Document:

Exhibit

NORTHWESTERN CORPORATION
KEY EMPLOYEE SEVERANCE PLAN
_______________________________ 
Effective October 19, 2016
_______________________________ 

Approved by the Board of Directors
October 19, 2016

Table of Contents
(continued)

Page

ARTICLE 1    DEFINITIONS    1
ARTICLE 2    SEVERANCE PLAN PROVISIONS    3
		
	2.1
	Eligibility for Severance Benefits    3

		
	2.2
	Severance Benefits    3

		
	Article 3
	ADDITIONAL PROVISIONS    5

		
	3.1
	Ineligibility for Severance Benefits    5

		
	3.2
	Re‐employment    5

		
	3.3
	Taxes    5

		
	3.4
	Relation to Other Plans    5

		
	3.5
	Amendment or Termination    5

		
	ARTICLE 4
	SUPERIOR PLAN PROVISIONS    5

		
	4.1
	Surviving Plan    6

		
	ARTICLE 5
	ADMINISTRATIVE PROVISIONS    6

		
	5.1
	General    6

		
	5.2
	Costs and Indemnification    7

		
	5.3
	Limitation on Employee Rights    7

		
	5.4
	Governing Law    7

		
	5.5
	Miscellaneous    7

		
	6.6
	ERISA Rights    7

		
	5.7
	Claims Procedures    9

NORTHWESTERN CORPORATION
KEY EMPLOYEE SEVERANCE PLAN
Effective October 19, 2016
NorthWestern Corporation (the “Company”), a Delaware corporation, by resolution of its Human Resources Committee (“Committee”) and Board of Directors (“Board”), each dated October 19, 2016, effective as of October 19, 2016 (“Effective Date”) has adopted this NorthWestern Corporation Key Employee Severance Plan (the “Plan”), for the benefit of key employees of the Company.  The severance provisions of this Plan are an “employee welfare benefit plan” as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and are not intended to be a “pension plan” as defined in Section 3(2)(A) of ERISA, and shall be administered so as not to be an ERISA pension plan.
ARTICLE 1

DEFINITIONS

Whenever the following terms are used in the Plan with the first letter capitalized, they shall have the meaning specified below unless the context clearly indicates to the contrary.
		
	1.1
	“Administrator” shall mean NorthWestern Corporation or certain officer or officers of the Company as designated by the Board.

		
	1.2
	“Annual Incentive Bonus” shall mean, with respect to an Eligible Employee, the target incentive level (which assumes achievement of 100% of target for each performance measure) for the Eligible Employee under the Company’s annual incentive plan in effect on the date of termination of employment. 

		
	1.3
	“Board” shall mean the Board of Directors of NorthWestern Corporation.  The Board may delegate its power or duty over this Plan to any other person or persons, including a committee or sub-committee of the Board.

		
	1.4
	“Cause” under the provisions of this Plan shall mean any of the following:

		
	1.4.1
	Fraud, misappropriation of corporate property or funds, or embezzlement;

		
	1.4.2
	Malfeasance in office, misfeasance in office which is willful or grossly negligent, or nonfeasance in office which is willful or grossly negligent;

		
	1.4.3
	Failure to comply with the Company’s Code of Conduct and Ethics;

		
	1.4.4
	Illegal conduct, gross misconduct or dishonesty, in each case which is willful and results (or is reasonably likely to result) in substantial damage to the company; or

		
	1.4.5
	Willful and continued failure by the employee to perform substantially his/her duties with the Company (other than any such failure resulting from his/her incapacity due to physical or mental illness) after receiving written demand for substantial performance from his/her immediate supervisor and after having been provided a reasonable period to correct the same.  The written demand will specifically identify the manner in which such immediate supervisor believes the employee has not substantially performed his/her duties.

		
	1.5
	“Company” shall mean NorthWestern Corporation and all of its affiliates, and any entity, which is a successor in interest to the Company.

		
	1.6
	“Disability” shall mean that an Eligible Employee is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident or health plan covering employees of the Eligible Employee’s employer.

		
	1.7
	“Eligible Employee” shall mean an Eligible Executive or an Eligible Officer.

