Document:

EX-10.16

 [***] Certain information in this document has been omitted from this exhibit because it is
both (i) not material and (ii) would be competitively harmful if publicly disclosed. 
 Exhibit 10.16 

 

			
	Confidential	  	Execution Version

 LICENSE AND COLLABORATION AGREEMENT 

by and between 

PERCEPTION NEUROSCIENCE, INC. 

and 
 OTSUKA
PHARMACEUTICAL CO., LTD. 
 Dated as of March 11, 2021 

 TABLE OF CONTENTS 

 

					
	 1.  DEFINITIONS
	  	 	1	 
		
	 1.1   “Acquirer” has the meaning set forth in
Section 15.1.2.
	  	 	1	 
		
	 2.  LICENSES; THIRD PARTY IP
	  	 	18	 
		
	 2.1   License Grants to Otsuka
	  	 	18	 
	 2.2   License Grants to Perception
	  	 	19	 
	 2.3   Expanded Field Option
	  	 	20	 
	 2.4   Retained Rights
	  	 	22	 
	 2.5   No Implied Licenses or Other Rights
	  	 	22	 
		
	 3.  GOVERNANCE
	  	 	22	 
		
	 3.1   Joint Collaboration Committee
	  	 	22	 
	 3.2   Alliance Managers
	  	 	26	 
		
	 4.  DEVELOPMENT
	  	 	27	 
	 4.1   Generally
	  	 	27	 
	 4.2   Other Formulations
	  	 	29	 
	 4.3   Rights to Data
	  	 	30	 
	 4.4   Compliance; Assistance
	  	 	31	 
	 4.5   Development Records
	  	 	31	 
	 4.6   Third Party Contractors
	  	 	31	 
		
	 5.  REGULATORY MATTERS
	  	 	32	 
		
	 5.1   Responsibility for Regulatory Matters
	  	 	32	 
	 5.2   Registration Dossier
	  	 	32	 
	 5.3   Communications with Regulatory Authorities
	  	 	32	 
	 5.4   Meetings with Regulatory Authorities
	  	 	33	 
	 5.5   Assistance; Documentation
	  	 	34	 
	 5.6   Manufacturing-Related Regulatory Matters
	  	 	34	 
	 5.7   Right of Reference
	  	 	35	 
	 5.8   Pharmacovigilance
	  	 	35	 
	 5.9   Remedial Action
	  	 	36	 
		
	 6.  COMMERCIALIZATION
	  	 	36	 
		
	 6.1   Overview
	  	 	36	 
	 6.2   Commercialization Plans
	  	 	37	 
	 6.3   Commercialization Reports
	  	 	37	 
	 6.4   NHI Price Listing
	  	 	37	 
	 6.5   Branding and Promotional Materials
	  	 	37	 
	 6.6   Third Party Contractors
	  	 	38	 

  
 i 

					
	 6.7   No Diversion
	  	 	38	 
		
	 7.  MANUFACTURE AND SUPPLY
	  	 	39	 
		
	 7.1   Overview
	  	 	39	 
	 7.2   Supply; Pricing
	  	 	39	 
	 7.3   Manufacture by Otsuka
	  	 	40	 
	 7.4   Validation and Testing
	  	 	40	 
	 7.5   Audits and Inspections
	  	 	41	 
	 7.6   Third Party Contractors
	  	 	42	 
		
	 8.  FINANCIAL TERMS
	  	 	42	 
		
	 8.1   Upfront Payment
	  	 	42	 
	 8.2   Development and Regulatory Milestone Payments
	  	 	42	 
	 8.3   Sales Milestone Payments
	  	 	43	 
	 8.4   Royalties
	  	 	44	 
	 8.5   Royalty Report and Payment
	  	 	45	 
	 8.6   Records; Financial Audit
	  	 	46	 
	 8.7   Reimbursement
	  	 	47	 
	 8.8   Financial Dispute
	  	 	47	 
	 8.9   Exchange Rate; Manner and Place of Payment
	  	 	47	 
	 8.10  Late Payments
	  	 	48	 
	 8.11  Taxes
	  	 	48	 
		
	 9.  INTELLECTUAL PROPERTY RIGHTS
	  	 	49	 
		
	 9.1   Ownership
	  	 	49	 
	 9.2   Prosecution and Maintenance of Patent Rights
	  	 	50	 
	 9.3   Invalidation Proceedings
	  	 	54	 
	 9.4   Patent Enforcement
	  	 	55	 
	 9.5   Third Party Infringement Claims
	  	 	57	 
	 9.6   Patent Oppositions and Other Proceedings
	  	 	57	 
	 9.7   Third Party Intellectual Property Rights
	  	 	58	 
	 9.8   Common Interest
	  	 	59	 
	 9.9   Patent Term Extensions
	  	 	59	 
	 9.10  Product Trademarks
	  	 	59	 
		
	 10.  CONFIDENTIALITY AND PUBLICATION
	  	 	61	 
		
	 10.1  Confidential Information
	  	 	61	 
	 10.2  Publication and Publicity
	  	 	62	 
	 10.3  Press Release
	  	 	63	 
	 10.4  Survival
	  	 	63	 
		
	 11.  REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	 	64	 
		
	 11.1  Mutual Representations and Warranties
	  	 	64	 

  
 ii 

					
	 11.2  Mutual Covenants
	  	 	64	 
	 11.3  Additional Representations and Warranties of Perception
	  	 	65	 
	 11.4  Additional Representations, Warranties and Covenants of Perception as to the
Chiba University Agreement
	  	 	67	 
	 11.5  Warranty Disclaimer
	  	 	69	 
		
	 12.  INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE
	  	 	69	 
		
	 12.1  Indemnification by Otsuka
	  	 	69	 
	 12.2  Indemnification by Perception
	  	 	69	 
	 12.3  Procedure
	  	 	70	 
	 12.4  Limitation of Liability
	  	 	70	 
		
	 13.  TERM AND TERMINATION
	  	 	70	 
		
	 13.1  Term
	  	 	70	 
	 13.2  Early Termination
	  	 	71	 
	 13.3  Effects of Termination
	  	 	72	 
	 13.4  Rights in Bankruptcy
	  	 	77	 
		
	 14.  Dispute Resolution.
	  	 	77	 
		
	 14.1  Executive Negotiation
	  	 	77	 
	 14.2  Expert Determination
	  	 	78	 
	 14.3  Arbitration
	  	 	78	 
	 14.4  Injunctive Relief
	  	 	79	 
	 14.5  Non-Arbitral Disputes
	  	 	80	 
		
	 15.  MISCELLANEOUS
	  	 	80	 
		
	 15.1  Assignment
	  	 	80	 
	 15.2  Governing Law
	  	 	81	 
	 15.3  Entire Agreement; Amendments
	  	 	81	 
	 15.4  Severability
	  	 	81	 
	 15.5  Headings
	  	 	81	 
	 15.6  Waiver of Rule of Construction
	  	 	81	 
	 15.7  Interpretation
	  	 	81	 
	 15.8  No Implied Waivers; Rights Cumulative
	  	 	82	 
	 15.9  Notices
	  	 	82	 
	 15.10  Force Majeure
	  	 	83	 
	 15.11  Independent Parties
	  	 	83	 
	 15.12  Performance by Affiliate
	  	 	84	 
	 15.13  Binding Effect; No Third Party Beneficiaries
	  	 	84	 
	 15.14  Counterparts; Electronic Signatures
	  	 	84	 

  
 iii 

 SCHEDULES: 

Schedule 2.1.3: Relevant Material Terms of Chiba University Agreement 

Schedule 4.1.3: Requested Ongoing Studies 
 Schedule 11.3.2:
Existing Perception Patent Rights 
  

  
 iv 

 LICENSE AND COLLABORATION AGREEMENT 

This License and Collaboration Agreement (this “Agreement”) is entered into as of March 11, 2021 (the
“Effective Date”) by and between Perception Neuroscience, Inc., a company organized and existing under the laws of Delaware, having an address at 180 Varick Street, Suite 637, New York, NY 10014, USA (“Perception”)
and Otsuka Pharmaceutical Co., Ltd., a company organized and existing under the laws of Japan, having an address at 2-9, Kanda Tsukasa-machi, Chiyoda-ku, Tokyo 101-8535, Japan (“Otsuka”). Perception and Otsuka are sometimes referred to herein individually as a “Party” and
collectively as the “Parties.” 
 RECITALS 

WHEREAS, Perception owns or controls certain patents, know-how and other intellectual property
rights relating to API and Products (as such terms are defined below); 
 WHEREAS, Otsuka is a pharmaceutical company that conducts
research, development, manufacturing and commercialization of pharmaceutical products; and 
 WHEREAS, Otsuka desires to obtain an
exclusive license to Develop, Manufacture and Commercialize Products in the Field in the Otsuka Territory and to be supplied Products for clinical use in the Field in the Otsuka Territory (as each term is defined below), and Perception desires to
grant such license and provide such supply to Otsuka on the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in
consideration of the foregoing premises and the mutual promises, covenants and conditions contained in this Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows: 

1. DEFINITIONS 
 Unless specifically set
forth to the contrary herein, the following terms, whether used in the singular or plural, shall have the respective meanings set forth below: 

1.1 “Acquirer” has the meaning set forth in Section 15.1.2. 

1.2 “Additional Non-Clinical Study” has the meaning set forth in
Section 4.1.3. 
 1.3 “Affiliate” means, with respect to either Party, any entity that,
directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Party at any time, but for only so long as such control exists. As used in this Section 1.3,
“control” means (a) to possess, directly or indirectly, the power to direct the management or policies of an entity, whether through ownership of voting securities, by contract relating to voting rights or corporate governance; or
(b) direct or indirect beneficial ownership of more than fifty percent (50%) (or such lesser percentage that is the maximum allowed to be owned by a foreign corporation in a particular jurisdiction) of the voting share capital or other equity
interest in such entity; provided that [***]. 
 1.4 “Agreement” has the meaning set forth in the Preamble. 

  
 1 

 1.5 “Alliance Manager” has the meaning set forth in
Section 3.2.1. 
 1.6 “API” means the active pharmaceutical ingredient arketamine (IUPAC
name: (R)-2-(2-Chlorophenyl)-2-(methylamino)
cyclohexanone), also known as (R)-ketamine. For clarity, API does not include S-norketamine. 

1.7 “Applicable Laws” means all applicable provisions of national, supranational, regional, state and local laws,
treaties, statutes, rules, regulations, administrative codes, guidances, ordinances, judgments, decrees, directives, injunctions, orders, or permits of or from any court, arbitrator or Governmental Authority (including Regulatory Authorities) having
jurisdiction over, or related to, the subject matter in question. 
 1.8 “Audited Party” has the meaning set forth in
Section 8.6. 
 1.9 “Auditing Party” has the meaning set forth in
Section 8.6. 
 1.10 “Auditor” has the meaning set forth in
Section 8.6. 
 1.11 “Business Day” means any day (other than a Saturday or Sunday) on
which the banks in Tokyo, Japan and New York, New York are open for business. 
 1.12 “Calendar Quarter” means each
successive period of three (3) consecutive calendar months ending on March 31, June 30, September 30 or December 31 of each calendar year, provided that the first Calendar Quarter of the Term shall begin on the Effective
Date and end on the first to occur of March 31, June 30, September 30 and December 31 thereafter and the last Calendar Quarter of the Term shall end on the last day of the Term. 

1.13 “Calendar Year” means each successive period of twelve (12) months commencing on January 1 and ending on
December 31, provided that the first Calendar Year of the Term shall begin on the Effective Date and end on the first December 31 thereafter and the last Calendar Year of the Term shall end on the last day of the Term. 

1.14 “Challenged Perception Patent Right Products” has the meaning set forth in
Section 8.4.4. 
 1.15 “Change of Control” has the meaning set forth in
Section 15.1.2. 
 1.16 “Chiba University Agreement” means that certain License Agreement
between Perception and National University Corporation Chiba University dated August 14, 2017, as amended. 
 1.17
“Clinical Sample” has the meaning set forth in Section 7.1. 
 1.18 “Clinical
Study” means a clinical study conducted on human subjects that involves a Product or other pharmaceutical product and that either is subject to requirements for prior submission to a Regulatory Authority or is not subject to requirements
for prior submission to a Regulatory Authority but the results of which are intended to be submitted later to, or held for inspection by, a Regulatory Authority as part of an application for a research permit or Regulatory Approval, and includes
studies relating to the safety, tolerability, pharmacological activity, pharmacokinetics, dose ranging or efficacy of a Product or other pharmaceutical product, as applicable. 

  
 2 

 1.19 “CMC” means chemistry, manufacturing and controls. 

1.20 “CMC Study” means any Otsuka Territory-Specific CMC Study or Perception CMC Study. 

1.21 “CMO” means a Third Party contract manufacturing organization. 

1.22 “Co-Chairpersons” has the meaning set forth in
Section 3.1.3. 
 1.23 “Combination Product” has the meaning set forth in
Section 1.102. 
 1.24 “Combination Product Net Sales” has the meaning set forth in
Section 1.102. 
 1.25 “Commercialization” means the conduct of all activities undertaken
before and after Regulatory Approval directed to marketing, promoting, distributing (including importing, exporting, transporting, customs clearance, warehousing, invoicing, handling and delivering Products to customers), offering to sell, selling
or having sold (including receiving, accepting and filling Product orders) of a Product, including activities relating to pre-launch, launch, sales force efforts, detailing, advertising, market research,
market access, pricing and reimbursement (including NHI Price Listing), and all regulatory affairs, including interacting with Regulatory Authorities, regarding any of the foregoing, but excluding activities directed to the Manufacture or
Development of a Product. In addition, although not involving promotion or sales of a Product, medical affairs activities will be included in the definition of Commercialization for purposes of this Agreement. The terms “Commercialize” and
“Commercializing” have correlative meanings. 
 1.26 “Commercialization Plan” has the meaning set forth in
Section 6.2. 
 1.27 “Commercially Reasonable Efforts” means, with respect to the
Development, Manufacture or Commercialization of a Product by a Party, those commercially reasonable efforts and resources consistent with the usual practices of a company that is comparable to such Party for the development and commercialization of
a pharmaceutical product of similar market potential, profit potential, and strategic value and at a similar stage of development or product life to such Product, based on conditions then prevailing and taking into account all relevant factors,
including [***]. 
 1.28 “Communicating Party” has the meaning set forth in
Section 5.3. 
 1.29 “Competing Infringement” has the meaning set forth in
Section 9.4.1. 
 1.30 “Confidential Information” means any and all confidential or
proprietary information and data, including Perception Technology, Otsuka Product Improvements and Joint Technology, and all other scientific, pre-clinical, clinical, regulatory, manufacturing, marketing,
financial and commercial information or data, whether communicated in writing or orally or by any other method, that is provided by or on behalf of one Party to the other Party in connection 

  
 3 

 
with this Agreement. Perception Technology is hereby deemed to be the Confidential Information of Perception. Otsuka Product Improvements are hereby deemed to be the Confidential Information of
Otsuka. Joint Technology and the terms of this Agreement are hereby deemed to be the Confidential Information of both Parties. 
 1.31
“Control”, “Controls” or “Controlled by” means, with respect to any Intellectual Property Right (including any Patent Right or Know-How), subject to
Section 15.1.2, the possession of (whether by ownership or license, other than pursuant to this Agreement) the ability of a Party to assign, transfer, or grant access to, or to grant a license or sublicense of, such right
as provided for herein without violating the terms of any agreement or other arrangement with any Third Party existing at the time such Party would be required hereunder to assign, transfer or grant the other Party such access or license or
sublicense. 
 1.32 “Cover,” “Covering” or “Covers” means as to a compound,
material or product and a Patent Right, that, in the absence of a license granted under, or ownership of, such Patent Right, the making, using, selling, offering for sale or importation of such compound, material or product would infringe any claim
of such Patent Right. 
 1.33 “CSR” has the meaning set forth in Section 2.3. 

1.34 “Current Formulation” means any intravenous formulation of a Product for infusion existing as of the Effective
Date. 
 1.35 “DD Evaluation Period” has the meaning set forth in Section 2.3. 

1.36 “Debarred” has the meaning set forth in Section 11.1.6. 

1.37 “Defending Party” has the meaning set forth in Section 9.3.6. 

1.38 “Development,” means all research and development activities for any Product in the Field that are directed to
obtaining Regulatory Approvals of a Product, including: all Non-Clinical Studies and Clinical Studies of a Product; toxicology, pharmacokinetic and pharmacological studies; statistical analyses; assay
development; protocol design and development; the preparation, filing and prosecution of any Regulatory Documentation, including Regulatory Approvals for a Product; development activities directed to label expansion or obtaining Regulatory Approval
for one or more New Indications for a Product; Clinical Studies of a Product or other studies or development activities of a Product conducted after receipt of Regulatory Approval that were mandated by the applicable Regulatory Authority as a
condition of such Regulatory Approval (such as post-marketing studies and observational studies if required by any Regulatory Authority to maintain Regulatory Approval for a Product); and all regulatory affairs related to any of the foregoing, in
each case as pertains to a Product, but excluding activities directed to the Manufacture or Commercialization of a Product. The terms “Develop” and “Developing” have correlative meanings. 

1.39 “Development Plan” has the meaning set forth in Section 4.1.1. 

1.40 “Dispute Auditor” has the meaning set forth in Section 8.8. 

  
 4 

 1.41 “Dispute Notice” has the meaning set forth in
Section 14.1. 
 1.42 “Disputed Matter” has the meaning set forth in
Section 14.1. 
 1.43 “Distribution End Date” has the meaning set forth in
Section 13.3.5(e). 
 1.44 “Distributor” means any Person appointed by a Party or its
Sublicensees or Other Perception Licensees (with respect to Perception) to distribute, market and sell a Product, with or without packaging rights, in one or more countries in the applicable Territory, in circumstances where such Person purchases
its requirements of Product from such Party or its Sublicensee or Other Perception Licensee, as applicable, but does not otherwise make any royalty or other payment to such Party or its Sublicensee or Other Perception Licensee, as applicable, with
respect to its intellectual property rights with respect to such Product. 
 1.45 “DMF” has the meaning set forth in
Section 5.6. 
 1.46 “Effective Date” has the meaning set forth in the Preamble. 

1.47 “Enforcing Party” has the meaning set forth in Section 9.4.4. 

1.48 “Executive Negotiation” has the meaning set forth in Section 14.1. 

1.49 “Executive Negotiation Period” has the meaning set forth in Section 14.1. 

1.50 “Executive Officers” means the Chief Executive Officer of Perception and the Chief Executive Officer of Otsuka or,
in either case, his or her designee. 
 1.51 “Existing Perception Patent Rights” has the meaning set forth in
Section 11.3.2. 
 1.52 “Ex-Otsuka Territory Study”
has the meaning set forth in Section 4.1.1. 
 1.53 “FDA” means the United States Food and
Drug Administration and any successor agency thereto. 
 1.54 “FD&C Act” means the United States Federal Food,
Drug and Cosmetic Act, as amended. 
 1.55 “Field” means the treatment, prevention and diagnosis of (a) any
Initial Indication and (b) any New Indications that are added to this Agreement by amendment in accordance with Section 2.3. 

1.56 “First Commercial Sale” means, with respect to a Product, the first sale for end use or consumption of such
Product in the Field in the Otsuka Territory (excluding named patient sales, compassionate use or other patient access programs) after all Regulatory Approvals legally required for such sale and NHI Price Listing have been granted by the Regulatory
Authority(ies) in the Otsuka Territory. 
 1.57 [***] 

  
 5 

 1.58 “GAAP” means Japanese generally accepted accounting principles.

 1.59 “GCP” means all current good clinical practice standards for the design, conduct, performance, monitoring,
auditing, recording, analyses and reporting of Clinical Studies, including, as applicable: (a) the Ministerial Ordinance on Standards for Implementation of Clinical Studies on Drugs (GCP Ministerial Ordinance) by the MHLW; (b) the Japan
Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices; (c) the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use (“ICH”),
Harmonised Tripartite Guideline for Good Clinical Practice (CPMP/ICH/135/95), as amended, and any other guidelines for good clinical practice for Clinical Studies on medicinal products in the European Union; (d) the Declaration of Helsinki
(1964) as last amended at the 59th World Medical Association (WMA) General Assembly in October 2008 and any further amendments or clarifications thereto; and (e) the equivalent Applicable Laws in any relevant country or jurisdiction, each
as may be amended and applicable from time to time and in each case, that provide for, among other things, assurance that the clinical data and reports results are credible and accurate and protect the rights, integrity, and confidentiality of
Clinical Study subjects. 
 1.60 “GLP” means all current good laboratory practice standards, including, as
applicable: (a) FDA regulations and guidelines for good laboratory practice, as promulgated by the FDA under 21 CFR Part 58; (b) European Commission Directive 2004/10/EC relating to the application of the principles of good laboratory
practices; and (c) any amendments, updates or clarifications with respect to any of the foregoing and any equivalents thereto in the country in which Non-Clinical Studies or Clinical Studies of a Product
are conducted. 
 1.61 “GMP” all current standards for good manufacturing practice for therapeutic products, as
appropriate, as set forth in the FD&C Act, applicable regulations promulgated thereunder, or applicable guidelines, as amended from time to time, and such standards of good manufacturing practice as are required by other Governmental Authorities
in countries in which Products are intended to be manufactured or sold. 
 1.62 “Generic Product” means, with respect
to a Product, a pharmaceutical product that is approved for use in the Otsuka Territory by a Regulatory Authority as a substitutable generic for such Product on an expedited or abbreviated basis based on bioequivalence with such Product, which
contains the same amount of the same API as such Product, has the same route of administration as such Product, and in principle has the same efficacy, indication, dosage and administration. 

1.63 “Global Branding Strategy” has the meaning set forth in Section 6.5.1. 

1.64 “Global Third Party IP Agreement” has the meaning set forth in Section 9.7.3. 

1.65 “Global Third Party IP Payments” has the meaning set forth in Section 9.7.3. 

1.66 “Good Reason” has the meaning set forth in Section 13.2.4. 

1.67 “Governmental Authority” means any applicable government authority, court, tribunal, arbitrator, agency,
department, legislative body, commission or other instrumentality of (a) any government of any country or territory, (b) any nation, state, province, county, city or other political subdivision thereof or (c) any supranational body. 

  
 6 

 1.68 “ICC” has the meaning set forth in
Section 14.2. 
 1.69 “ICC Arbitration Rules” has the meaning set forth in
Section 14.3.1. 
 1.70 “ICC Expert Rules” has the meaning set forth in
Section 14.2. 
 1.71 “ICH” has the meaning set forth in
Section 1.59. 
 1.72 “IFRS” means International Financial Reporting Standards. 

1.73 “Indemnified Party” has the meaning set forth in Section 12.3. 

1.74 “Indemnifying Party” has the meaning set forth in Section 12.3. 

1.75 “Indemnitee” has the meaning set forth in Section 12.3. 

1.76 “Indirect Taxes” means any sales, use, value added, goods and services, gross receipts and similar turnover or
gross margin taxes, together with any penalties and interest in respect thereof. 
 1.77 “Infringement Action” has
the meaning set forth in Section 9.4.2. 
 1.78 “Initial Evaluation Period” has the meaning
set forth in Section 2.3. 
 1.79 “Initial Indication” means any depression, including
treatment-resistant depression, or major depressive disorder or any of their related symptoms or conditions in any patients diagnosed with any depression or major depressive disorder. 

1.80 “Initiation” means, with respect to a Clinical Study of a Product, the first dosing of the first human subject in
such Clinical Study. 
 1.81 “Injunctive Relief” has the meaning set forth in Section 14.4.

 1.82 “Intellectual Property Rights” means all rights in, to and under Patent Rights, Trademarks, copyrights,
databases, trade secrets and confidential information, and all other intellectual or industrial property and other proprietary rights throughout the world. 

1.83 “Invalidation Proceeding” has the meaning set forth in Section 9.3.1. 

1.84 “Invention” means any invention or discovery, whether or not patentable, including any process, method, assay,
design, protocol, or formula, and any improvement or modification thereof, that is discovered, made, developed generated, or conceived in the course of conducting Development, Manufacturing, Commercialization or other exploitation of Products by or
on behalf of Otsuka or its Sublicensees or by or on behalf of Perception or an Other Perception Licensee, in each case, including all rights, title and interest in and to the Intellectual Property Rights with respect thereto. 

  
 7 

 1.85 “Inventory Sell-Off”
has the meaning set forth in Section 13.3.5(e). 
 1.86 “JCC” has the meaning set forth in
Section 3.1.1. 
 1.87 “JNDA” means a Japanese new drug application, or an amendment
thereof filed with the MHLW through PMDA under Article 14 of the Japan Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (Law No. 145 of 1960, as amended). 

1.88 “Joint Invention” has the meaning set forth in Section 9.1.2. 

1.89 “Joint Patent Rights” has the meaning set forth in Section 9.1.2. 

1.90 “Joint Technology” means Joint Inventions and Joint Patent Rights. 

1.91 “JPY” means Japanese Yen, the official currency of Japan or any successor currency. 

1.92 “Know-How” means data, inventions, improvements, practices, research,
methods, discoveries, developments, information, technology, protocols, specifications, formulae, software, algorithms, knowledge, know-how, trade secrets, processes, assays, skills, experience, chemical or
biological materials, expertise, techniques, and results of experimentation and testing, including Inventions, pharmacological, biological, chemical, biochemical, toxicological, pre-clinical and clinical data
and analytical and quality control data, CMC information, stability data and other study data, in all cases, whether or not proprietary or patentable, in written, electronic or any other form now known or hereafter developed, but excluding any
Patent Rights and Trademarks. 
 1.93 “Losses” has the meaning set forth in Section 12.1.

 1.94 “Manufacturing” or “Manufacture” means, as applicable, all activities associated with the
production, manufacture, process of formulating, processing, purifying, filling, finishing, packaging, labeling, shipping, importing and storage of Products, and any part or component thereof, including process development, process validation,
stability testing, manufacturing scale-up, pre-clinical, clinical and commercial manufacture and analytical development, product characterization, quality assurance and
quality control development, testing and release, but excluding activities directed to Development or Commercialization of a Product. 

1.95 “Manufacturing Transfer Date” has the meaning set forth in Section 7.1. 

1.96 “Material Communication” means any written communications (other than any immaterial communications, such as e-mails without attachments or communications to schedule a meeting), telephonic communications or in-person communications from or with any Regulatory Authority concerning
any of the following: key product quality attributes (e.g., purity) of Products; safety findings affecting a Product (e.g., Serious Adverse Events, emerging safety signals); clinical or non-clinical findings
affecting patient safety, efficacy, or receipt or denial of Regulatory Approval; or the design of Clinical Studies of a Product or the need for additional Non-Clinical Studies (e.g., additional toxicology or
carcinogenicity studies). 

  
 8 

 1.97 “MHLW” means the Japanese Ministry of Health, Labour and
Welfare, or a successor agency thereto. 
 1.98 “Monetization” means the monetization of all or a portion of
Perception’s rights to receive royalties and other related payments under this Agreement, including by means of a direct sale (through an auction process or otherwise) or a financing (through a borrowing of loans, an offering of securities or
otherwise). 
 1.99 “Mutually Selected Countries” has the meaning set forth in
Section 9.2.3(a). 
 1.100 “Negotiation Notice” has the meaning set forth in
Section 2.3. 
 1.101 “Negotiation Period” has the meaning set forth in
Section 2.3. 
 1.102 “Net Sales” means, with respect to any Product, the gross amounts
recognized for sales of such Product by Otsuka and its Sublicensees (each, a “Seller”) to Third Parties, less the following deductions: 

(a) discounts actually given in amounts customary in the trade, for Distributors, quantity purchases, cash or prompt payments; 

(b) credits or refunds, not exceeding the original invoice amount, separately and actually granted to customers for Products, as applicable,
that are returned to Seller; 
 (c) transportation expenses and transportation insurance premiums, which are itemized in the invoice,
actually paid by Seller; 
 (d) sales taxes (including value added taxes), customs, duties or similar excise taxes and other fees imposed by
a government agency to the extent applicable to such sale and detailed in the invoice in respect of such sale and actually paid by Seller; and 

(e) any other deductions that are consistent with IFRS or GAAP, but that are not duplicative of the above deductions. 

Notwithstanding the above, the following shall not be included in the computation of Net Sales: (i) sales between or among Otsuka and its
Sublicensees (but Net Sales shall include sales to the first Third Party (other than a Sublicensee) by Seller); or (ii) the sale, distribution or supply of Product (A) as promotional or other samples, for use in Non-Clinical Studies or Clinical Studies, or for use in any test or studies reasonably necessary to comply with any Applicable Laws or as is otherwise normal and customary in the industry; or (B) for
compassionate use, named-patient use, or expanded access, indigent or other patient access programs if sold at or below the fully burdened manufacturing cost thereof. 

All such discounts, allowances, credits, rebates, and other deductions shall be fairly and equitably allocated to the applicable Product and
other products of such Seller such that any Product does not bear a disproportionate portion of such deductions. 

  
 9 

 If a Seller sells a Product in the Otsuka Territory as part of a therapy or product in
combination with other pharmaceutical or biologic products, diagnostic products, ingredients, delivery devices or other components other than API (each, an “Other Product”) whether combined in a single formulation or package,
formulated or packaged separately but sold under a single label approved by a Regulatory Authority, packaged together for sale or shipment as a single unit or sold at a single price, or marketed or sold collectively as a single product (a
“Combination Product”), Net Sales of such Combination Product for the purposes of determining payments based on Net Sales hereunder will be calculated by multiplying actual Net Sales of such Combination Product as determined in the
first paragraph of this Net Sales definition (“Combination Product Net Sales”) by the fraction A/(A+B) where A is the NHI Price during the period to which the Net Sales calculation applies for the Product with API as its sole active
ingredient in the Otsuka Territory (i.e., without the Other Product) and B is the NHI Price of the Other Product (or, as applicable, the weighted average of each NHI Price of the generic versions of the Other Product) in the Otsuka Territory when
sold separately, in each case, during the period to which the Net Sales calculation applies; provided that the NHI Price for each Product and the NHI Price for each Other Product shall be for a quantity comparable to that used in such Combination
Product and of substantially the same formulation and the same route of administration. 
 If the NHI Price of the Other Product in the
Otsuka Territory when sold separately cannot be determined but the NHI Price of a Product with API as its sole active ingredient in the Otsuka Territory (i.e., without the Other Product) can be determined, Combination Product Net Sales for purposes
of determining payments based on Net Sales hereunder will be calculated by multiplying the Combination Product Net Sales by the fraction A/C where A is the NHI Price during the period to which the Net Sales calculation applies for such Product with
API as its sole active ingredient in the Otsuka Territory and C is the NHI Price of the Combination Product in the Otsuka Territory during the period to which the Net Sales calculation applies; provided that the NHI Price for each Product and the
NHI Price for each Other Product shall be for a quantity comparable to that used in such Combination Product and of substantially the same formulation and the same route of administration. 

If Otsuka and its Sublicensees do not separately sell a Product with API as its sole active ingredient, the Net Sales attributable to such
Combination Product shall be determined by the Parties in good faith based on the relative fair market value of Product and such Other Product. If the Parties cannot agree on such relative value, the dispute shall be resolved pursuant to
Section 14.3. 
 1.103 “New Indication” means any disease or condition other than an
Initial Indication. 
 1.104 “New Indication License” has the meaning set forth in
Section 2.2.2. 
 1.105 “New Indication Option Termination” has the meaning set forth in
Section 2.3. 
 1.106 “New Indication Option Termination Date” has the meaning set forth in
Section 2.3. 

  
 10 

 1.107 “New IV Formulation” means any intravenous formulation of a
Product other than the Current Formulation, such as a bolus injection form of a Product. 
 1.108 “NHI Price” means,
with respect to a Product or Other Product, the National Health Insurance price (yakka) applicable to such Product or Other Product in the Otsuka Territory, which is determined and may be amended from time to time by the MHLW. Following any National
Health Insurance price (yakka) revision with respect to a Product, a new NHI Price for such Product shall be automatically adopted from the day of the official implementation of such National Health Insurance price (yakka) revision by the MHLW and,
at the time of such adoption, the royalty rates hereunder may be reduced in accordance with Section 8.4.3(b). 

1.109 “NHI Price Listing” means, with respect to a Product, the listing of such Product and its NHI Price on a list of
drugs for which medical providers can be reimbursed under the NHI, following approval of the NHI Price by the Central Social Insurance Medical Council (Chuikyo) of the MHLW. 

1.110 “NHI Price Reduction Percentage” has the meaning set forth in Section 8.4.3(b). 

1.111 “Non-Clinical Studies” means
non-human studies of Products, including preclinical or non-clinical studies of Products in vitro or in animals, but excluding
CMC-related studies. 
 1.112 “Non-Enforcing
Party” has the meaning set forth in Section 9.4.4. 
 1.113 “Option Notice” has
the meaning set forth in Section 2.3. 
 1.114 “Other New Formulation” means any
formulation of a Product other than an intravenous formulation, such as subcutaneous injection forms and intranasal forms of a Product. For clarity, Other New Formulation excludes the Current Formulation and New IV Formulations. 

1.115 “Other Party” has the meaning set forth in Section 5.3. 

1.116 “Other Perception Licensee” means any licensee or sublicensee of Perception to which a license or a sublicense
under the Perception Technology is granted by Perception or its Affiliates for the Development or Commercialization of Products for all or any portion of the Perception Territory or any Sublicensee of Perception (including a Sublicensee of the
license granted in Section 2.2.2), but excluding Distributors, wholesalers, contract research organizations, CMOs and similar entities. In no event shall Otsuka or any of its Affiliates be deemed an Other Perception
Licensee. 
 1.117 “Other Product” has the meaning set forth in Section 1.102. 

1.118 “Other Product Know-How” means, with respect to a Product that is
Developed or Commercialized as a Combination Product, Know-How to the extent related to any Other Product used in such Combination Product or the Development, Manufacture, Commercialization or other
exploitation thereof, but excluding (a) any Know-How that is related to both (i) the Other Product and (ii) the API or Products or the Development, Manufacture, Commercialization or other
exploitation thereof and (b) any Know-How that is specific to the use of such Product with the Other Product. 

  
 11 

 1.119 “Other Product Otsuka Termination Patent Rights” means with
respect to a terminated Product that is Developed or Commercialized as a Combination Product prior to the effective date of such termination, Otsuka Termination Patent Rights that claim any Other Product used in such Combination Product or the
Development, Manufacture, Commercialization or other exploitation thereof, but excluding (a) any Patent Rights that claim both (i) the Other Product and (ii) the API or Products or the Development, Manufacture, Commercialization or
other exploitation thereof and (b) any Patent Rights that claim the use of such Product with the Other Product. 
 1.120
“Other Product Patent Rights” means with respect to a Product that is Developed or Commercialized as a Combination Product, Patent Rights that claim any Other Product used in such Combination Product or the Development,
Manufacture, Commercialization or other exploitation thereof, but excluding (a) any Patent Rights that claim both (i) the Other Product and (ii) the API or Products or the Development, Manufacture, Commercialization or other
exploitation thereof and (b) any Patent Rights that claim the use of such Product with the Other Product. 
 1.121
“Otsuka” has the meaning set forth in the Preamble. 
 1.122 “Otsuka Indemnitees” has the
meaning set forth in Section 12.2. 
 1.123 “Otsuka Product Improvement” means (a) Know-How Controlled by Otsuka after the Effective Date and during the Term that is discovered, made, developed, generated, or conceived solely by one or more employees of Otsuka or its Sublicensees (or a
Third Party acting on its or their behalf) in the course of conducting activities under this Agreement, and (b) any Patent Rights Controlled by Otsuka after the Effective Date and during the Term that claim the
Know-How described in clause (a) of this Section 1.123 (such Patent Rights, “Otsuka Product Improvement Patents”) in each case, ((a) and (b)), that is or are
necessary or reasonably useful for the Development, Manufacture, Commercialization or other exploitation of any Products in the Perception Territory. For clarity, Otsuka Product Improvements exclude Joint Technology. 

1.124 “Otsuka Product Improvement Patents” has the meaning set forth in Section 1.123. 

1.125 “Otsuka Selected Countries” has the meaning set forth in Section 9.2.2(a). 

1.126 “Otsuka Termination Know-How” has the meaning set forth in
Section 13.3.3(a). 
 1.127 “Otsuka Termination Patents” has the meaning set forth in
Section 13.3.3(a). 
 1.128 “Otsuka Termination IP
In-License Agreement” has the meaning set forth in Section 13.3.3(b). 

1.129 “Otsuka Territory” means Japan. 

  
 12 

 1.130 “Otsuka Territory-Specific Brand Strategy” has the meaning set
forth in Section 6.5.2. 
 1.131 “Otsuka Territory-Specific CMC Study” has the meaning set
forth in Section 4.1.4. 
 1.132 “Otsuka Territory-Specific
Non-Clinical Study” has the meaning set forth in Section 4.1.3. 

1.133 Otsuka Third Party Payments” has the meaning set forth in Section 8.4.3(c). 

1.134 “Out-of-Pocket Costs” means, with
respect to activities hereunder, direct expenses paid or payable by either Party or its Sublicensee to Third Parties and specifically identifiable, incurred and invoiced to conduct such activities, including payments to contract personnel and CMOs.

 1.135 “Owed Party” has the meaning set forth in Section 8.7. 

1.136 “Owing Party” has the meaning set forth in Section 8.7. 

1.137 “Party” means Otsuka or Perception. 

1.138 “Patent Challenge” has the meaning set forth in Section 8.4.4. 

1.139 “Patent Disputed Matter” has the meaning set forth in Section 14.5. 

1.140 “Patent Rights” means (a) all issued patents (including any extensions, restorations by any existing or
future extension or registration mechanism (including patent term adjustments, patent term extensions, supplemental protection certificates or the equivalent thereof), substitutions, confirmations,
re-registrations, re-examinations, reissues, patents and patent claims maintained after post grant examination (including inter partes review, post grant review or
opposition proceeding) and patents of addition); (b) patent applications (including all provisional applications, substitutions, requests for continuation, continuations,
continuations-in-part, divisionals and renewals); (c) inventor’s certificates; and (d) all equivalents of the foregoing in any country of the world. 

1.141 “Payment Forms” means all of the following documents which, at the time Perception provides such documents to
Otsuka, must be currently effective (un-expired), completed and signed: one (1) copy of the United States Internal Revenue Service Form 6166 (United States Residency Certification); two (2) copies of
Form 3 (Application Form for Income Tax Convention); and one (1) copy of Form 17 (Attachment Form for Limitation on Benefits Article). 

1.142 “Payor” has the meaning set forth in Section 8.11.2. 

1.143 “Perception” has the meaning set forth in the Preamble. 

1.144 “Perception Active Countries” has the meaning set forth in Section 9.3.3. 

  
 13 

 1.145 “Perception CMC Study” has the meaning set forth in
Section 4.1.4. 
 1.146 “Perception Indemnitees” has the meaning set forth in
Section 12.1. 
 1.147 “Perception Know-How” means Know-How Controlled by Perception or its Affiliates as of the Effective Date and during the Term that is necessary or reasonably useful for the Development, Manufacture, Commercialization or other exploitation of
Products in the Field in the Otsuka Territory, but excluding Joint Inventions and Other Product Know-How. 

1.148 [***] 
 1.149
“Perception New Indication Product” means, with respect to each New Indication for which there has been a New Indication Option Termination, a product containing API developed, manufactured or commercialized by or on behalf of
Perception for such New Indication in the Otsuka Territory following the applicable New Indication Option Termination Date. 
 1.150
“Perception New Indication Studies” means, with respect to each New Indication for which there has been a New Indication Option Termination, any Clinical Studies conducted by or on behalf of Perception in the Otsuka Territory
related to the applicable Perception New Indication Product. 
 1.151 “Perception Patent Rights” means Patent Rights
Controlled by Perception or its Affiliates as of the Effective Date and during the Term that are necessary or reasonably useful for the Development, Manufacture, Commercialization or other exploitation of Products in the Field in the Otsuka
Territory, but excluding Joint Patent Rights and Other Product Patent Rights. The Perception Patent Rights existing as of the Effective Date are those Patent Rights identified on Schedule 11.3.2. At the initiative of Perception or the request
of Otsuka (not to exceed two (2) times in a Calendar Year), Perception shall provide Otsuka a written update regarding the then-current status of the Perception Patent Rights, including any additions or
deletions of Patent Rights. 
 1.152 “Perception Technology” means Perception
Know-How and Perception Patent Rights. 
 1.153 “Perception Territory” means
all countries of the world, excluding the Otsuka Territory. 
 1.154 “Person” means any natural person, corporation,
unincorporated organization, partnership, association, sole proprietorship, joint stock company, joint venture, limited liability company, trust or government, or Governmental Authority, or any other similar entity. 

1.155 “Pharmacovigilance Agreement” has the meaning set forth in Section 5.8.2. 

1.156 “Phase 1 Clinical Study” means a Clinical Study of a Product the principal purpose of which is a preliminary
determination of safety in healthy individuals or patients, as more fully defined in 21 C.F.R. § 312.21(a), or its successor regulation, or the equivalent in any non-U.S. jurisdiction. 

  
 14 

 1.157 “Phase 2 Clinical Study” means a Clinical Study of a Product
the principal purpose of which is to explore a variety of doses, dose responses, and durations of effect, and to generate evidence of clinical safety, effectiveness and dose ranging for a particular indication or indications in a target patient
population, as more fully defined in 21 C.F.R. § 312.21(b), or its successor regulation, or the equivalent in any non-U.S. jurisdiction. 

1.158 “Phase 3 Clinical Study” means a Clinical Study of a Product the principal purpose of which is to establish that
such Product is safe and efficacious for its indicated use, to define contraindications, warnings, precautions and adverse reactions that are associated with such Product in the dosage range to be prescribed, and to support the filing of an
application for Regulatory Approval for such Product, as more fully defined in 21 C.F.R. § 312.21(c), or its successor regulation, or the equivalent in any non-U.S. jurisdiction. 

1.159 “PMDA” means the Japanese Pharmaceuticals and Medical Devices Agency and any successor thereto. 

1.160 “Post-Royalty Product Trademarks” has the meaning set forth in Section 13.3.6. 

1.161 “Primary Label” means, with respect to a Product in the Otsuka Territory, the full prescribing information for
such Product in the Otsuka Territory, including any required patient information, to be submitted to the applicable Regulatory Authority in the Otsuka Territory for approval. 

1.162 “Privacy Laws” means all Applicable Laws with respect to the collection, use, transfer, storage, protection,
deletion, processing (both by computer and manually), combination, or other use of Clinical Study subject or patient data (sometimes referred to as protected health information) or other personal data. 

1.163 “Product” means Perception’s product containing API and known as
PCN-101, and any other product comprising or containing API, either alone or in combination with other active pharmaceutical ingredients, including any dosage strengths, presentations, forms, formulations,
line extensions, and modes of delivery thereof. 
 1.164 “Product Trademark Infringement” has the meaning set forth
in Section 9.10.3. 
 1.165 “Product Trademarks” has the meaning set forth in
Section 9.10.1. 
 1.166 “Promotional Materials” has the meaning set forth in
Section 6.5.2. 
 1.167 [***] 

1.168 “Prosecuting Party” has the meaning set forth in Section 9.2.3(e). 

1.169 “Prosecution” has the meaning set forth in Section 9.2.1(a). The term
“Prosecute” has correlative meaning. 
 1.170 “PV Representative” has the meaning set forth in
Section 5.8.1. 

  
 15 

 1.171 “Quality Agreement” has the meaning set forth in
Section 7.2. 
 1.172 “Quality Standards” has the meaning set forth in
Section 9.10.5. 
 1.173 “Recipient” has the meaning set forth in
Section 8.11.2. 
 1.174 “Registration Dossier” means the registration dossier of technical
data and information compiled by or on behalf of Otsuka with respect to a Product submitted to a Regulatory Authority for obtaining Regulatory Approval of a Product in the Field in the Otsuka Territory, including any JNDA. 

1.175 “Regulatory Approval” means any and all approvals, licenses, registrations or authorizations of any Regulatory
Authority that are necessary for the marketing and sale of a product in a country or group of countries, including approval of a JNDA filed with a Regulatory Authority in the Otsuka Territory, including all additions, amendments, supplements,
extensions and modifications thereto, but excluding NHI Price Listing. 
 1.176 “Regulatory Authority” means any
Governmental Authority involved in granting approvals for the Development, Manufacturing, Commercialization, reimbursement or pricing of Products, including the PMDA. 

1.177 “Regulatory Documentation” means all (a) Regulatory Filings, (b) Material Communications, and
(c) reports and other correspondence and communications submitted to or received from any Regulatory Authority and all supporting documents with respect thereto, in each case relating to a Product, including Registration Dossiers, minutes and
official contact reports relating to substantive communications, conversations or meetings with any Regulatory Authority, regulatory drug lists, advertising and promotion documents, adverse event files and complaint files. 

1.178 “Regulatory Exclusivity” means, with respect to a Product in the Otsuka Territory, any exclusive marketing right,
data exclusivity right or other status conferred by a Governmental Authority or Applicable Law with respect to such Product in the Otsuka Territory, other than a Patent Right, that limits or prohibits a Person from (a) relying on pivotal safety
or efficacy data generated by or on behalf of Otsuka with respect to a Product, or on a Regulatory Authority’s prior finding of safety or efficacy of such Product, in an application for Regulatory Approval of a Generic Product or
(b) Commercializing a Product or a Generic Product. 
 1.179 “Regulatory Filing” means any applications
(including any JNDA and Clinical Study applications), filings, submissions, approvals (including Regulatory Approvals), licenses, registrations, permits, notifications, and authorizations (or waivers) with respect to the Development, Manufacture or
Commercialization of any Product made to or received from any Regulatory Authority in a given country or jurisdiction. 
 1.180
“Remedial Action” has the meaning set forth in Section 5.9. 
 1.181 “Requested
Ongoing Studies” has the meaning set forth in Section 4.1.3. 
 1.182 “Reversion
License” has the meaning set forth in Section 13.3.3(a). 

  
 16 

 1.183 “Royalty Term” has the meaning set forth in
Section 8.4.2. 
 1.184 “Safety Concern” means, with respect to any Product, (a) any
safety concern required to be reported under 21 C.F.R. § 312.32(c)(1)(iii) (“Findings from animal or in vitro testing”) or the equivalent in any non-U.S. jurisdiction, or (b) a material
toxicity or material drug safety issue or a Serious Adverse Event reasonably related to a Product. 
 1.185 “Safety Management
Plan” has the meaning set forth in Section 5.8.1. 
 1.186 “Safety Reasons” means
a Party’s reasonable belief that there is an unacceptable risk for harm in humans based upon (a) preclinical safety data, including data from animal toxicology studies, (b) the observation of serious adverse effects in humans after a
Product has been administered to humans, such as during a Clinical Study of a Product or after the First Commercial Sale, or (c) other Safety Concerns, in each of clauses (a) through (c), that would materially impact the safety or efficacy
or the commercial feasibility of a Product. 
 1.187 “Security Incident” has the meaning set forth in
Section 11.2.2. 
 1.188 “Seller” has the meaning set forth in
Section 1.102. 
 1.189 “Serious Adverse Event” means an adverse drug experience or
circumstance that results in any of the following outcomes: (a) death; (b) life-threatening event; (c) inpatient hospitalization or prolongation of existing hospitalization; (d) persistent or significant disability or incapacity or
substantial disruption of the ability to conduct normal life functions; (e) a congenital anomaly/birth defect; (f) significant intervention required to prevent permanent impairment or damage; or (g) a medical event that may not result
in death, be life-threatening or require hospitalization but, based on appropriate medical judgment, that may jeopardize the patient or subject and may require medical or surgical intervention to prevent one of the outcomes described in clauses
(a) through (e). 
 1.190 “Sublicensee” means, with respect to a Party, an Affiliate or a Third Party to whom
such Party grants a direct or indirect sublicense under any Perception Technology, Otsuka Product Improvements or Joint Technology, as the case may be, to Develop, Manufacture, Commercialize or otherwise exploit a Product in accordance with
Section 2.1.2 or Section 2.2.3. Distributors, wholesalers, contract research organizations, CMOs and similar entities will not be Sublicensees, and agreements between a Party and such entities will
not be sublicenses, for purposes of this Agreement and a Third Party to whom a Party grants the right to distribute Products wherein such Third Party pays to such Party a royalty (or other amount) based upon the revenues received by such Third Party
for the sale (or resale) of such Products by such distributor, irrespective of whether a license or sublicense is granted under Section 2.1.2 or Section 2.2.3, as applicable, shall be a
Sublicensee. 
 1.191 “Sued Party” has the meaning set forth in Section 9.5. 

1.192 “Supply Agreement” has the meaning set forth in Section 7.2. 

1.193 “Supporting Party” has the meaning set forth in Section 9.3.6. 

  
 17 

 1.194 “Term” has the meaning set forth in
Section 13.1. 
 1.195 “Territory” means (a) the Perception Territory or (b) the
Otsuka Territory, as applicable. 
 1.196 “Third Party” means a Person other than a Party and its Affiliates. 

1.197 “Third Party Claim” has the meaning set forth in Section 12.1. 

1.198 “Third Party Infringement Suit” has the meaning set forth in Section 9.5. 

1.199 “Third Party IP” has the meaning set forth in Section 9.7.2. 

1.200 “Trademark” means any trademark, trade name, service mark, service name, brand, domain name, trade dress, logo,
slogan or other indicia of origin or ownership, in any language, including any katakana trademark, including the goodwill and activities associated with each of the foregoing. 

1.201 “Trademark Infringement Suit” has the meaning set forth in Section 9.10.4. 

1.202 “Transition Activities” has the meaning set forth in Section 13.3.5(b). 

1.203 “United States” or “U.S.” means the United States of America and its territories, possessions
and commonwealths. 
 1.204 “Valid Claim” means a claim within any granted or issued Perception Patent Rights in the
Field in the Otsuka Territory that (a) is in force and unexpired, (b) has not been revoked or held invalid or unenforceable by a decision of a court or other governmental agency of competent jurisdiction in the Otsuka Territory, which
decision is not appealable or has not been appealed within the time allowed for appeal, and (c) has not been surrendered, abandoned, disclaimed, denied or admitted to be invalid or unenforceable through reissue,
re-examination, disclaimer or otherwise. 
 2. LICENSES; THIRD PARTY IP 

2.1 License Grants to Otsuka. 

2.1.1 License Grant. Subject to the terms and conditions of this Agreement, Perception hereby grants to Otsuka a non-transferable (except as provided in Section 15.1), sublicensable (subject to Section 2.1.2), exclusive (even as to Perception and its Affiliates subject to Section 2.4)
license and sublicense under the Perception Technology, Perception’s interest in the Joint Technology, and the Product Trademarks solely to Develop, have Developed, Manufacture, have Manufactured, Commercialize and otherwise exploit Products in
the Field in the Otsuka Territory and to conduct Clinical Studies for Products in the Perception Territory solely in accordance with Section 4.1.1. The license granted hereunder shall be royalty-bearing for the Royalty Term applicable to
each Product in the Otsuka Territory, and after expiration of the Royalty Term applicable to such Product shall convert to a fully-paid, royalty-free perpetual license. 

