such Securities by any form of general solicitation or general advertising (as those terms are used in Regulation D

 

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under the Securities Act) or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act, (iii) it will solicit offers for such Securities only from, and will offer such Securities only to, persons that it reasonably believes to be QIBs in transactions pursuant to Rule 144A and in connection with each such sale, it has taken or will take reasonable steps to ensure that such sale is being made in reliance on Rule 144A and (iv) it will solicit offers outside the United States only from, and will offer such Securities only to, certain persons who are not U.S. Persons in offshore transactions in reliance on Regulation S.  Each Initial Purchaser will comply with all applicable laws and regulations in each jurisdiction in which it acquires, offers, sells or delivers Securities or has in its possession or distributes the Disclosure Package or the Memorandum or any such other material, in all cases at its own expense, except as provided in Section 6(e).

 

(b)                                 Each Initial Purchaser acknowledges and agrees that the Company and, for the purposes of the opinions to be delivered to the Initial Purchasers pursuant to Sections 5(c), 5(d), 5(e) and 5(f), counsel for the Company, counsel for the Guarantor and counsel for the Initial Purchasers, respectively, may rely upon the accuracy of the representations and warranties of such Initial Purchaser, and compliance of such Initial Purchaser with its agreements, contained in paragraph 7(a) above, and such Initial Purchaser hereby consents to such reliance.

 

8.              Indemnity and Contribution.  (a)  The Company and the Guarantor, jointly and severally, agree to indemnify and hold harmless each Initial Purchaser, its affiliates, the respective officers and directors of the Initial Purchasers, and each person, if any, who controls any Initial Purchaser within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities (including, without limitation, any legal or other expenses reasonably incurred in connection with defending or investigating any such action or claim) caused by any untrue statement or alleged untrue statement of a material fact contained in any Additional Written Communication, the Offering Memorandum, the Disclosure Package, the Final Offering Memorandum, or in any amendment or supplement thereto, or caused by any omission or alleged omission to state therein a material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, except insofar as such losses, claims, damages or liabilities are caused by any such untrue statement or omission or alleged untrue statement or omission based upon information furnished to the Company in writing by the Initial Purchasers through the Representatives expressly for use therein, it being understood and agreed that the only information furnished by any such Initial Purchaser consists of the information described in Section 8(b).

 

(b)                                 Each Initial Purchaser, severally and not jointly, agrees to indemnify and hold harmless the Company, its affiliates, its directors, its officers, the Guarantor, its directors, its officers and each other person, if any, who controls the Company or the Guarantor within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company and the Guarantor to the Initial Purchasers, but only with reference to information relating to the Initial Purchasers furnished in writing by the Initial Purchasers through the Representatives to the Company expressly for use in any Additional Written Communication, the Offering Memorandum, the Disclosure Package or the Final Offering Memorandum or any amendments or supplements thereto, it being understood and agreed that the

 

14

 

only information furnished by any such Initial Purchaser consists of the following information in the Offering Memorandum: (i) the names of the Initial Purchasers on the cover page and (ii) the tenth (first sentence only) and eleventh paragraphs under the caption “Plan of Distribution.”

 

(c)                                  In case any proceeding (including any governmental investigation) shall be instituted involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b), such person (the “indemnified party”) shall promptly notify the person against whom such indemnity may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to represent the indemnified party and any others the indemnifying party may designate in such proceeding and shall pay the fees and disbursements of such counsel related to such proceeding; but the omission so to promptly notify the indemnifying party shall not relieve it from any liability which it may have to any indemnified party provided that the party entitled to be so notified is not prejudiced by such delay to promptly notify.  In any such proceeding, any indemnified party shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named parties to any such proceeding (including any impleaded parties) include both the indemnifying party and the indemnified party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood that the indemnifying party shall not, in respect of the legal expenses of any indemnified party in connection with any proceeding or related proceedings in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all such indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred.  Such firm shall be designated in writing by the Representatives, in the case of parties indemnified pursuant to Section 8(a), and by the Guarantor, in the case of parties indemnified pursuant to Section 8(b).  The indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second and third sentences of this paragraph, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such settlement (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding, and (ii) does not include an admission of fault, culpability or a culpable failure to act, by or on behalf of an indemnified party.

 

(d)                                 To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to an indemnified party or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying

 

15

 

such indemnified party thereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company or the Guarantor on the one hand and the Initial Purchasers on the other hand from the offering of the Notes or (ii) if the allocation provided by clause 8(d)(i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause 8(d)(i) above but also the relative fault of the Company or the Guarantor on the one hand and of the Initial Purchasers on the other hand in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  The relative benefits received by the Company or the Guarantor on the one hand and the Initial Purchasers on the other hand in connection with the offering of the Notes shall be deemed to be in the same respective proportions as the net proceeds from the offering of the Notes (before deducting expenses) received by the Company and the total discounts and commissions received by the Initial Purchasers, in each case as set forth in the Offering Memorandum or herein, bear to the aggregate offering price of the Notes.  The relative fault of the Company or the Guarantor on the one hand and of the Initial Purchasers on the other hand shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company and the Guarantor or by the Initial Purchasers, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

(e)                                  The Company, the Guarantor and the Initial Purchasers agree that it would not be just or equitable if contribution pursuant to this Section 8 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in Section 8(d).  The amount paid or payable by an indemnified party as a result of the losses, claims, damages and liabilities referred to in Section 8(d) shall be deemed to include, subject to the limitations set forth above, any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.  Notwithstanding the provisions of this Section 8, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price at which the Notes resold by it in the initial placement of such Notes were offered to investors exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The remedies provided for in this Section 8 are not exclusive and shall not limit any rights or remedies which may otherwise be available to any indemnified party at law or in equity. The Initial Purchasers’ obligations to contribute pursuant to this Section 8(e) are several in proportion to the respective principal amount of Notes they have agreed to purchase hereunder and not joint.