		
	1.8
	“Eligible Executive” shall mean any individual who has been appointed by the Board as an executive officer of the Company for the purpose of Section 16 of the Securities Exchange Act of 1934, and who is not otherwise ineligible to receive Severance Benefits based on a provision in an employment agreement with the Company or under Section 3.1 of this Plan.

		
	1.9
	“Eligible Officer” shall mean any individual who has been appointed by the Board as an “Officer” of the Company, but who is not an Eligible Executive, and who is not otherwise ineligible to receive Severance Benefits based on a provision in an employment agreement with the Company or under Section 3.1 of this Plan.

		
	1.10
	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time, together with regulations thereunder.

		
	1.11
	“Plan” shall mean this NorthWestern Corporation Key Employee Severance Plan.

		
	1.12
	“Retirement” shall mean the same definition provided under the Company sponsored pension /retirement plan in which each Eligible Employee participates.

		
	1.13
	“Severance Benefits” shall mean those benefits provided to an Eligible Employee pursuant to Section 2.2 of the Plan.

		
	1.14
	“Successor Employer” shall mean an employer that either (a) acquires assets, stock or operations from the Company, either directly or indirectly, and continues the existing operation in whole or in part, or (b) continues any portion of an operation of the Company immediately following the termination of such operation by the Company. 

 

ARTICLE 2
SEVERANCE PLAN PROVISIONS
		
	2.1
	Eligibility for Severance Benefits

 An Eligible Employee is eligible to receive Severance Benefits if (i) the Company or a Successor Employer terminates the employment of the Eligible Employee without Cause and (ii) the Eligible Employee executes the form of severance and release agreement provided to the Eligible Employee by the Company upon termination of employment.
		
	2.2
	Severance Benefits

If an Eligible Employee is eligible to receive Severance Benefits pursuant to Section 2.1 of this Plan, the Company shall pay to such Eligible Employee the following Severance Benefits:
		
	2.2.1
	If such Eligible Employee is an Eligible Executive, 

		
	(a)
	a lump sum cash severance payment in an amount equal to two times the sum of the Eligible Executive’s (a) annual base pay in effect on the date of termination of employment, and (b) Annual Incentive Bonus. The Company may pay such lump sum cash severance payment within the Company’s next payroll cycle following the date of termination of employment, but must make the payment no later than 30 days from the date of termination of employment;

		
	(b)
	a lump sum annual incentive payment in an amount equal to the Eligible Executive’s cash payment under the Company’s annual incentive plan in effect on the date of termination of employment (a) calculated in accordance with the terms of the annual incentive plan through the last month in the Company’s fiscal year that was completed prior to the Eligible Executive’s date of termination of employment, and (b) prorated by the number of months in the Company’s fiscal year that have been completed, excluding the month in which the Eligible Executive’s date of termination of employment occurs. If the Company is unable to calculate any performance measure from such annual incentive plan, the Company shall deem such performance measure to have achieved 100% of target for purposes of determining the lump sum annual incentive payment. The Company may pay such lump sum annual incentive payment within the Company’s next payroll cycle following the date of termination of employment, but must make the payment no later than 30 days from the date of termination of employment;

		
	(c)
	reimbursement of any premiums paid by an Eligible Executive for COBRA coverage for 24 months following such Eligible Executive’s termination of employment. Notwithstanding the foregoing, an Eligible Executive shall no longer be entitled to reimbursement of COBRA premiums under this Section 2.2.1 if such Eligible Executive becomes eligible for medical coverage under another employer’s group medical plans; and

		
	(d)
	outplacement services provided by a Company selected provider limited to $12,000 over a period not to exceed 12 months following the date employment is terminated.

		
	2.2.2
	If such Eligible Employee is an Eligible Officer, 

		
	(a)
	a lump sum cash severance payment in an amount equal to the Eligible Employee’s annual base pay in effect on the date of termination of employment. Such lump sum cash severance payment may be paid within the Company’s next payroll cycle following the date of termination of employment, but in no event later than 30 days from the date of termination of employment;

		
	(b)
	reimbursement of any premiums paid by an Eligible Officer for COBRA coverage for 12 months following such Eligible Officer’s termination of employment.  Notwithstanding the foregoing, an Eligible Officer shall no longer be entitled to reimbursement of COBRA premiums under this Section 2.2.2 if such Eligible Officer becomes eligible for medical coverage under another employer’s group medical plans; and

		
	(c)
	outplacement services provided by a Company selected provider limited to $12,000 over a period not to exceed 12 months following the date employment is terminated.