  
 18 

 2.1.2 Otsuka Sublicense Rights. Otsuka shall not have the right to grant sublicenses
under the license granted in Section 2.1.1, without the prior written consent of Perception (such consent not to be unreasonably withheld, conditioned or delayed in the case of any sublicense granted to a Third Party for the co-development or co-promotion of a Product with Otsuka in the Otsuka Territory), except to any of Otsuka’s Affiliates. For clarity, agreements with contract research
organizations to conduct Clinical Studies of a Product on behalf of Otsuka, Distributors, wholesalers and CMOs and other similar agreements shall not constitute sublicenses that require the prior written consent of Perception. Each sublicense
granted by Otsuka pursuant to this Section 2.1.2 shall be (a) subject to the relevant material terms of the Chiba University Agreement as set forth in Schedule 2.1.3 and (b) subject and subordinate to the terms of this
Agreement. Each such sublicense shall be consistent with all relevant terms and conditions in this Agreement and shall include (i) a requirement that the Sublicensee comply with all relevant terms and conditions of this Agreement, including the
confidentiality and non-use provisions of Article 10 with respect to Perception’s Confidential Information and (ii) a requirement that the Sublicensee submit applicable sales or other
reports to Otsuka to the extent necessary or relevant to the reports required to be made or records required to be maintained by Otsuka under this Agreement. [***]. Notwithstanding any sublicense, Otsuka shall remain primarily liable to
Perception for the performance of all of Otsuka’s obligations under, and Otsuka’s compliance with all provisions of, this Agreement. Otsuka shall provide Perception with a copy of each sublicense executed by Otsuka or its Sublicensee and a
separate copy of such sublicense in a format that would facilitate machine translation (as reasonably requested by Perception that is possible using Otsuka’s then current systems), each within [***] after its execution; provided that the
financial and other terms of any such sublicense may be redacted to the extent not pertinent to confirming compliance with this Agreement. 

2.1.3 Chiba University Agreement. Otsuka acknowledges and agrees that he sublicenses and other rights granted by Perception to Otsuka in
this Agreement are subject to the material relevant terms of the Chiba University Agreement, including the rights retained by the Japanese government pursuant to the Industrial Technology Enhancement Law of Japan with respect to the Patent Rights
licensed to Perception thereunder. Otsuka shall comply with, and perform and take such actions as may be required to allow Perception to comply with, the relevant material terms of the Chiba University Agreement that are set forth in Schedule
2.1.3 to the extent applicable to Otsuka’s rights or obligations relating to the Development, Manufacture, Commercialization or other exploitation of any Products in the Otsuka Territory. Without limiting the foregoing, (a) the Parties
shall, from time to time, upon the reasonable request of either Party, discuss the terms of the Chiba University Agreement that are applicable to the sublicense granted by Perception to Otsuka in this Agreement and (b) upon Perception’s
request, Otsuka shall provide Perception with information in Otsuka’s Control that is required for Perception to meet its reporting obligations under the Chiba University Agreement, to the extent such information has not been previously
provided by Otsuka to Perception hereunder. 
 2.2 License Grants to Perception. 

2.2.1 Exclusive License Grant. Subject to the terms and conditions of this Agreement, Otsuka hereby grants Perception a non-transferable (except as provided in Section 15.1), sublicensable (subject to Section 2.2.3), exclusive (even as to Otsuka and its Affiliates), royalty-free license under Otsuka Product
Improvements solely to Develop, have Developed, Manufacture, have Manufactured, Commercialize and otherwise exploit Products in the Perception Territory. 

  
 19 

 2.2.2 New Indication License Grant. With respect to each New Indication for which
there has been a New Indication Option Termination, subject to the terms and conditions of this Agreement, effective as of the applicable New Indication Option Termination Date for such New Indication, Otsuka hereby grants Perception a non-transferable (except as provided in Section 15.1), sublicensable (subject to Section 2.2.3), non-exclusive, royalty-bearing, license under Otsuka
Product Improvements solely to Develop, have Developed, Manufacture, have Manufactured, Commercialize and otherwise exploit Perception New Indication Products for the treatment, prevention and diagnosis of such New Indication in the Otsuka Territory
(each, a “New Indication License”). Each New Indication License shall be royalty-bearing and Perception shall pay Otsuka a commercially reasonable royalty on Net Sales of Perception New Indication Products for the treatment,
prevention and diagnosis of such New Indication in the Otsuka Territory taking into account the relative value of the Otsuka Product Improvements as of the applicable New Indication Option Termination Date (or, if later, the date such Otsuka Product
Improvement is generated) on terms to be agreed between Perception and Otsuka, and the grant of such license shall be conditioned on the Parties determining such royalty (including through dispute resolution, if applicable). If the Parties are
unable to agree upon such royalty within [***] after the New Indication Option Termination Date (or such longer period as the Parties may agree), then the matter shall be subject to resolution in accordance with Section 14.3. 

2.2.3 Perception Sublicense Rights. Perception shall have the right to grant sublicenses through multiple tiers under the license
granted in Section 2.2.1 and Section 2.2.2 to any of its Affiliates or to any Third Party without the consent of Otsuka, subject to the requirements of this Section 2.2.3. Perception will provide written notice to
Otsuka promptly (but in any event within [***]) after granting a sublicense to a Third Party, indicating the identity of the Third Party Sublicensee and the scope or purpose of such sublicense. Each sublicense granted by Perception pursuant to this
Section 2.2.3 shall be subject and subordinate to this Agreement. Each such sublicense shall be consistent with the relevant terms and conditions in this Agreement and shall include a requirement that the Sublicensee comply with all
relevant terms and conditions of this Agreement, including the confidentiality and non-use provisions of Article 10 with respect to Otsuka’s Confidential Information. Notwithstanding any
sublicense, Perception shall remain primarily liable to Otsuka for the performance of all of Perception’s obligations under, and Perception’s compliance with all provisions of, this Agreement. [***] 

2.3 Expanded Field Option. On a New
Indication-by-New Indication basis, if Perception Develops a Product in the Perception Territory for such New Indication and [***], Perception shall provide
Otsuka with [***]. For a period of [***] after receipt of [***] (each, an “Initial Evaluation Period”), Otsuka shall have the right to determine whether it may be interested in adding such New Indication to the
Field under this Agreement. If, on or before expiration of the Initial Evaluation Period for such New Indication, Otsuka gives written notice to Perception that Otsuka is interested in Developing the Products in the Otsuka Territory for such New
Indication and in adding such New Indication to the Field under this Agreement (each, an “Option Notice”), then Perception shall provide Otsuka with the clinical study report (“CSR”) for [***] and other data
and information reasonably requested by Otsuka in order enable Otsuka to make an informed decision regarding whether to Develop the Products in such New Indication. 

  
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For a period of [***] after receipt of such information (each, a “DD Evaluation Period”), Otsuka shall have the right to review such CSR and other data and information and
further determine whether it is interested in Developing the Products in the Otsuka Territory for such New Indication and adding such New Indication to the Field under this Agreement. During the DD Evaluation Period for a New Indication, Perception
shall promptly respond to all reasonable requests by Otsuka for additional information relating to Development of the Products for such New Indication. If, on or before expiration of the DD Evaluation Period for a New Indication, Otsuka gives
written notice to Perception that Otsuka desires to include such New Indication in the Field under this Agreement (each, a “Negotiation Notice”), then for a period of [***] (or such longer period as the Parties may agree)
after the Negotiation Notice (each, a “Negotiation Period”), the Parties shall negotiate in good faith an amendment to this Agreement to add such New Indication to the Field hereunder in exchange for adjustments or additions to the
Development or regulatory milestones in Section 8.2 (which shall include [***]) and no other adjustments to the financial provisions in Article 8. For clarity, such amendment shall not include any additional
upfront payment or reimbursement for Development or other costs with respect to such New Indication or adjustments or additions to the sales milestones or royalty terms set forth in Section 8.3 and
Section 8.4. On a New Indication-by-New Indication basis, if Otsuka does not provide an Option Notice or a Negotiation Notice for such New
Indication within the applicable time periods or if the Parties do not reach agreement on an amendment to add such New Indication to the Field hereunder during the applicable Negotiation Period (each, a “New Indication Option
Termination”), then effective as of the first day following the last day of such Initial Evaluation Period, such DD Evaluation Period or such Negotiation Period, as applicable (each, a “New Indication Option Termination
Date”), Perception will be free to develop and commercialize a Perception New Indication Product in the Otsuka Territory, provided that: (a) Perception shall use a Trademark in connection with the development and commercialization of
any product for such New Indication in the Otsuka Territory that is significantly different from, and not confusingly similar to, the Product Trademark(s) used for Products that Otsuka is Developing or Commercializing in the Field in the Otsuka
Territory, in order to distinguish the sales of such product for such New Indication from the sales of Product that Otsuka is then Developing or Commercializing in the Otsuka Territory; (b) a product for such New Indication shall not constitute
a Product for any purposes under this Agreement (except for purposes of Section 2.2.2 and the defined terms used therein and for purposes of Section 12.2 and the defined terms used therein); (c)
[***]; (d) [***]; and (e) the Parties shall agree in good faith on any additional terms and conditions necessary based on their respective activities in the Otsuka Territory with respect to products containing API, including (i)
[***] and (ii) terms relating to safety-related reporting obligations to Regulatory Authorities. If the Parties are unable to agree upon such additional terms and conditions within [***] after the New Indication Option Termination
Date (or such longer period as the Parties may agree), then the matter shall be subject to resolution in accordance with Section 14.3. Except as set forth in this Section 2.3, neither Party shall
have the right, itself or with or through a Third Party, to Develop or Commercialize any Product for a New Indication in the Otsuka Territory. Further, prior to [***] and during the Initial Evaluation Period, the DD Evaluation Period and the
Negotiation Period (if applicable) for such New Indication, Perception shall not directly or indirectly propose, grant or negotiate with any Third Party any right (including any option) to Develop or Commercialize the Products for such New
Indication in the Otsuka Territory and shall not otherwise license, assign or encumber rights relating to the Products for such New Indication in the Otsuka Territory. 

  
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 2.4 Retained Rights. Any rights not expressly granted to Otsuka hereunder by
Perception are hereby retained by Perception and any rights not expressly granted to Perception hereunder by Otsuka are hereby retained by Otsuka. For clarity: (a) Perception retains rights under the Perception Technology and Product Trademarks
to (i) perform its responsibilities under this Agreement and any ancillary agreement, and (ii) Develop and Manufacture any Product in the Otsuka Territory for the purpose of obtaining and maintaining Regulatory Approval and Commercializing
Products in the Perception Territory; and (b) Otsuka retains rights under the Otsuka Product Improvements to (i) perform its responsibilities under this Agreement and any ancillary agreement, and (ii) practice the Otsuka Product
Improvements with respect to compounds and products other than Products. 
 2.5 No Implied Licenses or Other Rights. Except as
specifically set forth in this Agreement, neither Party shall acquire any license or other right or interest, by implication or otherwise, in any Know-How, Patent Rights or other Intellectual Property Rights
of the other Party, including items owned, controlled or developed by the other Party, or provided by or on behalf of the other Party to the receiving Party at any time pursuant to this Agreement. Neither Party shall, nor shall it permit any of its
Affiliates or Sublicensees (or, in the case of Perception, any Other Perception Licensees) to, practice any Patent Rights or Know-How licensed to it by the other Party outside the scope of the licenses granted
to it under this Agreement. 
 3. GOVERNANCE 

3.1 Joint Collaboration Committee. 

3.1.1 Overview. Within [***] after the Effective Date, the Parties shall establish a Joint Collaboration Committee
(“JCC”) to discuss and oversee the Development and regulatory activities relating to the Products in the Field in the Otsuka Territory and to carry out the other enumerated responsibilities set forth in Section 3.1.5.

 3.1.2 Composition. The JCC shall be comprised of an equal number of up to [***] representatives from each Party, all of whom
shall be employees or directors of such Party or, with respect to Perception, individuals who are employees of an Affiliate that Controls Perception in their capacity as consultants to Perception. Each Party may substitute one or more of its
representatives, in its sole discretion, effective upon notice to the other Party of such substitution; provided that if Perception wishes to include an employee of an Affiliate that Controls Perception (in the capacity of consultant to Perception)
as one of its JCC representatives, Perception shall ensure that such individual is subject to confidentiality obligations at least as stringent as those provided in Article 10 of this Agreement. Each Party shall have at least one (1) JCC
representative who is a senior officer or executive level employee, and all JCC representatives shall have appropriate expertise, seniority, decision-making authority and ongoing familiarity with the Parties’ activities hereunder. 

3.1.3 JCC Co-Chairpersons. The JCC shall be co-chaired
by an employee representative of each of Otsuka and Perception (and, for clarity, not their Affiliates) (the “Co-Chairpersons”). The responsibilities of the Co-Chairpersons shall include conducting meetings, including, when feasible, ensuring that objectives for each meeting are set and achieved and ensuring the objectives and results of each meeting are communicated to
the senior management of each Party, in each case in close consultation with the Alliance Managers. 

  
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 3.1.4 Meetings. The JCC shall meet no less frequently than [***] until
[***]. Thereafter, the JCC shall meet no less frequently than [***]. At least [***] prior to each scheduled JCC meeting, the Alliance Managers shall provide the JCC with an agenda of items to be discussed at such meeting.
Notwithstanding the foregoing, either Party may request that a special ad hoc meeting of the JCC be convened to address matters that cannot reasonably be postponed until the next scheduled meeting of the JCC, and the Parties may mutually
agree upon alternative meeting schedules, including less frequently. Meetings may be conducted in person or by means of teleconference, videoconference or other similar communications equipment. Each Party may from time to time invite a reasonable
number of participants, in addition to its representatives, to attend JCC meetings in a non voting capacity; provided that if either Party intends to have any Third Party (including any consultant) attend such a meeting, such Party shall provide
reasonable prior written notice to the other Party and obtain the other Party’s approval for such Third Party to attend such meeting, which approval shall not be unreasonably withheld, conditioned or delayed; provided, further, that, such
approval shall not be required for any such Third Party to attend any future JCC meetings after such Third Party is approved by the other Party and each Party may propose potential Third Party attendees for the other Party’s approval in advance
of any specific JCC meeting. The Party inviting a Third Party to attend a JCC meeting shall ensure that such Third Party is bound by written confidentiality and non-use obligations consistent with the terms of
this Agreement. All meetings and proceedings for the JCC shall take place in English. Each Party shall bear its own expenses relating to its representatives’ and other participants’ attendance at such meetings. 

3.1.5 JCC Responsibilities. The JCC shall have the following responsibilities with respect to the Development, Manufacturing and
Commercialization of Products: 
 (a) reviewing, discussing and approving each Development Plan and any amendments thereto; 

(b) reviewing and discussing updates of the progress of activities under each Development Plan; 

(c) reviewing, discussing and approving the proposed language of the Primary Label to be submitted to any Regulatory Authority for each
Product in the Otsuka Territory; 
 (d) reviewing and discussing (i) the status of Products in the Perception Territory and the Otsuka
Territory, including (A) status of Development (including regulatory affairs) in the Perception Territory relating to the Current Formulation, Other New Formulation, any New IV Formulation and any New Indication, (B) topline data from any
Clinical Studies or Non-Clinical Studies with respect to any Product that are or are intended to be submitted to a Regulatory Authority in the Perception Territory or the Otsuka Territory and (C) matters
relating to Manufacture of API and Clinical Samples for the Otsuka Territory, (ii) termination of any Clinical Studies of Products conducted by Otsuka for Safety Reasons in advance of such termination, and (iii) any proposed termination of
this Agreement under Section 13.2.2; 

  
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 (e) reviewing, discussing and approving the design of any Clinical Studies of Products
proposed to be sponsored or supported (through supply of Products) by Otsuka; 
 (f) reviewing, discussing and approving any Clinical
Studies for any Product in the Otsuka Territory (including regulatory affairs related thereto) proposed to be conducted by or on behalf of Perception or Other Perception Licensees to support Development or Commercialization of such Product in the
Perception Territory, but, for clarity, excluding any Perception New Indication Studies; 
 (g) reviewing, discussing and approving the
design of any Additional Non-Clinical Study, and deciding which Party will conduct each such Additional Non-Clinical Study; 

(h) reviewing and discussing the Commercialization Plan; 

(i) reviewing and discussing the Global Branding Strategy and reviewing, discussing and approving any Otsuka Territory-Specific Brand
Strategy; 
 (j) reviewing and discussing summaries and updates of each Party’s and its Sublicensee’s (and, in the case of
Perception, any Other Perception Licensee’s, subject to Perception’s confidentiality obligations under its agreement with the applicable Other Perception Licensee, provided, that Perception shall use Commercially Reasonable Efforts to
include the right to disclose such summaries and updates to Otsuka in any license or sublicense agreement between Perception and any Other Perception Licensee) Commercialization of Products in such Party’s respective Territory, including
(i) with respect to Otsuka, updates of the progress of activities under the Commercialization Plan and (ii) with respect to Perception, a high-level summary of Commercialization activities for the Products in the Perception Territory; 

(k) reviewing and discussing a publication strategy pursuant to which the Parties may publish certain key results achieved in connection with
this Agreement as provided in Section 10.2.1; 
 (l) overseeing any subcommittees established by the JCC and
resolving any disputed matter submitted to it by any such subcommittees; and 
 (m) performing such other functions as appropriate to
further the purposes of this Agreement, as expressly set forth in this Agreement or allocated to it by the Parties’ written agreement. 

3.1.6 Subcommittees. 

(a) The JCC shall have the right to create such subcommittees of the JCC as it may deem appropriate or necessary (such as a manufacturing,
supply or quality subcommittee or other appropriate subcommittees). Each such subcommittee shall report to the JCC, and the JCC shall have the authority to approve or reject recommendations or actions proposed by such subcommittee, subject to the
terms of this Agreement. 

  
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 (b) The Parties may, upon mutual agreement, establish a pharmacovigilance subcommittee in
advance of the start of any Development activities by Otsuka and the PV Representative for each Party shall be a member of such subcommittee. If established, the pharmacovigilance subcommittee will be responsible for providing the JCC and the
Parties with guidance with respect to any matters relating to pharmacovigilance, Safety Concerns and Safety Reasons. 
 3.1.7 JCC
Decision-Making. 
 (a) Voting. All decisions of the JCC shall be made by unanimous vote, with each Party’s representatives
collectively having one (1) vote on behalf of such Party. No action taken at any meeting of the JCC shall be effective unless at least one (1) representative of each Party is participating. 

(b) Escalation. The JCC shall attempt to resolve all decisions and disputes on any matters within its responsibilities by consensus. If
the JCC is unable to reach consensus with respect to a decision or dispute regarding any matter within its responsibilities, after reasonable discussion and good faith consideration of each Party’s view on such matter, for a period in excess of
[***] (or such longer period as such representatives mutually agree upon), then such dispute shall be submitted to Executive Officers for resolution. Any resolution mutually agreed in writing by the Executive Officers shall be conclusive and
binding on the Parties. 
 (c) Decision-Making Authority. If the Executive Officers are unable to resolve a JCC dispute within
[***] (or such longer period as such Executive Officers mutually agree upon) after such matter has been referred to them, then Otsuka’s Executive Officer shall have the final decision-making authority with respect to all Development,
Manufacture, Commercialization and other exploitation of Products in the Field in or for the Otsuka Territory except as follows: 
 (i)
[***] 
 (ii) [***] 
 (iii)
[***] 
 For clarity, matters within the jurisdiction and authority of the JCC as set forth in Section 3.1.5 relating to the
Development, Manufacturing, Commercialization and other exploitation of a Product in the Perception Territory (and not in the Otsuka Territory) by Perception or Other Perception Licensees shall be reviewed and discussed by the JCC, but shall be
decided by Perception and shall not be subject to decision-making by the JCC. 
 (d) Dispute Resolution. Decisions by Otsuka in the
exercise of its final decision-making authority under Section 3.1.7(c), decisions by Perception in the exercise of its final decision-making authority under subsection (ii) of Section 3.1.7(c)
and decisions of the Parties pursuant to subsection (i) of Section 3.1.7(c) shall not be subject to arbitration or any other form of external dispute resolution except as set forth in this Section 3.1.7(d). If a
Party overrules the other Party’s final decision-making authority pursuant to subsection (ii) or (iii) of Section 3.1.7(c) based on a determination by the overruling Party that a decision by the other Party

  
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would have a significant negative impact on the value of any Product, and if the other Party disputes such determination of a significant negative impact, such dispute shall be resolved by expert
determination in accordance with Section 14.2. If an expert determines pursuant to Section 14.2 that such decision is not likely to have a significant negative impact on the value of any Product as
set forth in subsection (ii) or (iii) of Section 3.1.7(c), as applicable, then such purportedly overruling Party shall not have the right to overrule the other Party’s final decision-making authority pursuant to
subsection (ii) or (iii) of Section 3.1.7(c), as applicable, and the other Party shall have the right to implement such decision. 

(e) Limitations on Authority. The JCC and any subcommittee of the JCC shall have only such powers as are expressly assigned to it in
this Agreement, and such powers shall be subject to the terms and conditions of this Agreement. Without limiting the generality of the foregoing, (i) neither the JCC nor any subcommittee will have the power to amend this Agreement, (ii) no
decision of the JCC or any subcommittee may be in contravention of any terms or conditions of this Agreement, and (iii) neither the JCC, any subcommittee nor either Party will have the authority to (A) amend or modify, or waive compliance
with this Agreement, (B) obligate either Party to violate Applicable Law, the requirements of any Regulatory Authority or any agreement with any Third Party, or (C) impose any obligation on either Party that would be in violation of such
Party’s written standard operating procedures, written business policies, or written compliance policies or procedure. 
 3.1.8
General Collaboration Principles. In performing its obligations and exercising its rights hereunder (including acting through its representatives on the JCC and subcommittees and its Alliance Managers), each Party shall act in good faith to
undertake and perform its obligations in a timely and efficient manner with the goal of optimizing the commercial opportunity for the Products in its respective Territory. All information disclosed by either Party or its representatives to the other
Party or its representatives under this Article 3 shall be deemed to be Confidential Information of the disclosing Party and maintained in accordance with Article 10. The Parties may from time to time discuss whether any changes to the
governance structure for the Parties’ activities hereunder are necessary or advisable. 
 3.2 Alliance Managers. 

3.2.1 Appointment. Within [***] following the Effective Date, each Party will appoint (and notify the other Party of the identity
of) an employee of such Party having a general understanding in matters related to pharmaceutical development and commercialization to act as its alliance manager under this Agreement (each, an “Alliance Manager”); provided that for
the first [***] after the Effective Date, a JCC member representing Perception may also serve as Perception’s Alliance Manager. Each Party’s Alliance Manager will serve as a primary point of contact for the other Party and will
undertake such other tasks as are detailed in this Agreement or as may be assigned by the JCC. The Alliance Managers shall not be members of the JCC (except as set forth above for Perception) but shall attend each scheduled meeting of the JCC. Each
Party may replace its Alliance Manager with an alternative at any time with prior written notice to the other Party. Either Alliance Manager may designate a substitute to temporarily perform the functions of that Alliance Manager. Each Party shall
bear its own costs of its Alliance Manager. 

  
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 3.2.2 Responsibilities. Each Alliance Manager will be responsible to ensure a
collaborative work environment between the Parties. Each Alliance Manager shall act in his or her discretion to facilitate the execution of the collaboration throughout his or her organization and will oversee and support implementation of plans;
promote effectiveness of the governance model and implementation of contractual provisions and lead any changes to enhance the alliance between both Parties; and facilitate the JCC (and any subcommittees) for effective decision making in a timely
manner. Without limiting the generality of the foregoing, the Alliance Managers shall be responsible for (a) scheduling meetings of the JCC, (b) setting agendas for meetings with solicited input from other members and (c) acting as
secretary at each meeting and preparing the draft minutes of such meeting, which shall provide a description in reasonable detail of the discussions held at the meeting and a list of any actions, decisions or determinations approved by the JCC.
Following each JCC meeting, the drafting Alliance Manager shall provide the draft minutes to the other Alliance Manager for review and comment and the drafting Alliance Manager shall reasonably consider all comments from the other Alliance Manager.
The drafting Alliance Manager shall prepare and submit revised final draft minutes for approval by the Co-Chairpersons within [***] of each JCC meeting. Beginning with Otsuka’s Alliance Manager,
such responsibilities shall alternate between the Alliance Managers on a meeting-by-meeting basis. 

4. DEVELOPMENT 
 4.1 Generally.

 4.1.1 Clinical Studies; Development Plans. Subject to the terms and conditions of this Agreement, including oversight by the JCC,
Otsuka shall be responsible, [***], for the conduct of all Clinical Studies for any Product in each Development Plan (as defined below) to obtain and maintain Regulatory Approvals of any Product in the Otsuka Territory. Otsuka shall not conduct any
Clinical Studies for any Product in the Perception Territory except that Otsuka shall have the right to conduct any such Clinical Studies in any Asian country with the prior approval of Perception, such approval not to be unreasonably withheld,
conditioned or delayed (each such approved Clinical Study, an “Ex-Otsuka Territory Study”). The Clinical Studies for any Product and other Development activities (including regulatory affairs
activities) to be undertaken by Otsuka and intended to achieve Regulatory Approval of any Product in the Field in the Otsuka Territory shall be set forth in a separate development plan for each such Product (each such plan, as updated from time to
time, a “Development Plan”). The initial Development Plan for the Current Formulation shall be submitted by Otsuka to the JCC for approval in accordance with Section 3.1.7 within [***] after the Effective Date.
Otsuka shall update each Development Plan as needed from time to time to take into account changed circumstances or completion, commencement or cessation of Development activities not contemplated by the then-current version of such Development
Plan, and such updated Development Plan shall go into effect upon approval by the JCC in accordance with Section 3.1.7. Perception shall only have the right to conduct Clinical Studies for any Product in the Otsuka Territory to support
Development and Commercialization of such Product in the Perception Territory with the prior approval of the JCC. For clarity, no prior approval of the JCC is required for Perception to conduct any Perception New Indication Studies. 

  
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 4.1.2 Performance. Otsuka shall use Commercially Reasonable Efforts to Develop at
least one Product in the Field for the Otsuka Territory, including initially Developing the Current Formulation pursuant to the Development Plan with respect thereto and pursuing Regulatory Approval the Current Formulation in the Field in the Otsuka
Territory; provided that the foregoing shall not apply to the Development of a Product for a New Indication, a New IV Formulation or Other New Formulation unless and until Otsuka has made a decision to pursue the Development of a Product for such
New Indication, New IV Formulation or Other New Formulation pursuant to Section 2.3, Section 4.2.1 or Section 4.2.2, as applicable. Notwithstanding anything to the
contrary in this Agreement, Otsuka shall not be obligated to undertake or continue any activity under a Development Plan if: (a) Otsuka reasonably determines that performance of such activity would violate any Applicable Laws; or (b) with
respect to any Clinical Study for any Product, (i) a Regulatory Authority or independent safety data review board for such Clinical Study has required or recommended termination or suspension of such Clinical Study, or (ii) Otsuka believes
in good faith that termination or suspension of such Clinical Study is warranted because of safety or tolerability risks or the lack of suitable risk benefit ratio to the study subjects; provided that any termination of a Clinical Study for any
Product must be discussed by the JCC. If Otsuka determines not to undertake or continue any activity under a Development Plan in accordance with the immediately preceding sentence, Otsuka shall promptly notify Perception of such determination, and
shall use all reasonable efforts to notify and consult with Perception prior to making such determination. 
 4.1.3 Non-Clinical Studies. Perception shall be responsible for the conduct of all Non-Clinical Studies that are ongoing as of the Effective Date and those Non-Clinical Studies listed on Schedule 4.1.3 (each such listed Non-Clinical Study, a “Requested Ongoing Studies”) and Perception shall conduct such Non-Clinical Studies, other than the Requested Ongoing Studies, [***]. If any additional Non-Clinical Studies are required to obtain Regulatory Approval of a Product in
both the Perception Territory and the Otsuka Territory (each, an “Additional Non-Clinical Study”), the Parties shall discuss and agree through the JCC, in accordance with
Section 3.1.7, on the design of such Additional Non-Clinical Study and on which Party will conduct such Additional Non-Clinical Study. With respect to each
Requested Ongoing Study conducted by Perception and each Additional Non-Clinical Study (regardless of which Party will conduct an Additional Non-Clinical Study), the non-conducting Party shall [***]. If any Non-Clinical Study is required to be conducted by PMDA to obtain Regulatory Approval of any Product in the Otsuka Territory and
such Non-Clinical Study is not required to be conducted to obtain any Regulatory Approval of any Product in the Perception Territory (each such Non-Clinical Study, an
“Otsuka Territory-Specific Non-Clinical Study”), Otsuka will conduct such Otsuka Territory-Specific Non-Clinical Study [***] or, at Otsuka’s
request, Perception will conduct such Otsuka Territory-Specific Non-Clinical Study. If Perception conducts an Otsuka Territory-Specific NonClinical Study, [***]. If Perception wishes to use the data and
results generated from an Otsuka Territory-Specific Non-Clinical Study for the Development, including Regulatory Approval, of a Product in the Perception Territory, Perception shall so notify Otsuka in writing
and [***]. 
 4.1.4 CMC Studies. 

(a) Territory-Specific CMC Studies. Perception shall be responsible, [***], for the conduct of all CMC studies related to the
Current Formulation that are ongoing as of the Effective Date and for the conduct of any additional CMC studies that are not Otsuka Territory-Specific CMC Studies, including any additional CMC studies required in connection with Development of the
Current Formulation for the Perception Territory that may also be useful 

  
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for Development of the Current Formulation for the Otsuka Territory (each such additional CMC study, a “Perception CMC Study”). If any additional CMC studies are required in
connection with Development of any Product for the Otsuka Territory and such additional CMC studies are not required in connection with Development of any Product for the Perception Territory (each, an “Otsuka Territory-Specific CMC
Study”), Otsuka will conduct such Otsuka Territory-Specific CMC Study [***] or, at Otsuka’s request, Perception will conduct such Otsuka Territory-Specific CMC Study. If Perception conducts an Otsuka Territory-Specific CMC
Study, Otsuka will [***]. 
 (b) CMC Study Data. Perception shall solely own all data and results generated from any
Perception CMC Study and Otsuka shall solely own all data and results generated from any Otsuka Territory-Specific CMC Study (each, “CMC Study Data”). If Otsuka wishes to use the CMC Study Data owned by Perception for the
Development, including Regulatory Approval, of any Product in the Otsuka Territory, it shall notify Perception in writing and [***]. If Perception wishes to use the CMC Study Data owned by Otsuka for the Development, including Regulatory
Approval, of a Product in the Perception Territory, it shall notify Otsuka in writing and [***]. 
 4.1.5 Development Reports.
At each regularly scheduled JCC meeting, each Party shall provide a high level update (by means of a slide presentation or otherwise) summarizing its Development activities for each Product in its respective Territory (and in the case of Otsuka, any
Ex-Otsuka Territory Study), including the results of such activities and the status of each pending and proposed Regulatory Filing for such Product, since the last such update and any other Development matters
included on the agenda for any JCC meeting prepared by the Alliance Managers pursuant to Section 3.1.4. In addition, after the completion of any Clinical Study or Non-Clinical Study for any Product
the data from which are intended to be submitted to a Regulatory Authority, the Party responsible for the conduct of such study shall promptly provide the other Party with topline results of such study. Further, each Party will promptly provide
written notice to the other Party, through the JCC or Alliance Managers, of any significant Development events (e.g., Clinical Study Initiation or completion, clinical holds, Safety Concerns or receipt of Regulatory Approvals) arising in the course
of such Party’s or its Sublicensee’s (or, in the case of Perception, any Other Perception Licensee’s) Development of any Product. 

4.2 Other Formulations. 

4.2.1 New IV Formulation. Each Party will have the right, [***], to Develop any New IV Formulation of any Product in its
respective Territory, including conducting Clinical Studies of a Product in any New IV Formulation. If a Party Develops a New IV Formulation in its Territory, it shall provide an update (by means of a slide presentation or otherwise) summarizing its
Development activities for such New IV Formulation, including the results of such activities and the status of each pending and proposed Regulatory Filing for such New IV Formulation, at each regularly scheduled JCC meeting. In addition, at the
request of the non-conducting Party, the Party conducting Development of a New IV Formulation in its Territory shall provide to the non-conducting Party all data and
information generated from such Development (including Clinical Studies) of the New IV Formulation. If the non-conducting Party wishes to use the data and results generated from the conducting Party’s
Development (including Clinical Studies) of the New IV Formulation for the Development, including Regulatory Approval, of such New IV Formulation in the non-conducting Party’s Territory, the non-conducting Party shall (a) so notify the conducting Party, (b) [***]. For the avoidance of doubt, Otsuka has the right, but not the obligation, to Develop any New IV Formulation in the Otsuka
Territory. 

  
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 4.2.2 Other New Formulation. Otsuka has no right to perform formulation Development
with respect to any Other New Formulation of the API without Perception’s consent. For clarity, Otsuka shall have the right, in accordance with the terms of this Agreement, to Develop, Manufacture and Commercialize in the Field in the Otsuka
Territory any Other New Formulation of a Product that is Developed by or on behalf of Perception in the Perception Territory, without an obligation to obtain Perception’s consent. At each regularly scheduled JCC meeting, Perception shall
provide an update (by means of a slide presentation or otherwise) summarizing its Development activities for each Other New Formulation in the Perception Territory, including the results of such activities and the status of each pending and proposed
Regulatory Filing for such Other New Formulation in the Perception Territory. If Otsuka wishes to use the data and results generated from Perception’s Development (including Clinical Studies) of any Other New Formulation for the Development,
including Regulatory Approval, of such Other New Formulation in the Otsuka Territory, Otsuka shall (a) so notify Perception, (b) [***]. Thereafter, Otsuka will be responsible, [***], for the Development of any Product in such
Other New Formulation in the Otsuka Territory and shall (in addition to all other economic obligations provided for hereunder) pay the milestone payments for the Other New Formulation set forth in Section 8.2. For the avoidance of doubt,
Otsuka has no obligation to Develop any Other New Formulation in the Otsuka Territory. 
 4.3 Rights to Data. In the case of a
Party’s conduct of Non-Clinical Studies, CMC studies or other Development of a Product for which the other Party is required to [***] in order to use the data and results therefrom pursuant to
Section 4.1.3, Section 4.1.4 or Section 4.2, the other Party shall not have any rights with respect to the data and results generated in the course of such Development, including pursuant to the licenses granted
under Article 2, unless and until such other Party notifies such first Party of such other Party’s desires to use such data and results; provided that such other Party may use such data and results solely to satisfy any safety-related
reporting obligations to Regulatory Authorities in such other Party’s Territory without [***]. Following the nonconducting Party’s notice to the conducting Party of the non-conducting
Party’s desire to use data and results from any such Non-Clinical Studies, CMC studies or other Development conducted by the conducting Party pursuant to Section 4.1.3,
Section 4.1.4 or Section 4.2, the conducting Party shall provide to the other Party all data and results generated in the course of such Development and such data and results shall be included in the licenses granted under
Article 2. For clarity, the license granted to Otsuka pursuant to Section 2.1.1 includes, [***], the right for Otsuka to use all data and other information resulting from all
Non-Clinical Studies, CMC-related studies and other Development activities related to the API or Product conducted by or on behalf of Perception prior to the Effective
Date or ongoing as of the Effective Date, in each case, to the extent such data or information is necessary or reasonably useful for the Development, Manufacture, Commercialization or other exploitation of Products in the Field in the Otsuka
Territory. The transfer and further processing of any personal data under this Agreement shall be subject to the applicable informed consent form (and any other applicable privacy notices, patient authorizations, and consents), as well as to Privacy
Laws and other Applicable Laws. To the extent such concept is recognized under Privacy Laws, each Party is an independent controller with respect to personal data that is disclosed or transferred to the other Party under this Agreement and

  
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is independently responsible for processing such personal data in accordance with Privacy Laws. Neither Party will intentionally take any action or fail to take any actions that would cause the
other Party to be in violation of Privacy Laws. Upon the reasonable request of either Party, the Parties will enter into a reasonable information security and privacy agreement regarding the processing and transfer of personal data consistent with
Privacy Laws and other Applicable Laws. 
 4.4 Compliance; Assistance. Each Party shall perform, and each will ensure that its
Sublicensees and Third Party contractors perform, all Development activities under this Agreement in a good scientific manner, in accordance with GLP, GCP, and GMP, as applicable, and in compliance with all Applicable Laws. Each Party shall use
Commercially Reasonable Efforts to provide all assistance reasonably requested by the performing Party in connection with the performing Party’s Development obligations hereunder. For all such assistance requested by the performing Party and
provided by the assisting Party, the performing Party shall reimburse the assisting Party’s reasonable Out-of-Pocket Costs incurred in connection with providing
such assistance. 
 4.5 Development Records. Each Party shall maintain complete and accurate written or electronic records of
all activities conducted by or on behalf of such Party in connection with Development of each Product, including all data and other information resulting from such activities (which records shall include, as applicable, books, records, reports,
research notes, computations, charts, graphs, analyses, recordings, photographs, computer programs and documentation thereof), in sufficient detail and in a good scientific manner appropriate for patent and regulatory purposes, which shall fully and
properly reflect all work done and results achieved in the performance of the Development of each Product by or on behalf of such Party and its Sublicensees and Third Party contractors and shall not include or be commingled with records of
activities that are not conducted under this Agreement. Each Party shall document all Clinical Studies and other studies of Product in formal written study reports according to Applicable Laws and national and international guidelines (e.g., ICH,
GCP, GLP, and GMP). 
 4.6 Third Party Contractors. Each Party may perform any of its Development activities under this
Agreement through one or more Third Parties, provided that: (a) such Party remains responsible for the Development work delegated to, and payment to, such Third Parties as if it had done such work itself; (b) each Third Party undertakes in
writing an obligation to comply with all applicable terms and conditions of this Agreement, including an obligation of confidentiality and non-use regarding Confidential Information that are substantially the
same as those undertaken by the Parties pursuant to Article 10 (and a reasonable term with respect to the duration of such obligations); (c) such Party uses Commercially Reasonable Efforts to obtain from each Third Party that may create Know-How or other Intellectual Property Rights in the course of performing any Development work an assignment to all such Intellectual Property Rights (or, in the event such assignment is not feasible, to obtain
joint ownership of or a license to such Intellectual Property Rights with the right to sublicense to the other Party such Intellectual Property Rights that are necessary or reasonably useful to Develop, Manufacture or Commercialize Products in the
Field); and (d) each Third Party agrees in writing to be bound by terms for the benefit of the delegating Party to allow such Party to comply with the reporting obligations of Section 4.1.5 and Section 4.2 and with the
record-keeping obligations of Section 4.5. Each Party may also subcontract work on terms other than those set forth in this Section 4.6 with the prior approval of the other Party. 

  
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 5. REGULATORY MATTERS 

5.1 Responsibility for Regulatory Matters. Subject to the terms and conditions of this Agreement, including oversight by the JCC,
Otsuka shall be responsible, [***], for the conduct of all regulatory activities relating to Products in the Otsuka Territory (and in the Perception Territory solely with respect to any Ex-Otsuka Territory
Study), including (a) overseeing, monitoring and coordinating all regulatory actions, communications and filings with, and submissions to, the applicable Regulatory Authorities in the Otsuka Territory with respect to Products;
(b) interfacing, corresponding and meeting with the applicable Regulatory Authorities in the Otsuka Territory with respect to Products; (c) seeking and maintaining all Regulatory Approvals with respect to Products in the Otsuka Territory,
including any amendments, supplements or modifications to such Regulatory Approvals; and (d) maintaining and submitting all records required to be maintained or required to be submitted to the applicable Regulatory Authority with respect to
Products in the Otsuka Territory. Otsuka shall be the holder of all Regulatory Approvals for the Products in the Otsuka Territory and will own all Regulatory Documentation in the Otsuka Territory. Notwithstanding the foregoing, if Perception
(x) conducts any (i) Clinical Studies for any Product in the Otsuka Territory or (ii) Perception New Indication Studies or (y) Manufactures or has Manufactured any (i) Product in the Otsuka Territory to support Development
and Commercialization of such Product in the Perception Territory or to fulfill any of its obligations under this Agreement or (ii) Perception New Indication Product in the Otsuka Territory, then in each case ((x) and (y)) Perception shall have
the right to conduct all regulatory activities in the Otsuka Territory with respect to such activities. 
 5.2 Registration
Dossier. Otsuka shall allow Perception a reasonable opportunity to review and comment on the major sections of the Registration Dossier related to any Product ([***]) to be submitted to Regulatory Authorities in the Otsuka Territory, and for
that purpose Otsuka shall provide English versions of such Modules to Perception in advance of submission of such sections of the Registration Dossier. Within [***] after Perception’s receipt of the draft of such Modules of the
Registration Dossier, Perception will review and comment thereon. Otsuka will consider in good faith, and will incorporate, any reasonable comments timely provided by Perception in connection therewith or any reasonable revisions suggested by
Perception in good faith, unless such incorporation will materially affect the timing of filing the Registration Dossier or Otsuka has other reasonable reasons for not incorporating such comments or revisions; provided that, Otsuka shall not be
required to comply with the foregoing or delay submission of the Registration Dossier if to do so would cause Otsuka to fail to meet any deadline requested by any Regulatory Authority in the Otsuka Territory and such failure is not caused by any
action or inaction on the part of Otsuka. Otsuka shall provide Perception with a copy of the common technical document (CTD) of the Registration Dossier in Japanese at such time as it is finalized for submission to the Regulatory Authorities in the
Otsuka Territory. Each Registration Dossier submitted by Otsuka for a Product in the Otsuka Territory must be consistent with the language of the Primary Label approved by the JCC for submission to Regulatory Authorities. 

5.3 Communications with Regulatory Authorities. Subject to the last sentence of Section 5.1, Otsuka shall be solely
responsible for communications with Regulatory Authorities in the Otsuka Territory regarding the Products (and in the Perception Territory solely with respect to any Ex-Otsuka Territory Study) and in no event
will Perception unilaterally or independently communicate with any Regulatory Authority regarding the Products in the Otsuka Territory, 

  
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except as required by Applicable Laws. In the event Perception conducts a Clinical Study for any Product in the Otsuka Territory to support Development or Commercialization of such Product in the
Perception Territory as set forth in Section 5.1, the terms of this Section 5.3 shall apply to Perception’s Material Communications with a Regulatory Authority in the Otsuka Territory relating
to such Clinical Study and shall also apply to Otsuka’s Material Communications with a Regulatory Authority in the Otsuka Territory. Each Party (the “Communicating Party”) shall provide the other Party (the “Other
Party”) with a brief written description, in English, of the principal issues raised in any Material Communication with a Regulatory Authority in the Otsuka Territory (and in the case of Otsuka, in the Perception Territory solely with
respect to any Ex-Otsuka Territory Study) (a) as soon as practicable but no later than [***] after receipt with respect to any Material Communication involving a Safety Concern or (b) within
[***] after receipt with respect to any other Material Communication. Upon Perception’s request after receiving such description from Otsuka, Otsuka shall translate such Material Communication, [***] as soon as practically
possible and shall provide to Perception such translated Material Communication promptly after completion of such translation into English. Notwithstanding the foregoing, Otsuka shall not be required to provide a brief written description or a
translation of any Material Communication that is conveyed at any meeting, teleconference or videoconference that is attended by any Perception representative. The Communicating Party will allow the Other Party a reasonable opportunity to review and
comment on the Communicating Party’s formal written correspondence with PMDA relating to a Product, including the Communicating Party’s proposed responses to Material Communications with Regulatory Authorities in the Territory with respect
to such Product, and the Communicating Party will reasonably consider any reasonable comments timely provided by the Other Party in connection therewith; provided that, the Communicating Party shall not be required to comply with the foregoing if to
do so would cause the Communicating Party to fail to meet any deadline requested or required by any Regulatory Authority in the Otsuka Territory and such failure is not caused by any action or inaction on the part of the Communicating Party. For
clarity, the terms of this Section 5.3 shall not apply to any Perception New Indication Product. 
 5.4
Meetings with Regulatory Authorities. Otsuka shall provide Perception with reasonable advance notice of all formal meetings and formal teleconferences or videoconferences with any Regulatory Authority in the Otsuka Territory (and in the
Perception Territory, solely with respect to any Ex-Otsuka Territory Study) relating to any Product, or with as much advance notice as practicable under the circumstances. To the extent not restricted or
prohibited by Applicable Laws or the Regulatory Authority, Perception shall have the right, [***], to have up to [***] representatives of Perception attend, as observers, such formal meetings and formal teleconferences or
videoconferences with such Regulatory Authority in the Otsuka Territory relating to any Product; provided that Otsuka shall not be obligated to change or re-schedule any such meeting in order to accommodate
the schedule of Perception’s representatives and, if attendance by Perception representatives is not restricted or prohibited by Applicable Laws or the Regulatory Authority but would require Otsuka to reduce the number of required Otsuka
participants at such meeting due to limitations on the number of attendees imposed by such Regulatory Authority, then only [***] shall be permitted to observe such meeting. Notwithstanding the foregoing, if Otsuka requests Perception to
participate in any meetings with Regulatory Authorities in the Otsuka Territory (and in the Perception Territory solely with respect to any Ex-Otsuka Territory Study) for assistance to Otsuka, then
[***]. If Perception requires an interpreter for its representatives attending any Regulatory Authority meeting in the Otsuka Territory (and in the Perception Territory solely with respect to any
Ex-Otsuka Territory Study), Perception shall retain, [***], an interpreter who can provide simultaneous interpretation unless Perception’s participation in such meeting has been specifically
requested by Otsuka, in which case [***]. 
  

  
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 5.5 Assistance; Documentation. Perception will provide all assistance
reasonably requested by Otsuka in connection with the preparation and filing of the Registration Dossier and other Regulatory Documentation in the Otsuka Territory and with communications with Regulatory Authorities relating to any Product in the
Otsuka Territory. [***] Upon the reasonable request of either Party, the other Party will provide, at no cost to the requesting Party, all Regulatory Documentation, information and other documents owned or controlled by the other Party that relate
to a Product and are necessary or reasonably useful for Regulatory Filings or for obtaining or maintaining Regulatory Approval for such Product in the Field in the requesting Party’s Territory; provided that the obligation to provide such
information shall be subject to the [***] provisions of Sections 4.1.3, 4.1.4, 4.2.1 and 4.2.2 to the extent applicable. Without limiting the foregoing, each Party will provide to the other Party the full study
reports of Clinical Studies and Non-Clinical Studies of the Products conducted by or on behalf of such Party, its Affiliates or (sub)licensees in its respective Territory (and in the case of Otsuka, in the
Perception Territory solely with respect to any Ex-Otsuka Territory Study) as such reports become available, subject to, in the case of Perception, any applicable agreement between Perception and an Other
Perception Licensee (provided, that Perception shall use Commercially Reasonable Efforts to include the right to disclose such information to Otsuka in any agreement with an Other Perception Licensee). 

5.6 Manufacturing-Related Regulatory Matters. Notwithstanding anything to the contrary in this Agreement, if Perception or its
CMO uses a drug master file process, then, until the Manufacturing Transfer Date, Perception or its CMO shall be responsible, [***], for (a) preparing the drug master file(s) containing data and information related to the Manufacture of
API (the “DMF”), including preparing the DMF in the applicable format required by the applicable Regulatory Authority in the Otsuka Territory, (b) providing the DMF directly to the applicable Regulatory Authority in the Otsuka
Territory, and (c) communicating with Regulatory Authorities in the Otsuka Territory regarding the DMF. Otsuka shall be entitled to reference the DMF in Regulatory Documentation, including in applications for Regulatory Approval and in the
Registration Dossier, for any Product in the Otsuka Territory. Until the Manufacturing Transfer Date, Perception or its CMO shall also provide to Otsuka [***], (i) the open part of the DMF, such as the sections containing general
information, control of drug substance, container closure system, and stability, (ii) [***]. Otsuka shall be responsible, [***], for preparing the Japanese translation of [***] and converting [***] to the applicable
format required by the applicable Regulatory Authority in the Otsuka Territory. Perception shall, or shall cause its CMO to, provide all assistance reasonably requested by Otsuka in connection with such preparation and in connection with
communications with Regulatory Authorities relating to the Manufacture by Perception or its CMO of Products supplied for the Otsuka Territory (or the API contained therein), and, at the request of Otsuka, Perception shall send representative(s) of
Perception (or shall cause its CMO to send representative(s)) to attend meetings with Regulatory Authorities in the Otsuka Territory relating to such Manufacture, and in each case, [***]. 

  
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 5.7 Right of Reference. Subject to Section 2.1.2,
Section 2.2.3 and Section 4.3, each Party hereby grants to the other Party (as well as to the other Party’s Sublicensees (and, with respect to Perception, Other Perception Licensees), when and if designated by the other
Party from time to time) a non-exclusive, non-transferable right to rely upon, access, and reference all information and data (including all CMC information as well as
data made, collected or otherwise generated in the conduct of any Clinical Studies or early access/named patient programs for any Products) included in or used in support of any Regulatory Filing, Regulatory Approval, DMF or other Regulatory
Documentation owned or controlled by such Party that relates to any Product as necessary or useful to obtain or maintain Regulatory Approval of a Product in such Party’s Territory. Such Party shall, if requested by the other Party, provide a
signed statement that the other Party may rely upon, and the applicable Regulatory Authority may access, in support of the other Party’s application for such Regulatory Approval in its Territory, any underlying raw data or information submitted
by such Party to a Regulatory Authority with respect to any Regulatory Filing, Regulatory Approval, DMF or other Regulatory Documentation (including orphan drug applications and designations) owned or controlled by such Party or its Sublicensees
(or, as applicable, an Other Perception Licensees) that relates to any Product. In addition, upon request of either Party (on behalf of itself or a Sublicensee or, as applicable, Other Perception Licensee), the other Party shall obtain and provide
to the requesting Party certificates or other formal or official attestations concerning the regulatory status of any Products in such Party’s Territory (e.g., Certificates of Free Sale, Certificates for Export, Certificates to Foreign
Governments). 
 5.8 Pharmacovigilance. 

5.8.1 PV Representative; Safety Management Plan. The Parties shall each appoint one employee with pharmacovigilance experience (the
“PV Representative”) promptly after the Effective Date, but in any event, no later than [***]. The PV Representatives (under the guidance of their respective pharmacovigilance departments, or equivalent thereof) will discuss
in good faith and develop a comprehensive plan governing handling and exchange of safety data and information related to Otsuka’s Development activities under this Agreement to ensure that each Party will be in compliance with Applicable Laws,
including local, national and international regulatory reporting obligations (including to the extent applicable, obligations contained in ICH guidelines) (the “Safety Management Plan”). The Parties shall enter into the Safety
Management Plan as soon as practicable, but in any event, no later than [***]. 
 5.8.2 Pharmacovigilance Agreement. At least
[***], the Parties (under the guidance of their respective pharmacovigilance departments, or equivalent thereof) will enter into a written pharmacovigilance agreement setting forth the worldwide pharmacovigilance procedures for and
responsibilities of the Parties with respect to the API and Products, such as, but not limited to, safety data sharing, adverse events reporting and safety signal and risk management (the “Pharmacovigilance Agreement”). The
Pharmacovigilance Agreement may be amended by the Parties from time to time as necessary to comply with any changes in Applicable Laws or guidance received from any Regulatory Authority. All procedures and responsibilities set forth in the
Pharmacovigilance Agreement shall be in accordance with, and enable the Parties to fulfill, local, national and international regulatory reporting obligations under Applicable Laws (including to the extent applicable, obligations contained in ICH
guidelines). Subject to compliance with Applicable Law, each Party hereby agrees to comply with its respective obligations under the Pharmacovigilance Agreement (or its equivalent), as the Parties may agree to modify it from time to time, and to
cause its Sublicensees to comply with such obligations. It is understood that each Party and its Affiliates and licensees and Sublicensees (as applicable) will have the right to disclose 

  
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safety data if such disclosure is reasonably necessary to comply with Applicable Laws and Regulatory Authority regulations and requirements in its Territory. Once executed, the Pharmacovigilance
Agreement shall supersede and replace the terms of this Agreement applicable to pharmacovigilance. The language of all communications and exchanges under the Pharmacovigilance Agreement (or its equivalent) shall be English. 