 

(f)                                   The indemnity and contribution provisions contained in this Section 8 and the representations, warranties and other statements of the Company or the Guarantor contained in this Agreement shall remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of any Initial Purchaser or any person controlling any Initial Purchaser or by or on behalf of the Company, its officers or directors, the Guarantor, its officers or directors or any other person controlling the Company or the Guarantor and (iii) acceptance of and payment for any of the Notes.

 

16

 

9.              Termination.  This Agreement shall be subject to termination by notice given by the Initial Purchasers to the Company and the Guarantor, if (a) after the execution and delivery of this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on or by, as the case may be, either the New York Stock Exchange or The NASDAQ Stock Market LLC, or settlement of trading shall have been materially disrupted, (ii) trading of any securities of the Guarantor shall have been suspended on any exchange or in any over-the-counter market, (iii) a general moratorium on commercial banking activities in New York shall have been declared by either Federal or New York State authorities or (iv) there shall have occurred any outbreak or escalation of hostilities (including without limitation an act of terrorism) or any change in financial markets or any calamity or crisis that, in your judgment, is material and adverse to the financial markets generally and (b) in the case of any of the events specified in clauses 9(a)(i) through 9(a)(iv), such event, singly or together with any other such event, makes it, in your judgment, impracticable to market the Securities on the terms and in the manner contemplated by this Agreement and the Offering Memorandum.

 

10.       Default by an Initial Purchaser.  If any one or more Initial Purchasers shall fail to purchase and pay for any of the Notes agreed to be purchased by such Initial Purchaser hereunder and such failure to purchase shall constitute a default in the performance of its or their obligations under this Agreement, the remaining Initial Purchasers shall be obligated severally to take up and pay for (in the respective proportions that the principal amount of Notes set forth opposite their names in Schedule A hereto bears to the aggregate principal amount of Notes set forth opposite the names of all the remaining Initial Purchasers) the Notes that the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase; provided, however, that in the event that the aggregate principal amount of Notes that the defaulting Initial Purchaser or Initial Purchasers agreed but failed to purchase shall exceed 10% of the aggregate principal amount of Notes set forth in Schedule A hereto, the remaining Initial Purchasers shall have the right to purchase all, but shall not be under any obligation to purchase any, of the Notes, and if such nondefaulting Initial Purchasers do not purchase all the Notes, this Agreement will terminate without liability to any nondefaulting Initial Purchaser or the Company.  In the event of a default by any Initial Purchaser as set forth in this Section 10, the Closing Date shall be postponed for such period, not exceeding five business days, as the Initial Purchasers shall determine in order that the required changes in the Final Offering Memorandum or in any other documents or arrangements may be effected.  Nothing contained in this Agreement shall relieve any defaulting Initial Purchaser of its liability, if any, to the Company or any nondefaulting Initial Purchaser for damages occasioned by its default hereunder.

 

11.       Effectiveness; Expense Reimbursement.  This Agreement shall become effective upon the execution and delivery hereof by the parties hereto.

 

If this Agreement shall be terminated by the Initial Purchasers because of any failure or refusal on the part of the Company or the Guarantor to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company or the Guarantor shall be unable to perform its obligations under this Agreement, the Company will reimburse the Initial Purchasers for all out-of-pocket expenses (including the fees and disbursements of their counsel up to a

 

17

 

maximum of $100,000) reasonably incurred by the Initial Purchasers in connection with this Agreement or the offering contemplated hereunder.

 

12.       Notices.  Notices given pursuant to this Agreement shall be in writing and shall be delivered (a) if to the Company, at 515 W. Greens Road, Suite 1200, Houston, Texas 77067, Attention: Chief Financial Officer, or (b) if to the Guarantor, Crown House, 4 Par-La-Ville Road, Hamilton, Second Floor, HM08, Bermuda, or (c) if to the Initial Purchasers, to Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282-2198, or in any case to such other address as the person to be notified may have requested in writing.

 

13.       Successors.  This Agreement is made solely for the benefit of the Initial Purchasers, the Company, the Guarantor, their respective directors and officers and other controlling persons referred to in Section 8 hereof, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement.  The term “successors and assigns” as used in this Agreement shall not include a purchaser from the Initial Purchasers of any of the Securities in its status as such purchaser.

 

14.       Partial Unenforceability.  If any section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, such determination shall not affect the validity or enforceability of any other section, paragraph or provision hereof.