ARTICLE 3
ADDITIONAL PROVISIONS
		
	3.1
	Ineligibility for Severance Benefits. 

An Eligible Employee whose employment terminates voluntarily, or due to Cause, Retirement, death or Disability, shall not be eligible for Severance Benefits.

		
	3.2
	Re-employment

If an Eligible Employee is re-employed by the Company or a Successor Employer while Severance Benefits are being paid to the Eligible Employee under the Plan, all such Severance Benefits will cease, except as otherwise agreed by the Company or the Successor Employer, as the case may be.
		
	3.3
	Taxes

Taxes will be withheld from Severance Benefits to the extent required by law.
		
	3.4
	Relation to Other Plans

This Plan is in lieu of any prior severance plans, policies or programs that might apply to an Eligible Employee.  Severance Benefits under this Plan will be counted as “compensation” for purposes of determining benefits under any other supplemental pension plan or similar arrangement.
		
	3.5
	Amendment or Termination

This Plan may be amended, revised, changed, terminated or cancelled at any time to eliminate, decrease or increase the Severance Benefits payable to Eligible Employees.  The Company has complete and absolute discretion to terminate, amend, modify or enhance the Plan at any time as it deems appropriate.  Nothing in this Plan precludes an Eligible Employee from waiving his/her rights and/or entitlements to any benefits under this Plan in exchange for alternative severance benefits payable by the Company under a separate agreement.
ARTICLE 4
SUPERIOR PLAN PROVISIONS
		
	4.1
	Surviving Plan 

This Plan shall control the terms and amounts of Severance Benefits payable to Eligible Employees regardless of any severance benefits policies, plans or programs of the Company established prior to the adoption of this Plan.  Accordingly, this Plan in its entirety shall supersede all Company adopted policies, plans or programs of the Company that provide severance or change of control benefits to Eligible Employees.  This Plan shall be binding upon any successor organization of the Company and shall inure to the benefit of the Eligible Employees.  Notwithstanding the foregoing, nothing in this Plan precludes an Eligible Employee from waiving his/her rights and/or entitlements to any benefits under this Plan in exchange for alternative severance benefits payable by the Company under a separate agreement. 

ARTICLE 5
ADMINISTRATIVE PROVISIONS
		
	5.1
	General

		
	5.1.1
	Discretion.  The Administrator is responsible for the general administration and management of the Plan and shall have all powers and duties necessary to fulfill its responsibilities, including, but not limited to, the discretion to interpret and apply the Plan and to determine all questions relating to eligibility for benefits.  The Administrator shall have the discretion to interpret or construe ambiguous, unclear or implied (but omitted) terms as it deems appropriate in its sole discretion.  The validity of any such interpretation, construction, decision or finding of fact shall not be given de novo review if challenged in court, by arbitration, or in any other forum, and shall be upheld unless clearly arbitrary or capricious.

		
	5.1.2
	Finality of Determinations.  All actions taken and all determinations made in good faith by the Administrator will be final and binding on all persons claiming any interest in or under the Plan.  To the extent the Administrator has been granted discretionary authority under the Plan, the Administrator’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter.

		
	5.1.3
	Drafting Errors.  If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Administrator in its sole discretion, the provision shall be considered ambiguous and shall be interpreted by the Administrator in a fashion consistent with the evidenced intent.

		
	5.2
	Costs and Indemnification

All costs of administering the Plan and providing Plan benefits will be paid by the Company.  To the extent permitted by applicable law and in addition to any other indemnities or insurance provided by the Company, the Company shall indemnify and hold harmless its (and its affiliates) current and former officers, directors, and employees against all expenses, liabilities and claims (including legal fees incurred to defend against such liabilities and claims) arising out of their discharge in good faith of their administrative and fiduciary responsibilities with respect to the Plan.  Expenses and liabilities arising out of willful misconduct will not be covered under this indemnity.
		