5.8.3 Responsibilities; Global Safety Database. Perception shall be responsible, [***], for global pharmacovigilance with respect
to the Products and for pharmacovigilance with respect to any Product in the Perception Territory. Perception shall own and shall maintain, [***], the global safety database for API and Products and the company core data sheet (CCDS) for each
Product for so long as such Product is under Development or Commercialization by the Parties hereunder. Otsuka shall be responsible, [***], for pharmacovigilance with respect to the Products in the Otsuka Territory. The Parties will consult,
communicate, and cooperate with each other through their respective PV Representatives and the pharmacovigilance subcommittee (if established pursuant to Section 3.1.6(b)) with respect to the foregoing. Perception will ensure that each Party
and its Sublicensees are able to access the data, if necessary indirectly, from the global safety database in order to meet legal and regulatory obligations. 

5.9 Remedial Action. Each Party will notify the other Party immediately, and promptly confirm such notice in writing, if it
obtains information indicating that any Product may be subject to any recall, withdrawal, corrective action or market notification (a “Remedial Action”). During the Term, Otsuka shall determine whether to initiate, and shall be
responsible, [***], for implementing any Remedial Action in the Otsuka Territory and Perception shall determine whether to initiate, and shall be responsible, [***], for implementing any Remedial Action in the Perception Territory, in
each case including determining the scope of such Remedial Action (e.g., a full or partial recall, or temporary or permanent recall or market notification) in such Party’s Territory; provided that if Perception permanently withdraws a
formulation of a Product from all countries in the Perception Territory, then upon Perception’s request Otsuka shall withdraw such Product in such formulation from the Otsuka Territory. In the event any Remedial Action in the Otsuka Territory
is due to the negligence or willful misconduct of Perception or otherwise due to Perception’s breach of this Agreement, then [***]. Perception shall provide Otsuka with such assistance in connection with carrying out a Remedial Action in
the Otsuka Territory as may be reasonably requested by Otsuka and unless such Remedial Action in the Otsuka Territory is due to the negligence or willful misconduct of Perception or otherwise due to Perception’s breach of this Agreement, then
[***]. Notwithstanding the foregoing, the allocation of costs and expenses with respect to any Remedial Action for any API or Clinical Samples supplied by Perception to Otsuka shall be as set forth in the Supply Agreement. 

6. COMMERCIALIZATION 
 6.1
Overview. Subject to the terms and conditions of this Agreement, including oversight by the JCC, Otsuka shall be solely responsible, [***], and shall have sole authority and discretion for all Commercialization activities relating to
Products in the Otsuka Territory. Otsuka will use Commercially Reasonable Efforts to Commercialize Products in the Otsuka Territory and shall conduct all Commercialization activities for Products in accordance with the Commercialization Plan and in
compliance with Applicable Laws. For clarity, Otsuka will book the sales of all Products in the Otsuka Territory and will be solely responsible for handling all returns of any Product sold in the Otsuka Territory, as well as all aspects of Product
order processing, invoicing and collection, distribution, inventory and receivables of Products sold in the Otsuka Territory. 
  

  
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 6.2 Commercialization Plans. Otsuka will deliver to the JCC for review and discussion
a written plan setting forth a summary of the anticipated activities to be undertaken by Otsuka in connection with the Commercialization of Products in the Otsuka Territory (“Commercialization Plan”). By no later than [***],
Otsuka shall deliver to the JCC the initial Commercialization Plan for review and discussion, which initial Commercialization Plan shall provide a two (2)-year high-level strategic and tactical plan for Commercialization in the Otsuka Territory. At
least [***] prior to the anticipated First Commercial Sale of the first Product in the Otsuka Territory, Otsuka shall prepare and present to the JCC for review and discussion an amended Commercialization Plan that will include an update to
the initial two (2)-year high-level strategic and tactical plan, and general descriptions with respect to the upcoming Calendar Year of planned key marketing and promotional activities for such Product, key messaging, and sales forecasts for such
Product. On an annual basis thereafter, Otsuka shall prepare and present to the JCC for review and discussion an update to the Commercialization Plan. On an annual basis, Perception shall present to the JCC for review and discussion a high-level
summary of Perception’s and Other Perception Licensees’ strategy for Commercialization of Products in the Perception Territory. 

6.3 Commercialization Reports. Following the First Commercial Sale of a Product in the Otsuka Territory, Otsuka shall present to
the JCC on a Calendar Year basis a summary (by means of a slide presentation or otherwise) of key Commercialization activities conducted in the Otsuka Territory in the prior Calendar Year, including progress under the Commercialization Plan, and
sales performance for the Products in the Otsuka Territory in the prior Calendar Year. 
 6.4 NHI Price Listing. Subject to the
terms and conditions of this Agreement, Otsuka shall have the sole right, [***], and shall use Commercially Reasonable Efforts to timely prepare and submit all necessary applications and documentation to seek to acquire, hold and maintain all NHI
Price Listings necessary or useful to Commercialize any Product in the Otsuka Territory. 
 6.5 Branding and Promotional Materials.

 6.5.1 Global Branding. Perception may, from time to time during the Term, develop and thereafter modify and update (or an Other
Perception Licensee may develop and update) a global branding strategy, including global positioning, promotional messages, colors and other visual branding elements, for one or more Products for use throughout the world (the “Global
Branding Strategy”). If developed, Perception shall submit the Global Branding Strategy, and all updates thereto, to the JCC for review and discussion at least annually. Perception shall consider in good faith any comments provided by
Otsuka with respect to the Global Branding Strategy. The Global Branding Strategy, if adopted by Otsuka for the Otsuka Territory, shall at all times conform to Applicable Laws (including compliance requirements) in the Otsuka Territory; provided
that, in the event Otsuka believes that the Global Branding Strategy does not conform to Applicable Laws in the Otsuka Territory, Otsuka shall provide the JCC with an explanation of the basis for its belief. 

  
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 6.5.2 Otsuka Promotion and Branding. Otsuka shall be responsible for the creation,
preparation, production, reproduction and filing with the applicable Regulatory Authorities in the Otsuka Territory of written sales, promotion and advertising materials relating to each Product for use in the Otsuka Territory (“Promotional
Materials”). Otsuka may develop a brand strategy that is specific to the Otsuka Territory, including any Product positioning or key messaging for the Otsuka Territory, that is inconsistent with the Global Branding Strategy (“Otsuka
Territory-Specific Brand Strategy”). Otsuka shall submit any Otsuka Territory-Specific Brand Strategy, and all updates thereto, to the JCC for review, discussion and approval at least annually. Subject to approval of the Otsuka
Territory-Specific Brand Strategy in accordance with Section 3.1.7, Otsuka shall have the right to implement such Otsuka Territory-Specific Brand Strategy and to create, prepare and produce Promotional Materials consistent with such
Otsuka Territory-Specific Brand Strategy, rather than the Global Branding Strategy. Any Otsuka Territory-Specific Brand Strategy shall at all times conform to Applicable Laws (including compliance requirements) in the Otsuka Territory. 

6.5.3 Perception Promotional Materials and Marketing Information. Upon the request of Otsuka (not more than once each Calendar Year),
Perception shall provide to Otsuka (a) copies of English-version Product promotional materials used by Perception or Other Perception Licensees in countries in the Perception Territory where a Product is Commercialized, including, as
applicable, the United States, Canada and Europe and (b) Product-related marketing information generated or obtained by Perception or Other Perception Licensees in connection with Commercialization of a Product in the United States, in each
case ((a) and (b)), to the extent permitted by the applicable agreements between Perception and Other Perception Licensees (provided, that Perception shall use Commercially Reasonable Efforts to include the right to disclose such promotional
materials and marketing information to Otsuka in any license or sublicense agreement between Perception and any Other Perception Licensee). 

6.6 Third Party Contractors. Otsuka shall be entitled to perform any of its Commercialization activities under this Agreement
through one or more Third Parties, provided that: (a) Otsuka remains responsible for the Commercialization activities delegated to, and payment to, such Third Parties as if it had done such work itself; (b) each Third Party undertakes in
writing an obligation to comply with all applicable terms and conditions of this Agreement, including confidentiality and non-use regarding Confidential Information that are substantially the same as those
undertaken by the Parties pursuant to Article 10 (and a reasonable term with respect to the duration of such obligations); and (c) Otsuka uses Commercially Reasonable Efforts to obtain from each Third Party that may create Know-How or other Intellectual Property Rights in the course of performing any Commercialization work an assignment to all such Intellectual Property Rights (or, in the event such assignment is not feasible, to
obtain joint ownership of or a license to such Intellectual Property Rights with the right to sublicense to Perception such Intellectual Property Rights that are necessary or reasonably useful to Develop, Manufacture or Commercialize Products in the
Field). Otsuka may also subcontract Commercialization work on terms other than those set forth in this Section 6.6 with the prior approval of Perception. 

6.7 No Diversion. Each Party hereby covenants and agrees that shall not, and it will not enable or permit any Third Party to,
directly or indirectly, promote, market, distribute, import, sell, have sold, deliver or tender (or cause to be delivered or tendered) any Product to any Third Party or to any address located in the other Party’s Territory. Neither Party shall
engage, nor 

  
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permit or enable any Third Party to engage, in any advertising or promotional activities relating to any Product for use directed primarily to customers or other buyers or users of such Product
located in or for shipment to the other Party’s Territory, or solicit orders from any prospective purchaser located in the other Party’s Territory. If a Party or its Sublicensee (or, as applicable, Other Perception Licensee) receives any
order for a Product for use from a prospective purchaser located in the other Party’s Territory, such Party shall immediately refer that order to the other Party and shall not accept such order. 

7. MANUFACTURE AND SUPPLY 
 7.1
Overview. Subject to the terms and conditions of this Agreement, the Supply Agreement and the Quality Agreement, Perception (a) will use Commercially Reasonable Efforts to Manufacture and supply through one or more CMOs, at
Otsuka’s election, all API, bulk vials of Product in the Current Formulation (without labeling) or finished Product in the Current Formulation and their matching placebo (such bulk vials or finished Product and matching placebo, collectively,
“Clinical Samples”) for use in the Development of Products in the Otsuka Territory under this Agreement (including for use in Non-Clinical Studies under this Agreement) and (b) will
Manufacture and supply such API and Clinical Samples to Otsuka in compliance with all Applicable Laws, including, as applicable, GLP and GMP. Otsuka will have the right to elect whether Perception (through its CMO(s)) Manufactures and supplies API
or Clinical Samples and whether any such Clinical Samples will be supplied in the form of bulk vials of Product in the Current Formulation (without labeling) or finished Product in the Current Formulation. Perception (through its CMO(s)) shall use
Commercially Reasonable Efforts to Manufacture and supply such API and Clinical Samples for the Otsuka Territory as set forth in this Article 7 until Otsuka provides written notice to Perception that it has contracted with its own CMO(s)
(which may be through assignment of Perception’s CMO agreements solely with respect to the Otsuka Territory) or otherwise has established capabilities for the Manufacture of API and Product for the Otsuka Territory and no longer requires such
Manufacture and supply by Perception (the date of such notice, the “Manufacturing Transfer Date”); provided that the Manufacturing Transfer Date shall be no later than [***]. If Otsuka elects to receive API, Otsuka (through
its CMO(s)) shall be responsible, [***], for Manufacturing Clinical Samples and if Otsuka elects to receive bulk vials of Product, Otsuka (through its CMO(s)) shall be responsible, [***], for secondary packaging of Product, in each case, for use in
Development in the Otsuka Territory. 
 7.2 Supply; Pricing. As soon as practicable, but in any event prior to [***],
the Parties will agree upon and enter into one or more clinical supply agreement(s) on reasonable and customary terms for the supply of API or Clinical Samples by Perception to Otsuka for use in Development in the Otsuka Territory (“Supply
Agreement”). Each Supply Agreement will contain reasonable and customary terms for clinical supply and will also include the terms and conditions in this Article 7, shipment and delivery terms on a FCA Origin (Incoterms 2020) basis,
and reasonable payment terms following shipment of API or Clinical Samples, as applicable, and Otsuka’s receipt of invoices and required documentation therefor. In addition to, or as part of, each Supply Agreement, the Parties will agree upon
and enter into a quality technical agreement (“Quality Agreement”) containing reasonable and customary terms and conditions regarding quality assurance, quality control and compliance with GLP, GCP and GMP (as applicable).
Perception shall supply API and Clinical Samples, as applicable, to Otsuka at a price equal to [***] [***] [***]. Perception shall have sole discretion with respect to any amendments to any 

  
 39 

 
agreements with CMO(s) existing as of the Effective Date; provided that Perception shall not amend any such agreement in a manner that would have a significant negative impact on Otsuka without
the prior consent of Otsuka, not to be unreasonably withheld, conditioned or delayed. For clarity, any such amendment that would result in a significant increase in the supply price for API or Clinical Samples shall be considered to have a
significant negative impact on Otsuka. 
 7.3 Manufacture by Otsuka. Otsuka and its Sublicensees shall have the right to
Manufacture API and Product itself or through any CMO or other Third Party manufacturer. Upon Otsuka’s written request at any time after the Effective Date but no later than [***], the Parties will discuss a schedule for
(a) assignments to Otsuka of Perception’s agreements with its CMO(s) to the extent assignable with respect to the Manufacture or supply of Clinical Samples in the Current Formulation for the Otsuka Territory (provided, that Perception
shall use Commercially Reasonable Efforts to include in any agreement with its CMO(s) the ability to assign such agreement to Otsuka), and (b) the transition of the Manufacture of API and Product in the Current Formulation for the Otsuka
Territory to Otsuka or its Sublicensees or their respective CMOs or other Third Party manufacturers; provided, that with respect to the transition of the Manufacture of API, Perception’s obligation with respect to such transition shall be
limited to providing Otsuka an introduction to Perception’s CMO(s) for API and facilitating negotiations with such CMO. The Parties will use good faith efforts to implement any such assignments requested by Otsuka in accordance with such
schedule in order for Otsuka to procure Clinical Samples in the Current Formulation directly from such CMO(s). For any such CMO agreement that is not assignable (without the consent of the CMO or otherwise), Perception will make a good faith effort
to obtain consent from the applicable CMO or to otherwise enable the assignment of such agreement to Otsuka; provided that Perception shall not be required to make any payments to such CMO to facilitate any such assignment. Additionally, at the
request of Otsuka, Perception shall provide reasonable assistance and cooperation in connection with the transition of the Manufacture of API and Product in the Current Formulation to Otsuka or its Sublicensees or their respective CMOs or other
Third Party manufacturers in accordance with such schedule agreed upon by the Parties, which assistance shall, at Otsuka’s reasonable request, include: (i) providing an introduction to Perception’s CMO(s) or other Third Party
manufacturers for API and Product and facilitating negotiations with such entities; (ii) granting any authorizations reasonably requested by Otsuka and its Sublicensees or their respective CMOs or other Third Party manufacturers in connection
with the Manufacture of Product in the Current Formulation for the Otsuka Territory; and (iii) transferring to Otsuka and its Sublicensees or their respective CMOs or other Third Party manufacturers copies of any documentation or information in
its possession or Control, including Perception Know-How, related to the Manufacture of Product in the Current Formulation and [***]; provided, that in no event shall Perception be required to provide
any information, assistance or cooperation with respect to the Manufacture of API other than as set forth in the foregoing clause (i). 

7.4 Validation and Testing. Prior to the Manufacturing Transfer Date, at Otsuka’s reasonable request and, if applicable, as
required by any Regulatory Authority in the Otsuka Territory, Perception shall conduct validation, analytical, stability and any other specific testing of API and Clinical Samples Manufactured and supplied by or on behalf of Perception for the
Otsuka Territory, and [***]. In addition, at Otsuka’s reasonable request prior to the Manufacturing Transfer Date, Perception will provide assistance and one or more technology transfer(s) to Otsuka or its designee of information
(including test methods for Clinical Sample QA/QC) necessary or reasonably useful to support Otsuka’s acceptance activities and, if applicable, secondary packaging of Clinical Samples, and for Otsuka to fulfill quality management
responsibilities relating to Clinical Samples and [***]. 

  
 40 

 7.5 Audits and Inspections. 

7.5.1 By Otsuka. If Perception elects to inspect or audit any facilities of its CMOs or other Third Party manufacturers or Third Party
laboratories with respect to Manufacture or testing of API or Clinical Samples for the Otsuka Territory, Perception shall notify Otsuka of such inspection or audit and to the extent permitted under the agreement with the applicable CMO or other
Third Party manufacturer or laboratory and subject to any conditions set forth in such agreement with respect to any inspection or audit (e.g., entering into a confidentiality agreement with the applicable CMO or other Third Party), Otsuka shall
have the right, but not the obligation, to have [***] (together with an interpreter) participate in such inspection or audit or to accompany Perception and observe and review such inspection or audit. Perception shall use Commercially
Reasonable Efforts to include in each future agreement between Perception and such CMOs and other Third Party manufacturers and Third Party laboratories (and, to the extent not already included, to amend any such existing agreement to include) such
inspection and audit rights for Otsuka as provided in this Section 7.5.1 and as provided in the Supply Agreement and Quality Agreement. In addition, Perception shall provide Otsuka with copies of all reports of Perception’s audits
or inspections of its CMOs and other Third Party manufacturers and Third Party laboratories relating to Manufacture or testing of API and Clinical Samples for the Otsuka Territory. Perception retains the right to conduct “for cause” audits
of the facilities of its CMOs, other Third Party manufacturers and Third Party laboratories; provided that, if Otsuka identifies the need to perform a “for cause” audit of such facilities to address quality or compliance issues related to
API or Clinical Samples Manufactured for the Otsuka Territory (including to address any notice from a Governmental Authority of noncompliance with Applicable Laws), as well as in connection with the preparation for submission of Regulatory
Documentation in Otsuka Territory and in response to Regulatory Authority requirements in the Otsuka Territory, Otsuka shall notify Perception and Perception shall schedule and conduct such audit to the extent permitted pursuant the applicable
agreement with the such CMO, Third Party manufacturer or Third Party laboratory. 
 7.5.2 By Governmental Authority. If any
Governmental Authority carries out or gives notice of its intention to carry out any inspection or audit of Perception’s CMOs or other Third Party manufacturers or Third Party laboratories in relation to Manufacture or testing of API or
Clinical Samples for the Otsuka Territory, Perception shall promptly notify Otsuka thereof and Perception shall, to the extent permitted by its agreement with the applicable CMO, Third Party manufacturer or Third Party laboratory, permit Otsuka to
observe any such inspection or audit to the extent related to the Manufacture or testing of API or Clinical Samples for the Otsuka Territory. Following receipt of the inspection results or audit observations of the Governmental Authority from such
inspection or audit (a redacted copy of which Perception will promptly provide to Otsuka to the extent it relates to the API or Clinical Samples Manufactured or tested for the Otsuka Territory), Perception will prepare any appropriate responses.
Perception shall provide a copy of such responses to Otsuka for review and comment in advance of the date such responses are due, to the extent such responses pertain to the Manufacture or testing of API or Clinical Samples for the Otsuka Territory,
and Perception shall consider Otsuka’s comments in good faith prior to responding. 

  
 41 

 7.6 Third Party Contractors. Each Party shall be entitled to utilize the
services of CMOs or other Third Parties to perform Manufacturing activities under this Agreement, provided that (a) each agreement between a Party and such CMO or other Third Party shall be consistent with applicable terms and conditions in
this Agreement and shall include a requirement that the Third Party Contractor comply with all applicable terms and conditions of this Agreement, including the confidentiality and non-use provisions of
Article 10 with respect to such Party’s Confidential Information and (b) the contracting Party shall remain primarily liable to the other Party for the performance of all of the contracting Party’s obligations hereunder. 

8. FINANCIAL TERMS 
 8.1 Upfront
Payment. Following the Effective Date, in partial consideration of the license and rights granted to Otsuka hereunder, Otsuka shall make a one-time, non-refundable,
non creditable upfront payment to Perception of twenty million U.S. Dollars ($20,000,000) within [***] [***] of Otsuka’s receipt from Perception of an invoice therefor and the Payment Forms. 

8.2 Development and Regulatory Milestone Payments. 

8.2.1 Milestones. In partial consideration of the license and rights granted to Otsuka hereunder, subject to the remainder of this
Section 8.2, Otsuka shall pay to Perception the one-time, non-refundable, non-creditable payments set forth in the
tables below upon the first achievement of the applicable milestone event (whether by Otsuka or its Sublicensee). The milestone payments set forth in the tables below shall be paid only once with respect to each milestone event regardless of the
number of Products to achieve such milestone event or the number of times a Product achieves such milestone event. 
  

					
	 Development and Regulatory Milestone Event
	  	Milestone Payment
(USD)	 
	(1) [***]	  	$	[***]	 
	(2) [***]	  	$	[***]	 
	(3) [***]	  	$	[***]	 
	(4) [***]	  	$	[***]	 
	(5) [***]	  	$	[***]	 
	(6) [***]	  	$	[***]	 

 [***] 

8.2.2 Notice and Payment. 

(a) Otsuka shall provide Perception written notice within [***] after the achievement of any milestone event set forth in this
Section 8.2 by Otsuka (or, within [***] after Otsuka’s receipt of notification of such achievement by its Sublicensee). If, notwithstanding the fact that Otsuka has not provided Perception notice of the
achievement of any milestone event set forth in Section 8.2.1 Perception believes that any such milestone event has been achieved, it shall so notify Otsuka in writing and the Parties shall promptly meet and discuss in good
faith whether such milestone has been achieved. Any dispute under this Section 8.2.2(a) regarding whether or not such a milestone event has been achieved shall be subject to resolution in accordance with
Section 14.3. 

  
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 (b) Perception shall send Otsuka an invoice (and, if there has been any change to a Payment
Form previously submitted, or if a previously submitted Payment Form has expired, updated Payment Forms) for the applicable milestone payment following receipt of such written notice or resolution of any dispute, as applicable, and Otsuka shall pay
Perception the milestone payment within [***] after receipt of such invoice (and Payment Forms, if applicable). 
 8.3 Sales
Milestone Payments. 
 8.3.1 Milestones. In partial consideration of the license and rights granted to Otsuka hereunder, Otsuka
shall pay to Perception the one-time, non-refundable, non-creditable payments set forth in the table below [***] Each milestone
payment set forth in the table below shall be paid only once with respect to each milestone event, regardless of the number of times such milestone event is subsequently achieved. 

 

					
	 Sales Milestone Event
	  	Milestone Payment
(USD)	 
	[***] [***] [***]	  	 	[***]	 
	[***] [***] [***]	  	 	[***]	 
	[***] [***] [***]	  	 	[***]	 
	[***] [***] [***]	  	 	[***]	 

 8.3.2 Notice and Payment. 

(a) Otsuka shall provide Perception written notice within [***] after the Calendar Quarter in which any sales milestone event in
Section 8.3.1 is achieved by Otsuka (or, within [***] after the Calendar Quarter in which Otsuka is notified of such achievement by its Sublicensee). If, notwithstanding the fact that Otsuka has not provided Perception
notice of the achievement of any milestone event set forth in Section 8.3.1, Perception believes that any such milestone event has been achieved, it shall so notify Otsuka in writing and the Parties shall promptly meet and
discuss in good faith whether such milestone has been achieved. Any dispute under this Section 8.3.2(a) regarding whether or not such a milestone event has been achieved shall be subject to resolution in accordance with
Section 14.3. 
 (b) Perception shall send Otsuka an invoice (and, if there has been any change to a Payment Form
previously submitted, or if a previously submitted Payment Form has expired, updated Payment Forms) for the applicable milestone payment following receipt of such written notice or resolution of any dispute, as applicable, and Otsuka shall pay
Perception the milestone payment within [***] after receipt of such invoice (and Payment Forms, if applicable). 

  
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 8.4 Royalties. 

8.4.1 Royalty Payments. In partial consideration of the license and rights granted to Otsuka hereunder, subject to the other terms of
this Section 8.4, Otsuka shall make quarterly non-refundable, non-creditable royalty payments to Perception during the Royalty Term on the Net Sales of all
Products sold in the Otsuka Territory in a Calendar Year on a tiered basis at the applicable incremental royalty rate set forth in the table below. 
  

					
	 Portion of Aggregate Net Sales of Products in the Otsuka Territory in
a Calendar Year
	  	Royalty
Rate	 
	Less than or equal to [***]	  	 	[***]	 
	Greater than [***] and less than or equal to [***]	  	 	[***]	 
	Greater than [***] and less than or equal to [***]	  	 	[***]	 
	Greater than [***]	  	 	[***]	 

 8.4.2 Royalty Term. The period during which the royalties set forth in Section 8.4.1 shall
be payable, on a Product-by-Product basis, shall commence on the date of First Commercial Sale of such Product and continue until the latest of (a) the date of
expiration of the last Valid Claim of a Perception Patent Right (including any patent term extension available and granted for such claim) that Covers such Product in the formulation and for the indication for which such Product has obtained
Regulatory Approval in the Field in the Otsuka Territory, (b) the expiration of Regulatory Exclusivity for such Product in the Field in the Otsuka Territory and (c) the tenth (10th) anniversary of the First Commercial Sale of the first
Product sold in the Field in the Otsuka Territory (“Royalty Term”). For clarity, upon expiration of the Royalty Term for a Product, no further royalties shall be payable with respect to such Product, and from and after the
expiration of the Royalty Term for a Product, Net Sales of such Product shall be excluded for purposes of calculating the Net Sales thresholds set forth in Section 8.4.1. 

8.4.3 Royalty Reductions. 

(a) [***] 
 (b) [***] 

(c) Otsuka Third Party Payments. With respect to each Product, Otsuka may deduct [***] of the sum of (i) all Otsuka Third Party
Payments for such Product and (ii) all Global Third Party IP Payments for such Product against the royalties payable by Otsuka to Perception under Section 8.4.1 on the Net Sales of such Product in the Otsuka Territory;
provided that the royalties that otherwise would be payable to Perception on the Net Sales for such Product shall not be reduced by more than [***] in any given Calendar Quarter as a result of any deduction under this
Section 8.4.3(c); and provided further, that Otsuka shall be entitled to carry forward to subsequent Calendar Quarters any amounts with respect to which Otsuka would have been entitled to take a deduction pursuant to this
Section 8.4.3(c) but is unable to take such deduction pursuant to the first proviso in this Section 8.4.3(c). “Otsuka Third Party Payments” mean all payments by Otsuka to a Third
Party (including all upfront payments, milestone payments, license fees, royalties and other amounts payable to such Third Party for such rights, in each case to the extent reasonably allocable to a Product in the Otsuka Territory) to acquire,
through a license, acquisition or other agreement with such Third Party, rights under such Third Party’s Patent Rights that are necessary or reasonably useful for the Development, Manufacture or Commercialization of a Product in the Otsuka
Territory under this Agreement other than any Patent Rights that are specific to an Other Product. 

  
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 (d) Cumulative Reductions Floor. In no event will the royalty rates under
Section 8.4.1 in any given Calendar Quarter during the Royalty Term for a Product be reduced by more than [***] of the royalty rates that otherwise would have applied in such Calendar Quarter for such Product but for the
reductions set forth in this Section 8.4.3. 
 8.4.4 Patent Challenge. If Otsuka or any of its Sublicensees
initiates (or in any way, directly or indirectly, aids any Third Party in initiating) a declaratory judgment action or similar action or claim that any Perception Patent Right is invalid, unenforceable or not infringed by the manufacture,
importation, sale, offer for sale or other disposal of a Product in the Otsuka Territory (a “Patent Challenge”), and (a) a court of competent jurisdiction upholds the validity, enforceability or infringement of such Perception
Patent Right, (b) such Patent Challenge is dismissed with or without prejudice, or (c) Otsuka or its Sublicensee voluntarily withdraws such Patent Challenge, then Otsuka shall pay Perception [***] after such Perception Patent Right is held
to be valid, enforceable or infringed or such action or claim is dismissed or withdrawn. As used herein, “Challenged Perception Patent Right Products” means any Product for which the Development, Manufacture or Commercialization in
the Field in the Otsuka Territory would infringe a Valid Claim in a Perception Patent Right that is the subject of a Patent Challenge. Notwithstanding the foregoing, the provisions of this Section 8.4.4 shall not apply to any Patent
Challenge if (i) within [***] after receipt of written notice from Perception, Otsuka or its Sublicensee voluntarily withdraws such Patent Challenge (or in the case of ex-parte proceedings, multi-party
proceedings, or other actions or claims that Otsuka or such Sublicensee does not have the power to unilaterally withdraw or cause to be withdrawn, Otsuka and its Sublicensee, as applicable, knowingly ceases providing any direction to any Person with
respect to such Patent Challenge and, to the extent Otsuka or any of its Sublicensee is a party to such Patent Challenge, it withdraws from such Patent Challenge), (ii) such Patent Challenge is initiated by Otsuka’s Sublicensee and within [***]
after receipt of written notice from Perception, Otsuka terminates such Sublicensee’s sublicense under the license granted to Otsuka under this Agreement, or (iii) such Patent Challenge is made by Otsuka in response to and defense of any
claim or action that Perception first asserts against Otsuka or any of its Affiliates or Sublicensees. 
 8.5 Royalty Report and
Payment. Within [***] after the end of each Calendar Quarter during the Royalty Term, Otsuka will provide to Perception a written report (each, a “Royalty Report”) setting forth, on a Product-by-Product basis (a) the quantity and description of such Product sold in the Otsuka Territory during such Calendar Quarter, (b) the calculation of the aggregate Net Sales of such Product in
the Otsuka Territory (including the amount of gross sales) for such Calendar Quarter, (c) the applicable royalty rates and exchange rates used to calculate the royalties payable for such Product for such Calendar Quarter, (d) any
adjustments to royalties in accordance with Section 8.4.3 for such Product for such Calendar Quarter, and (e) the royalties due under Section 8.4 for such Product for such Calendar Quarter. Upon or after receipt of the
Royalty Report, Perception shall send Otsuka an invoice (and, if there has been any change to a Payment Form previously submitted, or if a previously submitted Payment Form has expired, updated Payment Forms) for the royalties payable and, within
[***] of receipt of such invoice (and Payment Form, if applicable), Otsuka shall pay the associated royalties. The information contained in each Royalty Report shall be the Confidential Information of Otsuka. 

  
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 8.6 Records; Financial Audit. Each Party shall maintain complete and accurate
books and records in sufficient detail in relation to this Agreement to permit the other Party to confirm the accuracy of the amount of royalties, [***] and other payments (including supply price for Clinical Samples) due under this Agreement and
the Supply Agreement. Each Party will keep such books and records for at least [***] years following the Calendar Year to which they pertain. Upon at least [***] prior notice, each Party (the “Auditing Party”) shall have the right
to inspect and audit such books and records of the other Party (the “Audited Party”) during regular business hours at such place or places where such records are customarily kept, by an independent certified public accounting firm
of internationally-recognized standing (the “Auditor”) selected by the Auditing Party and reasonably acceptable to the Audited Party for the sole purpose of verifying for the Auditing Party the accuracy of the financial reports,
statements or invoices furnished by the Audited Party pursuant to this Agreement or the Supply Agreement or of any payments made or charged by the Audited Party pursuant to this Agreement or the Supply Agreement. Before beginning its audit, the
Auditor shall execute a written agreement reasonably acceptable to Audited Party by which the Auditor agrees to keep confidential all information reviewed during the audit. Such audits may occur no more often than once each Calendar Year and not
more frequently than once with respect to records covering any specific period of time. Each Auditing Party shall only be entitled to audit the Audited Party’s books and records from the [***] Calendar Years prior to the Calendar Year in which
the audit request is made. The Auditor shall not disclose the Audited Party’s Confidential Information to the Auditing Party, except to the extent such disclosure is necessary to verify the accuracy of the financial reports, statements or
invoices furnished by the Audited Party or the amount of payments to or by the Audited Party under this Agreement. If the final result of the audit reveals that (a) additional amounts were owed by one Party to the other Party, the owing Party
shall pay the additional amounts (and, if such additional amounts are owed due to an error in an invoice or report provided by such owing Party, with interest thereon as provided in Section 8.10) or (b) excess payments were made by
one Party to the other Party, the overpaid Party shall reimburse such excess payments (and, if such excess payments were made due to an error in an invoice or report provided by such overpaid Party, with interest thereon as provided in
Section 8.10), in either case ((a) or (b)) within [***] after the Auditor’s report. The Auditing Party shall bear the full cost of such audit unless such audit reveals an overpayment to, or an underpayment by, the Audited Party that
resulted from a discrepancy in the financial report, statement or invoice provided by the Audited Party for the audited period, which underpayment or overpayment was more than [***] of the amount set forth in such report, in which case the Audited
Party shall reimburse the Auditing Party for the costs for such audit. Unless an audit for a Calendar Year has been commenced prior to the [***] anniversary of the end of such Calendar Year, the financial reports, statements or invoices furnished by
the Audited Party and the payments made or charged by the Audited Party pursuant to this Agreement or the Supply Agreement with respect to such Calendar Year shall be binding and conclusive upon both Parties, and the Audited Party shall be released
from any further liability or accountability with respect thereto, except (x) if the Auditing Party has a reasonable basis to believe that the Audited Party has committed fraud or (y) if the Audited Party (or any Affiliate that controls
the Audited Party) restates its financial statements for such Calendar Year. The Auditing Party shall treat all financial information subject to review under this Section 8.6 in accordance with the confidentiality and non-use provisions of Article 10. 

  
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 8.7 Reimbursement. For all amounts for which a Party (the “Owing
Party”) is obligated to reimburse or pay the other Party (the “Owed Party”) pursuant to this Agreement for which no specific provision is made hereunder for such payment, the Owed Party shall send to the Owing Party an
invoice for such amount promptly after the Owed Party’s determination that such amount is payable by the Owing Party, which invoice shall include a reference to the section of this Agreement under which the Owed Party is requesting
reimbursement or payment and be accompanied by reasonable documentation of the incurrence of the costs to be reimbursed, which shall include copies of Third Party invoices reflecting the Out-of-Pocket Costs actually incurred by the Owed Party with respect to such amount; [***] Payment with respect to each such invoice shall be due within [***] after receipt by the Owing Party thereof
and shall be made in accordance with Section 8.9; provided that if the Owing Party in good faith disputes any portion of any such invoice, it shall pay the undisputed portion and shall provide the Owed Party with written notice of the disputed
portion and its reasons therefor, and the Owing Party shall not be obligated to pay such disputed portion unless and until such dispute is resolved in favor of the Owed Party. The Parties shall use good faith efforts to resolve any such disputes
promptly in accordance with Section 8.8. 
 8.8 Financial Dispute. In the event of a dispute with respect to any payments
pursuant to Section 8.7 or the audit under Section 8.6, Perception and Otsuka shall work in good faith to resolve the dispute. If the Parties are unable to reach a mutually acceptable resolution of any such dispute within
[***] from the date either Party informs the other of a dispute under this Section 8.8, the dispute shall be submitted for resolution to a certified public accounting firm jointly selected by each Party’s certified public
accountants or to such other Person as the Parties shall mutually agree (the “Dispute Auditor”) for expert determination. The decision of the Auditor, who shall act as an expert and not as an arbitrator, shall be final and the costs
of such expert determination, and if applicable, the initial audit shall be borne between the Parties in such manner as the Dispute Auditor shall determine. If the Dispute Auditor’s decision concludes that (x) additional amounts were owed
by one Party to the other Party, the owing Party shall pay the additional amounts (and, if such additional amounts are owed due to an error in an invoice or report provided by such owing Party, with interest thereon as provided in
Section 8.10) or (y) excess payments were made by one Party to the other Party, the overpaid Party shall reimburse such excess payments (and, if such excess payments were made due to an error in an invoice or report provided by such
overpaid Party, with interest thereon as provided in Section 8.10), in either case ((x) or (y)), within [***] after such decision and in accordance with such decision. 

8.9 Exchange Rate; Manner and Place of Payment. All payments hereunder shall be payable in U.S. Dollars and all references to
Dollars and “$” herein shall refer to U.S. Dollars. When conversion of Net Sales from any currency other than U.S. Dollars is required, such conversion shall be calculated using Otsuka’s standard conversion method consistent
with IFRS or GAAP in a manner consistent with Otsuka’s customary and usual conversion procedures used in preparing its financial statements applied on a consistent basis, provided that such procedures use a widely accepted source of published
exchange such as published by OANDA.com. Upon Perception’s request, Otsuka shall provide Perception a description of such conversion procedures. All payments owed under this Agreement shall be made by wire transfer in immediately available
funds to a bank and account designated in writing by the payee Party, unless otherwise specified in writing by such payee Party. 

  
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 8.10 Late Payments. If any payment due under this Agreement is not paid when
due in accordance with the applicable provisions of this Agreement, simple interest shall thereafter accrue on the sum due from the due date until the date of payment at a per-annum rate of [***] or the
maximum rate allowed by Applicable Law, whichever is less. 
 8.11 Taxes. 

8.11.1 General. Except as otherwise provided in this Section 8.11, each Party shall be solely responsible for its own tax
liability imposed on account of, or measured in whole or in part by reference to, payments made under this Agreement. Any information provided by one Party to the other Party in connection with tax pursuant to this Section 8.11 shall be
treated as Confidential Information under this Agreement; provided that each Party shall be entitled to disclose such information to the extent required by any Applicable Law or as conducive to the conduct of any tax contest or administrative or
judicial proceeding in relation to the taxes described in Section 8.11.2, Section 8.11.3, or Section 8.11.4, as applicable, with any taxing authority, as determined in the reasonable discretion of such Party or
its tax advisors. 
 8.11.2 Withholding Tax. Each Party shall cooperate with the other Party and use reasonable efforts to avoid or
reduce any deduction or withholding on account of tax (or similar obligations) in respect of any payment made by one Party (the “Payor”) to the other Party (the “Recipient”) under this Agreement. To the extent the
Payor is required by Applicable Laws to deduct and withhold taxes on any payment to the Recipient hereunder, the Payor shall (a) be authorized to deduct and withhold such taxes, (b) remit the amount of such withheld taxes to the proper
Governmental Authority in a timely manner in accordance with Applicable Law, and (c) promptly transmit to the Recipient an official tax certificate or other evidence of such remittance. The Payor shall notify the Recipient prior to any such
withholding of taxes and describe in reasonable detail the basis therefor. The Payor shall reasonably cooperate with the Recipient in obtaining a reduction of the rate of, or exemption from, any such withholding as may legally be available
(including under any income tax treaty) in respect of such payment to the Recipient. The Recipient shall provide the Payor any tax forms that may be reasonably necessary in order for the Payor to obtain a reduction of the rate of, or exemption from,
withholding under Applicable Law (including under any income tax treaty). The Recipient and the Payor shall use reasonable efforts to ensure that any such tax form is furnished to the Payor before the due date of the relevant payment. This
provisions of this Section 8.11.2 shall not apply to Indirect Taxes. 
 8.11.3
Gross-Up of Withholding Tax. If the Payor is required to make a payment to the Recipient hereunder, which payment is subject to withholding tax that arises from or is increased solely as the result of the
assignment or transfer of this Agreement (in whole or in part) by the Payor to an Affiliate or Third Party (a “Withholding Tax Action”), then notwithstanding anything to the contrary herein, the Payor shall be responsible for and
bear the economic burden of the resulting additional withholding taxes to the extent thereof in such a manner so that the Recipient shall receive the same amount, after deduction and withholding on account of taxes with respect to such payment as it
would have received absent such Withholding Tax Action. 

  
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 8.11.4 Indirect Tax. Notwithstanding anything to the contrary in this
Section 8.11, all payments under this Agreement are exclusive of Indirect Taxes. If any amount of Indirect Tax is chargeable in respect of a payment under this Agreement, the Payor shall pay such Indirect Tax at the applicable rate in
respect of such payment following the receipt of an invoice in the appropriate form from the Recipient in respect of those payments. Such Indirect Tax shall be payable on the later of (a) the due date of the payment to which such Indirect Tax
relates and (b) [***] after the receipt by the Payor of the applicable invoice setting forth the amount of the applicable Indirect Tax. The Parties will issue invoices for all amounts due under this Agreement consistent with applicable
Indirect Tax requirements. 
 9. INTELLECTUAL PROPERTY RIGHTS 

9.1 Ownership. 
 9.1.1 Know-How. All Know-How, excluding Inventions, generated in connection with the Development or Commercialization of any Product conducted by or on behalf of Perception or
its Sublicensees shall, as between the Parties, be the sole and exclusive property of Perception. All Know-How, excluding Inventions, generated in connection with the Development or Commercialization of any
Product conducted by or on behalf of Otsuka or its Sublicensees shall, as between the Parties, be the sole and exclusive property of Otsuka. For clarity, each Party shall have access and right to use and reference the other Party’s Know-How (except for Inventions, which are addressed in Section 9.1.2) as and to the extent set forth in this Agreement (and, as applicable, subject to [***]). To the extent a patentable Invention
Controlled by a Party is supported by any Know-How owned by the other Party, the Party Controlling such Invention shall have the right, upon the other Party’s prior written consent (not to be unreasonably
withheld, conditioned or delayed), subject to [***], to use and disclose such Know-How owned by the other Party in its patent applications to support such Invention. 

9.1.2 Inventions. Inventorship for Inventions shall be determined in accordance with applicable patent laws for determining
inventorship. Ownership of Inventions will be allocated as provided in this Section 9.1.2 and the Parties will work together to resolve any issues regarding inventorship or ownership of Inventions. As between the Parties, Perception
shall own the entire right, title and interest in and to all Inventions discovered, made, developed generated, or conceived solely by one or more employees of Perception or its Sublicensees (or a Third Party acting on any of their behalf) during the
Term. As between the Parties, Otsuka shall own the entire right, title and interest in and to all Inventions discovered, made, developed generated, or conceived solely by one or more employees of Otsuka or its Sublicensees (or a Third Party acting
on any of their behalf) during the Term. The Parties shall jointly own, and shall have an equal, undivided interest in, the entire right, title and interest in and to all Inventions discovered, made, developed generated, or conceived jointly by one
or more employees of Perception or its Sublicensees (or a Third Party acting on any of their behalf) and one or more employees of Otsuka or its Sublicensees (or a Third Party acting on any of their behalf) during the Term (“Joint
Inventions”). All Patent Rights claiming Joint Inventions shall be referred to herein as “Joint Patent Rights”. Each Party will disclose to the other any Inventions discovered, made, developed generated, or conceived by or
on behalf of such Party or its Sublicensees no later than [***] days after such Party’s intellectual property department receives notice of the same. 

  
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 9.1.3 Right to Practice Joint Technology. Subject to the rights and licenses of the
Parties hereunder (including the licenses granted under Section 2.1 and Section 2.2), both Parties are entitled to practice Joint Technology for all purposes on a worldwide basis and to license Joint Technology without the
consent of and without a duty of accounting to the other Party. For clarity, Perception shall have no right to grant any rights or licenses under Joint Technology that would conflict with the exclusive license to Otsuka under
Section 2.1.1 and Otsuka shall have no right to grant any rights or licenses under Joint Technology that would conflict with the exclusive license to Perception under Section 2.2.1. Each Party will
grant and hereby does grant all permissions, consents and waivers with respect to, and all licenses under, the Joint Technology, throughout the world, necessary to provide the other Party with such rights of use and exploitation of the Joint
Technology, and will execute documents as necessary to accomplish the foregoing. 
 9.1.4 Employee Assignment. Each Party shall ensure
that all of its employees and all employees of its Sublicensees who are acting under its or such Sublicensees’ authority in the performance of this Agreement assign to such Party (or to such Sublicensee for further assignment to such Party)
under a binding agreement all Know-How and Patent Rights discovered, made, developed generated, or conceived by such employee as a result of such employee’s employment. In the case of any Third Parties
acting in the performance a Party’s obligations under this Agreement, including consultants, subcontractors, independent contractors, clinical investigators, and employees of non-profit institutions, the
Party that engages such Third Party shall use commercially reasonable efforts to ensure that such Third Party is also so obligated to assign, unless otherwise approved by the other Party. 

9.2 Prosecution and Maintenance of Patent Rights. 

9.2.1 Perception Patent Rights. 

(a) Perception shall have the first right, but not the obligation, to control the preparation, filing, prosecution and maintenance (including
any interferences, reissue proceedings, reexaminations, applications for supplementary protection certificates and oppositions) (collectively, “Prosecution”) of the Perception Patent Rights worldwide. Perception shall keep Otsuka
informed of material progress with regard to Prosecution of Perception Patent Rights in the Otsuka Territory and shall provide Otsuka (or have provided to Otsuka) all filings and material correspondence related thereto for the Otsuka Territory
within a reasonable time after the receipt or prior to the filing of such documents, to allow Otsuka and its patent counsel to be able to review and provide comments to Perception and its patent counsel regarding the filing and contents of such
application, amendment, submission, response or other documents, including the content and timing of Perception Patent Rights in the Otsuka Territory, provided that such review and comment shall not delay the Prosecution. Perception shall consult
with, and consider in good faith the comments, requests and suggestions of, Otsuka with respect to Prosecution of Perception Patent Rights in the Otsuka Territory. 

(b) Perception shall not, without the prior written consent of Otsuka (not to be unreasonably withheld, conditioned or delayed), abandon,
forfeit or otherwise cease the Prosecution of any Perception Patent Rights in the Otsuka Territory; provided that Otsuka acknowledges and agrees that it would be unreasonable for it to condition, withhold or delay such consent if Perception has, and
informs Otsuka of, a reasonable strategic reason for ceasing the Prosecution of such Perception Patent Rights in the Otsuka Territory. If Perception wishes to abandon, forfeit or otherwise cease Prosecution of any Perception Patent Right in the
Otsuka 

  
 50 

 
Territory, Perception shall provide reasonable prior written notice to Otsuka (which notice shall, to the extent possible, be given at least [***] before such Patent Right would become
abandoned or forfeited) and if Otsuka consents to the same, then unless Perception provides Otsuka with a reasonable explanation as to why Perception reasonably believes that continuing Prosecution would adversely affect Perception’s global
patent prosecution or litigation strategy, Otsuka may, upon written notice to Perception, elect to assume Prosecution of such Perception Patent Right (in the name of Perception) in the Otsuka Territory [***]. If Otsuka elects to assume
Prosecution of such Perception Patent Right in the Otsuka Territory, such Patent Right in the Otsuka Territory shall cease to be included within Perception Patent Rights for purposes of determining the Royalty Term under this Agreement. For clarity,
if Otsuka does not elect to assume Prosecution of such Perception Patent Right, and provided that Otsuka has given its prior written consent, Perception will have the right to cease the Prosecution of such Perception Patent Right in the Otsuka
Territory. 
 (c) [***]. 

9.2.2 Otsuka Product Improvement Patents. 

(a) Otsuka shall have the first right, but not the obligation, to control the Prosecution of Otsuka Product Improvement Patents in the Otsuka
Territory and other countries selected by Otsuka by written notice to Perception (collectively, “Otsuka Selected Countries”); provided that Otsuka may not, without the prior written consent of Perception, add to the Otsuka Selected
Countries any country in which Perception has already begun Prosecuting any Otsuka Product Improvement Patents pursuant to Section 9.2.2(d). Otsuka shall keep Perception informed of material progress with regard to
Prosecution of Otsuka Product Improvement Patents in Otsuka Selected Countries in the Perception Territory and shall provide Perception (or have provided to Perception) all filings and material correspondence related thereto, within a reasonable
time after the receipt or prior to the filing of such documents, to allow Perception and its patent counsel to be able to review and provide comments to Otsuka and its patent counsel regarding the filing and contents of such application, amendment,
submission, response or other documents, including the content, timing and jurisdiction of the filing of Otsuka Product Improvement Patents in the Otsuka Selected Countries in the Perception Territory, provided that such review and comment shall not
delay the Prosecution. Otsuka shall consult with, and consider in good faith the comments, requests and suggestions of, Perception with respect to Prosecution of Otsuka Product Improvement Patents in the Otsuka Selected Countries in the Perception
Territory. 
 (b) If Otsuka intends to abandon, forfeit or otherwise cease Prosecution of any Otsuka Product Improvement Patent in an Otsuka
Selected Country in the Perception Territory, Otsuka shall provide reasonable prior written notice to Perception of such intention (which notice shall, to the extent possible, be given at least [***] before such Patent Right would become
abandoned or forfeited) and unless Otsuka provides Perception with a reasonable explanation as to why Otsuka reasonably believes that continuing Prosecution would adversely affect Otsuka’s patent prosecution or litigation strategy in the Otsuka
Selected Countries, Perception may, upon written notice to Otsuka, elect to assume Prosecution of such Otsuka Product Improvement Patent (in the name of Otsuka) in such Otsuka Selected Country in the Perception Territory [***]. For clarity,
if Perception does not elect to assume Prosecution of such Otsuka Product Improvement Patent, Otsuka will have the right to cease the Prosecution of such Otsuka Product Improvement Patent in such Otsuka Selected Country in the Perception Territory.

  
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 (c) [***]. 

(d) Perception shall have the first right, but not the obligation, [***], to control the Prosecution of Otsuka Product Improvement
Patents, in the name of Otsuka, in countries in the Perception Territory that are not Otsuka Selected Countries. Perception shall keep Otsuka informed of material progress with regard to Prosecution of Otsuka Product Improvement Patents in such
countries in the Perception Territory and shall provide Otsuka (or have provided to Otsuka) all filings and material correspondence related thereto, within a reasonable time after the receipt or prior to the filing of such documents, to allow Otsuka
and its patent counsel to be able to review and provide comments to Perception and its patent counsel regarding the filing and contents of such application, amendment, submission, response or other documents, including the content, timing and
jurisdiction of the filing of Otsuka Product Improvement Patents in such countries in the Perception Territory, provided that such review and comment shall not delay the Prosecution. Perception shall consult with, and consider in good faith the
comments, requests and suggestions of, Otsuka with respect to Prosecution of Otsuka Product Improvement Patents in such countries in the Perception Territory. 

(e) If Perception intends to abandon, forfeit or otherwise cease Prosecution of any Otsuka Product Improvement Patent in an any country in the
Perception Territory that is not an Otsuka Selected Country, Perception shall provide reasonable prior written notice to Otsuka of such intention (which notice shall, to the extent possible, be given at least [***] before such Patent Right
would become abandoned or forfeited) and, in that event, Otsuka may, upon written notice to Perception, elect to assume Prosecution of such Otsuka Product Improvement Patent in such country in the Perception Territory. If Otsuka elects to assume
Prosecution of such Otsuka Product Improvement Patent, (i) the license granted to Perception with respect to such Otsuka Product Improvement Patent under Section 2.2.1 shall become nonexclusive, and (ii) Otsuka
shall Prosecute such Otsuka Product Improvement in such country in the Perception Territory [***]. For clarity, if Otsuka does not elect to assume Prosecution of such Otsuka Product Improvement Patent in such country in the Perception
Territory, Perception will have the right to cease the Prosecution of such Otsuka Product Improvement Patent in such country in the Perception Territory. 