 

15.       Counterparts.  This Agreement may be signed (including by facsimile) in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

16.       Applicable Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.

 

17.       No Fiduciary Duty.  The Company and Guarantor hereby acknowledge that (a) the purchase and sale of the Securities pursuant to this Agreement is an arm’s-length commercial transaction between the Company and the Guarantor, on the one hand, and the Initial Purchasers and any affiliate through which they may be acting, on the other, (b) the Initial Purchasers are acting as principal and not as an agent or fiduciary of the Company or the Guarantor and (c) the Company’s engagement of the Initial Purchasers in connection with the offering and the process leading up to the offering is as independent contractors and not in any other capacity.  Furthermore, the Company and the Guarantor agree that they are solely responsible for making their own judgments in connection with the offering (irrespective of whether any of the Initial Purchasers has advised or is currently advising the Company or the Guarantor on related or other matters).  The Company and the Guarantor agree that they will not claim that the Initial Purchasers have rendered advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the Company or the Guarantor, in connection with such transaction or the process leading thereto.

 

18.       Consent to Jurisdiction.  Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby (“Related Proceedings”)

 

18

 

may be instituted in the federal courts of the United States of America located in the City and County of New York, Borough of Manhattan, or the courts of the State of New York in each case located in the City and County of New York, Borough of Manhattan (collectively, the “Specified Courts”), and each party irrevocably submits to the exclusive jurisdiction (except for proceedings instituted in regard to the enforcement of a judgment of any such court (a “Related Judgment”), as to which such jurisdiction is non-exclusive) of such courts in any such suit, action or proceeding.  Service of any process, summons, notice or document by mail to such party’s address set forth above shall be effective service of process for any suit, action or other proceeding brought in any such court.  The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or other proceeding in the Specified Courts and irrevocably and unconditionally waive and agree not to plead or claim in any such court that any such suit, action or other proceeding brought in any such court has been brought in an inconvenient forum.  Each party not located in the United States irrevocably appoints CT Corporation System as its agent to receive service of process or other legal summons for purposes of any such suit, action or proceeding that may be instituted in any state or federal court in the City and County of New York.

 

19.       Waiver of Immunity.  With respect to any Related Proceeding, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise be entitled in the Specified Courts, and with respect to any Related Judgment, each party waives any such immunity in the Specified Courts or any other court of competent jurisdiction, and will not raise or claim or cause to be pleaded any such immunity at or in respect of any such Related Proceeding or Related Judgment, including, without limitation, any immunity pursuant to the United States Foreign Sovereign Immunities Act of 1976, as amended.

 

20.       Headings.  The headings of the sections of this Agreement have been inserted for convenience of reference only and shall not be deemed a part of this Agreement.

 

21.       Entire Agreement.  This Agreement and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. This Agreement and the other agreements and documents referred to herein or therein supersede all prior agreements and understandings (whether written or oral) among the parties with respect to such subject matter.

 

19

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
NABORS INDUSTRIES LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark D. Andrews
    
	
 
    	
Name:
    	
Mark   D. Andrews
    
	
 
    	
Title:
    	
Corporate   Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NABORS INDUSTRIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William Restrepo
    
	
 
    	
Name:
    	
William   Restrepo
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

Signature Page to Purchase Agreement

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
GOLDMAN   SACHS & CO. LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Thomas M. Manning
    	
 
    
	
Name:
    	
Thomas   M. Manning
    	
 
    
	
Title:
    	
Authorized   Signatory
    	
 
    

 

Signature Page to Purchase Agreement

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
CITIGROUP GLOBAL MARKETS INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Jason Howard
    	
 
    
	
Name:
    	
Jason   Howard
    	
 
    
	
Title:
    	
Director
    	
 
    

 

Signature Page to Purchase Agreement

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
DEUTSCHE BANK SECURITIES INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Stephen P. Cunningham
    	
 
    
	
Name:
    	
Stephen   P. Cunningham
    	
 
    
	
Title:
    	
Managing   Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Michael Getz
    	
 
    
	
Name:
    	
Michael   Getz
    	
 
    
	
Title:
    	
Director
    	
 
    

 

Signature Page to Purchase Agreement

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
MORGAN STANLEY & CO. LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Chance Moreland
    	
 
    
	
Name:
    	
Chance   Moreland
    	
 
    
	
Title:
    	
Vice   President
    	
 
    

 

Signature Page to Purchase Agreement

 

 

	
Accepted   as of the date hereof:
    	
 
    
	
 
    	
 
    
	
WELLS FARGO SECURITIES, LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Todd Schanzlin
    	
 
    
	
Name:
    	
Todd   Schanzlin
    	
 
    
	
Title:
    	
Managing   Director, Co-Head
    	
 
    

 

Signature Page to Purchase Agreement

 

 

SCHEDULE I

 

Pricing Supplement

 

Schedule I - 1

 

Pricing Supplement dated January 16, 2018

 

This Pricing Supplement is qualified in its entirety by reference to the Preliminary Offering Memorandum dated January 16, 2018 (the “Preliminary Offering Memorandum”). The information in this Pricing Supplement supplements the Preliminary Offering Memorandum and supersedes any inconsistent information in the Preliminary Offering Memorandum. Capitalized terms used but not defined herein have the meanings assigned to such terms in the Preliminary Offering Memorandum.

 

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and are being offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States to non-U.S. persons in accordance with Regulation S under the Securities Act.

 

Terms Applicable to the 5.75% Senior Notes due 2025 (the “Notes”)

 

	
Security Offered:
    	
 
    	
5.75%   Senior Notes due 2025
    
	
 
    	
 
    	
 
    
	
Issuer:
    	
 
    	
Nabors   Industries, Inc.
    
	
 
    	
 
    	
 
    
	
Guarantor:
    	
 
    	
Nabors   Industries Ltd.
    