	5.3
	Limitation on Employee Rights

This Plan shall not give any employee the right to be retained in the service of the Company or interfere with or restrict the right of the Company to discharge or retire the employee.  This Plan shall not constitute a contract of employment of any kind.

		
	5.4
	Governing Law

This Plan is a welfare benefit plan subject to ERISA, and it shall be interpreted, administered, and enforced in accordance with that law.  To the extent that state law is applicable, the statutes and common law of the State of Delaware (excluding any that mandate the use of another jurisdiction’s laws) shall apply.
		
	5.5
	Miscellaneous

Where the context so indicates, the singular will include the plural and vice versa.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of the Plan.  Unless the context clearly indicates to the contrary, a reference to a statute or document shall be construed as referring to any subsequently enacted, adopted or executed counterpart.
		
	5.6
	ERISA Rights

The following information required by ERISA is furnished by the Administrator.
5.6.1    General Plan Information.	
		
	Name of Plan:
	NorthWestern Corporation Key Employee Severance Plan

	Plan Administrator’s Name:
Address and Phone Number:
	NorthWestern Corporation
3010 West 69th Street
Sioux Falls, South Dakota 57104
Telephone: 605-978-2900

	Employer Identification 
Number assigned by IRS:
	46-0172280

	Plan Number of the Plan:
	540

	Type of Plan:
	Severance Pay Plan

	Type of Administration:
	Employer Administration

	Name and Address of Registered Agent for Service of Legal Process:
	Plan Administrator

	Source of Contribution to the Plan:
	General assets of NorthWestern Corporation

	Funding Medium:
	General assets of NorthWestern Corporation

	Plan Fiscal Year Ends On:
	December 31

		
	5.6.2
	Plan Modification, Amendment, and Termination.  The Administrator has the right to amend or terminate the Plan only in accordance with Section 3.5 and 5.7.5.

		
	5.6.3
	Your Rights under ERISA.  As an Eligible Employee in the Plan, you are entitled to certain rights and protections under ERISA.  Your rights include the following:

		
	(a)
	Right to Examine Plan Documents.  You have the right to examine all plan documents.  The Administrator will tell you where the plan documents are available for examination.  There will be no charge for examining plan documents.

		
	(b)
	Right to Obtain Copies of Plan Documents.  You have the right to obtain copies of all plan documents.  You should make your request in writing to the Administrator.  There may be a reasonable charge for the copies.

		
	(c)
	Right to Written Explanation of Denial.  If your claim for benefits under the plan is denied in whole or in part, you must be given a written explanation of the reason for denial.

		
	(d)
	Right to Review.  You have the right to request a review and reconsideration of any denial of your claim for plan benefits.

		
	(e)
	Other ERISA Rights.  You can protect your rights under ERISA.  For example, ERISA gives you the right to file suit in a state or federal court if your claim for benefits under the plan is denied or ignored.  You also can file suit in a federal court if you request plan documents and do not receive them within thirty (30) days.  In such a case, the court will require the Administrator to give you the plan documents you requested.  In some cases, the court could also require the Administrator to pay you up to $110 a day until you receive the requested materials.

If you have any questions about your plan, you should contact the Administrator.  If you have any questions about this statement of your rights under ERISA, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.
		
	5.7
	Claims Procedures

		
	5.7.1
	Claims Normally Not Required.  Normally, you do not need to present a formal claim to receive benefits payable under this Plan.

		
	5.7.2
	Disputes.  If any person (Claimant) believes that benefits are being denied improperly, that the Plan is not being operated properly, that fiduciaries of the Plan have breached their duties, or that the Claimant's legal rights are being violated with respect to the Plan, the Claimant must file a formal claim with the Administrator.  This requirement applies to all claims that any Claimant has with respect to the Plan, including claims against fiduciaries and former fiduciaries, except to the extent the Administrator determines, in its sole discretion, that it does not have the power to grant all relief reasonably being sought by the Claimant.