(f) [***]. 
 9.2.3
Joint Patent Rights. 
 (a) Perception shall have the first right, but not the obligation, to Prosecute Joint Patent Rights in
the Otsuka Territory and in all other countries in which the Parties mutually agree to Prosecute Joint Patent Rights (such other countries, “Mutually Selected Countries”) using patent counsel mutually agreed to by the Parties.
Perception shall keep Otsuka informed of material progress with regard to Prosecution of Joint Patent Rights in the Otsuka Territory and all Mutually Selected Countries and shall provide Otsuka (or have provided to Otsuka) all filings and material
correspondence related thereto within a reasonable time after the receipt or prior to the filing of such documents to allow Otsuka and its patent counsel to be able to review and provide comments to Perception and its patent counsel regarding the
timing for filing and the content of such application, amendment, submission, response or other documents relating to Joint Patent Rights in the Otsuka Territory and Mutually Selected Countries, provided that such review and comment shall not delay
the Prosecution. Perception shall consult with, and consider in good faith the comments, requests and suggestions of, Otsuka with respect to its Prosecution of Joint Patent Rights in the Otsuka Territory and Mutually Selected Countries. 

  
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 (b) If Perception intends to abandon, forfeit or otherwise cease Prosecution of any Joint
Patent Right in the Otsuka Territory or any Mutually Selected Country, Perception shall provide reasonable prior written notice to Otsuka of such intention (which notice shall, to the extent possible, be given at least [***] before such
Patent Right would become abandoned or forfeited) and, in that event, Otsuka may, upon written notice to Perception, elect to assume Prosecution of such Joint Patent Right in such country. If Otsuka elects to assume Prosecution of such Joint Patent
Right in such country, (i) Perception shall assign all of its right, title and interest in and to such Joint Patent Right in such country to Otsuka [***], and (ii) Otsuka shall Prosecute such Patent Right (in the name of Otsuka
only) in such country [***]; provided that if Perception notifies Otsuka at a later date of its desire to license such Patent Right, the Parties shall negotiate in good faith a non-exclusive,
royalty-bearing license to Perception under such Patent Right on commercially reasonable terms; provided, further, that if the Parties are unable to agree on such commercially reasonable terms within [***] following Otsuka’s receipt of
Perception’s notice (or such longer period as the Parties may agree), then the matter shall be subject to resolution in accordance with Section 14.3. For clarity, if Otsuka does not elect to assume Prosecution of such
Joint Patent Right, Perception will have the right to cease the Prosecution of such Joint Patent Right in such country. 
 (c) With respect
to any Joint Patent Right that Perception is Prosecuting in any Mutually Selected Country, Otsuka may at any time give written notice to Perception that Otsuka does not wish to remain a joint owner of such Joint Patent Right in such country and, at
such time, Otsuka shall assign all of its right, title and interest in and to such Joint Patent Right in such country to Perception; provided that if Otsuka notifies Perception at a later date of its desire to license such Patent Right, the Parties
shall negotiate in good faith a non-exclusive, royalty-bearing license to Otsuka under such Patent Right on commercially reasonable terms; provided, further, that if the
Parties are unable to agree on such commercially reasonable terms within [***] following Perception’s receipt of Otsuka’s notice (or such longer period as the Parties may agree), then the matter shall be subject to resolution in
accordance with Section 14.3. Thereafter, Perception shall have the sole right, but not the obligation, to Prosecute such Patent Right in the name of Perception only in such country [***]. 

(d) [***]. 
 (e) If a
Party wishes to Prosecute a Joint Patent Right in a country other than the Otsuka Territory or any Mutually Selected Country, such Party shall notify the other Party and, unless the other Party elects to include such country in the Mutually Selected
Countries, then (i) the other Party shall assign all of its right, title and interest in and to such Joint Patent Right in such country to the Party that wishes to Prosecute such Joint Patent Right (the “Prosecuting Party”),
and (ii) the Prosecuting Party will have the sole right to Prosecute such Patent Right in the name of the Prosecuting Party only in such country [***]; provided that if the other Party notifies the Prosecuting Party at a later date of
its desire to license such Patent Right, the Parties shall negotiate in good faith a non-exclusive, royalty-bearing license to the other Party under such Patent Right on commercially reasonable terms;
provided, further, that if the Parties are unable to agree on such commercially reasonable terms within [***] following the Prosecuting Party’s receipt of the other Party’s notice (or such longer period as the Parties may agree),
then the matter shall be subject to resolution in accordance with Section 14.3. 

  
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 9.3 Invalidation Proceedings. 

9.3.1 Notice. Each Party shall promptly notify the other Party of any declaratory judgment, opposition, inter partes review, or similar
action alleging the invalidity or unenforceability of any issued Perception Patent Rights, Joint Patent Rights or Otsuka Product Improvement Patents (“Invalidation Proceeding”) anywhere in the world of which such Party becomes
aware. 
 9.3.2 Perception Patent Rights. Otsuka shall have the first right, but not the obligation, to defend any Invalidation
Proceeding respecting the Perception Patent Rights in the Otsuka Territory. Perception shall have the sole right, but not the obligation, to defend any Invalidation Proceeding respecting the Perception Patent Rights in all countries other than the
Otsuka Territory. 
 9.3.3 Otsuka Product Improvement Patents. Otsuka shall have the sole right, but not the obligation, to defend any
Invalidation Proceeding respecting Otsuka Product Improvement Patents in the Otsuka Territory and shall have the first right, but not the obligation, to defend any Invalidation Proceeding respecting Otsuka Product Improvement Patents in any country
in the Perception Territory that is not a Perception Active Country. Perception shall have the first right, but not the obligation, to defend any Invalidation Proceeding respecting Otsuka Product Improvement Patents in all countries in the
Perception Territory in which Perception or any of its Sublicensees or Other Perception Licensees is Developing or Commercializing a Product (the “Perception Active Countries”). 

9.3.4 Joint Patent Rights. Otsuka shall have the first right, but not the obligation to defend any Invalidation Proceeding respecting
Joint Patent Rights in the Otsuka Territory. Perception shall have the first right, but not the obligation to defend any Invalidation Proceeding respecting Joint Patent Rights in the Mutually Selected Countries. Each Prosecuting Party that is
Prosecuting a Joint Patent Right in a country pursuant to Section 9.2.3(e) shall have the sole right, but not the obligation, to defend any Invalidation Proceeding respecting such Joint Patent Right in such country. 

9.3.5 Second Right to Defend. If the Party with the first right to defend in accordance with Section 9.3.2,
Section 9.3.3 or Section 9.3.4 does not inform the other Party that it intends to defend such an Invalidation Proceeding within [***] after a request from the other Party, and does not provide commercially reasonable
reasons why such Party does not intend to defend such Invalidation Proceeding, then the Party that does not have the first right to defend such Invalidation Proceeding will have the second right, but not the obligation, to defend such Invalidation
Proceeding at its cost and expense. For clarity, a Party’s second right to defend pursuant to this Section 9.3.5 shall not apply with respect to any Invalidation Proceeding that the other Party has the sole right to defend in
accordance with Section 9.3.2 or Section 9.3.3. 

  
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 9.3.6 Collaboration. The Party defending any Invalidation Proceeding under
Section 9.3.2, Section 9.3.3, Section 9.3.4 or Section 9.3.5 (such Party, the “Defending Party”) shall have the right to control the defense of such Invalidation Proceeding, including
the right to select counsel therefor, [***]. The other Party (the “Supporting Party”) shall be entitled to separate representation in any Invalidation Proceeding by counsel of its own choice. At the Defending Party’s
request, the Supporting Party shall provide reasonable assistance to the Defending Party in connection with an Invalidation Proceeding [***]. The Defending Party shall keep the Supporting Party regularly informed of the status and progress of
such Invalidation Proceeding. In respect of any Invalidation Proceeding, the Defending Party shall provide the Supporting Party and its counsel with an opportunity to consult with the Defending Party and its counsel regarding the defense of such
Invalidation Proceeding (including reviewing the contents of any correspondence, legal papers or other documents related thereto), and the Defending Party shall take into account reasonable requests of the Supporting Party regarding such defense. In
no event shall the Defending Party settle any Invalidation Proceeding or take any other action that materially adversely affects the other Party’s rights or interests and, for clarity, the Defending Party may not admit invalidity or
unenforceability of any Patent Right Controlled by the other Party or any Joint Patent Right without the express prior written consent of the other Party. The terms of this Section 9.36 shall not apply with respect to any Invalidation
Proceeding which one Party has the sole right to defend in accordance with Section 9.3.2 or Section 9.3.3. 
 9.4
Patent Enforcement. 
 9.4.1 Notice. Each Party shall promptly notify the other Party of any known, suspected, alleged or
threatened infringement or misappropriation by a Third Party of any of the Perception Technology, Joint Technology, or Otsuka Product Improvements by reason of the making, using, offering to sell, selling or importing of any Product or any product
that is competitive with a Product in the Field (“Competing Infringement”) anywhere in the world of which such Party becomes aware. 

9.4.2 Otsuka First Enforcement Right. Otsuka shall have the first right, but not the obligation, to take any reasonable measures it
deems appropriate with respect to any Competing Infringement in the Otsuka Territory. Such measures may include (a) initiating or prosecuting an infringement suit or action (“Infringement Action”) in the Otsuka Territory, or
(b) granting adequate rights and licenses to such Third Party necessary to render continued Competing Infringement in the Otsuka Territory non-infringing. Notwithstanding the foregoing, if Otsuka does not
inform Perception that it intends to either initiate an Infringement Action in the Otsuka Territory or grant adequate rights and licenses to such Third Party within [***] after Otsuka’s receipt of a notice of a Competing Infringement
pursuant to Section 9.4.1 and does not provide Perception commercially reasonable reasons why Otsuka does not intend to initiate such Infringement Action or grant such rights or licenses within such [***] period, then Perception
will have the second right, but not the obligation, to initiate an Infringement Action in the Otsuka Territory, but solely with respect to any Perception Technology or Joint Technology. 

9.4.3 Perception First Enforcement Right. Perception shall have the first right, but not the obligation, to take any reasonable measures
it deems appropriate with respect to any Competing Infringement in the Perception Territory. Such measures may include (a) initiating or prosecuting an Infringement Action in the Perception Territory, or (b) granting adequate rights and

  
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licenses to such Third Party necessary to render continued Competing Infringement in the Perception Territory non-infringing. Notwithstanding the
foregoing, if Perception does not inform Otsuka that it intends to either initiate an Infringement Action in the Perception Territory or grant adequate rights and licenses to such Third Party within [***] after Perception’s receipt of a
notice of a Competing Infringement pursuant to Section 9.4.1 and does not provide Otsuka commercially reasonable reasons why Perception does not intend to initiate such Infringement Action or grant such rights or licenses
within such [***] period, then Otsuka will have the second right, but not the obligation, to initiate an Infringement Action in the Perception Territory, but solely with respect to any Otsuka Product Improvement or Joint Technology. 

9.4.4 Collaboration. The Party initiating any Infringement Action under Section 9.4.2 or Section 9.4.3 (such
Party, the “Enforcing Party”) shall have the right to control the initiation and prosecution of such Infringement Action, including the right to select counsel therefor, [***]. The other Party (the “Non-Enforcing Party”) shall be entitled to separate representation in any Infringement Action under Section 9.4.2 or Section 9.4.3 by counsel of its own choice, except for any
Infringement Action solely related to Perception Technology in the Perception Territory. If requested by the Enforcing Party, the Non-Enforcing Party shall join as a party to such Infringement Action and will
execute all documents, including registration of exclusive license, necessary for the Enforcing Party to initiate, prosecute, maintain or defend such Infringement Action. Except with respect to any Infringement Action solely related to Perception
Technology in the Perception Territory, in respect of any Infringement Action: (a) at the Enforcing Party’s request, the Non-Enforcing Party shall provide reasonable assistance to the Enforcing Party
in connection with an Infringement Action [***]; (b) the Enforcing Party shall keep the Non-Enforcing Party regularly informed of the status and progress of an Infringement Action under
Section 9.4.2 or Section 9.4.3; and (c) in no event shall the Enforcing Party settle any Infringement Action or take any other action that materially adversely affects the other Party’s rights or interests and, for
clarity, the Enforcing Party may not admit invalidity or unenforceability of any Patent Right Controlled by the other Party or any Joint Patent Right without the express prior written consent of the other Party. For clarity, Perception may settle
any Infringement Action or take any other action while prosecuting an Infringement Action, in each case, to the extent relating to Perception Technology in the Perception Territory without the express prior written consent of Otsuka. 

9.4.5 Recoveries. If an Enforcing Party recovers monetary damages in an Infringement Action under Section 9.4.2 or
Section 9.4.3, such recovery shall be allocated first to the reimbursement of any expenses incurred by the Enforcing Party in connection with such Infringement Action, second to the reimbursement of any expenses incurred by the other
Party in connection with such Infringement Action, and any remaining amounts shall be retained by [***]; provided that if Otsuka is the Enforcing Party, then any remaining amounts awarded to Otsuka as compensation for lost sales shall be
[***]. 
 9.4.6 Sole Enforcement Right. Notwithstanding the above, the Party that is Prosecuting a Joint Patent Right in a
country pursuant to Section 9.2.3(e) shall have the sole right, but not the obligation, [***], to initiate an Infringement Action or take any other reasonable measures it deems appropriate with respect to any Competing Infringement with
respect to such Joint Patent Right in such country, and the terms of Section 9.4.2, Section 9.4.3, Section 9.4.4 and Section 9.4.5 shall not apply to such Infringement Action; provided that the Prosecuting Party
shall 

  
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not settle any Infringement Action with respect to any such Joint Patent Right or take any other action that materially adversely affects the other Party’s rights or interests with respect
to any such Joint Patent Right and, for clarity, the Prosecuting Party may not admit invalidity or unenforceability of any Patent Right Controlled by the other Party or any Joint Patent Right without the express prior written consent of the other
Party. [***] 
 9.5 Third Party Infringement Claims. If a Third Party sues a Party (the “Sued Party”) alleging
that the Sued Party’s, or the Sued Party’s Sublicensee’s, Development, Manufacture or Commercialization of any Product in the Otsuka Territory infringes or will infringe such Third Party’s Patent Rights or misappropriates or will
misappropriate such Third Party’s Know-How (“Third Party Infringement Suit”), then the Sued Party shall promptly notify the other Party of such Third Party Infringement Suit. The Parties
shall promptly meet to consider the appropriate course of action and may, if appropriate, agree on and enter into a “common interest agreement” wherein the Parties agree to their shared, mutual interest in the outcome of such Third Party
Infringement Suit. Absent such agreement, the Sued Party shall defend the Third Party Infringement Suit; provided that Section 9.4 shall govern the right of Otsuka to assert a counterclaim of infringement of any Perception
Patent Rights, Joint Patent Rights or Otsuka Product Improvement Patents. At the Sued Party’s request [***], the other Party will provide reasonable assistance to the Sued Party in connection with the Sued Party’s defense of any
such Third Party Infringement Suit. If the other Party has not joined in such Third Party Infringement Suit, the Sued Party will keep the other Party reasonably informed on a Calendar Quarter basis prior to and during the pendency of such Third
Party Infringement Suit. The Sued Party will not enter into any settlement of any Third Party Infringement Suit that is instituted or threatened to be instituted against the other Party without the other Party’s prior written consent, which
will not be unreasonably withheld, conditioned or delayed; except that, such consent will not be required if such settlement includes a release of all liability in favor of the other Party. Further, the Sued Party shall not settle or compromise any
Third Party Infringement Suit, or knowingly take any other action in the course thereof, in a manner that materially adversely affects the other Party’s rights or interests, without the prior written consent of such other Party, such consent
not to be unreasonably withheld, conditioned or delayed. [***]. If, as part of a settlement or compromise of a Third Party Infringement Suit, Otsuka enters into an agreement with a Third Party to obtain a license under or otherwise acquire
rights to Third Party Intellectual Property Rights, all payments by Otsuka to such Third Party under such agreement (including all upfront payments, milestone payments, license fees, royalties and other amounts payable to such Third Party for such
rights) may be applied to the royalty reduction pursuant to Section 8.4.3(c). 
 9.6 Patent Oppositions
and Other Proceedings. If either Party desires to initiate in any court or patent office an opposition, action for declaratory judgment, nullity action, interference, declaration for non-infringement,
reexamination or other attack upon the validity, title or enforceability of a Patent Right owned or controlled by a Third Party and having one or more claims that may cover the API or a Product, or the manufacture, use, sale, offer for sale or
importation of the API or a Product (except insofar as such action is a counterclaim to or defense of, or accompanies a defense of, (a) a Third Party’s claim or assertion of an Invalidation Proceeding, in which case the provisions of
Section 9.3 shall govern or (b) a Third Party Infringement Suit, in which case the provisions of Section 9.5 shall govern), such Party shall so notify the other Party and the Parties shall
promptly confer to determine whether to bring such action. If the Parties do not agree otherwise then, as between the Parties, (i) Otsuka shall have the sole right to control such action with regard to the Otsuka Territory and [***] and
(ii) Perception shall have the sole right to control such action [***] with regard to the Perception Territory, and the Party so controlling such action shall keep the other Party reasonably informed with respect thereto. 

 

  
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 9.7 Third Party Intellectual Property Rights. 

9.7.1 Chiba University Agreement. Perception shall remain responsible for the payment of all royalties, license fees, milestone payments
and other payment obligations under all agreements with Third Parties entered into by Perception prior to the Effective Date pursuant to which Perception obtained rights to any Third Party Know-How, Third
Party Patent Rights or other Third Party Intellectual Property Rights that are necessary or reasonably useful to Develop, Manufacture, Commercialize or otherwise exploit API or any Product, including all payments under the Chiba University
Agreement. 
 9.7.2 Notice; Discussion. Each Party shall promptly notify the other Party if it becomes aware after the Effective Date
of any Third Party Know-How or Third Party Patent Rights that are necessary or reasonably useful to Develop, Manufacture or Commercialize any Product in the Field (“Third Party IP”).
Thereafter, the Parties shall discuss whether to obtain a license or otherwise acquire rights under such Third Party IP for one or the other Party’s Territory or for both Parties’ Territories. 

9.7.3 Global Third Party IP Agreement. If the Parties agree to obtain a license or otherwise acquire rights from a Third Party under
Third Party IP to Develop, Manufacture or Commercialize a Product in both the Perception Territory and the Otsuka Territory (“Global Third Party IP Agreement”), Perception shall have the right to negotiate such Global Third Party IP
Agreement with such Third Party. Perception shall negotiate such Global Third Party IP Agreement on commercially reasonable terms that shall not favor the Perception Territory or disproportionately burden the Otsuka Territory. Perception shall
ensure that such Global Third Party IP Agreement includes the right to sublicense to Otsuka in the Otsuka Territory in order for Otsuka to exercise its rights and licenses hereunder. If the Parties agree and Perception enters into a Global Third
Party IP Agreement, Otsuka shall reimburse Perception for all payments made by Perception under such Global Third Party IP Agreement that are attributable to Net Sales of a Product in the Otsuka Territory or otherwise are allocable to such Product
in the Otsuka Territory, including any upfront, milestone, royalty payment or other similar payment (such payments collectively, the “Global Third Party IP Payments”), and Perception shall be responsible for all other payments under
such Global Third Party IP Agreement; provided that for any such Global Third Party IP Payments for a Calendar Year that are not Otsuka Territory-specific milestones or royalty payments on Net Sales in the Otsuka Territory, the Parties will discuss
in good faith and agree on [***] for such payments. If the Parties are unable to agree upon such [***] within [***] after the commencement of such discussions (or such longer period as the Parties may agree), then the matter shall be subject
to resolution in accordance with Section 14.3. 
 9.7.4 Other Third Party IP Agreement. If the Parties do not agree to
obtain a license or otherwise acquire rights under a Global Third Party IP Agreement, then either Party may negotiate with a Third Party to obtain a license or otherwise acquire rights under Third Party IP to Develop, Manufacture or Commercialize a
Product. The Party that enters into a Third Party IP Agreement with a Third Party shall be responsible for all payments under such Third Party IP Agreement; provided that if Otsuka enters into a Third Party IP Agreement, all such payments may be
applied to the royalty reduction to the extent provided for in Section 8.4.3(c). 

  
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 9.8 Common Interest. All information exchanged between the Parties’
representatives pursuant to this Article 9 regarding the Prosecution, defense or enforcement of Patent Rights will be deemed Confidential Information. The Parties agree and acknowledge that they have not waived, and nothing in this Agreement
constitutes a waiver of, any legal privilege concerning such Patent Rights, including privilege under the common interest doctrine and similar or related doctrines. 

9.9 Patent Term Extensions. Otsuka shall have the sole right to make decisions regarding, and to apply for, all available
extensions of Perception Patent Rights (in the name of Perception), Otsuka Product Improvement Patents and Joint Patent Rights in the Otsuka Territory; provided, that, with respect to the Perception Patent Rights and Joint Patent Rights, upon
Otsuka’s request, Perception shall use Commercially Reasonable Efforts to obtain any such available extension in the Otsuka Territory, as requested by Otsuka, and [***]. Perception shall have the sole right to make decisions regarding,
and to apply for, all available extensions of Perception Patent Rights, Otsuka Product Improvement Patents (in Otsuka’s name) and Joint Patent Rights in the Perception Territory; provided, that, with respect to the Otsuka Product Improvement
Patents, upon Perception’s request, Otsuka shall use Commercially Reasonable Efforts to obtain any such available extension in the Perception Territory, as requested by Perception, provided that [***]. 

9.10 Product Trademarks. 

9.10.1 Product Trademarks. Perception shall develop and adopt Trademarks to be used for the Products (the “Product
Trademarks”) and Perception shall use Commercially Reasonable Efforts to obtain and maintain a unitary Product Trademark for use worldwide. If Perception is unable to obtain or maintain a unitary Product Trademark for use worldwide or if
Perception is unable to obtain or maintain any Product Trademarks in the Otsuka Territory, Otsuka may either select from the secondary Product Trademarks registered by Perception in accordance with Section 9.10.2 or develop and adopt
Trademarks to be used for the Products in the Otsuka Territory. In addition, if Otsuka reasonably believes that any Product Trademarks developed and adopted by Perception are not appropriate for the Otsuka Territory, whether due to linguistic
reasons, any notice (including rejection or refusal) by a Regulatory Authority in the Otsuka Territory, market research showing that the Product Trademarks are not appropriate for commercial use in the Otsuka Territory, or otherwise, Otsuka may
either select from the secondary Product Trademarks registered by Perception in accordance with Section 9.10.2 or develop and adopt an alternative Trademark for Products in the Otsuka Territory with the consent of Perception (not to be
unreasonably withheld, conditioned or delayed). In addition, Otsuka may develop and adopt a katakana Trademark, which is a Japanese notation of a Trademark to be used in the Otsuka Territory, and any additional Trademarks (e.g., logos and slogans)
to be used in the Commercialization of Products in the Otsuka Territory with the consent of Perception (not to be unreasonably withheld, conditioned or delayed). Any such alternative Trademark, katakana Trademark or additional Trademark adopted by
Otsuka shall be a Product Trademark and shall be registered by Perception and Perception shall prosecute such Product Trademark in accordance with Section 9.10.2. 

  
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 9.10.2 Prosecution of Product Trademarks. Perception shall own all rights, title and
interest in and to all Product Trademarks, and all goodwill in the Product Trademarks shall inure to Perception. Otsuka shall use Product Trademarks in a manner consistent with this Agreement, including the Global Branding Strategy or Otsuka
Territory-Specific Brand Strategy, as applicable, and for no other purpose. Otsuka shall not use any other Trademarks that are confusingly similar to any Product Trademark. Perception shall be responsible, [***], for the filing, prosecution,
registration and maintenance (including the defense of opposition proceedings and any equivalent proceedings) of all Product Trademarks, including at least one primary Product Trademark and at least two secondary Product Trademarks and including the
katakana Trademark, in a timely manner in the Otsuka Territory throughout the Term; provided, that in the event Otsuka develops and adopts an alternative Product Trademark for the Otsuka Territory as described in Section 9.10.1 (for
clarity, other than the katakana Trademark or any secondary Product Trademark selected by Otsuka), then [***]. Perception shall keep Otsuka informed of material progress with regard to the prosecution, registration, and maintenance of Product
Trademarks in the Otsuka Territory, including content and timing of the filing of Product Trademarks in the Otsuka Territory, sufficiently in advance for Otsuka to be able to review any material documents, and Perception shall consult with, and
consider in good faith the comments, requests and suggestions of, Otsuka with respect to strategies for filing and prosecuting Product Trademarks in the Otsuka Territory. 

9.10.3 Enforcement of Product Trademarks. During the Term, each Party will promptly notify the other Party in writing of any known or
suspected infringement or unauthorized use or misappropriation by a Third Party of any Product Trademarks in the Otsuka Territory (“Product Trademark Infringement”). Otsuka shall have the first right, but not the obligation, to take
any reasonable measures it deems appropriate with respect to any Product Trademark Infringement, [***], including initiating or prosecuting an infringement, misappropriation or other appropriate suit or action to enforce the Product
Trademarks in the Otsuka Territory and, if requested by Otsuka, Perception shall (a) join as a party to such suit or action and execute and cause its Affiliates to execute all documents necessary for Otsuka to initiate and maintain such suit or
action and (b) provide reasonable assistance to Otsuka in connection with such suit or action. Notwithstanding the foregoing, if Otsuka does not inform Perception that it intends to initiate a suit or take other action against Product Trademark
Infringement within [***] after Otsuka’s receipt of a notice of such Product Trademark Infringement and does not provide Perception commercially reasonable reasons why Otsuka does not intend to initiate such suit or take such other
action within such [***] period, then Perception will have the second right, but not the obligation, to initiate a suit or take other action against such Product Trademark Infringement. 

9.10.4 Defense. If a Third Party brings suit alleging that a Sued Party’s or its Sublicensee’s Development, Manufacture or
Commercialization of a Product in the Otsuka Territory infringes or will infringe such Third Party’s Trademarks (“Trademark Infringement Suit”), then the Sued Party shall promptly notify the other Party of such Trademark
Infringement Suit and Otsuka shall be responsible, [***], for the defense of such Trademark Infringement Suit. At Otsuka’s request [***], Perception will provide reasonable assistance in connection with Otsuka’s defense of
such Trademark Infringement Suit and Otsuka will keep Perception reasonably informed on a Calendar Quarter basis prior to and during the pendency of such Trademark Infringement Suit. Otsuka will not enter into any settlement of any Trademark
Infringement Suit that is instituted or threatened to be instituted against Perception without 

  
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Perception’s prior written consent, which will not be unreasonably withheld, conditioned or delayed; provided that such consent will not be required if such settlement includes a release of
all liability in favor of Perception. Further, Otsuka shall not settle or compromise any Trademark Infringement Suit, or knowingly take any other action in the course thereof, in a manner that materially adversely affects Perception’s rights or
interests, without Perception’s prior written consent. 
 9.10.5 Guidelines for Use. Otsuka shall use, and shall cause its
Sublicensees to use, best efforts to ensure (a) that the nature and quality of all Products and of all Promotional Materials and all other materials, whether in print, electronic or other form, bearing the Product Trademarks and product
labeling shall be of a high standard and of such style, appearance and quality as to be adequate and suited to the exploitation to the best advantage, and to the protection and enhancement, of the Product Trademarks and the goodwill pertaining
thereto, and (b) that all uses of the Product Trademarks by Otsuka and its Sublicensees shall comply with all (i) trademark usage guidelines and notices Perception may provide to Otsuka in writing from time to time with respect to the use
of such Product Trademarks and (ii) Applicable Laws (collectively, “Quality Standards”). Upon Perception’s request, Otsuka shall promptly provide Perception with representative samples of any and all uses and materials
bearing the Product Trademarks as well as sufficient information regarding the specific Products offered under the Product Trademarks to enable Perception to evaluate Otsuka’s and its Sublicensees’ use of the Product Trademarks and the
quality of such Products and materials. 
 10. CONFIDENTIALITY AND PUBLICATION 

10.1 Confidential Information. 

10.1.1 Nondisclosure Obligation. All Confidential Information disclosed by one Party to the other Party under this Agreement shall be
maintained in confidence by the receiving Party and shall not be disclosed to a Third Party or used for any purpose except as set forth herein without the prior written consent of the disclosing Party, except to the extent that such Confidential
Information: 
 (a) is known by the receiving Party at the time of its receipt, and not through a prior disclosure by the disclosing Party,
as documented by the receiving Party’s business records; provided that the foregoing exception shall not apply to Joint Inventions. 

(b) is known to the public before its receipt from the disclosing Party, or thereafter becomes known to the public through no breach of this
Agreement by the receiving Party; 
 (c) is subsequently disclosed to the receiving Party by a Third Party who is not known by the receiving
Party to be under an obligation of confidentiality to the disclosing Party; or 
 (d) is developed by the receiving Party independently of
Confidential Information received from the disclosing Party, as documented by the receiving Party’s business records; provided that the foregoing exception shall not apply to Joint Inventions. 

  
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 10.1.2 Authorized Disclosures. Notwithstanding the obligations of confidentiality and
non-use set forth above, a receiving Party may provide Confidential Information disclosed to it, and disclose the existence and terms of this Agreement to (a) Sublicensees (and, with respect to
Perception, Other Perception Licensees, provided that such disclosure to Other Perception Licensees does not include any financial terms of this Agreement), and their employees, directors, agents, consultants, advisors or other Third Parties as
necessary or useful in connection with the exploitation of any Product in such Party’s Territory or as may otherwise be reasonably required in order for such Party to perform its obligations, or to exploit it rights, under this Agreement, in
each case who are under an obligation of confidentiality with respect to such information that is no less stringent than the terms of this Section 10.1; (b) Governmental Authorities or other Regulatory Authorities in any country, in
order to obtain Patent Rights, and comply with statutory tax and legal requirements in any country or perform its obligations or exploit its rights under this Agreement, provided that such Confidential Information shall be disclosed only to the
extent reasonably necessary to do so; (c) the extent required by Applicable Law, including by the rules or regulations of the United States Securities and Exchange Commission or similar regulatory agency in a country other than the United
States or of any stock exchange or listing entity that are applicable to a Party, its parent entity or any of its investors; and (d) (i) any bona fide actual or prospective underwriters, investors (including in connection with a Monetization),
lenders or acquirers of a Party or substantially all its assets and to consultants and advisors of such Third Party, and (ii) any bona fide actual or prospective collaborators or strategic partners, including prospective Third Party
Sublicensees (and, with respect to Perception, Other Perception Licensees, provided that such disclosure to Other Perception Licensees does not include any financial terms of this Agreement), and to consultants and advisors of such Third Party, in
each case of (i) and (ii) during bona fide business discussions, provided that the receiving party of such information is under an obligation of confidentiality of reasonable scope and duration with respect to such information. If a Party is
required by Applicable Law to disclose Confidential Information that is subject to the non-disclosure provisions of this Section 10.1, such Party shall promptly inform the other Party of the
disclosure that is being sought in order to provide the other Party an opportunity to challenge or limit the disclosure. Confidential Information that is required to be disclosed by Applicable Law shall remain otherwise subject to the
confidentiality and non-use provisions of this Section 10.1. If either Party concludes that a copy of this Agreement must be filed by such Party, its parent entity or any of its investors with the
United States Securities and Exchange Commission or similar regulatory agency in a country other than the United States or of any stock exchange or listing entity, such Party shall provide the other Party with a copy of such agreement showing any
provisions hereof as to which such first Party proposes to request confidential treatment, shall provide the other Party with an opportunity to comment on any such proposed redactions and to suggest additional redactions, and shall take such
Party’s comments into consideration before filing such agreement. 
 10.2 Publication and Publicity. 

10.2.1 Publication. Perception shall develop, and the Parties shall review and discuss at the JCC, a publication strategy pursuant to
which the Parties may publish certain key results achieved in connection with this Agreement, including in connection with Development of the Products in the Otsuka Territory, that will be coordinated with the publication by Perception of similar
results achieved with respect to such activities in the Perception Territory, with the goal of protecting the Parties’ ability to obtain Patent Rights with respect to such activities as applicable,

  
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and to position the Products for Regulatory Approval and successful Commercialization in the Parties’ respective Territories. All publications of such key results shall be consistent with
such publication strategy and shall be subject to this Section 10.2.1. Except for disclosures permitted pursuant to Section 10.1 and Section 10.2.2, if a Party desires to
make a publication or public presentation regarding any such key results, or that contains the Confidential Information of the other Party, the publishing Party shall deliver to the other Party a copy of the proposed written publication or
presentation at least [***] days prior to submission for publication or presentation. The non-publishing Party shall have the right (a) to require modifications to the publication or presentation
for patent reasons, trade secret reasons or business reasons, and the publishing Party shall remove all Confidential Information of the non-publishing Party if requested by the
non-publishing Party, and (b) to request a reasonable delay in publication or presentation in order to protect patentable information. If the non-publishing Party
requests a delay, the publishing Party shall delay submission or presentation for a period of [***] days to enable the non-publishing Party to file patent applications protecting such Party’s
rights in such information. 
 10.2.2 Publicity. Except as set forth in Section 10.1 and Section 10.2.1 and
Section 10.3, the terms of this Agreement may not be disclosed by either Party. Neither Party (or any of its parent entities or investors) shall use the name or Trademark of the other Party or its employees in any publicity, news release
or disclosure relating to this Agreement, its subject matter, or the activities of the Parties hereunder without the prior express written permission of the other Party, except as may be required by Applicable Law, including by the rules or
regulations of the United States Securities and Exchange Commission or similar regulatory agency in any country other than the United States or of any stock exchange or listing entity that are applicable to a Party, its parent entity or any of its
investors, or except as expressly permitted by the terms of this Agreement. 
 10.3 Press Release. Following the execution of
this Agreement, the Parties may each issue a press release or the Parties may issue a joint press release, in the form or forms mutually agreed by the Parties. After such initial press release(s), neither Party shall issue a press release or public
announcement relating to this Agreement or the Parties’ respective rights and obligations under this Agreement without the prior written approval of the other Party, not to be unreasonably withheld, conditioned or delayed, except that the
Parties and their parent entities (and with respect to Perception, its investors) may (a) once a press release or other public statement is approved in writing by both Parties, make subsequent public disclosure of the existence of this
Agreement, the identity of the other Party, and those terms of this Agreement that have already been publicly disclosed, without the further approval of the other Party, and (b) issue a press release or public announcement as required, in the
reasonable judgment of such Party, by Applicable Law, including by the rules or regulations of the United States Securities and Exchange Commission, or similar regulatory agency in a country other than the United States or of any stock exchange or
listing entity on which such Party or any of its parent entities or investors desires to list or does list its securities. 
 10.4
Survival. The provisions in this Article 10 shall survive the expiration or the termination of this Agreement for a period of [***] thereafter, except that with respect to trade secrets, such provisions and obligations shall
survive for as long as the trade secrets remain secret. 
  

  
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 11. REPRESENTATIONS, WARRANTIES AND COVENANTS 

11.1 Mutual Representations and Warranties. Each Party represents and warrants to the other Party that, as of the Effective Date:

 11.1.1 such Party is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of
incorporation or formation; 
 11.1.2 such Party has all requisite corporate power and corporate authority to enter into this
Agreement and to carry out its obligations under this Agreement; 
 11.1.3 all requisite corporate action on the part of such Party,
its directors and stockholders required by Applicable Law for the authorization, execution and delivery by such Party of this Agreement, and the performance of all obligations of such Party under this Agreement, has been taken; 

11.1.4 the execution, delivery and performance of this Agreement, and compliance with the provisions of this Agreement, by such Party do
not and shall not: (a) violate any provision of Applicable Law or any ruling, writ, injunction, order, permit, judgment or decree of any Governmental Authority, (b) constitute a breach of, or default under (or an event that, with notice or
lapse of time or both, would become a default under) or conflict with, or give rise to any right of termination, cancellation or acceleration of, any agreement, arrangement or instrument, whether written or oral, by which such Party or any of its
assets are bound, or (c) violate or conflict with any of the provisions of such Party’s organizational documents (including any articles or memoranda of organization or association, charter, bylaws or similar documents); 

11.1.5 no consent, approval, authorization or other order of, or filing with, or notice to, any Governmental Authority or other Third
Party is required to be obtained or made by such Party in connection with the authorization, execution and delivery by Otsuka of this Agreement; and 

11.1.6 such Party is not debarred, disqualified or the subject of a conviction under Section 306 of the FD&C Act, or comparable
laws in any country or jurisdiction other than the U.S. (“Debarred”), and it does not employ or use the services of any person who is Debarred in connection with any activities relating to a Product. 

11.2 Mutual Covenants. 

11.2.1 Each Party covenants that it shall use Commercially Reasonable Efforts to not use, in any capacity in connection with activities
under this Agreement or relating to any Product, any Person who has been Debarred. If either Party becomes aware that it or any Person used in any capacity by it in the performance of activities under this Agreement or relating to any Product is
Debarred or is subject to any action, suit, claim, investigation or legal or administrative proceeding (whether pending or threatened) pursuant to which it may be Debarred, such Party shall immediately notify the other Party in writing and such
Party shall cease employing, contracting with, or retaining any such Person to perform any such activities. 

  
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 11.2.2 Each Party covenants that, in the performance of its obligations under this
Agreement, each Party shall, and shall cause its Sublicensees and subcontractors to, comply with all Applicable Laws, including Privacy Laws, all applicable anti-corruption laws, including the Foreign Corrupt Practices Act of 1977 and the Bribery
Act 2010, as amended from time to time, and current governmental regulations concerning GLP, GCP and GMP, as applicable. In addition, each Party covenants that it has implemented and will continue to implement during the Term appropriate controls to
comply with Privacy Laws and maintain data privacy and security of its own Know-How and any of the other Party’s Know-How in its possession, including for
detecting, responding to, and reporting potential breaches in accordance with Applicable Laws. Without limitation, each Party shall implement and maintain reasonable administrative, technical, and physical safeguards designed to (a) maintain
the security and confidentiality of the other Party’s Know-How (and the systems to process such Know-How); (b) protect against reasonably anticipated threats or
hazards to the security or integrity of such Know-How, systems, and the Party’s activities hereunder; and (c) protect against loss, misuse, or unauthorized access to, acquisition of, or other
compromise of such Know-How, personal data and systems (each of the events described in (c), a “Security Incident”). If either Party becomes aware of such a Security Incident involving the
other Party’s Know-How in its possession or control, then such Party shall promptly notify the other Party and promptly and diligently investigate, contain, remediate, take all necessary steps to prevent
the recurrence of, and otherwise respond to any such Security Incident in a manner that meets or exceeds Privacy Laws, including to ensure that notifications to individuals or government authorities are provided in accordance with Privacy Laws;
provided, however, that, except to the extent required by Applicable Law, neither Party shall send a notice regarding a Security Incident to any Third Party that identifies the other Party, directly or indirectly, without the other Party’s
prior written approval. If a Party becomes aware of a Security Incident, it will preserve pertinent information with respect to, and reasonably cooperate in the other Party’s investigation of, such Security Incident. Upon request, each Party
will provide to the other Party with commercially reasonable assistance as is reasonably requested to enable the requesting Party to comply with its obligations under Privacy Laws. 

11.2.3 Neither Party shall enter into any agreement with any Third Party that is inconsistent with such Party’s obligations under
this Agreement or the rights granted to the other Party under this Agreement. 
 11.3 Additional Representations and Warranties of
Perception. Perception hereby represents and warrants to Otsuka that, as of the Effective Date: 
 11.3.1 Perception has
sufficient legal or beneficial title and ownership of, or sufficient license rights under, the Perception Technology and Product Trademarks to grant the licenses to Otsuka as purported to be granted pursuant to this Agreement, and to
Perception’s knowledge, neither any license granted by Perception to any Third Party, nor any license granted by any Third Party to Perception conflicts with the rights and licenses granted to Otsuka hereunder; 

11.3.2 (a) Schedule 11.3.2 sets forth a complete and accurate list of the Perception Patent Rights owned, either solely or
jointly, or in-licensed by Perception (the “Existing Perception Patent Rights”) and indicates, for each Existing Perception Patent Right, whether such Patent Right is owned solely or jointly
by Perception or licensed by Perception from a Third Party and if so, identifies the co-owner or the licensor or sublicensor from which the Patent 

  
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Right is licensed, (b) to Perception’s knowledge, the Existing Perception Patent Rights are all Patent Rights owned or in-licensed by Perception
or its Affiliates related to any Product as it exists as of the Effective Date or the Development, Manufacture or Commercialization thereof in the Field in the Otsuka Territory, (c) Perception Controls all Existing Perception Patent Rights and,
except for any payments payable under the Chiba University Agreement, no payments are, as of the Effective Date, or will be after the Effective Date owed or payable to any Third Party in connection with any rights, licenses or access in, to or under
the Existing Perception Patent Rights, to Perception’s knowledge, the Existing Perception Patent Rights are, or, upon issuance, will be, valid and enforceable patents and no Third Party has challenged or threatened to challenge the scope,
validity or enforceability of any Existing Perception Patent Rights (including, through opposition or the institution or written threat of institution of interference, nullity or similar invalidity proceedings before the Japan Patent Office), and
(e) Perception or its Affiliates have timely paid all filing and renewal fees payable with respect to the Existing Perception Patent Rights in the Otsuka Territory on or before the final due date for the applicable payment; 

11.3.3 To Perception’s knowledge, Perception has not used (and as of the Effective Date does not intend to use) (a) any
technology that is the subject of any Patent Rights owned or otherwise controlled by any entity controlled by ATAI Life Sciences (except for Perception or any Affiliate that controls Perception) in the Development or Manufacture of any Product as it
exists as of the Effective Date or (b) any Know-How that is owned or otherwise controlled by any entity controlled by ATAI Life Sciences (except for Perception or any Affiliate that controls Perception)
in the Development or Manufacture of any Product as it exists as of the Effective Date; 
 11.3.4 To Perception’s knowledge,
Perception has complied with all Applicable Laws, including all duties of candor to applicable patent offices, in connection with the filing, prosecution and maintenance of the Existing Perception Patent Rights; 

11.3.5 Perception has obtained from all inventors of Perception Technology owned by Perception valid and enforceable agreements
assigning to Perception each such inventor’s entire right, title and interest in and to all such Perception Technology; 
 11.3.6
(a) To Perception’s knowledge, the Development, Manufacture and Commercialization in the Otsuka Territory of any Product as formulated and Manufactured as of the Effective Date does not and will not constitute misappropriation of any Know-How of any Third Party or infringe any issued Patent Right or any Trademark of any Third Party; and (b) no claim or action has been brought or, to Perception’s knowledge, threatened by any Third Party
alleging that the use of the Perception Technology, or the Development or Manufacture of any Product infringes or misappropriates, or would infringe of misappropriate, any Patent Rights, Know-How or other
Intellectual Property Rights of any Third Party; 
 11.3.7 no litigation or other claim or action has been brought or is pending or,
to Perception’s knowledge, threatened that seeks to invalidate or challenge the enforceability of any of the Existing Perception Patent Rights in the Otsuka Territory, and no Third Party has challenged in writing, or, to the knowledge of
Perception, has threatened to challenge, Perception’s right to use and license the Perception Know-How in the Otsuka Territory; 

  
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 11.3.8 no Existing Perception Patent Right is the subject of any interference,
opposition, cancellation or other protest proceeding; 
 11.3.9 to Perception’s knowledge, no Third Party is infringing or
misappropriating or has infringed or misappropriated the Perception Technology in the Otsuka Territory; 
 11.3.10 Perception and, to
Perception’s knowledge, its contractors, consultants and other Third Parties acting on its behalf, have conducted all Development and Manufacturing of any Product in the Current Formulation prior to the Effective Date in compliance with all
Applicable Laws, including GLP, GCP and GMP, as applicable, in each case, in all material respects; 
 11.3.11 there are no
investigations, inquiries, actions, or other proceedings pending before or, to Perception’s knowledge, threatened by any Regulatory Authority or other Governmental Authority in the Otsuka Territory with respect to any Product arising from any
default by Perception or a Third Party acting on its behalf in the Development of any Product, and Perception has not received written notice threatening any such investigation, inquiry, action, or other proceeding; 

11.3.12 Perception has (a) disclosed to Otsuka all material information in Perception’s possession or control as of the
Effective Date pertaining to Development of any Product, including all briefing documents, meeting minutes, and all protocols and protocol amendments for all past and active Clinical Studies and other studies, in each case, submitted to or received
from Regulatory Authorities in the Otsuka Territory and the Perception Territory, and disclosed to Otsuka all clinical and non-clinical data in the possession or Control of Perception that is necessary or
material for the evaluation of the safety, efficacy and Manufacturing process of any Product; 
 11.3.13 no Regulatory Filings related
to the Development of any Product have been submitted by or on behalf of Perception to Regulatory Authorities in the Otsuka Territory; and 

11.3.14 Perception has provided to Otsuka a true, correct and complete copy of all agreements between Perception and its CMOs and other
Third Party manufacturers for the Manufacture and supply of API and Clinical Samples, including any and all amendments, restatements, side letters, or other modifications thereto, as are in effect as of the Effective Date. 

11.4 Additional Representations, Warranties and Covenants of Perception as to the Chiba University Agreement. 

11.4.1 Perception hereby represents and warrants to Otsuka that, as of the Effective Date: 

(a) it has provided to Otsuka a true, correct and complete copy of the Chiba University Agreement, including any and all amendments,
restatements, side letters, or other modifications thereto, as are in effect as of the Effective Date; 

  
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 (b) the Chiba University Agreement is in full force and effect and has not been assigned,
amended, restated, terminated in whole or in part, or otherwise modified in any manner other than as reflected (if at all) in any amendments or other documents provided to Otsuka; 

(c) it is in compliance in all material respects with the terms and conditions of the Chiba University Agreement, it has not received any
written notice or claim from Chiba University alleging any breach by Perception under the Chiba University Agreement that remains uncured as of the Effective Date, and entering into this Agreement with Otsuka will not result in a breach or violation
of the Chiba University Agreement; 
 (d) to Perception’s knowledge, Chiba University does not own or otherwise control any Patent
Rights that are necessary for the making, using or selling of Product as it exists as of the Effective Date in the Otsuka Territory that are not included in the scope of the rights granted to Perception under the Chiba University Agreement; 

(e) the Chiba University Agreement is the only agreement entered into by Perception with any Third Party, including any amendments thereto,
pursuant to which Perception is granted any rights to or Controls any Perception Technology; 
 (f) to Perception’s knowledge, the
licensor under the Chiba University Agreement is in compliance in all material respects with the Chiba University Agreement; and 
 (g)
except for Perception Technology licensed to Perception pursuant to the Chiba University Agreement, Perception is the exclusive owner of all of the Perception Technology. 

11.4.2 Perception further covenants to Otsuka and agrees that Perception shall: 

(a) during the term of the Chiba University Agreement, (i) not assign (except in connection with an assignment of this Agreement as
permitted under Section 15.1), amend, restate, terminate in whole or in part, or otherwise modify the Chiba University Agreement in a manner that would adversely affect the rights granted to Otsuka under this Agreement,
without the prior written consent of Otsuka, or (ii) fail to take any action with respect to the Chiba University Agreement that is reasonably necessary to avoid an adverse effect on Otsuka’s rights or obligations under this Agreement;

 (b) during the term of the Chiba University Agreement, not take any action or omit to take any action that constitutes a breach of the
Chiba University Agreement or that would give rise to a termination right of the Chiba University Agreement on the part of its counterparty thereunder or that would adversely affect Otsuka’s rights or obligations under this Agreement; and 

(c) during the Term, provide Otsuka with prompt written notice of any claim of a material breach under the Chiba University Agreement or
notice of termination of the Chiba University Agreement. 

  
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 11.5 Warranty Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATION OR EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, TO THE OTHER PARTY WITH RESPECT TO ANY TECHNOLOGY, PRODUCT, PROGRAM, GOODS, SERVICES, RIGHTS OR OTHER SUBJECT MATTER OF THIS AGREEMENT
AND HEREBY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT WITH RESPECT TO ANY AND ALL OF THE FOREGOING. EACH PARTY HEREBY DISCLAIMS ANY
REPRESENTATION OR WARRANTY THAT THE DEVELOPMENT, MANUFACTURE OR COMMERCIALIZATION OF ANY PRODUCT PURSUANT TO THIS AGREEMENT SHALL BE SUCCESSFUL OR THAT ANY PARTICULAR SALES LEVEL WITH RESPECT TO ANY PRODUCT SHALL BE ACHIEVED. 

12. INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE 

12.1 Indemnification by Otsuka. Otsuka shall indemnify, hold harmless and defend Perception, its Sublicensees, and its and their
respective directors, officers, employees and agents (“Perception Indemnitees”) from and against any and all liabilities, expenses, damages, costs, fees, expenses and losses, including any damages for product liability, personal
injury or property damage, and including reasonable legal expenses and attorneys’ fees (collectively, “Losses”), to which any Perception Indemnitee may become subject as a result of any claim, demand, action or other proceeding
by any Third Party (“Third Party Claim”) to the extent such Third Party Claim or Losses arise out of: (a) the Development, Manufacture or Commercialization of any Product by Otsuka or its Sublicensees or subcontractors in the
Otsuka Territory (and in the Perception Territory solely with respect to an Ex-Otsuka Territory Study), (b) any breach of, or inaccuracy in, any representation or warranty made by Otsuka in this Agreement, or
any breach or violation of any covenant or agreement of Otsuka in or in the performance of this Agreement, or (c) the negligence or willful misconduct by Otsuka or its Sublicensees or subcontractors or its or their respective directors,
officers, employees or agents in the performance of Otsuka’s obligations under this Agreement; provided that, Otsuka shall have no obligation to indemnify the Perception Indemnitees to the extent that the Losses arise out of or result from any
matters for which Perception is obligated to indemnify Otsuka under Section 12.2. 
 12.2 Indemnification by
Perception. Perception shall indemnify, hold harmless, and defend Otsuka, its Sublicensees and its and their respective directors, officers, employees and agents (“Otsuka Indemnitees”) from and against any and all Losses to
which any Otsuka Indemnitee may become subject as a result of any Third Party Claim to the extent such Third Party Claim or Losses arise out of: (a) the Development, Manufacture or Commercialization of any Product by Perception, Other
Perception Licensees or subcontractors during the Term or after termination or expiration of this Agreement (excluding the Manufacture of API or Clinical Samples supplied by Perception to Otsuka under the Supply Agreement), (b) any breach of, or
inaccuracy in, any representation or warranty made by Perception in this Agreement, or any breach or violation of any covenant or agreement of Perception in or in the performance of this Agreement, or (c) the negligence or willful misconduct by
Perception or its Sublicensees or subcontractors, including CMOs, or their respective directors, officers, employees or agents (i) in the performance of Perception’s obligations under this Agreement or (ii) in the Development or
Manufacture of any Product prior to the Effective Date; provided that, Perception shall have no 

  
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obligation to indemnify the Otsuka Indemnitees to the extent that the Losses arise out of or result from any matters for which Otsuka is obligated to indemnify Perception under
Section 12.1. For clarity, Perception’s obligations to indemnify Otsuka with respect to API or Clinical Samples supplied by Perception to Otsuka shall be as set forth in the Supply Agreement. 