	
 
    	
 
    	
 
    
	
Principal Amount:
    	
 
    	
$800,000,000   aggregate principal amount of Notes
    
	
 
    	
 
    	
 
    
	
Gross Proceeds:
    	
 
    	
$800,000,000
    
	
 
    	
 
    	
 
    
	
Net Proceeds:
    	
 
    	
$788,600,000
    
	
 
    	
 
    	
 
    
	
Maturity Date:
    	
 
    	
February 1,   2025
    
	
 
    	
 
    	
 
    
	
Offering Price to Investors:
    	
 
    	
100.0%   of the principal amount
    
	
 
    	
 
    	
 
    
	
Coupon:
    	
 
    	
5.75%   
    
	
 
    	
 
    	
 
    
	
Yield to Maturity:
    	
 
    	
5.75%   
    
	
 
    	
 
    	
 
    
	
Benchmark Treasury:
    	
 
    	
2%   due February 15, 2025
    
	
 
    	
 
    	
 
    
	
Treasury Yield:
    	
 
    	
2.48%   
    
	
 
    	
 
    	
 
    
	
Spread to Treasury:
    	
 
    	
+327   bps 
    
	
 
    	
 
    	
 
    
	
Coupon Payment Dates:
    	
 
    	
February 1   and August 1, beginning August 1, 2018
    

 

Schedule I - 2

 

	
Record Dates:
    	
 
    	
January 15   and July 15
    
	
 
    	
 
    	
 
    
	
Ratings:
    	
 
    	
Ba3   (Negative) from Moody’s Investors Service, Inc.
    
	
 
    	
 
    	
BB   (Stable) from S&P Global Ratings
    
	
 
    	
 
    	
BB   (Negative) from Fitch Inc.
    
	
 
    	
 
    	
 
    
	
Call Feature:
    	
 
    	
Make-whole   call @ T + 50 bps prior to November 1, 2024 and par call thereafter
    
	
 
    	
 
    	
 
    
	
Put:

 
    	
 
    	
Offer   to purchase by the Issuer if a Change of Control Triggering Event occurs (as   defined in the Indenture)
    
	
 
    	
 
    	
 
    
	
Joint Book-Running Managers:
    	
 
    	
Goldman   Sachs & Co. LLC

Citigroup   Global Markets Inc.

Deutsche   Bank Securities Inc.

Morgan   Stanley & Co. LLC

Wells   Fargo Securities, LLC
    
	
 
    	
 
    	
 
    
	
Senior Co-Managers:
    	
 
    	
Merrill   Lynch, Pierce, Fenner & Smith

Incorporated

HSBC   Securities (USA) Inc.

Mizuho   Securities USA LLC

MUFG   Securities Americas Inc.
    
	
 
    	
 
    	
 
    
	
Co-Managers:
    	
 
    	
PNC   Capital Markets LLC

BBVA   Securities Inc.

SMBC   Nikko Securities America, Inc.

ANZ   Securities, Inc.

Intrepid   Partners, LLC
    
	
 
    	
 
    	
 
    
	
Trade Date:
    	
 
    	
January 16,   2018
    
	
 
    	
 
    	
 
    
	
Settlement Date:
    	
 
    	
January 23,   2018 (T+5)
    
	
 
    	
 
    	
 
    
	
Denominations:
    	
 
    	
$2,000   and in integral multiples of $1,000 in excess thereof 
    
	
 
    	
 
    	
 
    
	
CUSIP:
    	
 
    	
Rule 144A:   62957H AD7
    
	
 
    	
 
    	
Regulation   S: U6295Y AJ2
    
	
 
    	
 
    	
 
    
	
ISIN:
    	
 
    	
Rule 144A:   US62957HAD70
    
	
 
    	
 
    	
Regulation   S: USU6295YAJ20
    

 

Schedule I - 3

 

Additional Information:

 

Revised Disclosure regarding Borrowing Capacity:

 

As of September 30, 2017, on an as-adjusted basis after giving effect to this offering and use of proceeds therefrom, we would have had the ability to borrow up to $2.1 billion under our revolving credit facility, subject to compliance with conditions and covenants of that facility including the facility’s requirement to maintain a 0.60:1 net debt to capital ratio.

 

 

Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.

 

We expect delivery of the notes will be made against payment therefor on or about January 23, 2018, which is the fifth business day following the date of pricing of the notes (such settlement being referred to as “T+5”). Under Rule 15c6-1 of the Securities Exchange Act of 1934, trades in the secondary market generally are required to settle in two business days unless the parties to any such trade expressly agree otherwise.  Accordingly, purchasers who wish to trade the notes on the date of pricing of the notes or the next succeeding two business days will be required, by virtue of the fact that the notes initially will settle in T+5, to specify an alternate settlement cycle at the time of any such trade to prevent failed settlement and should consult their own advisers.

 

This communication is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy any security.  No offer to buy securities described herein can be accepted, and no part of the purchase price thereof can be received, unless the person making such investment decision has received and reviewed the information contained in the relevant offering memorandum in making their investment decisions.  This communication is not intended to be a confirmation as required under Rule 10b-10 of the Securities Exchange Act of 1934.  A formal confirmation will be delivered to you separately.