		
	5.7.3
	Time for Filing Claims.  A formal claim must be filed within 90 days after the date the Claimant first knew or should have known of the facts on which the claim is based, unless the Administrator in writing consents otherwise.

		
	5.7.4
	Arbitration.  The Eligible Employees and Company agree that any and all disputes, controversies or claims of any kind or nature, including but not limited to any arising out of or in any related to the interpretation of this Plan or to the employment or separation of an Eligible Employee from the Company that have not been resolved by the Company within 90 days of the filing of a formal claim by the Eligible Employee under Section 5.7.3, shall be submitted to binding arbitration under the auspices and rules of the American Arbitration Association located nearest to where the Eligible Employee resides.  Judgment upon an award rendered by the arbitrator may be entered in any competent court having jurisdiction over the dispute.  The Eligible Employees and Company agree that arbitration is in lieu of any and all other civil legal proceedings and that all rights to resolve disputes through court or trial by jury are hereby waived.  Furthermore, the Company agrees that it will reimburse an Eligible Employee for any legal costs arising from an Arbitration proceeding that results in a favorable outcome for such Eligible Employee.

		
	5.7.5
	Procedures.  The Administrator has adopted the procedures for considering and adjudicating claims, which it may amend from time to time, as it sees fit.  These procedures shall comply with all applicable legal requirements.  The right to receive benefits under this Plan is contingent on a Claimant using the prescribed claims procedures to resolve any claim.  Therefore, if a Claimant (or his or her successor or assign) seeks to resolve any claim by any means other than the prescribed claims provisions, he or she must repay all benefits received under this Plan and shall not be entitled to any further Plan benefits.

Adopted and Approved
NorthWestern Corporation

	
					
	By:
	 
	/s/ Robert C. Rowe
	 
	October 19, 2016

	 
	 
	Robert C. Rowe
	 
	Date

	Title:
	 
	President and Chief Executive Officer
	 
	 

Signature Page
Key Employee Severance PlanExhibit

Exhibit 10.1

AMENDMENT NUMBER TWENTY TO CREDIT AGREEMENT
THIS AMENDMENT NUMBER TWENTY TO CREDIT AGREEMENT (this "Amendment"), dated as of October 19, 2016, is entered into by and among the lenders identified on the signature pages hereof (such Lenders, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a "Lender" and, collectively, as the "Lenders"), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association ("Wells Fargo"), as administrative agent for each member of the Lender Group and the Bank Product Providers (as such terms are defined in the below referenced Credit Agreement) (in such capacity, together with its successors and assigns in such capacity, "Agent"), ERICKSON INCORPORATED (formerly known as Erickson Air-Crane Incorporated), a Delaware corporation ("EAC"), ERICKSON HELICOPTERS, INC. (formerly known as Evergreen Helicopters, Inc.), an Oregon corporation ("Helicopters") (Helicopters, together with EAC, are referred to hereinafter each individually as a "Borrower", and individually and collectively, jointly and severally, as the "Borrowers"), the Subsidiaries of Borrowers identified on the signature pages hereof (such Subsidiaries are referred to hereinafter each individual as a "Guarantor", and individually and collectively, jointly and severally, as the "Guarantors"), and in light of the following:
WITNESSETH
WHEREAS, Lenders, Agent, Wells Fargo, as lead arranger, book runner, syndication agent, and documentation agent, and Borrowers are parties to that certain Credit Agreement, dated as of May 2, 2013 (as amended, restated, supplemented, or otherwise modified from time to time, the "Credit Agreement");
WHEREAS, Borrowers have requested that Agent and Lenders make certain amendments to the Credit Agreement; and
WHEREAS, upon the terms and conditions set forth herein, Agent and Required Lenders are willing to accommodate Borrowers' requests.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:
1.Defined Terms.  All initially capitalized terms used herein (including the preamble and recitals hereof) without definition shall have the meanings ascribed thereto in the Credit Agreement (including Schedule 1.1 thereto), as amended hereby.
2.Amendments to Credit Agreement.  Subject to the satisfaction (or waiver in writing by Agent) of the conditions precedent set forth in Section 4 hereof, the Credit Agreement is hereby amended as follows: 
(a)Clause (c) of Article 7 of the Credit Agreement is hereby amended and restated in its entirety as follows:

(c)    Excess Availability.  Borrowers shall have Excess Availability at all times of at least (i) as of any date of determination during the period from July 25, 2016 through and including August 29, 2016, $10,000,000, (ii) as of any date of determination during the period from August 30, 2016 through and including October 23, 2016, $13,000,000, (iii) as of any date of determination during the period from October 24, 2016 through and including October 30, 2016, $17,500,000, and (iv) as of any date of determination during the period from October 31, 2016 through and including December 31, 2016, $20,000,000.
(b)Schedule 1.1 to the Credit Agreement is hereby amended by inserting the following new definitions therein in the appropriate alphabetical order:
"Twentieth Amendment" means that certain Amendment Number Twenty dated as of October 19, 2016 (and effective as of the Twentieth Amendment Effective Date) among Agent, the Lenders party thereto, Borrowers, and the Guarantors party thereto.
"Twentieth Amendment Effective Date" shall have the meaning assigned thereto in the Twentieth Amendment.
3.Agent Written Requests.  Borrowers agree to provide true, correct, and complete copies of the information requested by Agent in the e-mail as of the date hereof before October 21, 2016.
4.Conditions Precedent to Amendment.  The satisfaction (or waiver in writing by Agent) of each of the following shall constitute conditions precedent to the effectiveness of the Amendment (such date being the "Twentieth Amendment Effective Date"):
(a)the Twentieth Amendment Effective Date shall occur on or prior to October 19, 2016.
(b)Agent shall have received this Amendment, duly executed by the parties hereto, and the same shall be in full force and effect.
(c)Agent shall have received an amendment fee letter, dated as of the date hereof, by and among Agent and Borrowers, in form and substance satisfactory to Agent, duly executed and delivered by the parties thereto.
(d)the representations and warranties herein and in the Credit Agreement and the other Loan Documents as amended hereby shall be true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true, correct and complete in all material respects as of such earlier date).

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(e)no Default or Event of Default shall have occurred and be continuing or shall result from the consummation of the transactions contemplated herein.
(f)No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein shall have been issued and remain in force by any Governmental Authority against any Loan Party, Agent, or any Lender.
(g)Borrowers shall pay concurrently with the closing of the transactions evidenced by this Amendment, all fees, costs, expenses and taxes then payable pursuant to the Credit Agreement and Section 6 of this Amendment.
(h)All other documents and legal matters in connection with the transactions contemplated by this Amendment shall have been delivered, executed, or recorded and shall be in form and substance satisfactory to Agent.
5.Representations and Warranties.  Each Loan Party hereby represents and warrants to Agent and the Lenders as follows:    
(a)It (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization, (ii) is qualified to do business in any state where the failure to be so qualified could reasonably be expected to result in a Material Adverse Effect, and (iii) has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into this Amendment and the other Loan Documents to which it is a party and to carry out the transactions contemplated hereby and thereby.
(b)The execution, delivery, and performance by it of this Amendment and the other Loan Documents to which it is a party (i) have been duly authorized by all necessary action on the part of such Loan Party and (ii) do not and will not (A) violate any material provision of federal, state, or local law or regulation applicable to such Loan Party, the Governing Documents of Borrower, or any order, judgment, or decree of any court or other Governmental Authority binding on such Loan Party, (B) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Material Contract of such Loan Party except to the extent that any such conflict, breach or default could not individually or in the aggregate reasonably be expected to have a Material Adverse Effect, (C) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of such Loan Party, other than Permitted Liens, (D) require any approval of such Loan Party's interest holders or any approval or consent of any Person under any Material Contract of such Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of Material Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Effect, or (E) require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to Agent for filing or recordation in connection with this Amendment.