12.3 Procedure. In the event of a Third Party Claim against any Otsuka Indemnitee or Perception Indemnitee (individually, an
“Indemnitee”), the Party seeking indemnification under this Article 12 (the “Indemnified Party”) shall promptly notify the other Party (the “Indemnifying Party”) in writing of such Third
Party Claim; provided that any failure or delay in providing such notice will not relieve the Indemnifying Party of its indemnification obligation, except to the extent it is actually prejudiced by such failure or delay. The Indemnitee will
reasonably cooperate with the Indemnifying Party and may, at its option, be represented in such action or proceeding at its cost and expense; provided that if an Indemnitee retains its own counsel for the reason that representation of such
Indemnitee by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between the Indemnitee and any other party represented by such counsel in such action or proceeding, then the
Indemnifying Party shall pay the fees and expenses of the Indemnitee’s counsel. The Indemnifying Party will have the right to assume and control the defense of the Third Party Claim at its own expense with counsel selected by the Indemnifying
Party and reasonably acceptable to the Indemnified Party. If the Indemnifying Party does not assume the defense of the Third Party Claim pursuant to this Section 12.3, then the Indemnified Party may defend the Third Party Claim but will
have no obligation to do so. Each Party will promptly furnish to the other Party copies of all papers and official documents received in respect of any Losses. The Indemnified Party will not settle or compromise the Third Party Claim without the
prior written consent of the Indemnifying Party, and the Indemnifying Party will not settle or compromise the Third Party Claim in any manner that would have an adverse effect on the Indemnified Party’s interests (including any rights under
this Agreement or the scope, validity, or enforceability of any Patent Rights, Confidential Information, or other rights licensed to Otsuka by Perception hereunder), without the prior written consent of the Indemnified Party. 

12.4 Limitation of Liability. NEITHER PARTY HERETO SHALL BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS OR PERFORMANCE OF ITS OBLIGATIONS HEREUNDER, INCLUDING LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES, EXCEPT AS A RESULT OF
A PARTY’S WILLFUL MISCONDUCT OR A BREACH OF ARTICLE 10 OR THE EXCLUSIVITY TERMS OF THE LICENSES GRANTED IN ARTICLE 2. NOTHING IN THIS SECTION 12.4 IS INTENDED TO LIMIT OR RESTRICT THE INDEMNIFICATION RIGHTS OR OBLIGATIONS
OF EITHER PARTY. 
 13. TERM AND TERMINATION 

13.1 Term. This Agreement shall be effective as of the Effective Date and, unless terminated earlier pursuant to
Section 13.2, this Agreement shall continue in effect, on a Product-by-Product basis until the expiration of the Royalty Term for such Product
(“Term”). Upon the expiration of the Term with respect to a Product (without this Agreement being terminated earlier pursuant to Section 13.2), Otsuka’s rights to such Product and all license grants to Otsuka
hereunder with respect to such Product shall continue, shall remain exclusive to Otsuka (even as to Perception) and shall become fully paid-up, royalty-free, perpetual and irrevocable. 

  
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 13.2 Early Termination. This Agreement may not be terminated by either Party
except as provided in this Section 13.2. 
 13.2.1 Termination by Otsuka. Otsuka shall have the right to terminate this
Agreement in its entirety for convenience at any time (a) on [***] prior written notice to Perception if such notice is given before the first Regulatory Approval of the first Product in the Otsuka Territory, or (b) on [***]
prior written notice to Perception if such notice is given on or after the first Regulatory Approval of the first Product in the Otsuka Territory. 

13.2.2 Suspension / Termination for Safety. Otsuka shall have the right to immediately suspend its activities under this Agreement due
to (a) any Safety Reasons, (b) failure of any Clinical Study for any Product in the Otsuka Territory or the Perception Territory or (c) withdrawal of Regulatory Approval for any Product in the Perception Territory; provided that
Otsuka shall immediately inform Perception of such suspension and, in the case of clause (a), Otsuka shall request a meeting of the JCC to discuss such Safety Reason. Otsuka shall have the right to terminate this Agreement in its entirety due
to (a) any Safety Reasons, (b) failure of any Clinical Study for any Product in the Otsuka Territory or the Perception Territory or (c) withdrawal of Regulatory Approval for any Product in the Perception Territory immediately upon
written notice to Perception, provided that Otsuka shall not give such notice of termination until after discussion at the JCC with respect thereto. 

13.2.3 Termination for Cause. This Agreement may be terminated in its entirety at any time during the Term upon written notice by either
Party if the other Party is in material breach of its obligations hereunder and has not cured such breach within [***] in the case of a payment breach, or within [***] in the case of all other breaches, after notice requesting cure of
the breach; provided that, if any breach other than a payment breach is not reasonably curable within [***] and if a Party is making a bona fide effort to cure such breach, such termination shall be delayed for a time period to be agreed by
both Parties, not to exceed an additional [***], in order to permit such Party a reasonable period of time to cure such breach. Notwithstanding the foregoing, if the allegedly breaching Party disputes in good faith the existence, materiality,
or failure to cure of any breach, and provides written notice to the other Party of such dispute within the relevant cure period, the other Party will not have the right to terminate this Agreement in accordance with this Section 13.2.3
unless and until the relevant dispute has been resolved pursuant to Article 14. During the pendency of such dispute, the applicable cure period will be tolled, all the terms of this Agreement will remain in effect, and the Parties will
continue to perform all of their respective obligations hereunder. 
 13.2.4 Termination for Cessation of Development and
Commercialization. 
 (a) Subject to Section 13.2.4(b), if Otsuka has ceased all material Development and
Commercialization activities in the Otsuka Territory with respect to all Products for [***] and such cessation is not the result of a force majeure event, Good Reason, a delay in response from a Regulatory Authority, a failure or delay in
Perception’s performance of its obligations under this Agreement or the Supply Agreement, or customary pauses or gaps between 

  
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or following Clinical Studies and Non-Clinical Studies for the analysis of data, preparation of reports and design of future clinical trials or preparation
of regulatory filings and other customary regulatory or Development functions, then Perception may terminate this Agreement on [***] written notice to Otsuka given no later than [***] after the end of such [***]. For purposes of
this Section 13.2.4, “Good Reason” means a Safety Concern or other material scientific, technical, commercial, or regulatory reason (for example a clinical hold being placed on a Product, a material drug
manufacturing problem or a material data problem such as a serious toxicology or pharmacokinetics issue) that would be reasonably expected to impede or significantly delay a product advancing through Development or Commercialization, but if a Good
Reason is invoked by Otsuka as a reason to stop or hold Development or Commercialization, then Otsuka shall use Commercially Reasonable Efforts to resolve the problem(s) that is the basis of such Good Reason. 

(b) Notwithstanding the foregoing in Section 13.2.4(a), if Perception provides a termination notice pursuant to
Section 13.2.4(a) and Otsuka disputes in good faith whether Perception has the right to terminate the Agreement pursuant to Section 13.2.4(a) and provides written notice to Perception of such
dispute within the [***] notice period, Perception will not have the right to terminate this Agreement in accordance with this Section 13.2.4 unless and until the relevant dispute has been resolved pursuant to
Article 14. During the pendency of such dispute all the terms of this Agreement will remain in effect, and the Parties will continue to perform all of their respective obligations hereunder. 

13.2.5 Bankruptcy. If the performance of a Party’s obligations under this Agreement become untenable as a result of such Party (or
an Affiliate that controls such Party) filing of a petition in bankruptcy or entering into insolvency or liquidation proceedings either voluntarily or involuntarily, or if a receiver is appointed with respect to the assets of such Party (or its
Affiliate, if applicable), or any similar action is filed under Applicable Laws, and such measure is not dismissed within [***], to the extent permitted by the Applicable Laws of such Party’s Territory, the other Party may terminate this
Agreement immediately upon written notice to such Party. Notwithstanding the foregoing, the Parties acknowledge that a Party to this Agreement may from time-to-time make
changes in its corporate structure, including, inter alia, changes in the shareholdings of Affiliates, which would not constitute a case of bankruptcy under this Section 13.2.5. 

13.3 Effects of Termination. 

13.3.1 General Consequences of Termination or Expiration. If this Agreement expires or is terminated by a Party prior to its expiration,
in each case, in its entirety at any time and for any reason, then the terms of this Section 13.3.1 will apply. 

13.3.2 License Grants. Upon termination of this Agreement under Section 13.2 prior to expiration (for clarity,
not if this Agreement expires pursuant to Section 13.1), all rights and licenses granted to Otsuka under Section 2.1 and to Perception under Section 2.2 will terminate and
Otsuka and its Sublicensees will cease selling Products, except in each case to the extent necessary or reasonably useful for Otsuka to perform Transition Activities pursuant to Section 13.3.5 or to sell Products
post-termination pursuant to Section 13.3.5(e). 

  
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 13.3.3 Reversion License. 

(a) Upon termination of this Agreement under Section 13.2 prior to expiration (for clarity, not if this Agreement
expires pursuant to Section 13.1), Otsuka shall, and hereby does, effective as of the effective date of termination, grant Perception (i) a worldwide, royalty-free (subject to the proviso below) exclusive license under
the Otsuka Product Improvements and Otsuka’s interest in the Joint Technology solely to Develop, have Developed, Manufacture, have Manufactured, Commercialize and otherwise exploit any Product worldwide, (ii) a non-exclusive, royalty-bearing license under any Patent Rights Controlled by Otsuka to the extent such Patent Rights are (A) used by Otsuka or its Affiliates or their respective (sub)licensees in the
Development, Manufacture, Commercialization or other exploitation of a Product as it exists as of the effective date of termination and (B) necessary to Develop, have Developed, Manufacture, have Manufactured, Commercialize or otherwise exploit
any Product as it exists in the Otsuka Territory as of the effective date of termination, but excluding any Other Product Otsuka Termination Patent Rights (such Patent Rights, the “Otsuka Termination Patents”) solely to Develop,
have Developed, Manufacture, have Manufactured, Commercialize and otherwise exploit any Product as it exists in the Otsuka Territory as of the effective date of termination (or minor modifications thereof), and (iii) a non-exclusive, royalty-bearing license under any Know-How Controlled by Otsuka or any of its Affiliates (that is not an Otsuka Product Improvement or Joint Technology) to the
extent such Know-How is necessary for, and used by Otsuka or its Affiliates or its or their respective (sub)licensees in, the Manufacture of a Product (that is not a Combination Product) as it exists in the
Otsuka Territory as of the effective date of termination (such Know-How, the “Otsuka Termination Know-How”) solely to Manufacture or have Manufactured
such Product as it exists in the Otsuka Territory as of the effective date of termination (the licenses granted under (i), (ii) and (iii), the “Reversion License”); provided that if this Agreement is terminated by Otsuka pursuant to
Section 13.2.3 or Section 13.2.5, the license grant under clause (i) of the Reversion License shall be royalty-bearing as well. Perception shall pay Otsuka a commercially reasonable royalty
under the Reversion License on Net Sales of Products taking into account the then-current stage of any Products, the relative value of the Otsuka Termination Patents and Otsuka Termination Know-How and, if
applicable, the Otsuka Product Improvements and Joint Technology and the reason for termination, on terms to be agreed between Perception and Otsuka, and the grant of such license shall be conditioned on the Parties determining such royalty
(including through dispute resolution, if applicable). If the Parties are unable to agree upon a commercially reasonably royalty within [***] after the effective date of termination (or such longer period as the Parties may agree), then such
royalty amount shall be subject to resolution in accordance with Section 14.3. 
 (b) With respect to any Otsuka
Termination Patent or Otsuka Termination Know-How that is in-licensed by Otsuka, (i) Otsuka shall provide a copy of the relevant
in-license agreement (each, an “Otsuka Termination IP In-License Agreement”) to Perception timely after the effective date of such termination of this
Agreement, and (ii) upon the election of Otsuka, either (A) Otsuka shall assign such Otsuka Termination IP In-License Agreement to Perception and Perception shall accept such assignment (in which
case the applicable Otsuka Termination Patent or Otsuka Termination Know-How shall not be included within the scope of the Reversion License) or (B) (1) the Reversion License shall be subject to the terms
and conditions of such Otsuka Termination IP In-License Agreement, (2) Perception shall make any payments (including royalties, milestones, and other amounts) payable by Otsuka to

  
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Third Parties under any Otsuka Termination IP In-License Agreements that are the subject of the Reversion License, by making such payments directly to
Otsuka and, in each instance, Perception shall make the requisite payments to Otsuka and provide the necessary reporting information to Otsuka in sufficient time to enable Otsuka to comply with its obligations under such Otsuka Termination IP In-License Agreements, (3) Perception shall not, and shall cause its Affiliates, Sublicensees and Other Perception Licensees not to, take or fail to take any action if doing so (or not doing so) would cause
Otsuka to be in breach of any Otsuka Termination IP In-License Agreement and (4) Otsuka shall be responsible for paying or providing to any such Third Party any payments or reports made or provided by
Perception under this Section 13.3.3(b). 
 13.3.4 Assignments. Upon termination of this Agreement under
Section 13.2 prior to expiration (for clarity, not if this Agreement expires pursuant to Section 13.1), as soon as practicable after the effective date of termination, or in accordance with
timelines set forth in any transition plan for Transition Activities that the Parties agree upon pursuant to Section 13.3.5 (if applicable), unless Perception informs Otsuka that Perception will not (itself or with or
through its Affiliate or a Third Party) continue Development or Commercialization of any Product in the Otsuka Territory (e.g., if this Agreement is terminated due to Safety Reasons), Otsuka shall transfer and assign to Perception or its designee:
(a) all Regulatory Documentation for the Products for the Otsuka Territory (or in the case of Combination Products, all such Regulatory Documentation controlled by Otsuka), including any Regulatory Approvals, NHI Price Listing and
pharmacovigilance files that relate to the Products; (b) all of Otsuka’s right, title, and interest in and to all Product Trademarks and all domain names associated with the Product Trademarks (if any, to the extent that they are owned by
Otsuka), (c) at Perception’s option, distribution agreements, confidentiality agreements, Clinical Study agreements and other agreements (in each case to the extent assignable and not cancelled) to which Otsuka is a party, in each case, that
are specific to a Product and necessary or reasonably useful for the continued Development or Commercialization of such Product in the Otsuka Territory; provided that with respect to any such agreements that (i) relate to such Product, but are
not specific to such Product or (ii) are specific to such Product but are not fully assignable to Perception (or its designee), Otsuka shall use Commercially Reasonable Efforts to partially assign to Perception (or its designee(s)) such
agreement with respect to such Product or, if such partial assignment is not possible, Otsuka shall use Commercially Reasonable Efforts to provide Perception with an introduction to the applicable counterparty to such agreement and facilitate
negotiations with such counterparty; and (d) any other materials necessary to reasonably facilitate an efficient transfer of the distribution of Products in the Otsuka Territory to Perception (or its designee). 

13.3.5 Transition Activities. Upon termination of this Agreement under Section 13.2 except if this Agreement
is terminated by Otsuka pursuant to Section 13.2.3 (for clarity, not if this Agreement expires pursuant to Section 13.1): 

(a) The Parties wish to provide a mechanism to ensure that, assuming any Product is available to patients in the Otsuka Territory as of the
effective date of termination, patients who were being treated with Products prior to such termination or who desire access to a Product can continue to have access to such Products while the responsibilities for any Product in the Otsuka Territory
are transitioned from Otsuka to Perception or its designee. 

  
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 (b) As such, Perception may request Otsuka to perform transition activities with respect to
Products in the Otsuka Territory that are necessary or reasonably useful to (i) transition Commercialization activities (if any) to Perception, including transitioning distribution responsibilities to Perception or its designee, to avoid any
shortage of Products and minimize disruption to sales in the Otsuka Territory, (ii) provide patients with continued access to Products (if applicable), (iii) enable Perception or its designee to assume and execute the responsibilities under all
Regulatory Approvals and ongoing Clinical Studies for Products in the Otsuka Territory, and (iv) ensure long-term continuity of supply of Products in the Otsuka Territory (collectively, the “Transition Activities”). 

(c) If, within [***] after the effective date of termination, Perception provides a written request to Otsuka to perform Transition
Activities in the Otsuka Territory, then the Parties will mutually agree on a transition plan for Otsuka to perform such Transition Activities (and neither Party shall unreasonably withhold its agreement to such transition plan), including
transition dates, and, to the extent permitted under Applicable Law, Otsuka will conduct such Transition Activities in accordance with such plan, but in no event for longer than [***] following the effective date of termination. In addition,
the Parties will establish a transition committee consisting of at least each Party’s Alliance Manager, and up to [***] additional representatives from each Party who are from other relevant functional groups to facilitate a smooth
transition, and the Parties will mutually agree on talking points and a communication plan to customers, physicians, Regulatory Authorities, patient advocacy groups, and Clinical Study investigators, in each case only if applicable at the time of
termination, and Otsuka will make such communications to such applicable entities in accordance with the mutually agreed talking points. As part of the Transition Activities, Otsuka will cooperate with all reasonable requests of Perception relating
to the transition to Perception or its designee of activities relating to any Product in the Otsuka Territory and, at Perception’s request, Otsuka shall provide Perception with reasonable assistance with any inquiries and correspondence with
Regulatory Authorities in the Otsuka Territory regarding the Products. 
 (d) [***]. 

(e) Distribution and Sale of Inventory. In order to avoid any shortage of Products in the Otsuka Territory, if Perception requests that
Otsuka perform Transition Activities and Otsuka did not terminate this Agreement pursuant to Section 13.2.2, Otsuka shall continue to distribute Products in the Otsuka Territory and, to the extent Otsuka’s then-existing inventory of
Products is insufficient to fulfill sales of Products in the Otsuka Territory, Otsuka shall continue to Manufacture Products for sale and distribution in the Otsuka Territory for a period of up to [***] after the effective date of
termination; provided that Perception shall pay Otsuka its fully burdened costs to Manufacture such Products (including Otsuka’s then-existing inventory and any additional Products Manufactured by Otsuka for distribution in connection with the
Transition Activities), plus a mark-up of [***]. If Perception does not request Otsuka to perform the Transition Activities, Otsuka shall have the right to
sell-off its inventory of Products (“Inventory Sell-Off”) until the earlier of (i) such time as Perception or its designee is able to assume
responsibility for distribution of Products in the Otsuka Territory or (ii) the date on which the Regulatory Approvals for Products in the Otsuka Territory are transferred and assigned to Perception or its designee (the earlier of (i) or
(ii), the “Distribution End Date”). In the event of Inventory Sell-Off (as opposed to distribution as part of the Transition Activities), Otsuka shall

  
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retain all revenues from sales of such inventory of Products through the Distribution End Date, provided that Otsuka shall continue to pay any royalties due on such Net Sales pursuant to
Section 8.4. As soon as practicable following the Distribution End Date (in the event of Inventory Sell-Off) or as soon as practicable following completion of Transition Activities,
if applicable, Otsuka shall, as instructed by Perception in writing, either destroy or deliver to Perception all of Otsuka’s remaining inventory of Products, and Perception shall reimburse Otsuka for such inventory at a price equal to
Otsuka’s fully burdened costs to Manufacture such inventory, plus a mark-up of [***]. For clarity, Otsuka shall have no obligation to recover any Products sold to customers, including Distributors
and wholesalers, prior to the Distribution End Date or prior to completion of the Transition Activities. 
 (f) Technology Transfer.
Otsuka shall, upon Perception’s reasonable request and [***], (i) effect a transfer to Perception or its designee (which designee may be an Affiliate or a Third Party manufacturer) of
(A) Know-How within the Otsuka Product Improvements relating to the process for the Manufacture of any Product as it exists in the Otsuka Territory as of the effective date of termination and
(B) Otsuka Termination Know-How and (ii) provide reasonable assistance to Perception in the implementation of such Know-How at a facility designated by
Perception, in each case ((i) and (ii)), excluding any such Know-How that is related to the process for the Manufacture of any Product already known by or in the control or possession of Perception or that is
related to an Other Product. 
 13.3.6 Product Trademarks. Following the expiration of this Agreement (but, for clarity, not
termination pursuant to Section 13.2), (a) Perception shall and hereby does assign to Otsuka all of its and its Affiliates’ right, title and interest in and to the Product Trademarks being used by Otsuka in the
Commercialization of Products in the Otsuka Territory as of such expiration (the “Post-Royalty Product Trademarks”) and (b) Otsuka shall be responsible, [***], for the filing, prosecution, registration and maintenance
(including the defense of opposition proceedings and any equivalent proceedings), enforcement and defense from Trademark Infringement Suits of all such Post-Royalty Product Trademarks. 

13.3.7 Return of Information and Materials. Upon termination or expiration of this Agreement, the Parties will return (or destroy, as
directed by the other Party) all data, files, records, and other materials containing or comprising the other Party’s Confidential Information. Notwithstanding the foregoing, (a) solely in the event of expiration of this Agreement pursuant
to Section 13.1 with respect to one or more Products, Otsuka will be permitted to retain Perception’s Confidential Information to the extent necessary or reasonably useful for Otsuka to exercise its rights to such
Product(s) and to exercise all license grants to Otsuka hereunder with respect to such Product(s) and (b) the Parties will be permitted to retain one copy of such data, files, records, and other materials for archival and legal compliance
purposes, and the Parties will not be required to destroy Confidential Information that is stored automatically, such as through server backup processes. 

13.3.8 Accrued Rights. Termination of this Agreement for any reason will be without prejudice to any rights or financial compensation
that will have accrued to the benefit of a Party prior to such termination. Such termination will not relieve a Party from obligations that are expressly indicated to survive the termination of this Agreement. 

  
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 13.3.9 Survival. The following provisions of this Agreement will survive the
expiration or earlier termination of this Agreement: Article 1; Section 2.4; Section 2.5; Section 4.5 (solely with respect to the obligation to maintain such
records generated prior to the effective date of expiration or termination of this Agreement and such obligation shall survive for a period of [***] from the expiration or termination of this Agreement, as applicable); Sections 5.7 and
5.8.3 (in each case, solely in the event of an expiration of this Agreement and not in the event of an early termination of this Agreement); Sections 8.3-8.5, 8.7, 8.9 and
8.11 (in each case, only to the extent relating to a payment arising prior to the effective date of termination or expiration of this Agreement); Section 8.6; Section 8.8;
Section 8.10; Section 9.1 (excluding Section 9.1.4); Article 10 (excluding Section 10.2.1); Section 11.5;
Article 12; Section 13.1; Section 13.3; Section 13.4; Article 14; and Article 15. 

13.4 Rights in Bankruptcy. All rights and licenses granted under or pursuant to this Agreement by one Party to the other Party
are, and will otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws in countries other than the U.S., licenses of right to “intellectual
property” as defined under Section 101 of the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws. The Parties agree that a Party that is a licensee of such rights under this Agreement will retain and
may fully exercise all of its rights and elections under the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws. The Parties further agree that, in the event of the commencement of a bankruptcy proceeding by or
against a Party to this Agreement under the U.S. Bankruptcy Code or comparable provision of applicable bankruptcy or insolvency laws, the other Party will be entitled to a complete duplicate of (or complete access to, as appropriate) any such
intellectual property and all embodiments of such intellectual property, and the same, if not already in its possession, will be promptly delivered to it (a) upon any such commencement of a bankruptcy or insolvency proceeding upon its written
request therefor, unless the bankrupt Party elects to continue to perform all of its obligations under this Agreement, or (b) if not delivered under clause (a) above, following the rejection of this Agreement by or on behalf of the
bankrupt Party upon written request therefor by the other Party. 
 14. DISPUTE RESOLUTION. 

14.1 Executive Negotiation. The Parties will try to settle any dispute, controversy or claim that arises out of, or in connection
with, any provision of this Agreement, including any alleged material breach of this Agreement, but excluding any disagreement of the JCC (which is subject to Section 3.1.7 and, if applicable, Section 14.2) (“Disputed
Matter”) by first referring the Disputed Matter to the Executive Officers (the “Executive Negotiation”). Either Party may initiate the Executive Negotiation by sending written notice of the Disputed Matter to the other
Party (the “Dispute Notice” ), and, within [***] after such Dispute Notice (or such longer period as such Executive Officers or their designees may agree upon in writing), the Executive Officers (or their respective designees
having the authority to settle such Disputed Matter) of the Parties will meet (in person or by teleconference or videoconference) for attempted resolution of the Disputed Matter by good faith negotiations. Any resolution mutually agreed in writing
by the Executive Officers shall be conclusive and binding on the Parties. If the Executive Officers (or their respective designees) are unable to resolve the Disputed Matter within [***] of their first meeting for such negotiations (or such
longer period as such Executive Officers or their designees may agree upon in writing) (the “Executive Negotiation Period”), either Party may seek to have such dispute resolved in accordance with
Section 14.3. 

  
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 14.2 Expert Determination. If either Party overrules the other Party’s
final decision-making authority pursuant to subsection (ii) or (iii) of Section 3.1.7(c) based on a determination that, in such Party’s reasonable judgment, a decision by the other Party
that would have a significant negative impact on the value of any Product as provided in subsection (ii) or (iii) of Section 3.1.7(c), as applicable, and if the other Party disputes such determination of a significant negative
impact, the Parties shall resolve such dispute as follows: The Parties shall agree upon a single independent expert, which expert shall have at least [***] of relevant expertise and experience in the pharmaceutical industry. If the Parties
are unable to agree upon a single expert within [***] after the conclusion of the Executive Negotiation Period (or within such longer period of time as the Parties may mutually agree in writing), then Perception and Otsuka will each select
one expert and the Parties’ two selected experts will, within [***] after selection of both Parties’ experts, jointly select a third expert who will be the sole appointed expert. If the Parties’ experts are unable to agree on
the sole expert within such [***] period, then the International Chamber of Commerce (“ICC”) International Centre for ADR shall appoint such expert in accordance with the Rules for the Appointment of Experts and Neutrals of
the ICC (the “ICC Expert Rules”). The expert shall have the discretion to request oral or written testimony from the Parties. The Parties shall cooperate fully in the expeditious conduct of the expert determination and, if the
expert requests oral testimony, the Parties shall provide the expert with a written report, including supporting documentation, in connection with such Party’s oral testimony. Within [***] after the appointment of the expert or the
conclusion of oral testimony (if applicable), each Party shall submit to the expert one proposal regarding whether a Party’s decision in the exercise of its final decision-making authority under Section 3.1.7(c), as well as a
description of whether such proposal would have a significant negative impact on the value of any Product as set forth in subsection (ii) or (iii) of Section 3.1.7(c), as applicable. The expert shall accept only one of the proposals
submitted by the Parties (without making any changes to such proposal) and shall render such proposal as the expert’s final decision. The expert’s decision shall be final and binding on the Parties. For clarity, the expert shall not have
the authority to render any decision other than selecting one of the proposals submitted by a Party, and the expert shall act as an expert and not as an arbitrator. [***]. 

14.3 Arbitration. 

14.3.1 If the Parties are unable to resolve a Disputed Matter using the process described in Section 14.1, and
if Section 14.2 does not apply (except if a Party has failed to comply with an expert’s final decision pursuant to Section 14.2, in which case such breach may be resolved pursuant to this
Section 14.3), then a Party seeking further resolution of the Disputed Matter shall submit the Disputed Matter, other than Patent Disputed Matters (which shall be resolved exclusively pursuant to
Section 14.5), to resolution by final and binding arbitration. The seat, or legal place, of arbitration shall be New York City, New York and the arbitration hearing shall take place in San Francisco, California. The
arbitration shall be administered by the ICC pursuant to its International Arbitration Rules then in effect (the “ICC Arbitration Rules”), except as otherwise provided herein. The language of the arbitration shall be English. 

  
 78 

 14.3.2 The arbitration will be conducted by a panel of three (3) arbitrators
appointed in accordance with the ICC Arbitration Rules; provided that each Party shall nominate one arbitrator and the two (2) Party-nominated arbitrators shall nominate the third arbitrator, who shall serve as the chairperson, within
[***] after the second Party-nominated arbitrator’s confirmation. Each arbitrator must have at least [***] of business or legal experience in the pharmaceutical industry. If either Party fails to nominate its arbitrator or the two
(2) Party-nominated arbitrators fail to appoint the chairperson of the arbitral tribunal within [***] after the second Party-nominated arbitrator is confirmed, either Party may apply to the ICC for the appointment of the remaining
arbitrator or the chairperson of the arbitral tribunal pursuant to ICC Arbitration Rules. The award shall be rendered within [***] after the confirmation of the chairperson of the arbitral tribunal, unless the Parties jointly request an
extension or the arbitral tribunal determines in a reasoned decision that the case requires that such limit be extended by a reasonable period. 

14.3.3 The Parties agree that any dispute concerning the propriety of the commencement of the arbitration or the scope and applicability
of the agreement to arbitrate shall be determined by the arbitrators. No arbitral tribunal will have the power to award damages excluded pursuant to Section 12.4. 

14.3.4 [***]. 

14.3.5 Except as may be required by Applicable Law, neither a Party nor any arbitrator or third party involved in the arbitration
(including fact and expert witnesses, translators, interpreters, and court reporters) may disclose the existence, content or results of any arbitration hereunder without the prior written consent of both Parties, unless to protect or pursue a legal
right. This obligation shall apply with respect to all written submissions, transcripts of hearings, procedural orders, and awards. The arbitral award shall be final and binding on the Parties and the Parties shall carry out the award without delay.
Judgment on the award so rendered may be entered in any court of competent jurisdiction. 
 14.4 Injunctive Relief.
Notwithstanding the terms of and procedures set forth in Section 14.3, any applications or motions seeking interim or conservatory measures, including temporary restraining orders, preliminary injunctions or other similar preliminary or
temporary legal or equitable relief (“Injunctive Relief”), concerning a Disputed Matter (including Disputed Matters arising out of a potential or actual breach of the confidentiality and
non-use provisions in Article 10) may be brought in the first instance for hearing and resolution in and by a court of competent jurisdiction. Alternatively, a party seeking Injunctive Relief may
immediately, without invocation or exhaustion of the procedures set forth in Section 14.3, seek Injunctive Relief in accordance with the ICC Arbitration Rules, either before an emergency arbitrator or the arbitral tribunal, and applying
the substantive law specified in law specified in Section 15.2. In either event, once the Injunctive Relief proceedings have been conducted and a decision rendered thereon by the court or emergency arbitrator or arbitral tribunal, as the
case may be, the Parties will, if the Disputed Matter is not finally resolved by the Injunctive Relief, proceed to resolve the Disputed Matter in accordance with the terms of Section 14.3. 

  
 79 

 14.5 Non-Arbitral Disputes.
Notwithstanding Section 14.3, if a Disputed Matter pertains to the validity, scope, enforceability, infringement or ownership of any Patent Right, Trademark or copyright (a “Patent Disputed Matter”) and
such Patent Disputed Matter is not resolved in accordance with Section 14.2, such Disputed Matter shall not be submitted to arbitration pursuant to Section 14.3, unless otherwise agreed by the
Parties in writing, and instead, either Party may initiate litigation in a court of competent jurisdiction in any country in which such rights or remedies apply. 

15. MISCELLANEOUS 
 15.1
Assignment. 
 15.1.1 Except as expressly provided hereunder, neither this Agreement nor any rights or obligations hereunder may
be assigned or otherwise transferred by either Party without the prior written consent of the other Party (which consent shall not be unreasonably withheld, conditioned or delayed); provided that, either Party may assign or otherwise transfer this
Agreement and its rights and obligations hereunder without the other Party’s consent (a) to an Affiliate having sufficient resources to meet such Party’s obligations under this Agreement or (b) in connection with the transfer or
sale of all or substantially all of the business or assets of such Party to which this Agreement relates, whether by merger, consolidation, sale of stock, sale of assets or otherwise. The rights and obligations of the Parties under this Agreement
shall be binding upon and inure to the benefit of the successors and permitted assigns of the Parties specified above, and the name of a Party appearing herein will be deemed to include the name of such Party’s successors and permitted assigns
to the extent necessary to carry out the intent of this Section 15.1. Any assignment not in accordance with this Section 15.1 shall be null and void. 

15.1.2 Otsuka agrees that, notwithstanding any provision of this Agreement to the contrary, if Perception (or, if applicable, a parent
of Perception) undergoes (a) the acquisition of beneficial ownership, directly or indirectly, by any Third Party of securities or other voting interest of Perception (or such parent) representing a majority or more of the combined voting power
of Perception (or such parent) then outstanding securities or other voting interests, (b) any merger, reorganization, consolidation or business combination involving Perception (or such parent) with a Third Party that results in the holders of
beneficial ownership of the voting securities or other voting interests of Perception (or such parent) immediately prior to such merger, reorganization, consolidation or business combination ceasing to hold beneficial ownership of more than fifty
percent (50%) of the combined voting power of the surviving entity immediately after such merger, reorganization, consolidation or business combination, or (c) any sale, lease, exchange, contribution or other transfer to a Third Party (in one
transaction or a series of related transactions) of all or substantially all of the consolidated assets of Perception (or such parent) to which this Agreement relates (each of (a), (b) or (c), a “Change of Control” and the acquiring
or combining Third Party in any of clauses (a), (b) or (c), the “Acquirer”), any Patent Right, Know-How or other intellectual property or other proprietary rights that are owned or otherwise
controlled by the Acquirer or any of such Acquirer’s Affiliates (other than Perception or any of its Affiliates that was an Affiliate immediately prior to such Change of Control and any successor entity to Perception or any such Affiliates
thereof) shall be excluded from the licenses granted to Otsuka under this Agreement except to the extent (i) such Patent Right, Know-How or other intellectual property or other proprietary right is used
by Perception or its Affiliates or their respective (sub)licensees in the Development, Manufacture, Commercialization or other exploitation of API or Product and (ii) such Patent Right, Know-How or other
intellectual property or other proprietary right is necessary or reasonably useful for the Development, Manufacture, Commercialization or other exploitation of API or Products in the Field in the Otsuka Territory. 

  
 80 

 15.2 Governing Law. This Agreement shall be construed, and the respective
rights of the Parties determined, in accordance with the substantive laws of the State of New York, notwithstanding any provisions of New York law or any other law governing conflicts of laws to the contrary. 

15.3 Entire Agreement; Amendments. This Agreement contains the entire understanding of the Parties with respect to the subject
matter hereof, and supersedes all previous arrangements with respect to the subject matter hereof, whether written or oral. This Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by authorized
representatives of each Party; provided that the Schedules attached hereto may be amended, or any term hereof modified, only by a written instrument duly executed by authorized representatives from each Party, except to the extent expressly provided
in this Agreement. 
 15.4 Severability. If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable
or illegal by a court of competent jurisdiction, such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or legality of any remaining portions of this Agreement. All remaining
portions shall remain in full force and effect as if the original Agreement had been executed without the invalidated, unenforceable or illegal part. 

15.5 Headings. The captions to the Sections and Articles hereof are not a part of this Agreement, but are merely for convenience
to assist in locating and reading the several Sections and Articles hereof. 
 15.6 Waiver of Rule of Construction. Each Party
has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement shall be construed against the drafting Party shall
not apply. 
 15.7 Interpretation. Except where the context expressly requires otherwise, (a) the use of any gender herein
shall be deemed to encompass references to either or both genders, and the use of the singular shall be deemed to include the plural (and vice versa); (b) the words “include”, “includes” and “including” shall be deemed
to be followed by the phrase “without limitation” and shall not be interpreted to limit the provision to which it relates; (c) the word “will” shall be construed to have the same meaning and effect as the word
“shall”; (d) 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); (e) any reference herein to any Person shall be construed to include the Person’s successors and permitted assigns; (f) the words
“herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in each of their entirety, as the context requires, and not to any particular provision hereof; (g) all
references herein to Sections, Articles or Schedules shall be construed to refer to Sections, Articles or Schedules of this Agreement, and references to this Agreement include all Schedules hereto; (h) the word “notice” means notice
in 

  
 81 

 
writing (whether or not specifically stated) and shall include notices, consents, approvals and other written communications contemplated under this Agreement; (i) provisions that require
that a Party, the Parties or any committee hereunder “agree,” “consent” or “approve” or the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter,
approved minutes or otherwise (but excluding e-mail and instant messaging unless expressly permitted hereunder); (j) references to any specific law, rule or regulation, or article, section or other division
thereof, shall be deemed to include the then-current amendments thereto or any replacement or successor law, rule or regulation thereof; and (k) the term “or” shall be interpreted in the inclusive sense commonly associated with the
term “and/or.” 
 15.8 No Implied Waivers; Rights Cumulative. Except as expressly provided in this Agreement, no failure on
the part of Perception or Otsuka to exercise, and no delay in exercising, any right, power, remedy or privilege under this Agreement, or provided by statute or at law or in equity or otherwise, shall impair, prejudice or constitute a waiver of any
such right, power, remedy or privilege or be construed as a waiver of any breach of this Agreement or as an acquiescence therein, nor shall any single or partial exercise of any such right, power, remedy or privilege preclude any other or further
exercise thereof or the exercise of any other right, power, remedy or privilege. 
 15.9 Notices. All notices that are required or
permitted hereunder shall be in writing and sufficient if (a) sent by internationally recognized overnight delivery service or (b) sent by email and confirmed by registered or certified mail, addressed to the Parties at their respective
addresses specified below or to such other address as a Party may specify in accordance with this Section 15.9. Such notice shall be deemed to have been given as of the date delivered, if delivered by hand or by email, or
on the [***] (at the place of delivery) after deposit with an internationally recognized overnight delivery service. This Section 15.9 is not intended to govern the day-to-day business communications between the Parties in performing their obligations under this Agreement. 

If to Perception, notices must be addressed to: 

Perception Neuroscience, Inc. 

180 Varick Street 
 Suite 637

 New York, NY 10014, USA 

Attention: [***] 
 Email:
[***] 
 With a copy to (which will not constitute notice for purposes of this Agreement): 

Covington & Burling LLP 

The New York Times Building, 620 Eighth Avenue 

New York, NY 10018-1405 

Attention: [***] 
 Email:
[***] 

  
 82 

 If to Otsuka, notices must be addressed to: 

Otsuka Pharmaceuticals, Co. Ltd. 

Shinagawa Grand Central Tower, 

2-16-4 Konan,
Minato-ku, 
 Tokyo, 108-8242 Japan, 

Attention: [***] 

With a copy to (which will not constitute notice for purposes of this Agreement): 

Otsuka Pharmaceutical Co., Ltd. 

Shinagawa Grand Central Tower 
 2-16-4 Konan, Minato-ku 

Tokyo, 108-8242 Japan 

Attention: [***] 
 Email:
[***] 
 Otsuka Pharmaceutical Co., Ltd.| 

Shinagawa Grand Central Tower 
 2-16-4 Konan, Minato-ku 

Tokyo, 108-8242 Japan 

Attention: [***] 
 Email:
[***] 
 In addition, each Party shall deliver a courtesy copy to the other Party’s Alliance Manager concurrently with such notice. 

15.10 Force Majeure. Neither Party shall be held liable to the other Party nor be deemed to have defaulted under or breached
this Agreement for failure or delay in performing any obligation under this Agreement (except payment of money obligations), to the extent that such failure or delay is caused by or results from any event beyond such Party’s reasonable control
including acts of God, fire, flood, explosion, earthquake, pandemic, disease, or other natural forces, war, civil unrest, acts of terrorism, accident, destruction or other casualty, any lack or failure of transportation facilities, any lack or
failure of supply of raw materials, or any other event similar to those enumerated above. The affected Party shall notify the other Party of such force majeure circumstances as soon as reasonably practical, and shall promptly undertake all
reasonable efforts necessary to cure or mitigate such force majeure circumstances. All delivery dates under this Agreement that have been affected by force majeure shall be tolled for the duration of such force majeure. In no event shall any Party
be required to prevent or settle any labor disturbance or dispute. 
 15.11 Independent Parties. It is expressly agreed that
Perception and Otsuka shall be independent contractors and that the relationship between Perception and Otsuka shall not constitute a partnership, joint venture or agency. Perception shall not have the authority to make any statements,
representations or commitments of any kind, or to take any action, which shall be binding on Otsuka, without the prior written consent of Otsuka, and Otsuka shall not have the authority to make any statements, representations or commitments of any
kind, or to take any action, which shall be binding on Perception without the prior written consent of Perception. 

  
 83 

 15.12 Performance by Affiliates. Each Party acknowledges and accepts
that the other Party may exercise its rights and perform its obligations under this Agreement either directly or through one or more of its Affiliates. A Party’s Affiliates will have the benefit of all rights (including all licenses) of such
Party under this Agreement. Accordingly, in this Agreement “Otsuka” will be interpreted to mean “Otsuka or its Affiliates” and “Perception” will be interpreted to mean “Perception or its Affiliates” where
necessary to give each Party’s Affiliates the benefit of the rights provided to such Party in this Agreement; provided that, in any event each Party will remain responsible for the acts and omissions, including financial liabilities, of its
Affiliates. 
 15.13 Binding Effect; No Third Party Beneficiaries. As of the Effective Date, this Agreement shall be binding upon and
inure to the benefit of the Parties and their respective permitted successors and permitted assigns. Except as expressly set forth in this Agreement, no Person other than the Parties and their respective Affiliates and permitted assignees hereunder
shall be deemed an intended beneficiary hereunder or have any right to enforce any obligation of this Agreement. 
 15.14 Counterparts;
Electronic Signatures. This Agreement may be executed in two (2) or more counterparts, including by PDF signature pages or other electronic means, each of which shall be deemed an original, but all of which together shall constitute one and
the same instrument. 
 {Signature Page Follows} 

  
 84 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 

 

									
	Otsuka Pharmaceutical Co., Ltd.	 		 	Perception Neuroscience, Inc.
					
	By:	 	  
	 		 	By:	 	 /s/ [***]

	Name:	 	[***]	 		 	Name:	 	[***]
	Title:	 	President and Representative Director	 		 	Title:	 	President and CEO
				
	Otsuka Pharmaceutical Co., Ltd.	 		 		 	
					
	By:	 	  
	 		 		 	
	Name:	 	[***]	 		 		 	
	Title:	 	 Senior Vice President and Global Head of Business Development
	 		 		 	

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date. 

 

									
	Otsuka Pharmaceutical Co., Ltd.	 		 	Perception Neuroscience, Inc.
					
	By:	 	 /s/ [***]
	 		 	By:	 	  

	Name:	 	[***]	 		 	Name:	 	[***]
	Title:	 	President and Representative Director	 		 	Title:	 	President and CEO
				
	Otsuka Pharmaceutical Co., Ltd.	 		 		 	
					
	By:	 	 /s/ [***]
	 		 		 	
	Name:	 	[***]	 		 		 	
	Title:	 	 Senior Vice President and Global Head of Business Development
	 		 		 	

 Schedule 2.1.3 

Relevant Material Terms of Chiba University Agreement 

[***] 

  
 87 

 Schedule 4.1.3 

Requested Ongoing Studies 

[***] 

  
 88 

 Schedule 11.3.2 

Existing Perception Patent Rights 

[***] 

  
 89Exhibit 10.1
​
EXECUTION VERSION

​

​
DEERE & COMPANY
JOHN DEERE CAPITAL CORPORATION
JOHN DEERE BANK S.A.
________________________________________
$2,500,000,000
2025
CREDIT AGREEMENT
Dated as of March 29, 2021
________________________________________
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent 
Citibank, N.A.,
as Documentation Agent
​
BANK OF AMERICA, N.A.,
as Syndication Agent
​
________________________________________
JPMORGAN CHASE BANK, N.A. and BOFA SECURITIES, INC.,
as Lead Arrangers and Bookrunners
​

​

​

TABLE OF CONTENTS
Page
SECTION 1.DEFINITIONS‌1

1.1Defined Terms‌1

1.2Other Definitional Provisions‌27

1.3Currency Conversion‌27

1.4Interest Rates; LIBOR Notification‌28

SECTION 2.THE COMMITTED RATE LOANS; THE BID LOANS; THE NEGOTIATED RATE LOANS; AMOUNT AND TERMS‌28

2.1The Committed Rate Loans‌28

2.2The Bid Loans; the Negotiated Rate Loans‌29

2.3Loan Accounts‌33

2.4Fees‌33

2.5Termination or Reduction of Commitments; Cancellation of Capital Corporation or JD Luxembourg as Borrower‌34

2.6Prepayments‌35

2.7Minimum Amount of Certain Loans‌36

2.8Committed Rate Loan Interest Rate and Payment Dates‌36

2.9Conversion and Continuation Options‌36

2.10Computation of Interest and Fees‌37

2.11Inability to Determine Interest Rate‌37

2.12Pro Rata Treatment and Payments‌40

2.13Requirements of Law‌42

2.14Indemnity‌46

2.15Non-Receipt of Funds by the Administrative Agent‌47

2.16Extension of Termination Date‌47

2.17Indemnified Taxes‌48

2.18Confirmations‌51

2.19Replacement of Cancelled Banks‌52

2.20Commitment Increases‌52

2.21[Reserved]‌54

2.22[Reserved]‌54

2.23Defaulting Banks‌54

2.24Judgment Currency‌55

2.25Foreign Currency Exchange Rate‌56

2.26Letters of Credit‌56

2.27Capital Corporation Guaranty‌59

SECTION 3.REPRESENTATIONS AND WARRANTIES‌61

3.1Financial Condition‌61

3.2Corporate Existence‌61

3.3Corporate Power; Authorization; Enforceable Obligations‌61

3.4No Legal Bar‌61

3.5No Material Litigation‌62

3.6Taxes‌62

i‌

​

3.7Margin Regulations‌62

3.8Use of Proceeds‌62

3.9Sanctions Laws and Regulations‌62

3.10Beneficial Ownership Certification‌62

SECTION 4.CONDITIONS PRECEDENT‌63

4.1Conditions to Initial Extensions of Credit‌63

4.2Conditions to All Extensions of Credit‌64

SECTION 5.AFFIRMATIVE COVENANTS‌65

5.1Financial Statements‌65

5.2Certificates; Other Information‌65

5.3Company Indenture Documents‌66

5.4Capital Corporation Indenture Documents‌66

5.5Notice of Default‌66

5.6Ownership of Capital Corporation and JD Luxembourg Stock‌66

5.7Employee Benefit Plans‌66

5.8Compliance‌67

SECTION 6.NEGATIVE COVENANTS OF THE COMPANY‌67

6.1Company May Consolidate, etc., Only on Certain Terms‌67

6.2Limitation on Liens‌67

6.3Limitations on Sale and Lease-back Transactions‌70

6.4Equipment Operations Debt‌71

SECTION 7.NEGATIVE COVENANTS OF THE CAPITAL CORPORATION‌71

7.1Fixed Charges Ratio‌71

7.2Consolidated Senior Debt to Consolidated Capital Base‌71

7.3Limitation on Liens‌71

7.4Consolidation; Merger‌73

SECTION 8.EVENTS OF DEFAULT‌73

SECTION 9.THE AGENTS‌75

9.1Appointment‌75

9.2Delegation of Duties‌76

9.3Exculpatory Provisions‌76

9.4Reliance by Agents‌76

9.5Notice of Default‌78

9.6Non-Reliance on Agents and Other Banks‌78

9.7Indemnification‌78

9.8Agents in their Individual Capacities‌79

9.9Successor Agents‌79

SECTION 10.MISCELLANEOUS‌79

10.1Amendments and Waivers‌79

10.2Notices‌80

ii‌

​

10.3No Waiver; Cumulative Remedies‌81

10.4Payment of Expenses‌82

10.5Successors and Assigns; Participations; Purchasing Banks‌83

10.6Adjustments‌87

10.7Confidentiality‌87

10.8Counterparts‌88

10.9GOVERNING LAW‌89

10.10Consent to Jurisdiction and Service of Process‌89

10.11WAIVERS OF JURY TRIAL‌90

10.12USA Patriot Act‌90

10.13No Fiduciary Duty‌90

10.14Headings‌90

10.15Acknowledgment and Consent to Bail-In of Affected Financial Institutions‌90

10.16Bank ERISA Representations‌91

​
​
​
SCHEDULES:
Schedule ITerms of Subordination
Schedule IICommitments
Schedule IIIExisting Letters of Credit
​
EXHIBITS:
Exhibit AForm of Borrowing Notice
Exhibit BForm of Bid Loan Request
Exhibit CForm of Bid Loan Offer
Exhibit DForm of Bid Loan Confirmation
Exhibit EForm of Assignment and Assumption
Exhibit F[Reserved]
Exhibit GForm of Opinion of General Counsel to the Company
Exhibit HForm of Opinion of Special New York Counsel to the Borrowers
Exhibit IForm of Extension Request
Exhibit JForm of Form W-8BEN-E Tax Letter
Exhibit KForm of Form W-8ECI Tax Letter
Exhibit LForm of Replacement Bank Agreement
Exhibit MForm of Promissory Note
Exhibit NForm of New Bank Supplement
Exhibit OForm of Commitment Increase Supplement
Exhibit PForm of Certificate of Non-Bank Status

iii‌

​

2025 CREDIT AGREEMENT, dated as of March 29, 2021, among (a) DEERE & COMPANY, a Delaware corporation (the “Company”), (b) JOHN DEERE CAPITAL CORPORATION, a Delaware corporation (the “Capital Corporation”), (c) JOHN DEERE BANK S.A., a Luxembourg société anonyme (“JD Luxembourg”), (d) the several financial institutions parties hereto (collectively, the “Banks”, and individually, a “Bank”), (e) JPMORGAN CHASE BANK, N.A., as administrative agent hereunder (in such capacity, together with its successors and permitted assigns, the “Administrative Agent”), (f) Citibank, N.A., as documentation agent hereunder (in such capacity, the “Documentation Agent”), and (g) BANK OF AMERICA, N.A., as syndication agent hereunder (in such capacity, the “Syndication Agent”).
The parties hereto hereby agree as follows:
		SECTION 1.	DEFINITIONS

1.1Defined Terms.  As used in this Agreement, the following terms have the following meanings:
“ABR”:  at any particular date, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) 0.5% per annum above the NYFRB Rate and (c) the Eurocurrency Rate for a Eurocurrency Loan denominated in Dollars with one-month Interest Period commencing on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1% (provided that, for the avoidance of doubt, such Eurocurrency Rate for any date shall be based on the LIBOR Screen Rate (or if the LIBOR Screen Rate is not available for such one-month Interest Period, the LIBOR Interpolated Rate)).  Any change in ABR due to a change in the Prime Rate, the NYFRB Rate or the Eurocurrency Rate shall be effective from and including the effective date of such change in the Prime Rate, the NYFRB Rate or the Eurocurrency Rate, respectively.  If the ABR is being used as an alternate rate of interest pursuant to subsection 2.11 (for the avoidance of doubt, only until the Benchmark Replacement has been determined pursuant to subsection 2.11(b)), then the ABR shall be the greater of clauses (a) and (b) above and shall be determined without reference to clause (c) above.
“ABR Loans”:  Committed Rate Loans at such time as they are made and/or being maintained at a rate of interest based upon the ABR.
“Absolute Rate Bid Loan”:  any Bid Loan made pursuant to an Absolute Rate Bid Loan Request.
“Absolute Rate Bid Loan Request”:  any Bid Loan Request requesting the Banks to offer to make Bid Loans at an absolute rate (as opposed to a rate composed of the Applicable Index Rate plus (or minus) a margin).
“Act”:  as defined in subsection 10.12.
“Administrative Agent”:  as defined in the preamble hereto.  It is understood that matters concerning the Foreign Currency Loans will be administered by the Foreign Currency Agent as agent for the Administrative Agent.
“Administrative Questionnaire”:  an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Affected Financial Institution”: (a) any EEA Financial Institution or (b) any UK Financial Institution.