 

The senior notes have not been registered under the Securities Act.  The notes may not be offered or sold within the United States or to U.S. persons except to qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A and to certain non-U.S. persons in offshore transactions in reliance on Regulation S.  You are hereby notified that sellers of the notes may be relying on the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A.  You may obtain a copy of the Preliminary Offering Memorandum and the Final Offering Memorandum (when available) for this transaction by calling your Goldman Sachs & Co. LLC, sales representative to request it.

 

Schedule I - 4

 

SCHEDULE II

 

Purchase Price: 98.65% of the aggregate principal amount of the Notes

 

Schedule II - 1

 

SCHEDULE A

 

	
Initial Purchasers
    	
 
    	
Principal Amount of
   Notes to be Purchased
    	
 
    
	
Goldman   Sachs & Co. LLC
    	
 
    	
$
    	
200,000,000
    	
 
    
	
Citigroup Global   Markets Inc.
    	
 
    	
$
    	
133,333,333
    	
 
    
	
Deutsche Bank   Securities Inc.
    	
 
    	
$
    	
66,666,667
    	
 
    
	
Morgan   Stanley & Co. LLC
    	
 
    	
$
    	
133,333,333
    	
 
    
	
Wells Fargo   Securities, LLC
    	
 
    	
$
    	
133,333,333
    	
 
    
	
Merrill Lynch,   Pierce, Fenner & Smith

Incorporated
    	
 
    	
$
    	
20,000,000
    	
 
    
	
HSBC Securities   (USA) Inc.
    	
 
    	
$
    	
26,666,667
    	
 
    
	
Mizuho   Securities USA LLC
    	
 
    	
$
    	
26,666,667
    	
 
    
	
MUFG Securities   Americas Inc.
    	
 
    	
$
    	
20,000,000
    	
 
    
	
PNC Capital   Markets LLC
    	
 
    	
$
    	
10,666,667
    	
 
    
	
BBVA Securities   Inc.
    	
 
    	
$
    	
10,000,000
    	
 
    
	
SMBC Nikko   Securities America, Inc.
    	
 
    	
$
    	
10,000,000
    	
 
    
	
ANZ   Securities, Inc.
    	
 
    	
$
    	
4,000,000
    	
 
    
	
Intrepid   Partners, LLC
    	
 
    	
$
    	
5,333,333
    	
 
    
	
Total
    	
 
    	
$
    	
800,000,000
    	
 
    

 

Schedule A - 1

 

ANNEX 5(C)

 

OPINION OF JULIA WRIGHT

 

Each of the Company, Nabors International Finance Inc., Nabors Drilling Technologies USA, Inc. and Nabors Drilling Holdings Inc. (collectively, the “Selected Subsidiaries” and each, a “Selected Subsidiary”), has been duly organized and is validly existing as a corporation in good standing under the laws of the jurisdiction in which it is chartered or organized, with full corporate power and authority to own its properties and conduct its business as described in each Offering Memorandum, and is duly qualified to do business as a foreign corporation and is in good standing under the laws of each jurisdiction which requires such qualification wherein it owns or leases properties or conducts business, except to the extent that the failure to be so qualified or be in good standing would not have a material adverse effect on the Guarantor and its subsidiaries, taken as a whole;

 

All outstanding shares of capital stock of each of the Company and the other Significant Subsidiaries are owned by the Guarantor either directly or through wholly owned subsidiaries free and clear of any perfected security interest, other than any perfected security interest in favor of the Guarantor or another Significant Subsidiary and, to the knowledge of such counsel, any other security interests, claims, liens or encumbrances other than any liens, encumbrances, equities or claims in favor of the Guarantor or another Significant Subsidiary;

 

To the knowledge of such counsel, there is no pending or threatened material action, suit or proceeding before any court or governmental agency, authority or body or any arbitrator involving the Guarantor or any of its subsidiaries of a character required to be disclosed in either Offering Memorandum which is not disclosed in each such Offering Memorandum; and

 

Neither the issue and sale of the Securities, the consummation of any other of the transactions contemplated by this Agreement, the Registration Rights Agreement, or the Indenture nor the fulfillment of the terms thereof will conflict with, result in a breach or violation of, or constitute a default under the terms of (A) any indenture or other agreement or instrument known to such counsel and to which the Company, the Guarantor or any of the Significant Subsidiaries is a party or bound, or any judgment, order or decree known to such counsel to be applicable to the Company, the Guarantor or any of the Significant Subsidiaries of any court, regulatory body, administrative agency, governmental body or arbitrator having jurisdiction over the Company, the Guarantor or any of the Significant Subsidiaries, except such as would not, either singly or in the aggregate, have a material adverse effect upon the Guarantor and its subsidiaries, taken as a whole, or prevent the Company or the Guarantor from performing its obligations under this Agreement, the Registration Rights Agreement or the Indenture or (B) the respective charters, bylaws or other organizational documents of the Significant Subsidiaries (assuming that the relevant laws of the jurisdiction of organization of any Significant Subsidiary not organized in Texas or Delaware are the same as those of Texas).

 

Such counsel shall also state that it has no reason to believe that the Disclosure Package, as of the Applicable Time, or the Final Offering Memorandum, as of its date and at the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances

 

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under which they were made, not misleading (it being understood that such counsel need not express an opinion or comment with respect to the financial statements and the other financial information contained or incorporated by reference therein or excluded therefrom).

 

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ANNEX 5(D)-1

 

OPINION OF MILBANK, TWEED, HADLEY & McCLOY LLP

 

1.             The Company is validly existing as a corporation in good standing under the laws of the State of Delaware.