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(c)This Amendment has been duly executed and delivered by each Loan Party.  This Amendment and each Loan Document to which such Loan Party is a party is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.
(d)No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the consummation of the transactions contemplated herein has been issued and remains in force by any Governmental Authority against any Loan Party, Agent or any Lender.
(e)No Default or Event of Default has occurred and is continuing as of the date of the effectiveness of this Amendment, and no condition exists which constitutes a Default or an Event of Default.
(f)The representations and warranties in the Credit Agreement and the other Loan Documents as amended hereby are true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true, correct and complete in all material respects as of such earlier date).
6.Payment of Costs and Fees.  Borrowers agree to pay all out-of-pocket costs and expenses of Agent (including, without limitation, the reasonable fees and disbursements of outside counsel to Agent) in connection with the preparation, negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto.
7.Release.
(a)Each Loan Party hereby acknowledges and agrees that the Obligations under the Credit Agreement and the other Loan Documents are payable pursuant to the Credit Agreement and the other Loan Documents as modified hereby without defense, offset, withholding, counterclaim, or deduction of any kind.
(b)Effective on the date hereof, each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees, agents and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby waives, releases, remises and forever discharges each member of the Lender Group, each Bank Product Provider, and each of their respective Affiliates, and each of their respective successors in title, past, present and future officers, directors, employees, limited partners, general partners, managers, investors, attorneys, assigns, subsidiaries, affiliates, shareholders, trustees, agents and other professionals and all other persons and entities to whom any member of the Lenders would be liable if such persons or entities were found to be liable to such Loan Party (each a "Releasee" and collectively, the "Releasees"), from any and all past, present and future claims, suits, liens, lawsuits, adverse consequences, amounts paid in settlement, debts, deficiencies, diminution in value, disbursements, demands, obligations, liabilities, 

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causes of action, damages, losses, costs and expenses of any kind or character, whether based in equity, law, contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law (each a "Claim" and collectively, the "Claims"), whether known or unknown, fixed or contingent, direct, indirect, or derivative, asserted or unasserted, matured or unmatured, foreseen or unforeseen, past or present, liquidated or unliquidated, suspected or unsuspected, which such Loan Party ever had from the beginning of the world to the date hereof, or now has, against any such Releasee which relates, directly or indirectly to the Credit Agreement, any other Loan Document, or to any acts or omissions of any such Releasee with respect to the Credit Agreement or any other Loan Document, or to the lender-borrower relationship evidenced by the Loan Documents, except for the duties and obligations set forth in any of the Loan Documents or in this Amendment. 
AS TO EACH AND EVERY CLAIM RELEASED HEREUNDER, EACH LOAN PARTY HEREBY REPRESENTS THAT IT HAS RECEIVED THE ADVICE OF LEGAL COUNSEL WITH REGARD TO THE RELEASES CONTAINED HEREIN, AND HAVING BEEN SO ADVISED, SPECIFICALLY WAIVES THE BENEFIT OF THE PROVISIONS OF SECTION 1542 OF THE CIVIL CODE OF CALIFORNIA WHICH PROVIDES AS FOLLOWS:
"A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR."
As to each and every Claim released hereunder, each Loan Party also waives the benefit of each other similar provision of applicable federal or state law (including without limitation the laws of the state of California), if any, pertaining to general releases after having been advised by its legal counsel with respect thereto.
Each Loan Party each acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such Claims and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Each Loan Party understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release. 
(c)Each Loan Party, for itself and on behalf of its successors, assigns, and officers, directors, employees, agents and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee above that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by such Person pursuant to the above release, If any Loan Party or any of its respective successors, assigns, or officers, directors, employees, agents or attorneys, or any Person acting for or on behalf of, or claiming through it violate the 

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foregoing covenant, such Person, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs incurred by such Releasee as a result of such violation.
8.Choice of Law and Venue; Jury Trial Waiver; Judicial Reference.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE SET FORTH IN SECTION 12 OF THE CREDIT AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.
9.Amendments.  This Amendment cannot be altered, amended, changed or modified in any respect or particular unless each such alteration, amendment, change or modification is made in accordance with the terms and provisions of  Section 14.1 of the Credit Agreement.
10.Counterpart Execution.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of this Amendment by facsimile or other electronic method of transmission shall be equally effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by facsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.
11.Effect on Loan Documents.
(a)The Credit Agreement, as amended hereby, and each of the other Loan Documents, as amended as of the date hereof, shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects. The execution, delivery, and performance of this Amendment shall not operate, except as expressly set forth herein, as a waiver of, consent to, or a modification or amendment of, any right, power, or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document. Except for the amendments to the Credit Agreement expressly set forth herein, the Credit Agreement and the other Loan Documents shall remain unchanged and in full force and effect.
(b)Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to "this Agreement", "hereunder", "herein", "hereof" or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to "the Credit Agreement", "thereunder", "therein", "thereof' or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.
(c)To the extent that any of the terms and conditions in any of the Loan Documents shall contradict or be in conflict with any of the terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed 