‌​

2

​
​
​

“Affected Foreign Currency”: as defined in subsection 2.11(a).
“Agent”:  the Administrative Agent, the Foreign Currency Agent, the Syndication Agent, or the Documentation Agent, as the context shall require; together, the “Agents”.  
“Agreement”:  this 2025 Credit Agreement, as amended, supplemented or modified from time to time.
“Agreement Currency”:  as defined in subsection 2.24(b).
“Ancillary Document”: as defined in subsection 10.8.
“Anti-Corruption Laws”: all laws, rules and regulations of any jurisdiction applicable to the Borrowers and their Subsidiaries from time to time concerning or relating to bribery or corruption.
“Applicable Creditor”:  as defined in subsection 2.24(b).
“Applicable Index Rate”:  in respect of any Bid Loan requested pursuant to an Index Rate Bid Loan Request, the Eurocurrency Rate applicable to the Interest Period for such Bid Loan.
“Applicable Margin”:  (a) with respect to ABR Loans, the rate per annum set forth below for ABR Loans in the column corresponding to the Prevailing Rating of the Company and (b) with respect to Eurocurrency Loans, the rate per annum set forth below for Eurocurrency Loans in the column corresponding to the Prevailing Rating of the Company:
	​
	Level I Rating
	Level II Rating
	Level III Rating
	Level IV Rating
	Level V Rating

	ABR Loans
	0.00%
	0.00%
	0.00%
	0.00%
	0.25%

	Eurocurrency Loans
	0.625%
	0.75%
	0.875%
	1.00%
	1.25%

“Application”:  an application in such form from time to time in use by the applicable Issuing Bank, requesting an Issuing Bank to issue a Letter of Credit.
“Attributable Debt”:  as defined in subsection 6.2(b)(ii).
“Australian Dollars”:  the lawful currency of Australia.
“Available Commitment”:  as to any Bank at any time, an amount equal to the excess, if any, of (a) such Bank’s Commitment then in effect over (b) such Bank’s Committed Rate Loans then outstanding.
“Available Tenor”: as of any date of determination and with respect to the then-current Benchmark in respect of Loans denominated in such Currency, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period with respect to Loans denominated in the applicable Currency pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to clause (f) of subsection 2.11.

​

3

​
​
​

“Bail-In Action”: the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.
“Bail-In Legislation”: (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
“Bank” and “Banks”:  as defined in the preamble hereto.
“Benchmark”: initially, with respect to a Eurocurrency Loan denominated in any Currency, the Relevant Rate; provided that if a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred with respect to the Relevant Rate or the then-current Benchmark with respect to Loans denominated in such Currency, then “Benchmark” means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to clause (b) or clause (c) of subsection 2.11.
“Benchmark Replacement”: for any Available Tenor with respect to Loans denominated in any Currency, the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date; provided that, in the case of any Loan denominated in a Foreign Currency, “Benchmark Replacement” shall mean the alternative set forth in (3) below:
(1) the sum of: (a) Term SOFR and (b) the related Benchmark Replacement Adjustment;
(2) the sum of: (a) Daily Simple SOFR and (b) the related Benchmark Replacement Adjustment;
(3) the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Company as the replacement for the then-current Benchmark for the applicable Corresponding Tenor with respect to Loans denominated in such Currency giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body and/or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for syndicated credit facilities denominated in the applicable Currency at such time and (b) the related Benchmark Replacement Adjustment;
provided that, in the case of clause (1), such Unadjusted Benchmark Replacement is displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion; provided further that, solely with respect to a Loan denominated in Dollars, notwithstanding anything to the contrary in this Agreement or in any other Loan Document, to the extent that a Term SOFR Transition Event has occurred, and a Term SOFR Notice has been delivered, on the applicable Benchmark Replacement Date the “Benchmark Replacement” shall revert to and shall be deemed to be the sum of (a) Term SOFR and (b) the related Benchmark Replacement Adjustment, as set forth in clause (1) of this definition (subject to the first proviso above). 
If the Benchmark Replacement as determined pursuant to clause (1), (2) or (3) above would be 

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less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.
“Benchmark Replacement Adjustment”:  with respect to any replacement of the then-current Benchmark with respect to Loans denominated in any Currency with an Unadjusted Benchmark Replacement for any applicable Interest Period and Available Tenor for any setting of such Unadjusted Benchmark Replacement:
(1) for purposes of clauses (1) and (2) of the definition of “Benchmark Replacement,” the first alternative set forth in the order below that can be determined by the Administrative Agent:
(a) the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that has been selected or recommended by the Relevant Governmental Body for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for the applicable Corresponding Tenor; and
(b) the spread adjustment (which may be a positive or negative value or zero) as of the Reference Time such Benchmark Replacement is first set for such Interest Period that would apply to the fallback rate for a derivative transaction referencing the ISDA Definitions to be effective upon an index cessation event with respect to such Benchmark for the applicable Corresponding Tenor; and
(2) for purposes of clause (3) of the definition of “Benchmark Replacement,” the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Company for the applicable Corresponding Tenor giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for syndicated credit facilities denominated in the applicable Currency at such time;
provided that, in the case of clause (1) above, such adjustment is displayed on a screen or other information service that publishes such Benchmark Replacement Adjustment from time to time as selected by the Administrative Agent in its reasonable discretion.
“Benchmark Replacement Conforming Changes”:  with respect to any Benchmark Replacement in respect of Loans denominated in any Currency, any technical, administrative or operational changes (including changes to the definition of “ABR,” the definition of “Business Day,” the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Administrative Agent decides in its reasonable discretion (in consultation with the Company) may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides in its reasonable discretion that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent reasonably determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Administrative Agent 

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determines (in consultation with the Company) is reasonably necessary in connection with the administration of this Agreement and the other Loan Documents).
“Benchmark Replacement Date”: with respect to the Benchmark for any Loan denominated in any Currency, the earliest to occur of the following events with respect to such then-current Benchmark: 
(1) in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); 
(2) in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein; or
(3) in the case of a Term SOFR Transition Event, the date that is thirty (30) days after the date a Term SOFR Notice is provided to the Banks and the Company pursuant to Section 2.11(c); or 
(4) in the case of an Early Opt-in Election, the sixth (6th) Business Day after the date notice of such Early Opt-in Election is provided to the Banks, so long as the Administrative Agent has not received, by 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Early Opt-in Election is provided to the Banks, written notice of objection to such Early Opt-in Election from Banks comprising the Majority Banks.
For the avoidance of doubt, (i) if the event giving rise to the Benchmark Replacement Date occurs on the same day as, but earlier than, the Reference Time in respect of any determination, the Benchmark Replacement Date will be deemed to have occurred prior to the Reference Time for such determination and (ii) the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Transition Event”: with respect to the Benchmark for any Loan denominated in any Currency, the occurrence of one or more of the following events with respect to such then-current Benchmark: 
(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); 
(2) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the NYFRB, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), in each case which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all 

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Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or 
(3) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are no longer representative.
For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).
“Benchmark Unavailability Period”: with respect to the Benchmark for any Loan denominated in any Currency, the period (if any) (x) beginning at the time that a Benchmark Replacement Date pursuant to clauses (1) or (2) of that definition has occurred if, at such time, no Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with subsection 2.11 and (y) ending at the time that a Benchmark Replacement has replaced such then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with subsection 2.11.
 “Beneficial Ownership Certification”: a certification regarding beneficial ownership or control as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation”: 31 C.F.R. § 1010.230.
“benefitted Bank”:  as defined in subsection 10.6.
“Bid Loan”:  each loan (other than Negotiated Rate Loans) made pursuant to subsection 2.2; the aggregate amount advanced by a Bid Loan Bank pursuant to subsection 2.2 on each Borrowing Date shall constitute one Bid Loan, or more than one Bid Loan if so specified by the relevant Loan Assignee in its request for promissory notes pursuant to subsection 10.5(c).
“Bid Loan Banks”:  the collective reference to each Bank designated from time to time as a Bid Loan Bank by the Company or the Capital Corporation (for purposes of Bid Loans to such Borrower) by written notice to the Administrative Agent and which has not been removed as a Bid Loan Bank by such Borrower by written notice to the Administrative Agent (each of which notices the Administrative Agent shall transmit to each such affected Bank).
“Bid Loan Confirmation”:  each confirmation by the Company or the Capital Corporation of its acceptance of Bid Loan Offers, which Bid Loan Confirmation shall be substantially in the form of Exhibit D and shall be delivered to the Administrative Agent by facsimile transmission or by telephone, immediately confirmed by facsimile transmission.
“Bid Loan Offer”:  each offer by a Bid Loan Bank to make Bid Loans pursuant to a Bid Loan Request, which Bid Loan Offer shall contain the information specified in Exhibit C and shall be delivered to the Administrative Agent by facsimile transmission or by telephone, immediately confirmed by facsimile transmission.

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“Bid Loan Request”:  each request by the Company or the Capital Corporation for Bid Loan Banks to submit bids to make Bid Loans, which shall contain the information in respect of such requested Bid Loans specified in Exhibit B and shall be delivered to the Administrative Agent by facsimile transmission or by telephone, immediately confirmed by facsimile transmission.
“Board”: the Board of Governors of the Federal Reserve System of the United States (or any successor).
“Borrower”:  the Company, the Capital Corporation or JD Luxembourg; collectively, the “Borrowers”.
“Borrowing Date”:  in respect of any Loan, the date such Loan is made, and in respect of any Letter of Credit, the date such Letter of Credit is issued.
“Business Day”:  a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close; provided, that (a) with respect to notices and determinations in connection with, and payments of principal and interest on, Eurocurrency Loans, such day is also a day for trading by and between banks in Dollar deposits in the interbank eurocurrency market in London, (b) when used in connection with a Foreign Currency Loan, the term “Business Day” shall also exclude any day on which commercial banks in London are authorized or required by law to close and any day on which banks are authorized or required by law to be closed in the principal financial center for that currency and (c) when used in connection with Eurocurrency Loans denominated in Euros, the term “Business Day” shall also exclude any day on which the Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) (or, if such clearing system ceases to be operative, such other clearing system (if any) determined by the Foreign Currency Agent to be a suitable replacement) is not open for settlement of payment in Euros.
 “Calculation Date”:  with respect to each Foreign Currency, the last day of each calendar quarter (or, if such day is not a Business Day, the next succeeding Business Day) and such other days from time to time as the Administrative Agent shall reasonably designate as a “Calculation Date”; provided, that the second Business Day preceding each Borrowing Date with respect to, and preceding each date of any borrowing, conversion or continuation of, any Foreign Currency Loan shall also be a “Calculation Date” with respect to the relevant Foreign Currency.
“Calendar Quarter”:  a three-month period consisting of (i) each January, February and March, (ii) each April, May and June, (iii) each July, August and September or (iv) each October, November and December.
“Canadian Dollars”: the lawful currency of Canada. 
“Cancelled Bank”:  (i) any Bank that has the whole or any part of its Commitment cancelled under subsection 2.13(a), (b) or (c), subsection 2.16(c) or subsection 2.17(b) or the Commitment of which has expired under subsection 2.16(a) and (ii) any Defaulting Bank that the Company designates in writing to such Bank and the Administrative Agent as a Cancelled Bank.
“Capital Corporation”:  as defined in the preamble hereto.
“Certificate of Non-Bank Status”:  a certificate substantially in the form and substance of Exhibit P. 

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“Closing Date”:  the date on which each of the conditions precedent specified in subsection 4.1 shall have been satisfied (or compliance therewith shall have been waived by the Majority Banks hereunder).
“Code”:  the Internal Revenue Code of 1986, as amended from time to time.
“Code of Conduct”:  as defined in subsection 3.9. 
“Commitment”:  as to any Bank, the amount set opposite such Bank’s name on Schedule II or in any assignment pursuant to which such Bank becomes a party hereto with respect to any interest purchased therein, as such amount may be modified as provided herein; collectively, as to all Banks, the “Commitments”.
“Commitment Expiration Date”:  as defined in subsection 2.16(a).
“Commitment Fee Rate”:  the rate per annum set forth below in the column corresponding to the Prevailing Rating of the Company:
	 Level I Rating
	Level II 
Rating
	​
Level III
Rating
	Level IV
Rating
	Level V
Rating

	0.050%
	0.060%
	0.070%
	0.090%
	0.110%

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“Commitment Increase Notice”:  as defined in subsection 2.20(a).
“Commitment Increase Supplement”:  as defined in subsection 2.20(c).
“Commitment Percentage”:  as to any Bank at any time, the percentage which such Bank’s Commitment at such time constitutes of all the Commitments at such time or, at any time after the Commitments shall have expired or terminated, the percentage which the aggregate principal amount of such Bank’s Extensions of Credit then outstanding constitutes of the aggregate principal amount of the Total Extensions of Credit then outstanding; collectively, as to all the Banks, the “Commitment Percentages”; provided that when a Defaulting Bank shall exist, “Commitment Percentage” shall mean, when appropriate as determined by the Administrative Agent in order to provide ratable treatment at any time a Defaulting Bank exists (and without increasing the Commitment of any Bank), the percentage of the total Commitments (disregarding any Defaulting Bank’s Commitment) represented by such Bank’s Commitment.
“Commitment Period”:  as to any Bank at any time, the period from and including the Closing Date to but not including the Termination Date of such Bank or such earlier date on which the Commitments shall terminate as provided herein.
“Committed Extensions of Credit”: as to any Bank at any time, the amount equal to the sum of the Dollar Equivalent of (a) the aggregate principal amount of all Committed Rate Loans held by such Bank then outstanding and (b) such Bank’s Commitment Percentage multiplied by the L/C Obligations then outstanding. 
“Committed Rate Loans”:  each loan made pursuant to subsection 2.1.

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“Commonly Controlled Entity”:  in relation to a Borrower, an entity, whether or not incorporated, which is under common control with such Borrower within the meaning of Section 414(b) or (c) of the Code.
“Company”:  as defined in the preamble hereto.
“Consolidated Capital Base”:  at a particular time for the Capital Corporation and its consolidated Subsidiaries, the sum of (a) the amount shown opposite the item “Total Stockholders’ Equity” on the consolidated balance sheet of the Capital Corporation and its consolidated Subsidiaries plus (b) all indebtedness of the Capital Corporation and its consolidated Subsidiaries for borrowed money subordinated (on terms no less favorable to the Administrative Agent and the Banks than the terms of subordination set forth on Schedule I) to the indebtedness which may be incurred hereunder by the Capital Corporation, provided that the sum of clauses (a) and (b) hereof as at the end of a fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of a fiscal year of the Capital Corporation and its consolidated Subsidiaries) shall be determined by reference to the publicly available consolidated balance sheet of the Capital Corporation and its consolidated Subsidiaries as at the end of such fiscal quarter and after such adjustments, if any, as may be required so that the sum of the amounts referred to in clauses (a) and (b) is determined in accordance with GAAP.  Notwithstanding the foregoing, for purposes of determining compliance with subsection 7.2, adjustments resulting from any accumulated other comprehensive income as reflected on the most recent publicly available consolidated balance sheet of the Capital Corporation and its consolidated Subsidiaries as at the end of any fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of any fiscal year of the Capital Corporation and its consolidated Subsidiaries) shall be deemed not to be included in Consolidated Capital Base. 
“Consolidated Net Worth”:  as defined in subsection 6.2(b)(ii).
“Consolidated Senior Debt”:  at a particular time for the Capital Corporation and its consolidated Subsidiaries, indebtedness for borrowed money other than any indebtedness for borrowed money that is subordinated, on terms no less favorable to the Administrative Agent and the Banks than the terms of subordination set forth on Schedule I, to the indebtedness which may be incurred hereunder by the Capital Corporation, provided that the amount of such indebtedness for borrowed money (other than such subordinated indebtedness) as at the end of a fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of a fiscal year of the Capital Corporation and its consolidated Subsidiaries) shall be determined by reference to the publicly available consolidated balance sheet of the Capital Corporation and its consolidated Subsidiaries as at the end of such fiscal quarter and after such adjustments, if any, as may be required so that such amount is determined in accordance with GAAP.  Notwithstanding the foregoing, for purposes of determining compliance with subsection 7.2, indebtedness for borrowed money in respect of any Securitization Indebtedness shall be deemed not included in Consolidated Senior Debt. 
“Contractual Obligation”:  as to any Person, any provision of any security issued by such Person or of any agreement, instrument or undertaking to which such Person is a party or by which it or any of its property is bound.
“Corresponding Tenor”: with respect to any Available Tenor, as applicable, either a tenor (including overnight) or an interest payment period having approximately the same length (disregarding business day adjustment) as such Available Tenor.
“Credit Rating”:  as of any date, (a) as to any Person, the rating assigned to the relevant long term senior unsecured (and non-credit enhanced) Debt obligations of such Person by Moody’s, S&P 

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or Fitch, in each case as of the close of business on such date and (b) if no rating for such Debt described in clause (a) is available, the corporate credit rating of such Person as announced by Moody’s, S&P or Fitch, in each case as of the close of business on such date.
“Currency”: any Dollars and any Foreign Currency. 
“Daily Simple SOFR”: for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily Simple SOFR” for business loans; provided that, if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.
“Deal Year”:  as defined in subsection 2.16(c).
“Debt”:  as defined in subsection 6.2.
“Default”:  any of the events specified in Section 8, whether or not any requirement for the giving of notice, the lapse of time, or both, or any other condition, event or act has been satisfied.
“Defaulting Bank”:  any Bank that has (a) failed to fund any portion of its Loans or participations in Letters of Credit within two Business Days of the date required to be funded by it hereunder, unless such Bank has notified the Administrative Agent and the Borrower that such failure is the result of such Bank’s good faith determination that one or more conditions precedent to funding has not been satisfied; (b) notified the Company, the Administrative Agent, any Issuing Bank or any Bank in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or generally under other agreements in which it commits to extend credit; (c) failed, within three Business Days after written request by the Administrative Agent, to confirm that it will comply with the terms of this Agreement relating to its obligations to fund prospective Loans and participations in then outstanding Letters of Credit; provided that such Bank shall cease to be a Defaulting Bank pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower; (d) otherwise failed to pay over to the Administrative Agent or any other Bank any other amount required to be paid by it hereunder within three Business Days of the date when due, unless the subject of a good faith dispute; or (e) (i) become or is insolvent or has a parent company that has become or is insolvent, (ii) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or has a parent company that has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment or (iii) become or has a parent company that has become the subject of a Bail-In Action; provided that a Bank shall not be a Defaulting Bank solely by virtue of the ownership or acquisition of any equity interest in that Bank or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Bank with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Bank (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Bank.  If any Bank shall become a Defaulting Bank, the Company shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving written notice to the Administrative Agent and such Bank in accordance with subsection 2.6, notwithstanding subsection 2.12(b), to prepay in full the Loans of such Bank, together with accrued 

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interest thereon, any amounts payable to such Bank pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee or other amount payable to such Bank hereunder and/or, upon giving not less than three Business Days’ notice to such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank.  Upon any such cancellation of the Commitment of a Defaulting Bank, participating interests in Letters of Credit shall be reallocated ratably among the remaining Banks in accordance with subsection 2.23(d).
“Designated Person”:  a Person
(i) listed in the annex to, or otherwise the subject of the provisions of, any Executive Order;
(ii) named as a “Specially Designated National and Blocked Person” on the most current list published by OFAC at its official website or any replacement website or other replacement official publication of such list (each, an “SDN”), or is otherwise the subject of any Sanctions Laws and Regulations; or
(iii) in which an SDN has a controlling interest of 50% or greater ownership interest. 
“Dividing Person”: as defined in the definition of Division.
“Division”: the statutory division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement) pursuant to Section 18-217 of the Delaware Limited Liability Company Act, which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.
“Division Successor”: any person that, upon the consummation of a Division of a Dividing Person, holds all or substantially all of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division.
“Documentation Agent”:  as defined in the preamble hereto.
“Dollar Equivalent”:  at any time as to any amount denominated in a Foreign Currency, the equivalent amount in Dollars as reasonably determined by the Administrative Agent at such time on the basis of the Exchange Rate for the purchase of Dollars with such Foreign Currency on (a) in the case of a determination made pursuant to subsection 2.11(g), the date of such conversion and (b) in the case of any other determination, the most recent Calculation Date for such Foreign Currency.
“Dollar Loan”: any Committed Rate Loan denominated in Dollars.
“Dollars” and “$”:  dollars in lawful currency of the United States of America.
“Domestic Bank”:  any Bank organized under the laws of the United States of America, any State thereof or the District of Columbia.
“Early Opt-in Election”: 
(a) in the case of Loans denominated in Dollars, the occurrence of:
(1) a notification by the Administrative Agent to (or the request by the Company to the Administrative Agent to notify) each of the other parties hereto that at least five currently outstanding 

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Dollar-denominated syndicated credit facilities at such time contain (as a result of amendment or as originally executed) a SOFR-based rate (including SOFR, a term SOFR or any other rate based upon SOFR) as a benchmark rate (and such syndicated credit facilities are identified in such notice and are publicly available for review), and
(2) the joint election by the Administrative Agent and the Company to trigger a fallback from the Eurocurrency Rate for Loans denominated in Dollars and the provision by the Administrative Agent of written notice of such election to the Banks; and
(b) in the case of Loans denominated in any Foreign Currency, the occurrence of:
(1) (i) a determination by the Administrative Agent or the Company (as notified to the Administrative Agent) or (ii) a notification by the Majority Banks to the Administrative Agent (with a copy to the Borrowers) that the Majority Banks have determined that at least five currently outstanding syndicated credit facilities denominated in the applicable Foreign Currency at such time contain (as a result of an amendment or as originally executed) a new benchmark interest rate to replace the Relevant Rate (and such syndicated credit facilities are identified in such notice and are publicly available for review); and
(2) (i) the joint election by the Administrative Agent and the Company or (ii) the election by the Majority Banks to declare that an Early Opt-in Election has occurred with respect to Loans denominated in such applicable Foreign Currency and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrowers and the Banks, by the Company of written notice of such election to the Administrative Agent or by the Majority Banks of written notice of such election to the Administrative Agent.
“EEA Financial Institution”: (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country”: any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority”: any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Electronic Signature”: an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record.
“EMU”:  the Economic and Monetary Union as contemplated in the Treaty.
“Equipment Operations”:  those business segments of the Company and its consolidated Subsidiaries that are primarily engaged in the manufacture and distribution of equipment, parts and related attachments.

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“Equipment Operations Debt”:  at a particular time, the sum of short-term and long-term indebtedness for borrowed money that is or would be shown on a balance sheet of Equipment Operations (with Financial Services reflected only on an equity basis), which balance sheet was or would be prepared on the basis of the most recent publicly available consolidated balance sheet of the Company and its consolidated Subsidiaries as at the end of any fiscal quarter of the Company and its consolidated Subsidiaries (including the last quarter of any fiscal year of the Company and its consolidated Subsidiaries).
“ERISA”:  the Employee Retirement Income Security Act of 1974, as amended from time to time.
“EU Bail-In Legislation Schedule”: the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time. 
“Euro”:  the single currency of Participating Member States of the EMU introduced in accordance with the provisions of Article 123 of the Treaty and, in respect of all payments to be made under this Agreement in Euro, means immediately available, freely transferable funds in such currency.
“Eurocurrency Loans”:  Committed Rate Loans at such time as they are made and/or being maintained at a rate of interest based upon a Eurocurrency Rate.
“Eurocurrency Rate”:  (a) with respect to each day during each Interest Period pertaining to a Eurocurrency Loan and for each Index Rate Bid Loan, denominated in Dollars or any relevant Foreign Currency, other than Canadian Dollars, Australian Dollars, New Zealand Dollars and Euros, the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for such Currency for a tenor equal in length to such Interest Period as displayed on page LIBOR01 or LIBOR02 of the Reuters Screen (or, in the event such rate does not appear on a Reuters page or screen, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate from time to time as selected by the Administrative Agent in consultation with the Borrowers; in each case, the “LIBOR Screen Rate”) at approximately 11:00 A.M., Local Time, two Business Days prior to the beginning of such Interest Period (or, in the case of any Eurocurrency Loan denominated in Pounds Sterling, on the first day of such Interest Period); provided that, if the LIBOR Screen Rate shall not be available at such time for such Interest Period (a “LIBOR Impacted Interest Period”) with respect to the relevant Currency, then the Eurocurrency Rate shall be the LIBOR Interpolated Rate at such time.  “LIBOR Interpolated Rate” means, at any time, the rate per annum determined by the Administrative Agent to be equal to the rate that results from interpolating on a linear basis between: (a) the LIBOR Screen Rate for the longest period (for which that LIBOR Screen Rate is available in the relevant Currency) that is shorter than the LIBOR Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which that LIBOR Screen Rate is available for the relevant Currency) that exceeds the LIBOR Impacted Interest Period, in each case, at such time.
(b) with respect to each day during each Interest Period pertaining to a Eurocurrency Loan denominated in Canadian Dollars, the rate per annum equal to the average rate for bankers acceptances as administered by Thomson Reuters Benchmark Services Limited (or any other Person that takes over the administration of such rate) for a tenor equal in length to such Interest Period as displayed on page CDOR of the Reuters Screen (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or other appropriate page of such other information service that publishes such rate as shall be selected from time to time by the Administrative Agent in consultation with the Borrowers; in each case, the “CDOR Screen Rate”) at approximately 11:00 A.M., Local Time, on the first day of such Interest Period (or such other day as is 

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generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent); provided, that, if the CDOR Screen Rate shall not be available at such time for such Interest Period (a “CDOR Impacted Interest Period”) with respect to Canadian Dollars, then the Eurocurrency Rate for Canadian Dollars shall be the CDOR Interpolated Rate at such time.  “CDOR Interpolated Rate” means, at any time, the rate per annum determined by the Administrative Agent to be equal to the rate that results from interpolating on a linear basis between: (a) the CDOR Screen Rate for the longest period (for which that CDOR Screen Rate is available in Canadian Dollars) that is shorter than the CDOR Impacted Interest Period and (b) the CDOR Screen Rate for the shortest period (for which that CDOR Screen Rate is available for Canadian Dollars) that exceeds the CDOR Impacted Interest Period, in each case, at such time.
(c) with respect to each day during each Interest Period pertaining to a Eurocurrency Loan denominated in Australian Dollars, the rate per annum equal to the average bid reference rate as administered by the Australian Financial Markets Association (or any other Person that takes over the administration of that rate) for Australian Dollar bills of exchange with a tenor equal in length to such Interest Period (or as close to such Interest Period as possible), displayed on page BBSY of the Reuters Screen (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or other appropriate page of such other information service that publishes such rate as shall be selected from time to time by the Administrative Agent in consultation with the Borrowers; in each case, the “BBSY Screen Rate”) at approximately 11:00 A.M., Local Time, two Business Days prior to the beginning of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent); provided, that, if the BBSY Screen Rate shall not be available at such time for such Interest Period, the Administrative Agent may substitute for such rate with an alternative published interest rate reasonably acceptable to the applicable Borrower (or other rate basis agreed by the applicable Borrower and the Administrative Agent, including interpolation in a manner consistent with paragraphs (a) and (b) above).
(d) with respect to each day during each Interest Period pertaining to a Eurocurrency Loan denominated in New Zealand Dollars, the rate per annum equal to the average bid reference rate as administered by the New Zealand Financial Markets Association (or any other Person that takes over the administration of that rate) for New Zealand Dollar bills of exchange with a tenor equal in length to such Interest Period (or as close to such Interest Period as possible), displayed on page BKBM of the Reuters Screen (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or other appropriate page of such other information service that publishes such rate as shall be selected from time to time by the Administrative Agent in consultation with the Borrowers; in each case, the “BKBM Screen Rate”) at approximately 11:00 A.M., Local Time, on the first day of such Interest Period (or such other day as is generally treated as the rate fixing day by market practice in such interbank market, as determined by the Administrative Agent); provided, that, if the BKBM Screen Rate shall not be available at such time for such Interest Period, the Administrative Agent may substitute such rate with an alternative published interest rate reasonably acceptable to the applicable Borrower (or other rate basis agreed by the applicable Borrower and the Administrative Agent, including interpolation in a manner consistent with paragraphs (a) and (b) above).
(e) with respect to each day during each Interest Period pertaining to a Eurocurrency Loan denominated in Euros, the rate per annum equal to the interbank offered rate administered by the European Money Markets Institute (or any other Person that takes over the administration of such rate) for a tenor equal in length to such Interest Period as displayed on page on Reuters Page EURIBOR01 (or, in the event such rate does not appear on such Reuters page, on any successor or substitute page on such screen or service that displays such rate, or other appropriate page of such other information service that publishes such rate as shall be selected from time to time by the Administrative Agent in consultation 

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with the Borrowers; in each case, the “EURIBOR Screen Rate”) at approximately 11:00 a.m., Local Time, two Business Days prior to the beginning of such Interest Period; provided, that, if the EURIBOR Screen Rate shall not be available at such time for such Interest Period, the Administrative Agent may substitute such rate with an alternative published interest rate reasonably acceptable to the applicable Borrower (or other rate basis agreed by the applicable Borrower and the Administrative Agent, including interpolation in a manner consistent with paragraphs (a) and (b) above).
Notwithstanding the above, in no event shall the Eurocurrency Rate be less than zero. 
“Event of Default”:  any of the events specified in Section 8, provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, event or act has been satisfied.
“Exchange Rate”:  on any day, the rate at which the starting Currency may be exchanged into the other relevant Currency, as set forth at approximately 10:00 A.M., Local Time, on such date on the Reuters World Spots page for such starting Currency.  In the event that such rate does not appear on any Reuters World Spots page, the Exchange Rate shall be determined by reference to such other publicly available service for displaying exchange rates reasonably selected by the Administrative Agent.
“Existing Credit Agreement”:  as defined in subsection 4.1(e).
“Existing Letters of Credit”:  the letters of credit issued under the Existing Credit Agreement and outstanding on the Closing Date and set forth on Schedule III.   
“Exposure”:  (a) with respect to an Objecting Bank at any time, the aggregate amount of such Bank’s Extensions of Credit then outstanding and (b) with respect to any other Bank at any time, the Commitment of such Bank then in effect or, if the Commitments have been terminated, the amount of such Bank’s Extensions of Credit then outstanding.
“Extension Request”:  each request by the Borrowers made pursuant to subsection 2.16 for the Banks to extend this Agreement, which shall contain the information in respect of such extension specified in Exhibit I and shall be delivered to the Administrative Agent in writing.
“Extensions of Credit”:  as to any Bank at any time, the amount equal to the sum of the Dollar Equivalent of (a) the aggregate principal amount of all Loans held by such Bank then outstanding and (b) such Bank’s Commitment Percentage multiplied by the L/C Obligations then outstanding. 
“FATCA”:  Sections 1471 through 1474 of the Code (and any comparable successor provisions), any effective regulations published thereunder or official interpretations thereof issued by any Governmental Authority charged with the administration thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, any applicable intergovernmental agreements with respect thereto, and any treaty, law, regulations, or other official guidance enacted in any other jurisdiction relating to such intergovernmental agreement.
“Federal Funds Effective Rate”: on any particular date, the rate set forth for such date or, if such date is not a Business Day, the next preceding Business Day, opposite the caption “Federal Funds (Effective)” in the weekly statistical release designated as “H.15(519)” (or any successor publication) published by the Board or, if such rate is not so published for such date, the average of the quotations for such day on such transactions received by the Administrative Agent from three federal funds dealers of recognized standing selected by it; provided that in no event shall the Federal Funds Effective Rate be less than zero.

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“Federal Reserve Board”: the Board of Governors of the Federal Reserve System of the United States of America.
“Financial Services”:  the businesses of the Company (including the credit businesses) that are not primarily engaged in Equipment Operations.
“Fitch”: Fitch Ratings Inc. 
“Fixed Charges”:  for any particular period for the Capital Corporation and its consolidated Subsidiaries, all of the Capital Corporation’s and its consolidated Subsidiaries’ consolidated interest on indebtedness for borrowed money, amortization of discounts of indebtedness for borrowed money, the portion of rentals under financing leases deemed to represent interest and rentals under operating leases; provided, that, notwithstanding the foregoing, consolidated interest on Securitization Indebtedness and amortization of Securitization Indebtedness shall be deemed not included in Fixed Charges; provided, further, that such amounts (but not any amounts constituting consolidated interest on, or amortization of, Securitization Indebtedness) for a fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of a fiscal year of the Capital Corporation and its consolidated Subsidiaries) shall be determined by reference to the publicly available consolidated statement of income of the Capital Corporation and its consolidated Subsidiaries for or covering such fiscal quarter and after such adjustments, if any, as may be required so that such amounts are determined in accordance with GAAP.   
“Floor” the benchmark rate floor, if any, provided in this Agreement initially (as of the execution of this Agreement, the modification, amendment or renewal of this Agreement or otherwise) with respect to the Eurocurrency Rate.
“Foreign Bank”:  any Bank that is not a Domestic Bank.
“Foreign Currency”:  (a) Euros, Pounds Sterling, Australian Dollars and Canadian Dollars, (b) upon the earlier of (i) confirmation by Deutsche Bank AG, New York Branch to the Administrative Agent that it (or a branch or affiliate thereof) can fund in New Zealand Dollars and (ii) Deutsche Bank AG, New York Branch ceasing to be a Bank hereunder, New Zealand Dollars and (c) as agreed by the Administrative Agent, any other Currency which is freely traded and convertible into Dollars in the London interbank market and for which the Dollar Equivalent thereof can be calculated from time to time.
“Foreign Currency Agent”:  J.P. Morgan AG, or any successor appointed pursuant to this Agreement.
“Foreign Currency Equivalent”: at the time of determination or conversion thereof, as applicable, as to any amount denominated or expressed in Dollars, the equivalent amount in the applicable Foreign Currency as reasonably determined by the Administrative Agent at such time on the basis of the Exchange Rate for the purchase of such Foreign Currency with Dollars on such date.
“Foreign Currency Loan”:  each Loan denominated in a Foreign Currency.
“GAAP”:  generally accepted accounting principles in the United States of America as applied in the preparation of financial statements of the Company or the Capital Corporation, respectively, as of the fiscal year ended November 1, 2020, except with respect to capital lease obligations, in which case the generally accepted accounting principles in the United States of America as 

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applied in the preparation of financial statements of the Company or the Capital Corporation, respectively, as of January 1, 2015 shall apply.
“Governmental Authority”:  any nation or government, any state or other political subdivision thereof, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.
“Hedging Transaction”:  any swap transaction, interest rate protection agreement (including any interest rate swap, interest “cap” or “collar” or any other interest rate hedging device entered into by the Capital Corporation or one or more of its Subsidiaries), option agreement, short or long position in equity or debt instruments, commodities, futures and forward transactions, outperformance agreement or other similar transaction, agreement or arrangement entered into by the Capital Corporation or one or more of its Subsidiaries.
“IBA”: has the meaning assigned to such term in subsection 1.4.
“Important Property”:  (a) any manufacturing plant, including land, all buildings and other improvements thereon, and all manufacturing machinery and equipment located therein, owned and used by the Company or a Restricted Subsidiary primarily for the manufacture of products to be sold by the Company or such Restricted Subsidiary, (b) the executive office and administrative building of the Company in Moline, Illinois, and (c) research and development facilities, including land and buildings and other improvements thereon and research and development machinery and equipment located therein, in each case, owned and used by the Company or a Restricted Subsidiary; except in any case property of which the aggregate fair value as determined by the Board of Directors of the Company does not at the time exceed 1% of Consolidated Net Worth.
“Increasing Bank”:  as defined in subsection 2.20(c).
“Indemnified Person”:  as defined in subsection 10.4(b).
“Indemnified Taxes”:  as defined in subsection 2.17(a).
“Index Debt”:  any senior, unsecured, non-credit enhanced long-term debt issued by the Company.
“Index Rate Bid Loan”:  any Bid Loan made at an interest rate based upon the Applicable Index Rate.
“Index Rate Bid Loan Request”:  any Bid Loan Request requesting the Banks to offer to make Index Rate Bid Loans at an interest rate equal to the Applicable Index Rate plus (or minus) a margin.
“Interest Payment Date”:  (a) as to any ABR Loan, the last Business Day of each March, June, September and December, commencing on the first of such days to occur after such ABR Loan is made or a Eurocurrency Loan is converted to an ABR Loan, (b) as to any Eurocurrency Loan, the last day of each Interest Period applicable thereto, provided that as to any Eurocurrency Loan in respect of which a Borrower has selected an Interest Period of greater than three months, interest shall also be paid on the day which is three months after the beginning of such Interest Period and (c) the Termination Date.
“Interest Period”:  (a) with respect to any Eurocurrency Loan, the period commencing on the Borrowing Date, the date any ABR Loan is converted to a Eurocurrency Loan or the date any 

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Eurocurrency Loan is continued as a Eurocurrency Loan, as the case may be, with respect to such Eurocurrency Loan and ending one, two (so long as a two-month Interest Period is published and available), three or six months thereafter in the case of any Eurocurrency Loan denominated in any Currency other than Canadian Dollars (or, with the consent of all relevant Banks, twelve months thereafter, or a period of less than one month thereafter if all relevant Banks consent to such period), or thirty, sixty, or ninety days thereafter in the case of any Eurocurrency Loan denominated in Canadian Dollars, as selected by a Borrower in its notice of borrowing, conversion or continuance as provided in subsection 2.1(c) or 2.9;
(b) with respect to any Bid Loan, the period commencing on the Borrowing Date with respect to such Bid Loan and ending on the date not less than seven days nor more than six months thereafter, as specified by a Borrower in its Bid Loan Request as provided in subsection 2.2(b); and
(c) with respect to any Negotiated Rate Loan, the period or periods commencing on the Borrowing Date with respect to such Negotiated Rate Loan or the last day of any Interest Period with respect thereto and ending on the dates as shall be mutually agreed upon between the relevant Borrower and the relevant Bank;
provided, that all of the foregoing provisions relating to Interest Periods are subject to the following:
(i)if any Interest Period pertaining to a Eurocurrency Loan or an Index Rate Bid Loan would otherwise end on a day which is not a Working Day, that Interest Period shall be extended to the next succeeding Working Day unless the result of such extension would be to carry such Interest Period into another calendar month in which event such Interest Period shall end on the immediately preceding Working Day;
(ii)if any Interest Period pertaining to a Negotiated Rate Loan or an Absolute Rate Bid Loan would otherwise end on a day which is not a Business Day, that Interest Period shall be extended to the next succeeding Business Day;
(iii)any Interest Period pertaining to a Eurocurrency Loan having an Interest Period of one, two (so long as a two-month Interest Period is published and available), three or six months or an Index Rate Bid Loan having an Interest Period of one, two, three, four, five or six months, that begins on the last Working Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Working Day of a calendar month;
(iv)Interest Periods shall be deemed available only if the Required Banks shall not have advised the Administrative Agent that the Eurocurrency Rate determined by the Administrative Agent on the basis of the applicable quotes will not adequately and fairly reflect the cost to such Banks of maintaining or funding their Committed Rate Loans bearing interest based on the Eurocurrency Rate determined for such Interest Period.  The Administrative Agent shall notify the Borrowers and each Bank promptly after having been advised by the Required Banks that a Eurocurrency Rate will not so adequately and fairly reflect such Banks’ costs as aforesaid.  If a requested Interest Period shall be unavailable in accordance with the foregoing sentence, the proposed Borrower may (A) in accordance with the provisions (including any requirements for notification) of subsection 2.1 request, at its option, that the requested Committed Rate Loans denominated in Dollars be made or maintained as ABR Loans or (B) withdraw the request for such Committed Rate Loans for which the Interest Period was unavailable by giving notice of such election to the Administrative Agent in accordance with subsection 2.11; provided, that if the Administrative Agent does not receive any notice hereunder with respect to requested 

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Committed Rate Loans denominated in Dollars, such Borrower shall be deemed to have requested ABR Loans; 
(v)with respect to Loans made by an Objecting Bank, no Interest Periods with respect to such Loans shall end after such Objecting Bank’s Commitment Expiration Date; and
(vi)no Interest Period shall end after the Termination Date.

“IRS”: as defined in subsection 2.17(c).
“ISDA Definitions”: the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.
“ISP”: with respect to any standby Letter of Credit, the “International Standby Practices 1998” published by the Institute of International Banking Law & Practice, Inc. (or such later version thereof as may be in effect at the time of issuance).
“Issuing Bank”: any Bank that a Borrower may select from time to time that is willing to act as issuer of Letters of Credit, in its capacity as issuer of any Letter of Credit. 
“Issuing Bank L/C Commitment”:  $0.
“JD Luxembourg”:  as defined in the preamble hereto.
“JPMorgan Chase Bank, N.A.”:  JPMorgan Chase Bank, N.A., a national association.
“Judgment Currency”:  as defined in subsection 2.24.
“L/C Commitment”:  $0.
“L/C Obligations”: at any time, an amount equal to the sum of (a) the aggregate then undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit that have not then been reimbursed pursuant to subsection 2.26(e).  For all purposes of this Agreement, if on any date of determination a Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the amount so remaining available to be drawn.
“L/C Participants”:  the collective reference to all the Banks (other than, with respect to any Letter of Credit, the applicable Issuing Bank in its capacity as Issuing Bank) or any of them.
“Letter of Credit Fee”:  the rate per annum equal to the Applicable Margin for Eurocurrency Loans set forth in the term “Applicable Margin” corresponding to the Prevailing Rating of the Company as of such date of determination on the face amount of each Letter of Credit.
“Letters of Credit”:  as defined in subsection 2.26(a).
“Level”: Level I Rating, Level II Rating, Level III Rating, Level IV Rating or Level V Rating, as the context shall require.

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“Level I Rating”: as of any date, such Level shall apply if the Company’s assigned Credit Rating as of such date is Aa3 or higher by Moody’s, AA- or higher by S&P and AA- or higher by Fitch. 
“Level II Rating”: as of any date, such Level shall apply if the Company’s assigned Credit Rating as of such date is A1 by Moody’s, A+ by S&P and A+ by Fitch.
“Level III Rating”: as of any date, such Level shall apply if the Company’s assigned Credit Rating as of such date is A2 by Moody’s, A by S&P and A by Fitch.
“Level IV Rating”: as of any date, such Level shall apply if the Company’s assigned Credit Rating as of such date is A3 by Moody’s, A- by S&P and A- by Fitch.
“Level V Rating”: as of any date, such Level shall apply if the Company’s assigned Credit Rating as of such date is below A3 by Moody’s, below A- by S&P and below A- by Fitch.
 “LIBOR Screen Rate”: as defined in the definition of Eurocurrency Rate. 
“Loan Account”:  as defined in subsection 2.3; collectively, the “Loan Accounts”.
“Loan Assignees”:  as defined in subsection 10.5(c).
“Loan Assignment”:  an Assignment and Assumption, substantially in the form of Exhibit E. 
“Loan Documents”: this Agreement, including schedules and exhibits hereto, and the Notes. 
“Loans”:  the collective reference to the Committed Rate Loans, the Bid Loans and the Negotiated Rate Loans. 
“Local Time”: (a) in the case of Foreign Currency Loans denominated in Canadian Dollars, Toronto, Ontario time, (b) in the case of Foreign Currency Loans denominated in Australian Dollars, Sydney, Australia time, (c) in the case of Foreign Currency Loans denominated in New Zealand Dollars, Wellington, New Zealand time, (d) in the case of Foreign Currency Loans denominated in Euros, Brussels time, (e) in the case of all other Foreign Currency Loans, London time and (f) in all other cases, New York time.
“Losses”:  as defined in subsection 10.4(b).
“Luxembourg Obligations”:  the collective reference to the unpaid principal of and interest on the Loans made to JD Luxembourg and all other obligations and liabilities of JD Luxembourg (including, without limitation, interest accruing at the then applicable rate provided herein after the maturity of such Loans and interest accruing at the then applicable rate provided herein after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to JD Luxembourg, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) to the Administrative Agent or any Bank, 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, this Agreement or any other document made, delivered or given in connection with any of the foregoing, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise (including, without limitation, all fees and disbursements 

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of counsel to the Administrative Agent or to the Banks that are required to be paid by JD Luxembourg pursuant to the terms of any of the foregoing agreements). 
“Majority Banks”:  at any particular time, Banks having Commitment Percentages aggregating more than fifty percent; provided that (a) at any time after the termination of all the Commitments, “Majority Banks” shall mean Banks holding Extensions of Credit aggregating more than fifty percent in principal amount of the Total Extensions of Credit and (b) at any time after the Commitment Expiration Date with respect to any Objecting Bank (but prior to the termination of all the Commitments), “Majority Banks” shall mean Banks whose Exposure aggregates more than fifty percent of the aggregate Exposure of all the Banks.
“Margin Stock”:  as defined in Regulation U of the Board.
“Moody’s”:  Moody’s Investor Service, Inc.
“Mortgage”:  as defined in subsection 6.2.
“Negotiated Rate Loan”:  each Loan made to the Company or the Capital Corporation by a Bank pursuant to a Negotiated Rate Loan Request in such principal amount, for such number of Interest Periods (subject to the proviso to the definition of “Interest Period” in this subsection 1.1) and having such interest rate(s) and repayment terms as shall, in each case, be mutually agreed upon between such Borrower and such Bank.
“Negotiated Rate Loan Request”:  each request by the Company or the Capital Corporation for a Bank to make Negotiated Rate Loans, which shall be delivered to such Bank in writing, by facsimile transmission, or by telephone, immediately confirmed in writing, and which shall specify the amount to be borrowed and the proposed Borrowing Date.
“Net Earnings Available for Fixed Charges”:  for any particular period for the Capital Corporation and its consolidated Subsidiaries, the sum of (i) consolidated net earnings of the Capital Corporation and such Subsidiaries for such period without deduction of Fixed Charges and without deduction of federal, state or other income taxes, provided that such net earnings for a fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of a fiscal year of the Capital Corporation and its consolidated Subsidiaries) shall be determined by reference to the publicly available statement of income of the Capital Corporation and its consolidated Subsidiaries for or covering such fiscal quarter and after such adjustments, if any, as may be required so that such net earnings are determined in accordance with GAAP, except that earned investment tax credits may be included as revenue in the consolidated income statement of the Capital Corporation and its consolidated Subsidiaries, rather than as an offset against the provision for income taxes and (ii) Support Payments received by the Capital Corporation in or in respect of such period. 
“New Bank”:  as defined in subsection 2.20(b).
“New Bank Supplement”:  as defined in subsection 2.20(b).
“New Zealand Dollars”: the lawful currency of New Zealand. 
“Non-Qualifying Bank”: as defined in subsection 2.17(e).
“Notes”:  the collective reference to any promissory note evidencing Loans.

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“NYFRB”: the Federal Reserve Bank of New York.
“NYFRB Rate”: for any day, the greater of (a) the Federal Funds Effective Rate in effect on such day and (b) the Overnight Bank Funding Rate in effect on such day (or for any day that is not a Business Day, for the immediately preceding Business Day); provided that if none of such rates are published for any day that is a Business Day, the term “NYFRB Rate” means the rate for a federal funds transaction quoted at 11:00 a.m. on such day received by the Administrative Agent from a federal funds broker of recognized standing selected by it; provided, further, that if any of the aforesaid rates as so determined be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.
“Objecting Banks”:  as defined in subsection 2.16(a).
“Offered Increase Amount”:  as defined in subsection 2.20(a).
“Overnight Bank Funding Rate”: for any day, the rate comprised of both overnight federal funds and overnight Eurodollar borrowings by U.S.-managed banking offices of depository institutions, as such composite rate shall be determined by the NYFRB as set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as an overnight bank funding rate.
“Overnight Rate”: for any day, (a) with respect to any amount denominated in Dollars, the Federal Funds Effective Rate, and (b) with respect to any amount denominated in a Foreign Currency, at a rate reasonably determined by the Administrative Agent to be the cost to it of funding such amounts.
“Participant Register”:  as defined in subsection 10.5(b).
“Participants”:  as defined in subsection 10.5(b).
“Participating Member State”:  any member state of the European Community that adopts or has adopted the Euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.
“Payment”:  as defined in subsection 9.4(b).
“Payment Notice”:  as defined in subsection 9.4(b).
“Person”:  an individual, partnership, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature, provided that for purposes of subsection 8(h), Person shall also include two or more entities acting as a syndicate or any other group for the purpose of acquiring, holding or disposing of securities of the Company.
“Plan”:  any pension plan which is covered by Title IV of ERISA and in respect of which either Borrower or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA.
“Pounds” or “£” or “Pounds Sterling”: the lawful currency of the United Kingdom.
“Prevailing Rating”:  at any date of determination, the Level then applicable; provided that for purposes of determining the applicable Level when the assigned Credit Ratings of the Company by all three Ratings Agencies do not fall within the same Level: (i) if the Credit Ratings of the Company assigned by S&P and Moody’s fall within the same Level, the Prevailing Rating shall be such Level, (ii) 

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if the Credit Ratings of the Company assigned by S&P and Moody’s do not fall within the same Level and the ratings differential is one Level, the Prevailing Rating shall be determined solely by reference to the higher of (x) the Credit Rating of the Company assigned by S&P and (y) the Credit Rating of the Company assigned by Moody’s and (iii) if the Credit Ratings of the Company assigned by S&P and Moody’s do not fall within the same Level and the ratings differential is more than one Level, the Prevailing Rating shall be the Level one notch lower than the Level determined solely by reference to the higher of (x) the Credit Rating of the Company assigned by S&P and (y) the Credit Rating of the Company assigned by Moody’s.  
“Prime Rate”: the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.
“Purchasing Banks”:  as defined in subsection 10.5(d).
“Ratings Agencies”: S&P, Moody’s and Fitch.
“Re-Allocation Date”:  as defined in subsection 2.20(e).
“Reference Time”: with respect to any setting of the then-current Benchmark means (1) if such Benchmark is the Eurocurrency Rate with respect to Loans denominated in Dollars or Pounds Sterling, 11:00 a.m. (London time) on the day that is two London banking days preceding the date of such setting, and (2) otherwise, the time determined by the Administrative Agent in its reasonable discretion.
“Register”:  as defined in subsection 10.5(e).
“Reimbursement Obligation”:  the obligation of the Company or the Capital Corporation to reimburse an Issuing Bank pursuant to subsection 2.26(e) for amounts drawn under Letters of Credit issued for its account.
“Relevant Governmental Body”: (a) with respect to a Benchmark Replacement in respect of Loans denominated in Dollars, the Federal Reserve Board and/or the NYFRB, or a committee officially endorsed or convened by the Federal Reserve Board and/or the NYFRB or, in each case, any successor thereto and (b) with respect to a Benchmark Replacement in respect of Loans denominated in any Foreign Currency, (i) the central bank for the Foreign Currency in which such Benchmark Replacement is denominated or any central bank or other supervisor which is responsible for supervising either (1) such Benchmark Replacement or (2) the administrator of such Benchmark Replacement or (ii) any working group or committee officially endorsed or convened by (1) the central bank for the Foreign Currency in which such Benchmark Replacement is denominated, (2) any central bank or other supervisor that is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark Replacement, (3) a group of those central banks or other supervisors or (4) the Financial Stability Board or any part thereof.
“Relevant Rate”: with respect to any Eurocurrency Loan denominated in any Currency, the Eurocurrency Rate applicable thereto.
 “Report Period”:  as defined in subsection 2.18.