 

2.                                      The statements in the Offering Memorandum under “Description of the Notes,” “Transfer Restrictions” and “Exchange and Registration Rights” insofar as such statements purport to summarize certain provisions of the Securities, the Exchange Securities, the Indenture and the Registration Rights Agreement referred to therein as of the date hereof, fairly summarize such provisions.

 

3.                                      The statements in the discussion of matters in connection with the United States Employee Retirement Income Security Act of 1974, as amended (“ERISA”), contained under the caption of each Offering Memorandum titled “Certain Employee Benefit Plan Considerations for Investors” to the extent they constitute statements of law or legal conclusions, are, subject to the limitations, qualifications, exceptions, and assumptions set forth therein, correct in all material respects.

 

4.                                      Neither the offer, sale and delivery of the Securities by the Company and the Guarantor to the Initial Purchasers nor the initial resale thereof by the Initial Purchasers in the manner contemplated in the Disclosure Package and the Final Offering Memorandum and by the Purchase Agreement require registration under the Securities Act of 1933, as amended (it being understood that we express no opinion in this paragraph as to any subsequent resale of any Securities), and the Indenture is not required to be qualified under the Trust Indenture Act of 1939, as amended.

 

5.                                      Each of the Indenture and the Registration Rights Agreement has been duly authorized, executed and delivered by the Company, and, assuming each has been duly authorized, executed and delivered by the Guarantor, and assuming the Indenture has been duly authorized, executed and delivered by each of the Trustee and the Securities Administrator and the Registration Rights Agreement has been duly authorized, executed and delivered by Goldman Sachs & Co. LLC, as representative of the several Initial Purchasers, each constitutes a legal, valid and binding agreement enforceable against the Company and the Guarantor in accordance with its terms (subject to the qualification that (a) enforceability of the obligations of the Company and the Guarantor thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer, or similar laws relating to or affecting creditors’ rights generally; (b) the enforceability thereof is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including (i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy, (ii) concepts of materiality, reasonableness, good faith and fair dealing, and (iii) in the case of the Guarantor, possible judicial action giving effect to foreign governmental actions or foreign law; and (c) in the case of rights to indemnity and contribution, as may be limited by provisions imposed by law or public policy).

 

6.                                      The Notes have been duly authorized by the Company and, when executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by

 

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the Initial Purchasers pursuant to the Purchase Agreement, will constitute legal, valid and binding obligations of the Company entitled to the benefits of the Indenture (subject to the qualification that (a) enforceability of the obligations of the Company thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or similar laws relating to or affecting creditors’ rights generally; and (b) the enforceability thereof is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including (i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy and (ii) concepts of materiality, reasonableness, good faith and fair dealing); and assuming that the Guarantees have been duly authorized by the Guarantor and that the Guarantor has duly authorized, executed and delivered the Indenture, when the Notes have been executed and authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers pursuant to the Purchase Agreement, the Guarantees will constitute legal, valid and binding obligations of the Guarantor entitled to the benefits of the Indenture (subject to the qualification that (a) enforceability of the obligations of the Guarantor thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or similar laws relating to or affecting creditors’ rights generally; and (b) the enforceability thereof is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including (i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy, (ii) concepts of materiality, reasonableness, good faith and fair dealing, and (iii) possible judicial action giving effect to foreign governmental actions or foreign law).

 

7.                                      The Exchange Notes have been duly authorized by the Company and, when executed and authenticated in accordance with the provisions of the Indenture and delivered as contemplated in the Registration Rights Agreement, will constitute legal, valid and binding obligations of the Company entitled to the benefits of the Indenture (subject to the qualification that (a) enforceability of the obligations of the Company thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or similar laws relating to or affecting creditors’ rights generally; and (b) the enforceability thereof is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including (i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy and (ii) concepts of materiality, reasonableness, good faith and fair dealing); and assuming that the applicable Exchange Guarantees have been duly authorized by the Guarantor and that the Guarantor has duly authorized, executed and delivered the Indenture, when the Exchange Notes have been executed and authenticated in  accordance with the provisions of the Indenture and issued and delivered as contemplated by the Registration Rights Agreement, the related Exchange Guarantees will constitute legal, valid and binding obligations of the Guarantor entitled to the benefits of the Indenture (subject to the qualification that (a) enforceability of the obligations of the Guarantor thereunder may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or transfer or similar laws relating to or affecting creditors’ rights generally; and (b) the enforceability thereof is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including (i) the possible unavailability of specific performance, injunctive relief or any other equitable remedy, (ii) concepts of materiality, reasonableness, good faith and fair dealing, and (iii) possible judicial action giving effect to foreign governmental actions or foreign law).

 

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8.                                      The Purchase Agreement has been duly authorized, executed and delivered by the Company.

 

9.                                      No consent, approval, authorization or order of any Governmental Authority (as defined below) is required for the consummation of the transactions contemplated by the Purchase Agreement, except such as have been made or obtained prior to the date hereof, as may be required under state securities or “blue sky” laws of any jurisdiction, and by United States federal and state securities laws with respect to the Company’s and the Guarantor’s obligations under the Registration Rights Agreement, in each case as to which we express no opinion.