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modified or amended accordingly to reflect the terms and conditions of the Credit Agreement as modified or amended hereby.
(d)This Amendment is a Loan Document.
(e)Unless the context of this Amendment clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms "includes" and "including" are not limiting, and the term "or" has, except where otherwise indicated, the inclusive meaning represented by the phrase "and/or". The words "hereof', "herein", "hereby", "hereunder", and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified. Any reference in this Agreement to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein). The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights. Any reference herein to any Person shall be construed to include such Person's successors and assigns.
12.Entire Agreement.  This Amendment, and the terms and provisions hereof, the Credit Agreement and the other Loan Documents constitute the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersede any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or implied, oral or written.
13.Reaffirmation of Obligations.  Each Loan Party hereby reaffirms its obligations under each Loan Document to which it is a party. Each Loan Party hereby further ratifies and reaffirms the validity and enforceability of all of the Liens and security interests heretofore granted, pursuant to and in connection with the Guaranty and Security Agreement (and all amendments and supplements thereto), the Aircraft and Engine Security Agreement (and all amendments and supplements thereto), or any other Loan Document, to Agent, as collateral security for the obligations under the Loan Documents in accordance with their respective terms, and acknowledges that all of such Liens and security interests, and all collateral heretofore pledged as security for such obligations, continue to be and remain collateral for such obligations from and after the date hereof. Each Loan Party hereby further does grant to Agent, for the benefit of each member of the Lender Group and the Bank Product Providers, a perfected security interest in the Collateral (as defined in the Guaranty and Security Agreement) and the Collateral (as defined in the Aircraft and Engine Security Agreement) in order to secure all of its present and future obligations under the Loan Documents.
14.Severability.  In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

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15.Guarantors.  Each of the undersigned Guarantors consents to the amendments to the Loan Documents contained herein. Although the undersigned Guarantors have been informed of the matters set forth herein and have consented to same, each Guarantor understands that no member of the Lender Group has any obligation to inform it of such matters in the future or to seek its acknowledgement or agreement to future consents, waivers, or amendments related to the Credit Agreement, and nothing herein shall create such a duty.
[signature pages follow]
Signature Page to Amendment Number Twenty to Credit Agreement

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date first above written.
	
	
	ERICKSON INCORPORATED (formerly known as Erickson Air-Crane Incorporated), a Delaware corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	EAC ACQUISITION CORPORATION, a Delaware corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	ERICKSON HELICOPTERS, INC. (formerly known as. Evergreen Helicopters, Inc.), an Oregon corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	ERICKSON TRANSPORT, INC. (formerly known as Evergreen Helicopters of Alaska, Inc.), an Alaska. corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	EVERGREEN HELICOPTERS INTERNATIONAL, INC., a Texas corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	EVERGREEN EQUITY, INC., a Nevada corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	EVERGREEN UNMANNED SYSTEMS, INC., a Delaware corporation

By: /s/ Jeff Roberts
Name: Jeff Roberts
Title: President & CEO

	
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Agent, Lead Arranger, Book Runner, Syndication Agent, Documentation Agent, and a Lender

By: /s/ Brandi Whittington
Name: Brandi Whittington
Title: VP, Authorized Signatory

	
	
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

By: /s/ Stephen Lapidus
Name: Stephen R. Lapidus
Title: Director

	
	
	By: /s/ Frank Fazio
Name: Frank Fazio
Title: Managing Director

	
	
	HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender

By: /s/ Eric Dettmer
Name: Eric Dettmer
Title: Vice President

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