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“Reportable Event”:  any of the events set forth in Section 4043(c) of ERISA or the regulations thereunder.
“Required Banks”:  at a particular time, Banks having Commitment Percentages aggregating at least 66-2/3%; provided that (a) at any time after the termination of all the Commitments, “Required Banks” means Banks holding Extensions of Credit aggregating at least 66-2/3% in principal amount of the Total Extensions of Credit and (b) at any time after the Commitment Expiration Date with respect to any Objecting Bank (but prior to the termination of all the Commitments), “Required Banks” means Banks whose Exposure aggregates at least 66-2/3% of the aggregate Exposure of all the Banks. 
“Requirement of Law”:  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.
“Reserves”:  as defined in subsection 2.13(c).
“Resolution Authority”: an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“Responsible Officer”:  of a Borrower, the Chairman, the President, any Executive, Senior or other Vice President, the Treasurer, any Assistant Secretary and any Assistant Treasurer of such Borrower.
“Restricted Margin Stock”:  any Margin Stock, the sale, pledge or other disposition of which by the Company or any of its Subsidiaries is in any way restricted by an arrangement with any Bank or any affiliate thereof to the extent that the value thereof (determined in accordance with Regulation U of the Board) does not exceed 25% of the value (determined in accordance with such Regulation U) of all the assets subject to such restriction.
“Restricted Subsidiary”:  any Subsidiary of the Company incorporated in the United States of America or Canada (a) which is engaged in, or whose principal assets consist of property used by the Company or any Restricted Subsidiary in, the manufacture of products within the United States of America or Canada or in the sale of products principally to customers located in the United States of America or Canada except any corporation which is a retail dealer in which the Company has, directly or indirectly, an investment, or (b) which the Company shall designate as a Restricted Subsidiary in an officers’ certificate signed by two Responsible Officers of the Company and delivered to the Administrative Agent.
“S&P”:  Standard and Poor’s Financial Services LLC. 
“Sale and Lease-back Transaction”:  as defined in subsection 6.3.
“Sanctions Laws and Regulations”:
(i) any sanctions, prohibitions or requirements imposed by any executive order (an “Executive Order”) or by any sanctions program administered by the U.S. Department of the Treasury Office of Foreign Assets Control (“OFAC”), the U.S. State Department Directorate of Defense Trade Controls or the U.S. Department of Commerce Bureau of Industry and Security; and

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(ii) any sanctions measures imposed by the United Nations Security Council, the European Union or the United Kingdom.
“Screen Rate”: the LIBOR Screen Rate, the CDOR Screen Rate, the EURIBOR Screen Rate, the BBSY Screen Rate and/or the BKBM Screen Rate, as applicable.
“Securitization Indebtedness”:  the aggregate outstanding indebtedness for borrowed money, owner trust certificates (however classified) or credit enhancements incurred in connection with transactions involving (i) the sale, transfer or other disposition of receivables or leases (retail or wholesale) by the Capital Corporation or any of its Subsidiaries and (ii) the issuance of commercial paper, medium term notes or any other form of financing by any structured bankruptcy-remote Subsidiary of the Capital Corporation or any related conduit lender (such transactions, “Securitizations”), provided, that the aggregate outstanding credit enhancements in the form of cash or letter(s) of credit provided by the Capital Corporation or any of its Subsidiaries (other than any structured bankruptcy-remote Subsidiary) in excess of 10% of the aggregate outstanding indebtedness for borrowed money and owner trust certificates (however classified) incurred in connection with such Securitizations shall not be deemed for the purposes of this Agreement to be Securitization Indebtedness, but shall be deemed for purposes of subsection 7.2 to be Consolidated Senior Debt. 
“Significant Subsidiary”:  of a Borrower, any Subsidiary of such Borrower the assets, revenues or net worth of which is, at the time of determination, equal to or greater than ten percent of the assets, revenues or net worth, respectively, of such Borrower at such time.
“SOFR”: with respect to any Business Day, a rate per annum equal to the secured overnight financing rate for such Business Day published by the SOFR Administrator on the SOFR Administrator’s Website at approximately 8:00 a.m. (New York City time) on the immediately succeeding Business Day.
“SOFR Administrator”: the NYFRB (or a successor administrator of the secured overnight financing rate).
“SOFR Administrator’s Website”: the NYFRB’s website, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.
“Subsidiary”:  of a Person, a corporation or other entity of which securities or other ownership interests having ordinary voting power (other than securities or other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other Persons performing similar functions are at the time directly or indirectly owned by such Person or one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person.
“Support Payments”:  payments from the Company to the Capital Corporation made pursuant to that certain Support Agreement, dated as October 15, 1996, by and between the Company and the Capital Corporation, as amended by the First Amended Agreement, dated as of November 1, 2003, between the Company and the Capital Corporation.
“Syndication Agent”:  as defined in the preamble hereto.
“Termination Date”:  March 29, 2025 or such later date as shall be determined pursuant to the provisions of subsection 2.16 with respect to non-Objecting Banks.

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“Term SOFR”: for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
“Term SOFR Notice”: a notification by the Administrative Agent to the Banks and the Borrowers of the occurrence of a Term SOFR Transition Event. 
“Term SOFR Transition Event”: the determination by the Administrative Agent that (a) Term SOFR has been recommended for use by the Relevant Governmental Body, (b) the administration of Term SOFR is administratively feasible for the Administrative Agent and (c) a Benchmark Transition Event has previously occurred resulting in a Benchmark Replacement in accordance with subsection 2.11 that is not Term SOFR.
 “Total Commitments”: at any time, the aggregate amount of the Commitments then in effect.
“Total Extensions of Credit”: at any time, the aggregate amount of the Extensions of Credit of the Banks outstanding at such time. 
“Total Stockholders’ Equity”:  at a particular time, the total stockholders’ equity, exclusive of adjustments resulting from any accumulated other comprehensive income of the Company and its consolidated Subsidiaries as at the end of any fiscal quarter (including the last quarter of any fiscal year) as determined in accordance with GAAP.
“Transferees”:  as defined in subsection 10.5(g).
“Transfer Effective Date”:  the effective date of an assignment of Loans or Commitments under a Loan Assignment.
“Treaty”:  the Treaty establishing the European Economic Community, being the Treaty of Rome of March 25, 1957, as amended by the Single European Act 1987, the Maastricht Treaty (which was signed at Maastricht on February 7, 1992 and came into force on November 1, 1993), the Amsterdam Treaty (which was signed at Amsterdam on October 2, 1997 and came into force on May 1, 1999) and the Nice Treaty (which was signed on February 26, 2001), each as amended from time to time and as referred to in legislative measures of the European Union for the introduction of, changeover to or operating of the Euro in one or more member states.
“Type”:  as to any Committed Rate Loan, its nature as an ABR Loan or Eurocurrency Loan.
“UCP”: with respect to any commercial Letter of Credit, the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No. 600 (or such later version thereof as may be in effect at the time of issuance and subject to which such Letter of Credit was issued).
“UK Financial Institution”: any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any Person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

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“UK Resolution Authority”: the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
“Unadjusted Benchmark Replacement”: the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.
“Withholding Agent”:  any Borrower or the Administrative Agent, as the case may be.
“Working Day”:  any Business Day on which dealings in foreign currencies and exchange between banks may be carried on in London, England and New York, New York.
“Write-Down and Conversion Powers”: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that Person or any other Person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
1.2Other Definitional Provisions.  (a)  All terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto.
(b)As used herein and in any certificate or other document made or delivered pursuant hereto, accounting terms relating to any Borrower and its Subsidiaries not defined in subsection 1.1, and accounting terms partly defined in subsection 1.1 to the extent not defined, shall have the respective meanings given to them under GAAP. 
(c)The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, subsection, Schedule and Exhibit references are to this Agreement unless otherwise specified.
(d)Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of the relevant Borrower.
1.3Currency Conversion.
(a)If more than one currency or currency unit are at the same time recognized by the central bank of any country as the lawful currency of that country, then (i) any reference in the Agreement to, and any obligations arising under the Agreement in, the general currency of that country (as opposed to a reference to a specific country) shall be translated into or paid in the currency or currency unit of that country designated by the Administrative Agent (with the Borrowers’ consent, which shall not unreasonably be withheld) and (ii) any such translation from one currency or currency unit to another of any country shall be at the official rate of exchange recognized by the central bank for conversion of that currency or currency unit into the other, rounded up or down, as applicable, at least to the fifth decimal place.

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(b)If a change in any currency of a country occurs, this Agreement shall be amended (and each party hereto agrees to enter into any supplemental agreement necessary to effect any such amendment) to the extent that the Administrative Agent determines (with the Borrowers’ consent, which shall not unreasonably be withheld) such amendment to be necessary to reflect the change in currency and to put the Bank in the same position, so far as possible, that they would have been in if no change in currency had occurred.
1.4Interest Rates; LIBOR Notification. The interest rate on Eurocurrency Loans denominated in Dollars and certain Foreign Currencies may be derived from an interest rate benchmark that is, or may in the future become, the subject of regulatory reform. Regulators have signaled the need to use alternative benchmark reference rates for some of these interest rate benchmarks and, as a result, such interest rate benchmarks may cease to comply with applicable laws and regulations, may be permanently discontinued, and/or the basis on which they are calculated may change. The London interbank offered rate is intended to represent the rate at which contributing banks may obtain short-term borrowings from each other in the London interbank market.  In July 2017, the U.K. Financial Conduct Authority announced that, after the end of 2021, it would no longer persuade or compel contributing banks to make rate submissions to the ICE Benchmark Administration (together with any successor to the ICE Benchmark Administrator, the “IBA”) for purposes of the IBA setting the London interbank offered rate. As a result, it is possible that commencing in 2022, the London interbank offered rate may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on Eurocurrency Loans. In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of the London interbank offered rate.  Upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-In Election with respect to any applicable Currency, subsection 2.11(b) and (c) provide a mechanism for determining an alternative rate of interest.  The Administrative Agent will promptly notify the Borrower, pursuant to subsection 2.11(e), of any change to the reference rate upon which the interest rate on Eurocurrency Loans is based.  However, the Administrative Agent does not warrant or accept any responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank offered rate or other rates in the definition of “Eurocurrency Rate” or with respect to any alternative or successor rate thereto, or replacement rate thereof (including, without limitation, (i) any such alternative, successor or replacement rate implemented pursuant to subsection 2.11(b) or (c), whether upon the occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, and (ii) the implementation of any Benchmark Replacement Conforming Changes pursuant to subsection 2.11(d)), including without limitation, whether the composition or characteristics of any such alternative, successor or replacement reference rate for any Currency will be similar to, or produce the same value or economic equivalence of, the Eurocurrency Rate or applicable Screen Rate for Loans denominated in such Currency or have the same volume or liquidity as did the London interbank offered rate (or the euro interbank offered rate, as applicable) prior to its discontinuance or unavailability.
		SECTION 2.	THE COMMITTED RATE LOANS; THE BID LOANS; THE NEGOTIATED RATE LOANS; AMOUNT AND TERMS

2.1The Committed Rate Loans.  (a)  During the Commitment Period, subject to the terms and conditions hereof, each Bank severally agrees to make loans (individually, a “Committed Rate Loan”) to each Borrower in Dollars or in any Foreign Currency from time to time; provided that (i) after giving effect thereto, such Bank’s Committed Extensions of Credit then outstanding do not exceed the amount of such Bank’s Commitment and (ii) the Total Extensions of Credit then outstanding do not exceed the Total Commitments.  During the Commitment Period, each Borrower may use the Commitments by borrowing, repaying and reborrowing, all in accordance with the terms and conditions hereof.

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(b)The Committed Rate Loans may be either (i) Eurocurrency Loans denominated in Dollars or any Foreign Currency, (ii) ABR Loans denominated in Dollars or (iii) a combination thereof as determined by the relevant Borrower; provided that the Foreign Currency Loans shall be Eurocurrency Loans. 
(c)Each Borrower may borrow Committed Rate Loans on any Working Day, if the borrowing is of Eurocurrency Loans, or on any Business Day, if the borrowing is of ABR Loans; provided, however, that a Responsible Officer of such Borrower shall give the Administrative Agent irrevocable notice thereof, which notice must be received by the Administrative Agent (i) prior to 12:00 Noon, New York City time, three Working Days prior to the requested Borrowing Date, in the case of Eurocurrency Loans denominated in Dollars, (ii) prior to 12:00 Noon, Local Time, four Working Days prior to the requested Borrowing Date, in the case of Foreign Currency Loans, (iii) prior to 12:00 Noon, New York City time, on the requested Borrowing Date, in the case of ABR Loans requested by the Company or Capital Corporation, and (iv) prior to 12:00 Noon, London time, on the requested Borrowing Date, in the case of ABR Loans requested by JD Luxembourg.  Each such notice shall be given in writing or by facsimile transmission substantially in the form of Exhibit A (with appropriate insertions) or shall be given by telephone (specifying the information set forth in Exhibit A) promptly confirmed by notice given in writing or by facsimile transmission substantially in the form of Exhibit A (with appropriate insertions).  On the day of receipt of any such notice from a Borrower, the Administrative Agent (or Foreign Currency Agent) shall promptly notify each Bank thereof.  Each Bank will make the amount of its share of each borrowing available to the Administrative Agent in the applicable Currency for the account of such Borrower at the office of the Administrative Agent set forth in subsection 10.2 at 11:00 A.M. (or 2:00 P.M., in the case of ABR Loans requested pursuant to clause (iii) above), Local Time, on the Borrowing Date requested by such Borrower in funds immediately available to the Administrative Agent as the Administrative Agent may direct.  The proceeds of all such Committed Rate Loans will be made available promptly to such Borrower by the Administrative Agent at the office of the Administrative Agent specified in subsection 10.2 by crediting the account of such Borrower on the books of such office of the Administrative Agent with the aggregate of the amount made available to the Administrative Agent by the Banks and in like funds as received by the Administrative Agent.
(d)All Committed Rate Loans made to a Borrower shall be repaid in full by such Borrower on or before the Termination Date; provided, that Committed Rate Loans made by Objecting Banks shall be repaid as provided in subsection 2.16(b).  Notwithstanding anything herein to the contrary, each Borrower’s obligation to repay its Committed Rate Loans and pay the interest accrued thereon is a several obligation.
(e)JD Luxembourg appoints the Capital Corporation as its agent to make all borrowing requests on its behalf, to receive the proceeds of Loans and make payments in respect of Loans and otherwise act on behalf of JD Luxembourg under this Agreement.
(f)Each Bank may, at its option, make any Loan available to any Borrower by causing any foreign or domestic branch or affiliate of such Bank to make such Loan; provided that any exercise of such option (i) shall not affect the obligation of such Borrower to repay such Loan in accordance with the terms of this Agreement and (ii) shall not result in any adverse consequences to the Borrowers.
2.2The Bid Loans; the Negotiated Rate Loans.  (a)  The Company and the Capital Corporation may borrow Bid Loans or Negotiated Rate Loans denominated in Dollars from time to time on any Business Day (in the case of Bid Loans made pursuant to an Absolute Rate Bid Loan Request), any Working Day (in the case of Bid Loans made pursuant to an Index Rate Bid Loan Request) or, in the case of Negotiated Rate Loans, on such days as shall be mutually agreed upon between the relevant Borrower and the applicable Bank, in each case during the Commitment Period and in the manner set 

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forth in this subsection 2.2 and in amounts such that the Dollar Equivalent of the aggregate principal amount of Loans and L/C Obligations at any time outstanding shall not exceed the aggregate amount of the Commitments at such time.  Notwithstanding any other provision of this Agreement, the aggregate principal amount of the outstanding Bid Loans and/or Negotiated Rate Loans made by any Bank may at any time (but shall not be required to) exceed the Commitment of such Bank so long as the Dollar Equivalent of the aggregate outstanding principal amount of all Loans and L/C Obligations does not at any time exceed the aggregate amount of the Commitments.  
(b)(i)  The Company and the Capital Corporation shall request Bid Loans or Negotiated Rate Loans by delivering (A) in the case of an Index Rate Bid Loan, a Bid Loan Request to the Administrative Agent, c/o JPMorgan Chase Bank, N.A., as Administrative Agent, 500 Stanton Christiana Road, NCC5, Floor 01, Newark, Delaware 19713-2107, United States, Attention:  Loan & Agency Services Group, Telephone:  (302) 634-9770, Facsimile:  (302) 634-4733, Email:  harmeet.kaur@chase.com, not later than 12:00 Noon (New York City time) four Working Days prior to the proposed Borrowing Date, (B) in the case of an Absolute Rate Bid Loan, a Bid Loan Request to the Administrative Agent at the address set forth in clause (A) of this subsection 2.2(b)(i) not later than 10:00 A.M. (New York City time) one Business Day prior to the proposed Borrowing Date or (C) in the case of a Negotiated Rate Loan, a Negotiated Rate Loan Request to any Bank at such time as the applicable Borrower and the applicable Bank shall agree.  Each Bid Loan Request may solicit bids for Bid Loans in an aggregate principal amount of $25,000,000 or an integral multiple of $5,000,000 in excess thereof and for not more than three alternative Interest Periods for such Bid Loans.  The Administrative Agent shall promptly notify each Bid Loan Bank by facsimile transmission or by telephone, immediately confirmed by facsimile transmission, of the contents of each Bid Loan Request received by it.
(ii)In the case of an Index Rate Bid Loan Request, upon receipt of notice from the Administrative Agent of the contents of such Bid Loan Request, any Bid Loan Bank that elects, in its sole discretion, to do so, shall irrevocably offer to make one or more Bid Loans at the Applicable Index Rate plus or minus a margin for each such Bid Loan determined by such Bid Loan Bank, in its sole discretion.  Any such irrevocable offer shall be made by delivering a Bid Loan Offer to the Administrative Agent at the address set forth in clause (i)(A) above before 10:30 A.M. (New York City time) three Working Days before the proposed Borrowing Date, setting forth the maximum amount of Bid Loans for each Interest Period, and the aggregate maximum amount for all Interest Periods, which such Bank would be willing to make and the margin above or below the Applicable Index Rate at which such Bid Loan Bank is willing to make each such Bid Loan.  The Administrative Agent shall advise the relevant Borrower before 11:00 A.M. (New York City time) three Working Days before the proposed Borrowing Date of the contents of each such Bid Loan Offer received by it.  If the Administrative Agent in its capacity as a Bid Loan Bank shall, in its sole discretion, elect to make any such offer, it shall advise such Borrower of the contents of its Bid Loan Offer before 10:15 A.M. (New York City time) three Working Days before the proposed Borrowing Date.
(iii)In the case of an Absolute Rate Bid Loan Request, upon receipt of notice from the Administrative Agent of the contents of such Bid Loan Request, any Bid Loan Bank that elects, in its sole discretion, to do so, shall irrevocably offer to make one or more Bid Loans at a rate or rates of interest for each such Bid Loan determined by such Bid Loan Bank in its sole discretion.  Any such irrevocable offer shall be made by delivering a Bid Loan Offer to the Administrative Agent at the address set forth in clause (i)(A) of this subsection 

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2.2(b) before 9:30 A.M. (New York City time) on the proposed Borrowing Date, setting forth the maximum amount of Bid Loans for each Interest Period, and the aggregate maximum amount for all Interest Periods, which such Bid Loan Bank would be willing to make and the rate or rates of interest at which such Bid Loan Bank is willing to make each such Bid Loan.  The Administrative Agent shall advise the relevant Borrower before 10:00 A.M. (New York City time) on the proposed Borrowing Date of the contents of each such Bid Loan Offer received by it.  If the Administrative Agent in its capacity as a Bid Loan Bank shall, in its sole discretion, elect to make any such offer, it shall advise such Borrower of the contents of its Bid Loan Offer before 9:15 A.M. (New York City time) on the proposed Borrowing Date.
(iv)The relevant Borrower shall before 11:30 A.M. (New York City time) three Working Days before the proposed Borrowing Date (in the case of Bid Loans requested by an Index Rate Bid Loan Request) and before 10:30 A.M. (New York City time) on the proposed Borrowing Date (in the case of Bid Loans requested by an Absolute Rate Bid Loan Request) either, in its absolute discretion:
(A)cancel such Bid Loan Request by giving the Administrative Agent telephone notice to that effect, or
(B)accept one or more of the offers made by any Bid Loan Bank or Bid Loan Banks pursuant to clause (ii) or clause (iii) of this subsection 2.2(b), as the case may be, by giving telephone notice to the Administrative Agent (immediately confirmed by delivery to the Administrative Agent at the address set forth in clause (i)(A) of this subsection 2.2(b) of a Bid Loan Confirmation) of the amount of Bid Loans for each relevant Interest Period to be made by each Bid Loan Bank (which amount shall be equal to or less than the maximum amount for such Interest Period specified in the Bid Loan Offer of such Bid Loan Bank, and for all Interest Periods included in such Bid Loan Offer shall be equal to or less than the aggregate maximum amount specified in such Bid Loan Offer for all such Interest Periods) and reject any remaining offers made by Bid Loan Banks pursuant to clause (ii) or clause (iii) above, as the case may be; provided, however, that (x) such Borrower may not accept offers for Bid Loans for any Interest Period in an aggregate principal amount in excess of the maximum principal amount requested for such Interest Period in the related Bid Loan Request, (y) if such Borrower accepts any such offers, it must accept offers strictly based upon pricing (starting with the lowest pricing) for such relevant Interest Period and upon no other criteria whatsoever and (z) if two or more Bid Loan Banks submit offers for any Interest Period at identical pricing and such Borrower accepts any of such offers but does not wish to borrow the total amount offered by such Bid Loan Banks with such identical pricing, such Borrower shall accept offers from all of such Bid Loan Banks in amounts allocated among them pro rata according to the amounts offered by such Bid Loan Banks (or as nearly pro rata as shall be practicable, after giving effect to the requirement that Bid Loans made by a Bid Loan Bank on a Borrowing Date for each relevant Interest Period shall be in a principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof, it being agreed that to the extent that it is not possible to make allocations in accordance with the provisions of this clause (z) such allocations shall be made in accordance with the instructions of such Borrower, it being understood that in no event shall any Bank be obligated to make any Bid Loan in a principal amount less than $5,000,000).
(v)If such Borrower notifies the Administrative Agent that a Bid Loan Request is cancelled pursuant to clause (iv)(A) of this subsection 

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2.2(b), the Administrative Agent shall give prompt telephone notice thereof to the Bid Loan Banks, and the Bid Loans requested thereby shall not be made.
(vi)(A)  If such Borrower accepts pursuant to clause (iv)(B) of this subsection 2.2(b) one or more of the offers made by any Bid Loan Bank or Bid Loan Banks pursuant to a Bid Loan Request, the Administrative Agent shall promptly notify by telephone each Bid Loan Bank which has made such an offer of the aggregate amount of such Bid Loans to be made on such Borrowing Date for each Interest Period and of the acceptance or rejection of any offers to make such Bid Loans made by such Bid Loan Bank.  Each Bid Loan Bank which is to make a Bid Loan pursuant to a Bid Loan Request shall, before 12:00 Noon (New York City time) on the Borrowing Date specified in the Bid Loan Request applicable thereto, make available to the Administrative Agent at its office set forth in subsection 10.2 the amount of Bid Loans to be made by such Bid Loan Bank, in immediately available funds.  The Administrative Agent will make such funds available to such Borrower as soon as practicable on such date at the Administrative Agent’s aforesaid address.
(B)If such Borrower and any Bank agree to the terms of a Negotiated Rate Loan to be made on a Borrowing Date pursuant to a Negotiated Rate Loan Request, such Borrower and such Bank shall promptly notify by telephone the Administrative Agent of the aggregate amount of Negotiated Rate Loans to be made on such Borrowing Date and the respective Interest Periods therefor.  Each Bank which is to make a Negotiated Rate Loan shall, at such time, on such Borrowing Date and at such location as shall be mutually agreed upon between such Borrower and such Bank, make available to such Borrower the amount of Negotiated Rate Loans to be made by such Bank, in immediately available funds.
(C)As soon as practicable after each Borrowing Date for Bid Loans and Negotiated Rate Loans, the Administrative Agent shall notify each Bank of the aggregate amount of Bid Loans or Negotiated Rate Loans advanced pursuant to a Bid Loan Request or Negotiated Rate Loan Request on such Borrowing Date and the respective Interest Periods therefor.
(c)Within the limits and on the conditions set forth in this subsection 2.2, the Company and the Capital Corporation may from time to time borrow under this subsection 2.2, repay pursuant to paragraph (d) below, and reborrow under this subsection 2.2.
(d)The Company or the Capital Corporation, as applicable, shall repay to the Administrative Agent for the account of each Bid Loan Bank (or the Loan Assignee in respect thereof, as the case may be) which has made a Bid Loan to such Borrower on the last day of the Interest Period for each Bid Loan (such Interest Period being that specified by such Borrower for repayment of such Bid Loan in the related Bid Loan Request) the then unpaid principal amount of such Bid Loan.  Each Borrower shall repay to each Bank which has made a Negotiated Rate Loan to such Borrower (or the Loan Assignee in respect thereof, as the case may be) the principal thereof as agreed by such Borrower and such Bank.  Notwithstanding anything herein to the contrary, each Borrower’s obligation to repay its Bid Loans and Negotiated Rate Loans is a several obligation.
(e)Each Borrower shall pay interest on the unpaid principal amount of each Bid Loan and each Negotiated Rate Loan borrowed by such Borrower from the applicable Borrowing Date to the stated maturity date thereof, in the case of a Bid Loan, at the rate of interest determined pursuant to paragraph (b) of this subsection 2.2, and, in the case of a Negotiated Rate Loan, as agreed by such Borrower and the relevant Bank (calculated on the basis of a 360 day year for actual days elapsed), 

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payable on the interest payment date or dates (i) specified by such Borrower for such Bid Loan in the related Bid Loan Request and (ii) mutually agreed upon between such Borrower and such Bank in the case of Negotiated Rate Loans, provided that as to any Bid Loan in respect of which the stated maturity date is more than three months after such Borrowing Date, interest shall also be paid on the day which occurs three months after such Borrowing Date.  If all or a portion of the principal amount of any Bid Loan shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue principal amount shall, without limiting any rights of any Bank under this Agreement, bear interest from the date on which such payment was due at a rate per annum which is 1% above the rate which would otherwise be applicable to such Bid Loan until the scheduled maturity date with respect thereto and for each day thereafter at a rate per annum which is 1% above the ABR until paid in full (as well after as before judgment).  If all or any portion of the principal amount of any Negotiated Rate Loan shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue principal amount shall, without limiting any rights of any Bank under this Agreement, bear interest from the date on which such payment was due at a rate per annum as shall be mutually agreed upon between the relevant Borrower and the relevant Bank.  Notwithstanding anything herein to the contrary, each Borrower’s obligation to pay the interest accrued on its Bid Loans and Negotiated Rate Loans is a several obligation.
(f)After the first Bid Loan Request has been given hereunder, no Bid Loan Request or Negotiated Rate Loan Request shall be given until at least one Business Day, in the case of an Absolute Rate Bid Loan Request, or one Working Day, in the case of an Index Rate Bid Loan Request, after the earliest to occur of (i) the Borrowing Dates with respect to all prior Bid Loan Requests made pursuant to subsection 2.2(b)(i), (ii) the date on which all Bid Loan Banks have failed to submit Bid Loan Offers with respect to any Bid Loan Requests within the time specified in subsection 2.2(b)(ii) or (iii), as the case may be, and (iii) the date on which the relevant Borrower has cancelled all prior Bid Loan Requests pursuant to subsection 2.2(b)(iv).
2.3Loan Accounts.  Each Bank, with respect to its Committed Rate Loans, Bid Loans and Negotiated Rate Loans, and the Administrative Agent, with respect to all Committed Rate Loans, Negotiated Rate Loans and Bid Loans, shall open and maintain in the name of each Borrower loan accounts (as to each Bank, its “Loan Account” applicable to such Borrower) on its books and records setting forth the amounts of principal, interest and other sums paid and payable by such Borrower from time to time hereunder in respect of such Loans, and the obligation of such Borrower to pay or repay, as the case may be, such amounts to such Bank shall be evidenced by such Bank’s Loan Account.  In case of any dispute, action or proceeding relating to any Committed Rate Loan, Bid Loan or Negotiated Rate Loan, the entries in such records shall constitute prima facie evidence of the accuracy of the information set forth therein.  In case of discrepancy between the entries in the Administrative Agent’s books and records and any Bank’s, the entries in the Administrative Agent’s books and records shall constitute prima facie evidence of the accuracy of the information set forth therein.
2.4Fees.  (a)  The Company and the Capital Corporation jointly and severally agree to pay to the Administrative Agent for the account of each Bank a commitment fee from and including the Closing Date to but excluding the date on which the Commitment of such Bank terminates hereunder, computed at a per annum rate equal to the Commitment Fee Rate on the average daily amount of the Available Commitment of such Bank in effect during the period for which payment is made, payable quarterly in arrears on the first Business Day of each January, April, July and October of each year and on the Termination Date or such earlier date on which the Commitments shall terminate as provided herein, commencing in July, 2021.  

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(b)The Company and the Capital Corporation jointly and severally agree to pay to the Administrative Agent for its own account all fees set forth in the letter agreement dated February 2, 2021 from JPMorgan Chase Bank, N.A. to the Borrowers.
(c)The Company and the Capital Corporation jointly and severally agree to pay to the Administrative Agent for its own account all other fees payable to the Administrative Agent as the Borrowers and the Administrative Agent shall mutually agree from time to time.
2.5Termination or Reduction of Commitments; Cancellation of Capital Corporation or JD Luxembourg as Borrower.  (a)  The Borrowers, acting jointly, shall have the right, upon not less than five Business Days’ notice to the Administrative Agent, to terminate the Commitments or, from time to time, reduce the amount of the Commitments, provided that (i) any such reduction shall be accompanied by prepayment of Committed Rate Loans and reduction of the L/C Obligations hereunder, together with accrued interest on the amount so prepaid to the date of such prepayment, to the extent, if any, that the Dollar Equivalent of the aggregate outstanding principal amount of all Loans and L/C Obligations exceeds the amount of the Commitments as then reduced and (ii) any such termination of the Commitments shall be accompanied by prepayment in full of the Loans then outstanding hereunder in accordance with subsection 2.6 and payment of all Reimbursement Obligations together with accrued fees and interest thereon, and cash collateralization of outstanding Letters of Credit in an amount equal to the aggregate then undrawn and unexpired amount thereof (or the provision of other credit support acceptable to the applicable Issuing Banks), and any termination of a Bank’s Commitment pursuant to subsection 2.13, 2.16 or 2.17 shall, with respect to each affected Loan, on the last day of the applicable Interest Period therefor or, if earlier, on such earlier date as shall be notified by the Borrowers, be accompanied by prepayment in full of such Loan, together with, in each case, accrued interest thereon to the date of such prepayment, the payment of any Reimbursement Obligation owed to such Bank or unpaid commitment fee then accrued hereunder, the payment of any Letter of Credit interest and fees then accrued hereunder, and the payment of any amounts then payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17.  Upon receipt of such notice from the Borrowers the Administrative Agent shall promptly notify each Bank thereof.  Any reduction of the Commitments pursuant to this subsection 2.5 shall be in an amount not less than $25,000,000, and shall be an amount which is a whole multiple of $5,000,000, and shall reduce permanently the amount of the Commitments then in effect.    
(b)The Company may cancel the ability of the Capital Corporation to borrow hereunder upon not less than five Business Days’ notice to the Administrative Agent.  Upon receipt of such notice from the Company, the Administrative Agent shall promptly notify each Bank thereof.  On the first day following receipt of such notice, on which all Loans to the Capital Corporation and all interest thereon shall have been paid in full and all Reimbursement Obligations arising in connection with Letters of Credit issued for the account of the Capital Corporation, together with the accrued interest and fees thereon, shall have been paid in full and all outstanding Letters of Credit issued for the account of the Capital Corporation shall have been cash collateralized in an amount equal to the aggregate then undrawn and unexpired amount thereof (or otherwise credit supported in a manner acceptable to the applicable Issuing Banks), and notwithstanding any other provision of this Agreement, (i) the Capital Corporation shall cease to be a party hereto or to have any right or obligation hereunder, (ii) rights and obligations expressed herein to be, in effect, of the Company, the Capital Corporation or JD Luxembourg, each of them or of any of them together with the Capital Corporation, but not any such rights and obligations expressed herein to be of the Capital Corporation only, shall be deemed to be rights and obligations of the Company only and (iii) the Banks shall cease to have any right or obligation hereunder which depends or is contingent upon any action, condition or performance, or the absence thereof, whether past or present, of the Capital Corporation other than any action, condition or performance, or the absence thereof, of the Capital Corporation in its capacity as a Subsidiary, Significant Subsidiary or Restricted Subsidiary hereunder; provided, however, that the obligation of the Capital Corporation to make any payment 

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pursuant to subsection 2.13, 2.14, 2.15 or 2.17 which arises prior to the cancellation of the ability of the Capital Corporation to borrow hereunder shall survive the cancellation of the ability of the Capital Corporation to borrow hereunder; provided further that any cancellation of the ability of the Capital Corporation to borrow hereunder shall be accompanied by the cancellation of the ability of JD Luxembourg to borrow hereunder pursuant to clause (c) below.
(c)The Company may cancel the ability of JD Luxembourg to borrow hereunder upon not less than five Business Days’ notice to the Administrative Agent.  Upon receipt of such notice from the Company, the Administrative Agent shall promptly notify each Bank thereof.  On the first day following receipt of such notice, on which all Loans to JD Luxembourg and all interest thereon shall have been paid in full, and notwithstanding any other provision of this Agreement, (i) JD Luxembourg shall cease to be a party hereto or to have any right or obligation hereunder, (ii) rights and obligations expressed herein to be, in effect, of each of the Company, the Capital Corporation or JD Luxembourg, each of them or any of them together with JD Luxembourg, but not any such rights and obligations expressed herein to be of JD Luxembourg only, shall be deemed to be rights and obligations of the Company and the Capital Corporation, as applicable, only and (iii) the Banks shall cease to have any right or obligation hereunder which depends or is contingent upon any action, condition or performance, or the absence thereof, whether past or present, of JD Luxembourg other than any action, condition or performance, or the absence thereof, of JD Luxembourg in its capacity as a Subsidiary, Significant Subsidiary or Restricted Subsidiary hereunder; provided, however, that the obligation of JD Luxembourg to make any payment pursuant to subsection 2.13, 2.14, 2.15 or 2.17 which arises prior to the cancellation of the ability of JD Luxembourg to borrow hereunder shall survive the cancellation of the ability of JD Luxembourg to borrow hereunder.
2.6Prepayments.  (a)  Each Borrower may at any time and from time to time prepay its Committed Rate Loans in whole or in part, without premium or penalty, but subject to the provisions of subsection 2.14, upon at least three Working Days’ irrevocable notice (by 11:00 A.M. Local Time), in the case of Eurocurrency Loans, or same day irrevocable notice in the case of ABR Loans, in each case to the Administrative Agent, specifying the date and amount of prepayment and whether the prepayment is of its Eurocurrency Loans, ABR Loans, or a combination thereof, and if of a combination thereof, the amount of prepayment allocable to each.  Upon receipt of such notice the Administrative Agent shall promptly notify each Bank thereof.  If such notice is given, the Borrower delivering such notice shall make such prepayment, and the payment of the amount specified in such notice shall be due and payable, on the date specified therein, together with accrued interest to such date on the amount prepaid and any amounts payable pursuant to subsections 2.14 and 2.15.  Except as provided in the immediately following sentence, partial prepayments shall be in an aggregate principal amount of $5,000,000, or a whole multiple thereof (or comparable amounts reasonably determined by the Administrative Agent in the case of Foreign Currency Loans); provided, however, that after giving effect thereto, the aggregate principal amount of all Committed Rate Loans made on the same Borrowing Date shall not be less than $25,000,000 (or comparable amounts reasonably determined by the Administrative Agent in the case of Foreign Currency Loans).  Anything contained in this subsection 2.6 to the contrary notwithstanding, partial prepayments of a Cancelled Bank’s Loans in connection with the termination under subsection 2.13(a), (b) or (c), 2.16(c) or 2.17(b), or upon a Defaulting Bank becoming a Cancelled Bank, of such Cancelled Bank’s Commitment (in whole or in part) shall be in an amount equal to the principal amount of the Loans of such Bank being prepaid, notwithstanding the amount thereof, and shall be permitted notwithstanding the provisions of the foregoing proviso.  The Company and the Capital Corporation may prepay Negotiated Rate Loans or Bid Loans on such terms as shall be mutually agreed upon between the relevant Borrower and the relevant Bank.
(b)If, on any Calculation Date, the Total Extensions of Credit outstanding on such date exceed the Total Commitments, on such date, the Borrowers shall, without notice or demand, within five 

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Business Days (i) repay Loans and reduce L/C Obligations in an aggregate principal amount such that, after giving effect thereto, the Total Extensions of Credit shall be equal to or less than the Total Commitments and (ii) pay interest and fees accrued to the date of such payment, prepayment or reduction on the principal so prepaid or reduced and any amounts payable under subsection 2.14 in connection therewith.  
2.7Minimum Amount of Certain Loans.  All borrowings, conversions, continuations, payments and, except as set forth in the penultimate sentence of subsection 2.6, prepayments in respect of Committed Rate Loans shall be in such amounts and be made pursuant to such elections that, after giving effect thereto, (a) the aggregate principal amount of Committed Rate Loans made on any Borrowing Date shall not be less than $25,000,000 or a whole multiple of $5,000,000 in excess thereof (or comparable amounts reasonably determined by the Administrative Agent in the case of Foreign Currency Loans) and (b) the aggregate principal amount of Committed Rate Loans of any Type with the same Interest Period shall not be less than $10,000,000 or a whole multiple of $1,000,000 in excess thereof (or comparable amounts reasonably determined by the Administrative Agent in the case of Foreign Currency Loans).
2.8Committed Rate Loan Interest Rate and Payment Dates.  (a)  The Eurocurrency Loans shall bear interest for the period from the date thereof until the stated maturity thereof on the unpaid principal amount thereof at a rate per annum equal to the Eurocurrency Rate determined for the Interest Period therefor plus the Applicable Margin.
(b)The ABR Loans shall bear interest for each day during the period from the date thereof until the payment in full thereof on the unpaid principal amount thereof at a fluctuating rate per annum equal to the ABR for such day plus the Applicable Margin.
(c)If all or a portion of the principal amount of any of the Committed Rate Loans or Reimbursement Obligations shall not be paid when due (whether at the stated maturity, by acceleration or otherwise) such overdue principal amount of such Committed Rate Loan and Reimbursement Obligations (i) shall bear interest at a rate per annum which is 1% above the rate which would otherwise be applicable pursuant to subsection 2.8(a) or (b) as the case may be, from the date when such principal amount is due until the date on which such amount is paid in full and (ii) shall, if such Committed Rate Loan is a Eurocurrency Loan denominated in Dollars, be converted to an ABR Loan at the end of the Interest Period applicable thereto. 
(d)Interest shall be payable in arrears on each Interest Payment Date. 
2.9Conversion and Continuation Options.  (a)  The relevant Borrower may elect from time to time to convert Committed Rate Loans denominated in Dollars of one Type into Committed Rate Loans denominated in Dollars of another Type by giving to the Administrative Agent irrevocable notice of such conversion by the earliest time that they would have been required to give notice under subsection 2.1(c) if they had been borrowing Committed Rate Loans of each such Type on the conversion date specified in such notice, provided that any such conversion of Eurocurrency Loans may only be made on the last day of an Interest Period with respect thereto.  Any such notice of conversion to Eurocurrency Loans shall specify the length of the initial Interest Period or Interest Periods therefor.  Upon receipt of any such notice the Administrative Agent shall promptly notify each Bank thereof.  All or any part of outstanding Eurocurrency Loans and ABR Loans denominated in Dollars may be converted as provided herein, provided that no Loan may be converted into a Eurocurrency Loan after the date that is one month prior to (i) in the case of a Loan made by an Objecting Bank, such Objecting Bank’s Commitment Expiration Date, and (ii) in the case of all Loans, the Termination Date. 

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(b)Any Eurocurrency Loans may be continued as such upon the expiration of the then current Interest Period with respect thereto by the relevant Borrower giving notice to the Administrative Agent or the Foreign Currency Agent, as the case may be, such notice to be given by the time it would have been required to give notice under subsection 2.1(c) if it had been borrowing Eurocurrency Loans on the last day of the then expiring Interest Period therefor, of the length of the next Interest Period to be applicable to such Loans, provided that no Eurocurrency Loan denominated in Dollars may be continued as such after the date that is one month prior to (i) in the case of a Loan made by an Objecting Bank, such Objecting Bank’s Commitment Expiration Date, and (ii) in the case of all Loans, the Termination Date.  Upon receipt of any such notice, the Administrative Agent or the Foreign Currency Agent, as the case may be, shall promptly notify each Bank thereof.
2.10Computation of Interest and Fees.  (a)  Commitment fees and interest in respect of ABR Loans based upon clause (a) of the definition of ABR shall be calculated on the basis of a 365- (or 366- as the case may be) day year for the actual days elapsed (including the first day and excluding the last day).  Interest in respect of Eurocurrency Loans, Bid Loans and ABR Loans based upon clause (b) or (c) of the definition of ABR and Letter of Credit Fees shall be calculated on the basis of a 360-day year for the actual days elapsed (including the first day and excluding the last day), provided, that interest in respect of Foreign Currency Loans denominated in Pounds Sterling, Australian Dollars, Canadian Dollars or New Zealand Dollars shall be calculated on the basis of a 365- (or 366- as the case may be) day year for actual days elapsed. The Administrative Agent shall promptly notify the Borrowers and the Banks of each determination of a Eurocurrency Rate.  Any change in the interest rate on a Committed Rate Loan resulting from a change in ABR shall become effective as of the opening of business on the day on which such change in ABR shall become effective.  The Administrative Agent or the Foreign Currency Agent, as applicable, shall promptly notify the Borrowers and the Banks of the effective date and the amount of each such change.
(b)Each determination of an interest rate by the Administrative Agent or the Foreign Currency Agent, as applicable, pursuant to any provision of this Agreement shall be conclusive and binding on the Borrowers and the Banks in the absence of manifest error.  
2.11Inability to Determine Interest Rate.  (a) With respect to any Eurocurrency Loan denominated in any Currency that is then outstanding, or that has been requested to be borrowed, in the event that the Administrative Agent or the Foreign Currency Agent, as applicable, shall have determined (which determination shall be conclusive and binding upon the Borrowers) that (i) by reason of circumstances affecting the interbank market for the applicable Currency generally, adequate and reasonable means do not exist for ascertaining the Screen Rate for such Currency for any requested Interest Period with respect to Committed Rate Loans that a Borrower has requested be made as, continued as or converted into Eurocurrency Loans; provided that this clause (i) shall not apply to a Loan denominated in any Currency to the extent that a Benchmark Transition Event in respect of such Currency shall have occurred at such time or (ii) that deposits in the applicable Currency are not generally available, or cannot be obtained by the Banks, in the applicable market (any Foreign Currency affected by the circumstances described in clause (i) or (ii) is referred to as an “Affected Foreign Currency”), the Administrative Agent or the Foreign Currency Agent, as applicable, shall promptly give notice of such determination to such Borrower and the Banks prior to the first day of the requested Interest Period for such Eurocurrency Loans.  If such notice is given, such Borrower may (A) in accordance with the provisions of subsection 2.1 or 2.9, as the case may be (including any requirements for notification), request that the affected Loans denominated in Dollars be made as, continued as or converted into, as the case may be, ABR Loans, (B) request that any outstanding Foreign Currency Loans in an Affected Foreign Currency be converted, on the last day of the then-current Interest Period, to Dollar Loans at the applicable Exchange Rate or (C) in the case of Loans requested to be made on the first day of such Interest Period, withdraw the notice given under subsection 2.1 or 2.9, as the case may be, by giving 

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telephonic notice to the Administrative Agent or the Foreign Currency Agent, as applicable, no later than 10:00 A.M. (Local Time) one Business Day prior to the applicable Borrowing Date, confirmed in writing no later than one Business Day after such telephonic notice is given; provided that if the Administrative Agent or the Foreign Currency Agent, as applicable, does not receive any notice permitted from the relevant Borrower hereunder, such Borrower shall be deemed to have requested that the affected Loans be made as, continued as or converted into, as the case may be, ABR Loans or, in the case of Foreign Currency Loans, shall be deemed to have requested that the affected Loans be made as, continued as or converted into, as the case may be, Dollar Loans which are (1) ABR Loans (in the case of clause (i) above) or (2) Eurocurrency Loans (in the case of clause (ii) above).  Until the notice given pursuant to the first sentence of this paragraph has been withdrawn by the Administrative Agent or the Foreign Currency Agent, as applicable, no further Eurocurrency Loans denominated in Dollars (in the case of clause (i) above) or in an Affected Foreign Currency shall be made or continued as such, nor shall the Borrower have the right to convert ABR Loans to Eurocurrency Loans.
(b)  Notwithstanding anything to the contrary herein or in any other Loan Document, if a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark with respect to a Loan denominated in any Currency, then (x) if a Benchmark Replacement for a Loan denominated in such Currency is determined in accordance with clause (1) or (2) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for a Loan denominated in such Currency for all purposes hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a Benchmark Replacement for a Loan denominated in such Currency is determined in accordance with clause (3) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Banks without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Banks comprising the Majority Banks.
(c)  Notwithstanding anything to the contrary herein or in any other Loan Document and subject to the proviso below in this paragraph, solely with respect to a Loan denominated in Dollars, if a Term SOFR Transition Event and its related Benchmark Replacement Date have occurred prior to the Reference Time in respect of any setting of the then-current Benchmark, then the applicable Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder or under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings, without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document; provided that, this clause (c) shall not be effective unless the Administrative Agent has delivered to the Banks and the Company a Term SOFR Notice.
(d)  In connection with the implementation of a Benchmark Replacement, the Administrative Agent, in consultation with the Company, will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Loan Document.