 

10.                               Neither the issue and sale of the Securities by the Company and the Guarantor, nor the consummation of any of the other transactions contemplated in the Purchase Agreement, nor the fulfillment of the terms of the Purchase Agreement, results in a breach or violation of (a) Applicable Law (as defined below), except such as would not, either singly or in the aggregate, have a material adverse effect on the Guarantor and its subsidiaries, taken as a  whole, or prevent either of the Company or the Guarantor from performing its obligations under the Purchase Agreement, the Registration Rights Agreement or the Indenture, or (b) the Restated Certificate of Incorporation or By-laws of the Company.

 

11.                               The statements in each Offering Memorandum under the caption titled “Certain United States Federal Income Tax Considerations” to the extent they constitute statements of law or legal conclusions are, subject to the limitations, qualifications, exceptions, and assumptions set forth therein, correct in all material respects.

 

12.                               The Company is not required to, and, immediately after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in each Offering Memorandum, the Company will not be required to register as an investment company under the Investment Company Act of 1940, as amended.

 

The foregoing opinions in paragraphs 3 and 11 above are limited to matters involving United States federal law, and we do not express any opinion as to the laws of any other jurisdiction.  The foregoing opinions in paragraphs 3 and 11 are based on the law in effect on the date hereof, including the United States Internal Revenue Code of 1986, as amended (the “Code”), ERISA, United States Treasury and Department of Labor regulations (including proposed regulations) promulgated under the Code and ERISA, respectively, the legislative history thereof, judicial decisions and administrative pronouncements, rulings of the United States Internal Revenue Service and opinions of the United States Department of Labor.  Such laws are subject to change, possibly with retroactive effect, and we undertake no obligation to update such opinions or otherwise advise you if any such laws should change.  Our opinion is not binding on the Internal Revenue Service, the Department of Labor or a court and, in particular due to the absence of authority addressing a closely comparable transaction, there can be no assurance that the Internal Revenue Service, the Department of Labor or a court will not adopt a position contrary to our opinion.

 

We express no opinion:  (a) as to whether a United States federal or state court outside the State of New York would give effect to the choice of New York law in the Indenture, the Registration Rights Agreement, the Securities and the Exchange Securities; (b) as to whether the

 

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United States federal courts could exercise jurisdiction over any action brought against the Guarantor or the Company by any party not a “citizen” of any state for purposes of 28 U.S.C. §1331 and 28 U.S.C. §1332; (c) as to the enforceability of any provision to the extent such provision provides indemnity in respect of any loss sustained as the result of the conversion into United States dollars of a judgment or order rendered by a court or tribunal of any particular jurisdiction and expressed in a currency other than United States dollars; (d) as to the enforceability in the United States of any waiver of immunity to the extent it applies to immunity acquired after the date of the relevant agreement; or (e) any waiver of forum non conveniens or similar doctrine with respect to proceedings in any court other than a court of the State of New York.

 

For purposes of the opinions rendered above, (i) “Applicable Law” means United States federal laws (other than the federal securities laws), the laws of the State of New York and those provisions of the General Corporation Law of the State of Delaware which in each case in our experience are normally applicable to transactions of the type contemplated by the Purchase Agreement and (ii) “Governmental Authority” means any United States federal or State of New York administrative, judicial or other governmental agency, authority, tribunal or body.

 

We express no opinion as to matters governed by any laws other than the laws of the State of New York, the General Corporation Law of the State of Delaware, and United States federal laws. The opinions contained herein are rendered to you and are solely for your benefit in connection with the closing under the Purchase Agreement of the sale of the Securities occurring today and may not be used, quoted, relied upon or otherwise referred to by any other person or for any other purpose without our express written consent in each instance. We disclaim any obligation to update anything herein for events occurring after the date hereof.

 

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ANNEX 5(D)-2

 

NEGATIVE ASSURANCE LETTER

OF

MILBANK, TWEED, HADLEY & McCLOY LLP

 

On the basis of and subject to the foregoing, we confirm to you that nothing has come to our attention that causes us to believe that: (i) the Disclosure Package (other than the financial statements and other financial information contained or incorporated by reference in or omitted from the Disclosure Package and management’s report on the effectiveness and internal control over financial reporting, as to which we express no belief and make no statement), as of the Applicable Time, or (ii) the Final Offering Memorandum (other than the financial statements and other financial information contained or incorporated by reference in or omitted from the Final Offering Memorandum and management’s report on the effectiveness and internal control over financial reporting, as to which we express no belief and make no statement), as of its date and at the date hereof, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

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ANNEX 5(E)

 

OPINION OF CONYERS DILL & PEARMAN

 

1.                                      The Guarantor is duly incorporated and existing under the laws of Bermuda in good standing (meaning solely that it has not failed to make any filing with any Bermuda governmental authority, or to pay any Bermuda government fee or tax, which would make it liable to be struck off the Register of Companies and thereby cease to exist under the laws of Bermuda).

 

2.                                      The Guarantor has the necessary corporate power and authority to conduct its business and to own, lease and operate its property as described in the Offering Memorandum.

 

3.                                      The Guarantor has the necessary corporate power and authority to enter into and perform its obligations under the Documents.  The execution and delivery of the Documents by the Guarantor and the performance by the Guarantor of its obligations thereunder will not violate the memorandum of association or bye-laws of the Guarantor nor any applicable law, regulation, order or decree in Bermuda.

 

4.                                      The Guarantor has taken all corporate action required to authorise its execution, delivery and performance of the Documents.  The Documents have been duly executed and delivered by or on behalf of the Guarantor, and constitute the valid, binding and enforceable obligations of the Guarantor in accordance with the terms thereof.

 

5.                                      No order, consent, approval, licence, authorisation or validation of or exemption by any government or public body or authority of Bermuda or any sub-division thereof is required to authorise or is required in connection with the execution, delivery, performance and enforcement of the Documents, except such as have been duly obtained in accordance with Bermuda law.

 

6.                                      It is not necessary or desirable to ensure the enforceability in Bermuda of the Documents that they be registered in any register kept by, or filed with, any governmental authority or regulatory body in Bermuda.  However, to the extent that any of the Documents creates a charge over assets of the Guarantor, it may be desirable to ensure the priority in Bermuda of the charge that it be registered in the Register of Charges in accordance with Section 55 of the Companies Act 1981.  On registration, to the extent that Bermuda law governs the priority of a charge, such charge will have priority in Bermuda over any unregistered charges, and over any subsequently registered charges, in respect of the assets which are the subject of the charge.  A registration fee of $630 will be payable in respect of the registration.

 

While there is no exhaustive definition of a charge under Bermuda law, a charge includes any interest created in property by way of security (including any mortgage, assignment, pledge, lien or hypothecation).  As the Documents are governed by the Foreign Laws, the question of whether they create such an interest in property would be determined under the Foreign Laws.

 

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7.                                      The Documents will not be subject to ad valorem stamp duty in Bermuda and no registration, documentary, recording, transfer or other similar tax, fee or charge is payable in Bermuda in connection with the execution, delivery, filing, registration or performance of the Documents other than as stated in paragraph 5 hereof.

 

8.                                      The choice of the Foreign Laws as the governing law of the Documents is a valid choice of law and would be recognised and given effect to in any action brought before a court of competent jurisdiction in Bermuda, except for those laws (i) which such court considers to be procedural in nature; (ii) which are revenue or penal laws or (iii) the application of which would be inconsistent with public policy, as such term is interpreted under the laws of Bermuda.  The submission in the Documents to the jurisdiction of the respective Foreign Courts is valid and binding upon the Guarantor. The appointment of an agent for service of process pursuant to the Documents is valid and binding upon the Guarantor.

 

9.                                      The courts of Bermuda would recognise as a valid judgment, a final and conclusive judgment in personam obtained in the respective Foreign Courts against the Guarantor based upon the Documents under which a sum of money is payable (other than a sum of money payable in respect of multiple damages, taxes or other charges of a like nature or in respect of a fine or other penalty) and would give a judgment based thereon provided that (a) such courts had proper jurisdiction over the parties subject to such judgment; (b) such courts did not contravene the rules of natural justice of Bermuda; (c) such judgment was not obtained by fraud; (d) the enforcement of the judgment would not be contrary to the public policy of Bermuda; (e) no new admissible evidence relevant to the action is submitted prior to the rendering of the judgment by the courts of Bermuda; and (f) there is due compliance with the correct procedures under the laws of Bermuda.

 

10.                               The obligations of the Guarantor under the Documents will rank at least pari passu in priority of payment with all other unsecured unsubordinated indebtedness of the Guarantor, other than indebtedness which is preferred by virtue of any provision of the laws of Bermuda of general application.

 

11.                               The transactions contemplated by the Documents are not subject to any currency deposit or reserve requirements in Bermuda. The Guarantor has been designated as non-resident of Bermuda for the purposes of the Exchange Control Act 1972 and, as such, is free to acquire, hold and sell foreign currency and securities without restriction.

 

12.                               Based solely upon a search of the Cause Book of the Supreme Court of Bermuda conducted at [TIME] on [·] 2018 (which would not reveal details of proceedings which have been filed but not actually entered in the Cause Book at the time of our search), there are no judgments against the Guarantor, nor any legal or governmental proceedings pending in Bermuda to which the Guarantor is subject.

 

13.                               Based solely on a search of the public records in respect of the Guarantor maintained at the offices of the Registrar of Companies at [TIME] on [·] 2018 (which would not

 

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reveal details of matters which have not been lodged for registration or have been lodged for registration but not actually registered at the time of our search) and a search of the Cause Book of the Supreme Court of Bermuda conducted at [TIME] on [·] 2018 (which would not reveal details of proceedings which have been filed but not actually entered in the Cause Book at the time of our search), no details have been registered of any steps taken in Bermuda for the appointment of a receiver or liquidator to, or for the winding-up, dissolution, reconstruction or reorganisation of, the Guarantor, though it should be noted that the public files maintained by the Registrar of Companies do not reveal whether a winding-up petition or application to the Court for the appointment of a receiver has been presented and entries in the Cause Book may not specify the nature of the relevant proceedings.

 

14.                               The Guarantor is not entitled to any immunity under the laws of Bermuda, whether characterised as sovereign immunity or otherwise, from any legal proceedings to enforce the Documents in respect of itself or its property.

 

15.                               At the present time, there is no Bermuda income or profits tax, withholding tax, capital gains tax, capital transfer tax, estate duty or inheritance tax payable by the Guarantor or by its shareholders in respect of its shares. The Guarantor has obtained an assurance from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not, until 31 March 2035, be applicable to the Guarantor or to any of its operations or to its shares, debentures or other obligations except insofar as such tax applies to persons ordinarily resident in Bermuda or is payable by the Guarantor in respect of real property owned or leased by the Guarantor in Bermuda.

 

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