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(e)  The Administrative Agent will promptly notify the Company and the Banks of (i) any occurrence of a Benchmark Transition Event, a Term SOFR Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (f) below and (v) the commencement or conclusion of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Bank (or group of Banks) pursuant to this subsection 2.11, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto or any other Loan Document, except, in each case, as expressly required pursuant to this subsection 2.11.
(f)  Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including Term SOFR or Eurocurrency Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Administrative Agent may modify the definition of “Interest Period” for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent shall modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.
(g)  Upon the Company’s receipt of notice of the commencement of a Benchmark Unavailability Period with respect to the Relevant Rate applicable to any Eurocurrency Loan, and during the continuance thereof (in each case below, to the extent such Benchmark Unavailability Period is in respect of the Relevant Rate applicable to such Eurocurrency Loan), (i) a Borrower may revoke any request for a Eurocurrency Loan to be made during such Benchmark Unavailability Period, and, failing that, the applicable Borrower will be deemed to have converted such request for a Eurocurrency Loan denominated in Dollars into a request for an ABR Loan and (ii) any request for a Eurocurrency Loan denominated in a Foreign Currency shall be ineffective. During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR.  Furthermore, if any Eurocurrency Loan in any Currency is outstanding on the date of the Company’s receipt of notice of the commencement of a Benchmark Unavailability Period with respect to the Relevant Rate applicable to such Eurocurrency Loan, then (i) if such Eurocurrency Loan is denominated in Dollars, on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), such Loan shall be converted by the Administrative Agent to, and shall constitute, an ABR Loan denominated in Dollars on such day or (ii) if such Eurocurrency Loan is denominated in any Foreign Currency, such Loan shall, on the last day of the Interest Period applicable to such Loan (or the next succeeding Business Day if such day is not a Business Day), at the applicable Borrower’s election prior to such day: (A) be prepaid by the applicable Borrower on such day or (B) be converted by the Administrative Agent to, and shall constitute, an ABR Loan denominated in Dollars (in an amount equal to the Dollar Equivalent of the amount of such Eurocurrency Loan on such day (it being understood and agreed that if the applicable Borrower does not so prepay such Loan on such day by 12:00 noon, Local Time, the Administrative Agent is authorized to effect such 

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conversion of such Eurocurrency Loan into an ABR Loan denominated in Dollars)); provided that, in the case of this subclause (B), upon any subsequent implementation of a Benchmark Replacement in respect of such Foreign Currency pursuant to this subsection 2.11, such ABR Loan denominated in Dollars shall then be converted by the Administrative Agent to, and shall constitute, a Eurocurrency Loan denominated in the original Foreign Currency applicable to such Loan (in an amount equal to the Foreign Currency Equivalent of the amount of such ABR Loan) on the day of, and after giving effect to, such implementation.
2.12Pro Rata Treatment and Payments.  (a)  All payments (including prepayments) to be made by the Borrowers on account of principal, Reimbursement Obligations, interest and fees shall be made without defense, set-off or counterclaim and shall be made, in the case of fees and principal of, and interest on, Loans (other than Negotiated Rate Loans) and Reimbursement Obligations at the Administrative Agent’s office specified in subsection 10.2, in each case in the relevant Currency in which the Loan was made (and in Dollars in the case of Reimbursement Obligations) and in immediately available funds not later than 11:00 A.M. (Local Time) on the date due.  The Administrative Agent shall distribute such payments to the Banks entitled thereto on the day of receipt in like funds as received, provided that the Administrative Agent shall have received such payments not later than 11:00 A.M. (Local Time).  If the Administrative Agent shall distribute such payments to the Banks entitled thereto on a date after the date on which such payments were received prior to 11:00 A.M. (Local Time), the Administrative Agent shall pay to each such Bank on demand an amount equal to the product of (i) the daily average applicable Overnight Rate, times (ii) the amount of such Bank’s share of such payment, times (iii) a fraction, the numerator of which is the number of days that elapse from and including such date of receipt of payment by the Administrative Agent to but excluding the date on which such Bank’s share of such payment shall have become immediately available to such Bank and the denominator of which is 360.  All payments (including prepayments) to be made by the Borrowers on account of principal, interest and fees relating to Negotiated Rate Loans shall be made to the Bank with respect thereto on such terms, at such address and at such time as shall be mutually agreed upon between the relevant Borrower and the relevant Bank in lawful money of the United States of America on the date due.
(b)(i)  Each borrowing by a Borrower of Committed Rate Loans and each payment of principal in respect of Committed Rate Loans (subject to the provisions of subsection 2.20(e)) shall be made in accordance with the following requirements:
(A)All borrowings of Committed Rate Loans and all principal payments in respect of such Loans, shall be made pro rata according to the respective Commitments of the Banks.
(B)As provided in clause (b)(ii) below, if any principal payment is made in respect of any Loans (other than Negotiated Rate Loans) on any day on which principal amounts are due and owing in respect of any Loans (other than Negotiated Rate Loans), such principal payment shall be applied to the Banks pro rata according to the respective amounts of principal due and owing to the Banks under this Agreement. 
(ii)Except as provided in subsections 2.13, 2.16 and 2.17, each reduction of the Commitments shall be made pro rata among the Banks according to their respective Commitment Percentages.  Each payment by the Borrowers under this Agreement or of any Loan (other than Negotiated Rate Loans) shall be applied, first, to any fees then due and owing pursuant to subsections 2.4 and 2.26, second, to interest then due and owing in respect of the Loans (other than Negotiated Rate Loans) and Reimbursement Obligations and third, to principal then due and owing hereunder (other than principal due and 

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owing under Negotiated Rate Loans) under the Loans (other than Negotiated Rate Loans) and Reimbursement Obligations.  Each payment made by the Company or the Capital Corporation under this Agreement relating to a Negotiated Rate Loan to the Bank with respect thereto shall be applied, first, to interest then due and owing in respect of such Negotiated Rate Loan and second, to principal then due and owing hereunder with respect to such Negotiated Rate Loan and under such Negotiated Rate Loan.  Each payment (other than voluntary prepayments made when no principal payments are due and owing hereunder) by a Borrower on account of principal of and interest on the Loans (other than Negotiated Rate Loans) and Reimbursement Obligations shall be made for the account of each Bank pro rata according to the respective amounts of principal, Reimbursement Obligations and interest due and owing to such Bank under this Agreement.  Subject to the requirements of clause (i) of this paragraph (b), each payment by a Borrower on account of principal of the Loans (other than Negotiated Rate Loans) and Reimbursement Obligations shall be applied, first, to such of its Committed Rate Loan borrowings and Reimbursement Obligations as such Borrower may designate and, second, after all Committed Rate Loans and Reimbursement Obligations shall have been paid in full, to all of its Absolute Rate Bid Loans or Index Rate Bid Loans made on the same Borrowing Date with the same Interest Period as such Borrower may designate, pro rata according to the respective amounts outstanding; provided, however, that prepayments made pursuant to subsection 2.13(a), (b) or (c), 2.16(c) or 2.17(b) shall be applied in accordance with such subsection.
(c)If any payment hereunder (other than payments on the Eurocurrency Loans and Index Rate Bid Loans) becomes due and payable on a day other than a Business Day, such payment shall be extended to the next succeeding Business Day.  If any payment on a Eurocurrency Loan or Index Rate Bid Loan becomes due and payable on a day other than a Working Day, the maturity thereof shall be extended to the next succeeding Working Day unless the result of such extension would be to extend such payment into another calendar month in which event such payment shall be made on the immediately preceding Working Day.  With respect to any extension of the payment of principal pursuant to this subsection 2.12(c), interest thereon shall be payable at the then applicable rate during such extension.
(d)Unless the Administrative Agent shall have been notified in writing by any Bank prior to the date of the Committed Rate Loan, Committed Rate Loans, Bid Loan or Bid Loans to be made by such Bank (which notice shall be effective upon receipt) that such Bank will not make its pro rata share of the amount of the requested borrowing on such date available to the Administrative Agent, the Administrative Agent may assume that such Bank has made such amount available to it on such date and the Administrative Agent may, in reliance upon such assumption, make available to the relevant Borrower a corresponding amount.  If a Bank shall make such amount available to the Administrative Agent on a date after such Borrowing Date, such Bank shall pay to the Administrative Agent on demand an amount equal to the product of (i) the daily average applicable Overnight Rate, times (ii) the amount of such Bank’s pro rata share of such borrowing, times (iii) a fraction, the numerator of which is the number of days that elapse from and including such Borrowing Date to but excluding the date on which such Bank’s pro rata share of such borrowing shall have become immediately available to the Administrative Agent and the denominator of which is 360.  A certificate of the Administrative Agent submitted to any Bank with respect to any amounts owing under this subsection 2.12(d) shall be conclusive, absent manifest error.  If such Bank’s pro rata share is not in fact made available to the Administrative Agent by such Bank within three Business Days of such Borrowing Date, the Administrative Agent shall be entitled to recover such amount, on demand, from the relevant Borrower with interest thereon at the rate equal to the product of (i) during the period from and including such Borrowing Date to the Business Day next 

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following the date of such demand, the daily average applicable Overnight Rate, times a fraction, the numerator of which is the number of days that elapse from and including such Borrowing Date to but excluding the Business Day next following the date of such demand and the denominator of which is 360 and (ii) thereafter, the interest rate or rates applicable to the Loan or Loans funded by the Administrative Agent on behalf of such Bank on such Borrowing Date, times a fraction, the numerator of which is the number of days which elapse from and including the Business Day next following the date of such demand to but excluding the date such amount is recovered by the Administrative Agent from such Borrower and the denominator of which is 360.  In the event any Bank’s pro rata share of a borrowing is not made available to the Administrative Agent in accordance with this paragraph within three Business Days of the applicable Borrowing Date (i) such Bank shall, during the period from such Borrowing Date to the date such Bank makes its pro rata share of the applicable borrowing available, not accrue and shall not be entitled to receive any commitment fee under subsection 2.4 and (ii) each Borrower may exercise or pursue any other rights, remedies, powers and privileges against such Bank as are provided by law or by contract. 
2.13Requirements of Law.  (a)  If any Bank shall determine that by reason of (i) the introduction after the date hereof of any applicable law, regulation or guideline or any change after the date hereof in any applicable law, regulation or guideline (including the phasing-in of a provision of any applicable law, regulation or guideline) or in the interpretation thereof by any governmental or other regulatory authority charged with the administration thereof or any court of competent jurisdiction and/or (ii) compliance by such Bank with any requirement adopted after the date hereof or directive adopted after the date hereof from any central bank or other fiscal, monetary or other regulatory authority (whether or not having the force of law), there shall be any increase in the cost of such Bank of maintaining or giving effect to its obligations with respect to Committed Rate Loans or Letters of Credit under this Agreement or maintaining its Commitment with respect to Committed Rate Loans or Letters of Credit or making or maintaining any Eurocurrency Loans or any reduction in any amount receivable by such Bank in respect of Eurocurrency Loans under this Agreement, notwithstanding the reasonable efforts (such reasonable efforts not to result in the incurrence of additional costs or expenses) of such Bank to mitigate such increase or reduction (excluding for purposes of this subsection 2.13 any such increased costs resulting from (x) Indemnified Taxes (as to which subsection 2.17 shall govern), (y) changes in the basis of taxation of overall net income or overall gross income by the United States or by the foreign jurisdiction or state under the laws of which such Bank is organized or has its applicable lending office or any political subdivision thereof and (z) FATCA), then the relevant Borrower shall from time to time on receipt (whenever occurring) of a certificate from such Bank (which shall be executed by an officer thereof and a copy of which shall be delivered to the Administrative Agent) pay to such Bank such amounts as are stated therein to be required to indemnify such Bank against such increased costs or reduction; provided, however, that if such Borrower becomes obligated to pay any Bank any additional amount pursuant to this subsection 2.13(a), such Borrower shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and such Bank in accordance with subsection 2.6, to prepay in full the Loans of such Bank, together with accrued interest thereon, any amounts payable to such Bank pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect of Letters of Credit or other amount payable to such Bank hereunder and/or, upon giving not less than three Business Days’ notice to any such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank (and upon such cancellation, such Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Bank’s participating interest in respect of Letters of Credit); provided, further, that such Borrower shall not be obligated to pay any Bank any additional amount pursuant to this subsection 2.13(a) (A) which constitutes a present or future income, stamp or other tax, levy, impost, duty, charge, fee, deduction or withholding referred to in subsection 

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2.17(a) or (B) as a result of any law, rule, guideline, regulation, request or directive regarding capital adequacy or liquidity referred to in subsection 2.13(b).  A certificate of such Bank as to the amount of such increased costs or reduction shall set forth in reasonable detail the computation of such increased costs or reduction, and shall be binding and conclusive in the absence of manifest error.  A Bank which demands indemnification hereunder as a result of an increased cost or reduction referred to herein shall deliver the certificate referred to above to the relevant Borrower demanding indemnification no later than the later of (y) the thirtieth day immediately following each payment or realization by such Bank of such increased cost or reduction (and such certificate shall certify that the amounts set forth therein were paid or realized within such thirty-day period) and (z) the thirtieth day immediately following such Bank’s knowledge of the incurrence or realization by such Bank of such increased cost or reduction (and such certificate shall so certify).
(b)In the event that any Bank shall have determined that the adoption after the date hereof of any law, rule, guideline or regulation regarding capital adequacy or liquidity, or any change after the date hereof in any existing or future law, rule, guideline or regulation regarding capital adequacy or liquidity (excluding, however, the phasing-in of any existing law, rule, regulation or guideline regarding capital adequacy or liquidity) or in the interpretation or application thereof or compliance by such Bank or any corporation controlling such Bank with any request or directive made or adopted after the date hereof regarding capital adequacy or liquidity (whether or not having the force of law) from any central bank or Governmental Authority, does or shall have the effect of reducing the rate of return on such Bank’s or such corporation’s capital as a consequence of its obligations hereunder to a level below that which such Bank or such corporation could have achieved but for such adoption, change or compliance (taking into consideration such Bank’s or such corporation’s policies with respect to capital adequacy or liquidity) by an amount deemed by such Bank to be material, then from time to time, within 30 days after receipt (whenever occurring) of a certificate from such Bank (which shall be executed by an officer thereof and a copy of which shall be delivered to the Administrative Agent), the Company and the Capital Corporation jointly and severally agree to pay to such Bank such additional amounts as are stated therein to be required to compensate it for such reduction; provided, however, that if such Borrower becomes obligated to pay any Bank any additional amount pursuant to this subsection 2.13(b), such Borrower shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and such Bank in accordance with subsection 2.6, to prepay in full the Loans of such Bank, together with accrued interest thereon, any amounts payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect of Letters of Credit or other amounts payable to it hereunder and/or, upon giving not less than three Business Days’ notice to any such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank (and upon such cancellation, such Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Bank’s participating interest in respect of Letters of Credit) (but only if after giving effect to such cancellation and prepayment the Total Extensions of Credit do not exceed the Total Commitments).  A certificate of such Bank as to the amount of such reduction shall set forth in reasonable detail the computation of such reduction, and shall be binding and conclusive in the absence of manifest error.  A Bank which demands indemnification hereunder as a result of a reduction referred to herein shall deliver the certificate referred to above to the relevant Borrower demanding indemnification no later than the later of (i) the thirtieth day immediately following each realization by such Bank of such reduction (and such certificate shall certify that the amounts set forth therein were realized within such thirty-day period) and (ii) the thirtieth day immediately following such Bank’s knowledge of the realization by such Bank of such reduction (and such certificate shall so certify).
(c)Each Borrower shall pay to each Bank that delivers a certificate to such Borrower in accordance with this subsection (c) such amounts as shall be necessary to reimburse such Bank for the 

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costs (determined in accordance with the immediately following sentence), if any, incurred by such Bank, as a result of the application to such Bank during any period on which there are outstanding Eurocurrency Loans advanced by such Bank to such Borrower of basic, supplemental, marginal and emergency reserves under any regulations of the Board or other Governmental Authority having jurisdiction with respect thereto dealing with reserve requirements prescribed for eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D of such Board) maintained by a member bank of such system (any such reserves dealing with reserve requirements prescribed for eurocurrency funding being referred to as “Reserves”), such amount to be set forth in a certificate of such Bank delivered to the relevant Borrower; provided, however, that if a Bank gives to a Borrower the written notice contemplated by the proviso set forth in the second following sentence, such Borrower shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and such Bank in accordance with subsection 2.6, to prepay in full the Loans of such Bank, together with accrued interest thereon, any amounts payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect of Letters of Credit or other amounts payable to it hereunder and/or upon giving not less than three Working Days’ notice to such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank (and upon such cancellation, such Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Bank’s participating interest in respect of Letters of Credit).  Amounts certified by a Bank hereunder for any period shall represent such Bank’s calculation or, if an accurate calculation is impracticable, reasonable estimate (using such reasonable means of allocation as such Bank shall determine) of the actual costs, if any, theretofore incurred by such Bank as a result of the application of Reserves to Eurocurrency liabilities (as referred to in Regulation D referred to above) of such Bank in an amount equal to such Bank’s Eurocurrency Loans during such period and in any event shall not exceed the amount obtainable utilizing the maximum Reserves prescribed by the Board or other Governmental Authority having jurisdiction with respect thereto for such period.  Such payment shall be made within fifteen days after receipt by the relevant Borrower of a certificate, signed by an officer of the Bank delivering such certificate, which certificate shall be binding and conclusive in the absence of demonstrable error, specifying the period (prior to the date of such certificate) during which the cost set forth therein was incurred by such Bank and stating (i) that such amount represents the actual cost, or, if an accurate calculation of such cost is impracticable stating that such amount represents such Bank’s reasonable estimate of the actual cost, incurred by such Bank during such period as a result of the application of Reserves to Eurocurrency liabilities of such Bank in an amount equal to such Bank’s Eurocurrency Loans during such period and specified in such certificate and (ii) that the amount set forth therein does not in any event exceed the amount obtainable utilizing the maximum Reserves prescribed for such period by the Board or such other Governmental Authority having jurisdiction with respect thereto; provided that the obligation of the Borrowers to pay any amounts pursuant to this subsection 2.13(c) shall apply only in the case of those Banks that give to the relevant Borrower and the Administrative Agent, no later than 3:00 P.M. (Local Time) on the day that is two Working Days prior to the applicable Borrowing Date therefor, a written notice stating that such Bank intends to demand reimbursement pursuant hereto.  A Bank which demands reimbursement of Reserve costs hereunder on account of a Eurocurrency Loan made by such Bank shall deliver the certificate referred to in the preceding sentence to the relevant Borrower setting forth the items specified in clauses (i) and (ii) of the preceding sentence no later than the thirtieth day immediately following the last day of the Interest Period applicable to such Eurocurrency Loan.
(d)If any Governmental Authority of the jurisdiction of any Foreign Currency (or any other jurisdiction in which the funding operations of any Bank shall be conducted with respect to such Foreign Currency) shall put into effect after the date hereof any reserve, liquid asset or similar requirement with respect to any category of deposits or liabilities customarily used to fund loans in such 

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Foreign Currency (excluding any Reserves), or by reference to which interest rates applicable to loans in such Foreign Currency are determined, and the result of such requirement shall be to increase the cost to such Bank of making or maintaining any Foreign Currency Loan in such Foreign Currency, and such Bank shall deliver to the Borrowers a notice requesting compensation under this paragraph, then the Borrower will pay to such Bank on each Interest Payment Date with respect to each affected Foreign Currency Loan an amount that will compensate such Bank for such additional cost; provided, that the Borrowers shall not be required to compensate a Bank pursuant to this paragraph for any amounts incurred more than three months prior to the date that such Banks notifies the Borrowers of such Bank’s intention to claim compensation therefor; and provided further that, if the circumstances giving rise to such claim have a retroactive effect, then such three-month period shall be extended to include the period of such retroactive effect.  Notwithstanding the foregoing, if a Bank gives to a Borrower the written notice contemplated by the proviso set forth in the following sentence, such Borrower shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and such Bank in accordance with subsection 2.6, to prepay in full the Loans of such Bank, together with accrued interest thereon, any amounts payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect of Letters of Credit or other amounts payable to it hereunder and/or upon giving not less than three Working Days’ notice to such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank (and upon such cancellation, such Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Bank’s participating interest in respect of Letters of Credit).  Such payment shall be made within fifteen days after receipt by the relevant Borrower of a certificate, signed by an officer of the Bank delivering such certificate, which certificate shall be binding and conclusive in the absence of demonstrable error, specifying the period (prior to the date of such certificate) during which the cost set forth therein was incurred by such Bank and stating (i) that such amount represents the actual cost, or, if an accurate calculation of such cost is impracticable stating that such amount represents such Bank’s reasonable estimate of the actual cost, incurred by such Bank during such period as a result of the application of such reserve, liquid asset or similar requirements in an amount equal to such Bank’s Foreign Currency Loans during such period and specified in such certificate and (ii) that the amount set forth therein does not in any event exceed the amount obtainable utilizing such reserves prescribed for such period by such Governmental Authority having jurisdiction with respect thereto; provided that the obligation of the Borrowers to pay any amounts pursuant to this subsection 2.13(d) shall apply only in the case of those Banks that give to the relevant Borrower and the Administrative Agent, no later than 3:00 P.M. (Local Time) on the day that is two Working Days prior to the applicable Borrowing Date therefor, a written notice stating that such Bank intends to demand reimbursement pursuant hereto.  A Bank which demands reimbursement of reserve costs hereunder on account of a Foreign Currency Loan made by such Bank shall deliver the certificate referred to in the preceding sentence to the relevant Borrower setting forth the items specified in clauses (i) and (ii) of the preceding sentence no later than the thirtieth day immediately following the last day of the Interest Period applicable to such Foreign Currency Loan.
(e)Notwithstanding any other provision of this Agreement, if (A) the adoption of any law, rule or regulation after the date of this Agreement, (B) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (C) compliance by any Bank with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Agreement, shall make it unlawful for any such Bank to make or maintain any Foreign Currency Loan or to give effect to its obligations as contemplated hereby with respect to any Foreign Currency Loan, then, by written notice to the Borrowers and to the Administrative Agent:

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(i)such Bank or Banks may declare that Foreign Currency Loans (in the affected Currency or Currencies) will not thereafter (for the duration of such unlawfulness) be made by such Bank or Banks hereunder (or be continued for additional Interest Periods), whereupon any request for a Foreign Currency Loan (in the affected Currency or Currencies) or to continue a Foreign Currency Loan (in the affected Currency or Currencies, as the case may be, for an additional Interest Period) shall, as to such Bank or Banks only, be of no force and effect, unless such declaration shall be subsequently withdrawn; and
(ii)such Bank may require that all outstanding Foreign Currency Loans (in the affected Currency or Currencies), made by it be converted to ABR Loans or Eurocurrency Loans denominated in Dollars, as the case may be (unless repaid by the Borrowers), in which event all such Foreign Currency Loans (in the affected Currency or Currencies) shall be converted to ABR Loans or Eurocurrency Loans denominated in Dollars, as the case may be, as of the effective date of such notice as provided in paragraph (f) below and at the Exchange Rate on the date of such conversion or, at the option of the Borrower, repaid on the last day of the then current Interest Period with respect thereto or, if earlier, the date on which the applicable notice becomes effective.
In the event any Bank shall exercise its rights under (i) or (ii) above, all payments and prepayments of principal that would otherwise have been applied to repay the converted Foreign Currency Loans of such Bank shall instead be applied to repay the ABR Loans or Loans denominated in Dollars, as the case may be, made by such Bank resulting from such conversion.
(f)For purposes of subsection 2.13(e), a notice to a Borrower by any Bank shall be effective as to each Foreign Currency Loan made by such Bank, if lawful, on the last day of the Interest Period currently applicable to such Foreign Currency Loan; in all other cases such notice shall be effective on the date of receipt thereof by such Borrower.
(g)The obligations of the parties under this subsection 2.13 shall survive termination of this Agreement and payment of the Loans.
(h)For purposes of this subsection 2.13, (i) all requests, rules, guidelines, requirements and directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or by United States or foreign regulatory authorities, in each case pursuant to Basel III, and (ii) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder or issued in connection therewith or in implementation thereof, shall be deemed to have been introduced and adopted after the date of this Agreement.  Notwithstanding the foregoing, no Bank shall be entitled to seek compensation for costs imposed pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act or Basel III if it shall not be the general policy of such Bank at such time to seek compensation from other investment grade borrowers with the same or similar ratings under yield protection provisions in credit agreements with such borrowers that provide for such compensation and the applicable Bank is in fact generally seeking such compensation from such borrowers (and, upon any request by such Bank for payment, certifies to the Borrower to the effect of the foregoing).
2.14Indemnity.  Each Borrower agrees to indemnify each Bank and to hold each Bank harmless from any loss or expense which such Bank may sustain or incur as a consequence of (a) default by such Borrower in payment of the principal amount of or interest on any Loan by such Bank, including, but not limited to, any such loss or expense arising from interest or fees payable by such Bank to lenders of funds obtained by it in order to maintain its Loans hereunder, (b) default by such Borrower in making a borrowing, conversion or continuance after such Borrower has given a notice in accordance 

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with subsection 2.1, 2.2 or 2.9, (c) default by such Borrower in making any prepayment after such Borrower has given a notice in accordance with subsection 2.5 or 2.6 or (d) the making by such Borrower of a prepayment of a Committed Rate Loan (other than an ABR Loan), a Bid Loan or, to the extent agreed to by the relevant Borrower and the relevant Bank with respect to a Negotiated Rate Loan, a Negotiated Rate Loan on a day which is not the last day of an Interest Period with respect thereto (with respect to Committed Rate Loans) or the maturity date therefor (with respect to Bid Loans) or any agreed date (with respect to Negotiated Rate Loans), including, but not limited to, any such loss or expense arising from interest or fees payable by such Bank to lenders of funds obtained by it in order to maintain its Loans hereunder.  This covenant shall survive termination of this Agreement and payment of the outstanding Loans.  A certificate as to any amount payable pursuant to the foregoing shall be submitted by such Bank (and executed by an officer thereof) to the relevant Borrower, setting forth the computation of such amounts in reasonable detail, and shall be conclusive in the absence of manifest error.
2.15Non-Receipt of Funds by the Administrative Agent.  With respect to all Loans except Negotiated Rate Loans, unless the Administrative Agent shall have been notified by the relevant Borrower prior to the date on which any payment is due from it hereunder (which notice shall be effective upon receipt) that such Borrower does not intend to make such payment, the Administrative Agent may assume that such Borrower has made such payment when due, and the Administrative Agent may in reliance upon such assumption (but shall not be required to) make available to each Bank on such payment date an amount equal to the portion of such assumed payment to which such Bank is entitled hereunder, and if such Borrower has not in fact made such payment to the Administrative Agent, such Bank shall, on demand, repay to the Administrative Agent the amount made available to such Bank together with interest thereon in respect of each day during the period commencing on the date such amount was made available to such Bank and ending on (but excluding) the date such Bank repays such amount to the Administrative Agent, at a rate per annum equal to the applicable Overnight Rate.  A certificate of the Administrative Agent submitted to the relevant Bank with respect to any amount owing under this subsection 2.15 shall be conclusive absent manifest error.
2.16Extension of Termination Date.  (a)  No later than 30 days prior to the Termination Date then in effect, provided that no Event of Default shall have occurred and be continuing at the time such request is submitted, the Borrowers may request an extension of such Termination Date by submitting to the Administrative Agent an Extension Request containing the information in respect of such extension specified in Exhibit I, which the Administrative Agent shall promptly furnish to each Bank.  If, within 30 days of their receipt of an Extension Request, the Majority Banks shall approve in writing the extension of the Termination Date requested in such Extension Request, the Termination Date shall automatically and without any further action by any Person be extended for the period specified in such Extension Request; provided that (i) each extension pursuant to this subsection 2.16 shall be for a maximum of one year and (ii) the Commitment of any Bank which does not consent in writing to such extension within 30 days of its receipt of such Extension Request (an “Objecting Bank”) shall, unless earlier terminated in accordance with this Agreement, expire on the Termination Date in effect on the date of such Extension Request (such Termination Date, if any, referred to as the “Commitment Expiration Date” with respect to such Objecting Bank).  If, within 30 days of their receipt of an Extension Request, the Majority Banks shall not approve in writing the extension of the Termination Date requested in an Extension Request, the Termination Date shall not be extended pursuant to such Extension Request.  The Administrative Agent shall promptly notify (y) the Banks and the Borrowers of any extension of the Termination Date pursuant to this subsection 2.16 and (z) the Borrowers and any other Bank of any Bank which becomes an Objecting Bank.  No Bank has an obligation to extend its Commitment pursuant to this subsection 2.16 except in its sole discretion.
(b)Any Objecting Bank the Commitment of which shall expire prior to any extended Termination Date shall, subject to subsection 2.16(c), have its Committed Rate Loans repaid in full by the 

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applicable Borrower(s) on such expiration date, together with accrued interest thereon, and shall have any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect of Letters of Credit or other amount payable to it hereunder paid on the first date to occur following such expiration date on which the fees referred to in subsection 2.4(a) or 2.26 or other amounts are payable to the non-Objecting Banks or, if such fees or other amounts shall be so payable on such expiration date, such unpaid commitment fee, Letter of Credit Fee and other amount shall be paid on such expiration date.  In addition, the participating interest of any Objecting Bank in any then outstanding undrawn Letters of Credit shall terminate on such expiration date (it being understood that each Objecting Bank shall remain liable to fund its participating interest in respect of any Letters of Credit which are drawn upon by the beneficiary thereof prior to such expiration date) and such participating interest shall be deemed to be reallocated to and among the non-Objecting Banks ratably in accordance with their respective Commitments.
(c)The Borrowers shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and the Objecting Banks in accordance with subsection 2.6, to prepay in full the Committed Rate Loans of the Objecting Banks, together with accrued interest thereon, any amounts payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect to Letters of Credit or other amounts payable to it hereunder and/or, upon giving not less than three Working Days’ notice to the Objecting Banks and the Administrative Agent, to cancel the whole or part of the Commitments of the Objecting Banks (and upon such cancellation, such Objecting Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate and such participation shall be deemed to be reallocated to and among the non-Objecting Banks ratably in accordance with their respective Commitments) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Objecting Bank’s participating interest in respect of Letters of Credit) (but only if after giving effect to such cancellation or prepayment the Total Extensions of Credit do not exceed the Total Commitments), provided that during the period from the Closing Date through March 29, 2022, and, commencing on March 30, 2022, during each one-year period thereafter to and including the Termination Date (each, a “Deal Year”), the aggregate Commitments of Banks which are terminated pursuant to this subsection 2.16(c) and are not replaced during such Deal Year pursuant to subsection 2.19 shall not exceed 33-1/3% of the aggregate Commitments in effect on the first day of such Deal Year of Banks which were not Objecting Banks on such first day.
2.17Indemnified Taxes.  (a)  Except as required by applicable law, all payments made under this Agreement shall be made without set-off, counterclaim, restriction or condition and free and clear of, and without reduction for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings of any nature whatsoever, now or hereafter imposed, levied, collected, withheld or assessed by any governmental or other regulatory authority charged with the administration thereof with respect to any amount that is paid under this Agreement excluding, in the case of each Bank (for purposes of this subsection 2.17 each reference to a Bank shall be deemed to also be a reference to any Issuing Bank), (i) income and franchise taxes (including, without limitation, branch taxes) imposed by the United States or similar taxes imposed by a political subdivision or taxing authority thereof or therein, (ii) in the case of any Foreign Bank, any taxes imposed by the United States by means of withholding at the source unless such Bank has provided the Borrowers and the Administrative Agent with the documents it is required to provide to them under subsection 2.17(c) or such tax is imposed by reason of a change in United States law (other than FATCA described in clause (vi)) after the date the Bank becomes a party to this Agreement, (iii) taxes that would not have been imposed on such Bank but for the existence of a connection between such Bank and the jurisdiction imposing such taxes (other than a connection arising principally by virtue of such Bank having executed, delivered or performed its obligations or received a payment under, or enforced this Agreement), (iv) taxes that are attributable to such Bank’s failure to comply with the requirements of 

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subsection 2.17(c), subsection 2.17(d) or subsection 2.17(f), (v) any taxes imposed upon a Non-Qualifying Bank (as defined in subsection 2.17(e)) pursuant to the Luxembourg laws of 21 June, 2005 implementing the European Union Savings Directive (Council Directive 2003/48/EC) and several agreements concluded with certain dependent or associated territories, providing for the possible application of a withholding tax, as in effect as of the date hereof, other than any taxes which can be avoided pursuant to an exchange of information and for which such information is available to the Borrower, and (vi) any withholding imposed pursuant to FATCA (such non-excluded taxes being called “Indemnified Taxes”).  If any Indemnified Taxes are required to be withheld from any amounts so payable to the Administrative Agent or any Bank hereunder, as determined in good faith by the applicable Withholding Agent, (i) such amounts shall be paid to the relevant Government Authority in accordance with applicable law and (ii) the amounts so payable by the applicable Borrower shall be increased to the extent necessary to yield to such Bank (after payment of all Indemnified Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement as if such withholding or deduction had not been made.  Whenever any Indemnified Taxes are payable by any Borrower, as the case may be, as promptly as possible thereafter such Borrower, as the case may be, shall send to the Administrative Agent, for its own account, or for the account of the affected Bank, a certified copy of the original official receipt, if any, or other documentary evidence received by such Borrower showing payment thereof.  If (i) such Borrower fails to pay any Indemnified Taxes when due to the appropriate taxing authority, (ii) such Borrower fails to remit to the Administrative Agent the required receipts or other required documentary evidence, or (iii) as a result of a failure listed in (i) directly above, any Indemnified Taxes are imposed directly upon the Administrative Agent or any Bank, such Borrower shall indemnify the Administrative Agent or such Bank, as the case may be, for any Indemnified Taxes and interest or penalties with respect thereto that may become payable by the Administrative Agent or such Banks, as the case may be, as a result of any such failure, in the case of (i) or (ii), or any such direct imposition, in the case of (iii). 
(b)If a Borrower is required by this subsection 2.17 to make a payment to or in respect of any Bank, such Borrower shall have the right, so long as no Event of Default has occurred and is then continuing, upon giving notice to the Administrative Agent and such Bank in accordance with subsection 2.6, to prepay in full the Loans of such Bank, together with accrued interest thereon, any amounts payable pursuant to subsections 2.13, 2.14, 2.15 and 2.17 and any accrued and unpaid commitment fee, Letter of Credit Fee, Reimbursement Obligations in respect to Letters of Credit or other amounts payable to it hereunder and/or on giving not less than three Business Days’ notice to any such Bank and the Administrative Agent, to cancel the whole or part of the Commitment of any such Bank (and upon such cancellation, such Bank’s participation in any then outstanding undrawn Letters of Credit shall terminate) (it being understood that any partial cancellation of the Commitment shall result in a corresponding reduction of such Bank’s participating interest in respect of Letters of Credit) (but only if after giving effect to such cancellation or prepayment the Total Extensions of Credit do not exceed the Total Commitments).
(c)At least two Business Days prior to the first Borrowing Date or, if such date does not occur within thirty days after the Closing Date, by the end of such thirty-day period, each Bank agrees (it being understood that the requirements of this sentence may be waived by the Administrative Agent and the Borrowers acting together and in their sole discretion) that it will deliver to each Borrower and the Administrative Agent either (A) in the case of a Domestic Bank, two duly completed copies of United States Internal Revenue Service (“IRS”) Form W-9 (or any successor form), (B) in the case of a Foreign Bank, two duly completed copies of IRS Form W-8BEN-E (including, as applicable, a letter in duplicate in substantially the form of Exhibit J), Form W-8ECI (including, as applicable, a letter in duplicate in substantially the form as Exhibit K) or Form W-8IMY, as the case may be, (or any applicable successor forms) together with any applicable underlying IRS forms certifying in each case that such Bank is entitled to receive payment under this Agreement without deduction or withholding of any United States 

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Federal income taxes or (C) in the case of a Bank claiming exception under Sections 871(h) or 881(c) of the Code, a Certificate of Non-Bank Status (in substantially the form as the applicable Exhibit P) together with two original copies of Internal Revenue Service Form W-8BEN or W-8BEN-E, or successor applicable form, as the case may be, to establish an exemption from United States backup withholding tax; and, in addition to the forms documents and certifications described in clauses (A), (B) and (C), any other form prescribed by applicable requirements of United States Federal income tax law as a basis for claiming a complete exemption from United States Federal withholding tax duly completed together with such supplementary documentation as may be prescribed by applicable Requirement of Law to permit the relevant Borrower and the Administrative Agent to determine the withholding or deduction required to be made.  Each Bank (including, without limitation, each Transferee) agrees (for the benefit of the Administrative Agent and the Borrowers (it being understood that the requirements of this sentence may be waived by the Administrative Agent and the Borrowers acting together and in their sole discretion)), to provide the Administrative Agent and the Borrowers a new letter or a new Certificate of Non-Bank Status, if applicable, and Form W-8BEN or W-8BEN-E, Form W-8ECI or Form W-8IMY, or successor applicable form or other manner of certification, (x) in the case of a Transferee, on or before the date it becomes party to this Agreement, (y) on or before the date that any such letter, form or document expires or becomes obsolete or promptly after the occurrence of any event requiring a change in the most recent letter, form or document previously delivered by it, certifying in the case of a Form W-8BEN, W-8BEN-E, W-8ECI or W-8IMY that such Bank is entitled to receive payments under this Agreement without deduction or withholding of any United States Federal income tax, and in the case of a Form W-8BEN or W-8BEN-E establishing exemption from United States backup withholding tax, and (z) promptly after the date the relevant Borrower or the Administrative Agent reasonably requests any form of document referred to in this subsection 2.17(c); provided, however, that if a Bank is unable to provide a letter, form, certificate, successor or other document described in this sentence by reason of a change in the applicable law occurring after the date on which such letter, form, certificate, successor or other document originally was required to be provided by such Bank, then such Bank shall be required to comply with this sentence to the extent permitted under such applicable law, and the letter, form, certificate, successor or other document provided in accordance with this proviso (if any) shall certify that such Bank is entitled to receive payments under this Agreement at the lowest rate of deduction, withholding or backup withholding to which it is entitled under such applicable law.  The Administrative Agent shall not be responsible for obtaining such documentation from any Bank other than JPMorgan Chase Bank, N.A.
(d)A Bank that is entitled to an exemption from or reduction of non-U.S. withholding tax under the law of the jurisdiction in which the Borrower is located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate; provided that such Bank is legally entitled to complete, execute and deliver such documentation and in such Bank’s judgment such completion, execution or submission would not materially prejudice the legal or commercial position of such Bank. 
(e) Each Bank (including, without limitation, each Transferee) shall represent that (i) it is neither an individual resident in a Member State of the European Union or in certain of the territories dependent on or associated with certain Member States (i.e., Aruba, the British Virgin Islands, Curaçao, Guernsey, the Isle of Man, Jersey, Montserrat and Sint Maarten), nor a person charged with collecting the payments derived from the Loans on behalf of such an individual and (ii) it is not an entity established in a Member State of the European Union or in one of the aforementioned territories dependent on or associated with certain Member States or, when it is such an entity, that (A) it is an entity with legal personality under the laws of the jurisdiction of its incorporation, organization or formation other than a Finnish Avoin Yhtiö or a Finnish Kommandiittiyhtiö or a Swedish Handelsbolag or a Swedish 

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Kommanditbolag, (B) it is an entity which profits are taxed under the general rules for the taxation of enterprises applicable in the jurisdiction in which it is a resident or deemed to be a resident, (C) it is a UCITS (undertaking for collective investment in transferable securities) authorized under the EC Directive 85/611/EEC or (D) none of its members are individuals resident in a Member State of the European Union or the abovementioned territories dependent on or associated with certain Member States; provided, however, that any Bank that is or becomes unable to make such representation shall promptly deliver notice of such inability to the Borrower and the Administrative Agent (such Bank a “Non-Qualifying Bank”).
(f)If a payment made to a Bank under this Agreement would be subject to United States federal withholding tax imposed by FATCA if such Bank were to fail to comply with the applicable reporting requirements of FATCA (including, without limitation, those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Bank shall deliver to the relevant Borrower or the Administrative Agent, at the time or times prescribed by applicable law and at such time or times reasonably requested by such Borrower or the Administrative Agent, such documentation prescribed by applicable law (including, without limitation, as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by such Borrower or the Administrative Agent as may be necessary for such Borrower or the Administrative Agent to comply with its obligations under FATCA, to determine that such Bank has or has not complied with such Bank’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (f), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
(g)To the extent that, as determined by the Administrative Agent, or any Bank in its sole discretion and without any obligation to disclose its tax records, Indemnified Taxes have been irrevocably utilized by the Administrative Agent, or such Bank (either as credits or deductions) to reduce its tax liabilities and such utilization is consistent with its overall tax policies, the Administrative Agent, or such Bank shall pay to the relevant Borrower, an amount equal to such reduction obtained to the extent of such increased amounts paid by such Borrower to the Administrative Agent, or such Bank as aforesaid; provided, that such Borrower, upon the request of the Administrative Agent, or such Bank, agrees to repay the amount paid over to such Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the Administrative Agent, or such Bank in the event such Governmental Authority determines that the Administrative Agent or such Bank was not entitled to such credit or deduction. Notwithstanding anything to the contrary in this paragraph (g), in no event will any indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-tax position than the indemnified party would have been in if the tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such tax had never been paid.
The obligations of the parties under this subsection 2.17 shall survive termination of this Agreement, payment of the Loans and termination of the Letters of Credit.
2.18Confirmations.  The Administrative Agent shall, within 15 days following the last day of each calendar quarter (each such period being a “Report Period”), furnish to the Borrowers a written account with respect to all amounts outstanding under the Loan Accounts as at the last day of such Report Period, including an accounting setting forth, for such Report Period the amounts of principal, interest and other sums paid and payable hereunder.  The Borrowers shall, within 15 days following receipt of such written account, notify the Administrative Agent of any discrepancies between such written account and the Borrowers’ records or, if no such discrepancies exist, furnish written confirmation to the Administrative Agent of the accuracy of such written account.  Upon any Bank’s request, the 

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Administrative Agent shall furnish to each Bank a copy of such written account together with the Borrowers’ response thereto.
2.19Replacement of Cancelled Banks.  The Borrowers may designate one or more financial institutions to act as a Bank hereunder in place of any Cancelled Bank, and upon the Borrowers, each such financial institution and the Administrative Agent executing a writing substantially in the form of Exhibit L, such financial institution shall become and be a Bank hereunder with all the rights and obligations it would have had if it had been named on the signature pages hereof, and having for all such financial institutions an aggregate Commitment no greater than the whole, or such cancelled part, of the Commitment of the Cancelled Bank in place of which such financial institutions were designated; provided, however, that all rights and obligations of such Cancelled Bank relating to the Loans made by such Cancelled Bank that are outstanding on the date of such cancellation shall be the rights and obligations of such Cancelled Bank and not of any such financial institution.  The Administrative Agent shall execute any such writing presented to it and shall notify the Banks of the execution thereof, the name of the financial institution executing such writing and the amount of its Commitment.
2.20Commitment Increases.  (a)  At any time after the Closing Date, provided that no Event of Default shall have occurred and be continuing, the Borrowers may request an increase of the aggregate Commitments by notice to the Administrative Agent in writing of the amount (the “Offered Increase Amount”) of such proposed increase (such notice, a “Commitment Increase Notice”).  Any such Commitment Increase Notice must offer each Bank the opportunity to subscribe for its pro rata share of the increased Commitments; provided, however, the Borrowers may, with the consent of the Administrative Agent (which consent shall not be unreasonably withheld or delayed), without offering to each Bank the opportunity to subscribe for its pro rata share of the increased Commitments, offer to any existing Bank or any bank or other financial institution that is not an existing Bank the opportunity to provide a new Commitment pursuant to paragraph (b) below if the aggregate amount of all Commitments made hereunder pursuant to this proviso which will be in effect when such new Commitment becomes effective does not exceed $500,000,000 subject to subsection 2.20(f).  If any portion of the increased Commitments offered to the Banks as contemplated in the immediately preceding sentence is not subscribed for by the Banks, the Borrowers may, with the consent of the Administrative Agent as to any bank or financial institution that is not at such time a Bank (which consent shall not be unreasonably withheld or delayed), offer to any existing Bank or to one or more additional banks or financial institutions the opportunity to provide all or a portion of such unsubscribed portion of the increased Commitments pursuant to paragraph (b) below.  No Bank has an obligation to increase its Commitment pursuant to this subsection 2.20 except in its sole discretion.  
(b)Any additional bank or financial institution that the Borrowers select to offer the opportunity to provide any portion of the increased Commitments, and that elects to become a party to this Agreement and provide a Commitment, shall execute a New Bank Supplement with the Borrowers and the Administrative Agent, substantially in the form of Exhibit N (a “New Bank Supplement”), whereupon such bank or financial institution (a “New Bank”) shall become a Bank for all purposes and to the same extent as if originally a party hereto and shall be bound by and entitled to the benefits of this Agreement, and Schedule II shall be deemed to be amended to add the name and Commitment of such New Bank, provided that the Commitment of any such New Bank shall be in an amount not less than $10,000,000.
(c)Any Bank that accepts an offer to it by the Borrowers to increase its Commitment pursuant to this subsection 2.20 shall, in each case, execute a Commitment Increase Supplement with the Borrowers and the Administrative Agent, substantially in the form of Exhibit O (a “Commitment Increase Supplement”), whereupon such Bank (an “Increasing Bank”) shall be bound by and entitled to the 

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benefits of this Agreement with respect to the full amount of its Commitment as so increased, and Schedule II shall be deemed to be amended to so increase the Commitment of such Bank.
(d)The effectiveness of any New Bank Supplement or Commitment Increase Supplement shall be contingent upon receipt by the Administrative Agent of such corporate resolutions of the Borrowers and legal opinions of counsel to the Borrowers as the Administrative Agent shall reasonably request with respect thereto.
(e)(i)  Except as otherwise provided in subparagraphs (ii) and (iii) of this paragraph (e), if any bank or financial institution becomes a New Bank pursuant to subsection 2.20(b) or any Bank’s Commitment is increased pursuant to subsection 2.20(c), additional Committed Rate Loans made on or after the date of the effectiveness thereof (the “Re-Allocation Date”) shall be made in accordance with the pro rata provisions of subsection 2.12(b) based on the Commitment Percentages in effect on and after such Re-Allocation Date (except to the extent that any such pro rata borrowings would result in any Bank making an aggregate principal amount of Committed Rate Loans in excess of its Commitment, in which case such excess amount will be allocated to, and made by, the relevant New Banks and Increasing Banks to the extent of, and in accordance with the pro rata provisions of subsection 2.12(b) based on, their respective Commitments).  On each Re-Allocation Date, the Administrative Agent shall deliver such amended Schedule II and a notice to each Bank of the adjusted Commitment Percentages after giving effect to any increase in the aggregate Commitments made pursuant to this subsection 2.20 on such Re-Allocation Date.
(ii)In the event that on any such Re-Allocation Date there is an unpaid principal amount of ABR Loans, the applicable Borrower shall make prepayments thereof and one or both Borrowers shall make borrowings of ABR Loans and/or Eurocurrency Loans, as the applicable Borrower shall determine, so that, after giving effect thereto, the ABR Loans and Eurocurrency Loans outstanding are held as nearly as may be in accordance with the pro rata provisions of subsection 2.12(b) based on such new Commitment Percentages.  In addition, on each Re-Allocation Date, participating interests in then outstanding Letters of Credit shall be adjusted to reflect the new Commitment Percentages.
(iii)In the event that on any such Re-Allocation Date there is an unpaid principal amount of Eurocurrency Loans, such Eurocurrency Loans shall remain outstanding with the respective holders thereof until the expiration of their respective Interest Periods (unless the applicable Borrower elects to prepay any thereof in accordance with the applicable provisions of this Agreement), and on the last day of the respective Interest Periods the applicable Borrower shall make prepayments thereof and one or both Borrowers shall make borrowings of ABR Loans and/or Eurocurrency Loans so that, after giving effect thereto, the ABR Loans and Eurocurrency Loans outstanding are held as nearly as may be in accordance with the pro rata provisions of subsection 2.12(b) based on such new Commitment Percentages.
(f)Notwithstanding anything to the contrary in this subsection 2.20, (i) in no event shall any transaction effected pursuant to this subsection 2.20 cause the aggregate Commitments to exceed $3,000,000,000, (ii) the Commitment of an individual Bank shall not, as a result of providing a new Commitment or of increasing its existing Commitment pursuant to this subsection 2.20, exceed 15% of the aggregate Commitments on any Re-Allocation Date and (iii) no Bank shall have any obligation to increase its Commitment unless it agrees to do so in its sole discretion.

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(g)The Borrowers, at their own expense, shall execute and deliver to the Administrative Agent in exchange for the surrendered Notes of any Bank, if any, new Notes to such Bank and its registered assigns, if requested, in an amount equal to the Commitment of such Bank after giving effect to any increase in such Bank’s Commitment.
2.21[Reserved].  
2.22[Reserved].  
2.23Defaulting Banks.  (a)  Notwithstanding any provision of this Agreement to the contrary, if any Bank becomes a Defaulting Bank, then the following provisions shall apply for so long as such Bank is a Defaulting Bank:
(b)fees shall cease to accrue on the Available Commitment of such Defaulting Bank pursuant to subsection 2.4(a); 
(c)the Commitment and Loans of such Defaulting Bank shall not be included in determining whether all Banks, the Majority Banks or the Required Banks have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to subsection 10.1); provided that any waiver, amendment or modification requiring the consent of all Banks or each affected Bank which affects such Defaulting Bank differently than other affected Banks shall require the consent of such Defaulting Bank; and
(d)if any L/C Obligations exist at the time a Bank becomes a Defaulting Bank then:
(i)all or any part of such L/C Obligations shall be reallocated among the non-Defaulting Banks in accordance with their respective Commitment Percentages but only to the extent the sum of all non-Defaulting Banks’ Loans plus non-Defaulting Banks’ L/C Obligations plus such Defaulting Bank’s Commitment Percentage of the L/C Obligations does not exceed the total of all non-Defaulting Banks’ Commitments and, in the case of each non-Defaulting Bank and after giving effect to such reallocation, the Loans and L/C Obligations of any such non-Defaulting Bank do not exceed such non-Defaulting Bank’s Commitment;
(ii)if (w) the reallocation described in clause (i) above cannot, or can only partially, be effected, then upon the written request of any Issuing Bank, the applicable Borrower shall deposit, within five Business Days after its receipt of such request, in a cash collateral account opened by the Administrative Agent, cash in an amount requested in such notice, such amount not to exceed such Defaulting Bank’s Commitment Percentage of the L/C Obligations at the time of such request attributable to the Letters of Credit issued by such Issuing Bank for the account of such Borrower;
(iii)amounts deposited pursuant to clause (ii) above at the request of any Issuing Bank shall be applied by the Administrative Agent to reimburse such Issuing Bank for any participations required to be funded by such Defaulting Bank;
(iv)to the extent the Borrowers cash collateralize any portion of such Defaulting Bank’s L/C Obligations pursuant to clause (ii) above, the 

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Borrowers shall not be required to pay any Letter of Credit fees pursuant to subsection 2.26(c) to such Defaulting Bank with respect to such Defaulting Bank’s L/C Obligations during the period such Defaulting Bank’s L/C Obligations are cash collateralized;
(v)if such Defaulting Bank’s L/C Obligations are reallocated pursuant to clause (i) above, then the Letter of Credit fees payable to the Banks shall be adjusted in accordance with such non-Defaulting Banks’ Commitment Percentages;
(e)so long as any Bank is a Defaulting Bank, no Issuing Bank shall be required to issue, amend or increase any Letter of Credit, unless it is satisfied that the related exposure will be 100% covered by the non-Defaulting Banks and/or cash collateral will be provided by the Company in accordance with subsection 2.23(d), and participating interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Banks in a manner consistent with subsection 2.26(d)(i) (and Defaulting Banks shall not participate therein);
(f)any amount payable to such Defaulting Bank hereunder (whether on account of principal, interest, fees or otherwise and including any amount that would otherwise be payable to such Defaulting Bank pursuant to subsection 10.6 but excluding subsection 2.19) shall, in lieu of being distributed to such Defaulting Bank, be retained by the Administrative Agent in a segregated account and, subject to any applicable requirements of law, be applied at such time or times as may be determined by the Administrative Agent, in the following order of priority:  (i) first, to the payment of any amounts owing by such Defaulting Bank to the Administrative Agent hereunder, (ii) second, to payment of any amounts owing by such Defaulting Bank to an Issuing Bank, (iii) third, if so determined by the Administrative Agent or requested by an Issuing Bank, held in such account as cash collateral for future funding obligations of the Defaulting Bank in respect of any existing or future participating interest in any Letter of Credit, (iv) fourth, to the funding of any Loan in respect of which such Defaulting Bank has failed to fund its portion thereof as required by this Agreement and (v) fifth, if so determined by the Administrative Agent and the Company, held in such account as cash collateral for future funding obligations of the Defaulting Bank in respect of any Loans under this Agreement.  
The rights and remedies against a Defaulting Bank under this subsection 2.23 are in addition to other rights and remedies that the Borrowers may have against such Defaulting Bank.  
In the event and on the date that the Administrative Agent, the Company and the Issuing Banks each agree that a Defaulting Bank has adequately remedied all matters that caused such Bank to be a Defaulting Bank, then the L/C Obligations of the Banks shall be readjusted to reflect the inclusion of such Bank’s Commitment and on such date such Bank shall purchase at par such of the Loans of the other Banks (other than Negotiated Rate Loans) as the Administrative Agent shall determine may be necessary in order for such Bank to hold such Loans in accordance with its Commitment Percentage and such Bank shall no longer be a Defaulting Bank; provided, that subject to subsection 10.15, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Bank arising from that Bank having become a Defaulting Bank, including any claim of a Non-Defaulting Bank as a result of such Non-Defaulting Bank’s increased exposure following such reallocation.
2.24Judgment Currency.  (a)  If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum owing hereunder in one currency into another currency, each party hereto agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures in the relevant jurisdiction, the first currency could 

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be purchased with such other currency on the Business Day immediately preceding the day on which final judgment is given.
(b)The obligations of the Borrowers in respect of any sum due to any party hereto or any holder of the obligations owing hereunder (the “Applicable Creditor”) shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than the currency in which such sum is stated to be due hereunder (the “Agreement Currency”), be discharged only to the extent that, on the Business Day following receipt by the Applicable Creditor of any sum adjudged to be so due in the Judgment Currency, the Applicable Creditor may in accordance with normal banking procedures in the relevant jurisdiction purchase the Agreement Currency with the Judgment Currency; if the amount of the Agreement Currency so purchased is less than the sum originally due to the Applicable Creditor in the Agreement Currency, the Borrowers as a separate obligation and notwithstanding any such judgment, agrees to indemnify the Applicable Creditor against such loss.  The obligations of the Borrowers contained in this subsection 2.24 shall survive the termination of this Agreement and the payment of all other amounts owing hereunder.
2.25Foreign Currency Exchange Rate.  (a)  No later than 1:00 P.M., London time, on each Calculation Date with respect to a Foreign Currency, the Foreign Currency Agent shall determine the Exchange Rate as of such Calculation Date with respect to such Foreign Currency (it being acknowledged and agreed that the Foreign Currency Agent shall use such Exchange Rate for the purposes of determining compliance with subsection 2.1 with respect to such borrowing request).  The Exchange Rates so determined shall become effective on the relevant Calculation Date, shall remain effective until the next succeeding Calculation Date and shall for all purposes of this Agreement (other than subsection 2.13(e) and subsection 2.24(a)) be the Exchange Rates employed in converting any amounts between Dollars and Foreign Currencies.
(b)No later than 5:00 P.M., London time, on each Calculation Date, the Foreign Currency Agent shall determine the aggregate amount of the Dollar Equivalents of the principal amounts of the Foreign Currency Loans then outstanding (after giving effect to any Foreign Currency Loans to be made or repaid on such date).
(c)The Administrative Agent shall promptly notify the Borrowers of each determination of an Exchange Rate hereunder.
2.26Letters of Credit.  (a)  L/C Obligations. (i)  Subject to the terms and conditions hereof, each Issuing Bank, in reliance on the agreements of the other Banks set forth in subsection 2.26(d)(i), agrees to issue letters of credit (“Letters of Credit”) for the account of the Company or the Capital Corporation on any Business Day during the Commitment Period in such form as may be approved from time to time by such Issuing Bank; provided that such Issuing Bank shall not issue any Letter of Credit if, after giving effect to such issuance, (A) the L/C Obligations would exceed the L/C Commitment, (B) the Total Extensions of Credit would be greater than the Total Commitments, (C) the aggregate L/C Obligations in respect of Letters of Credit issued by such Issuing Bank would exceed such Issuing Bank’s Issuing Bank L/C Commitment or (D) the Committed Extensions of Credit of such Issuing Bank (including in its capacity as a lender of Committed Rate Loans) would exceed its Commitment (it being understood that (a) rollovers and renewals of Letters of Credit and amendments which do not increase the drawable amount of a Letter of Credit shall be deemed not to be issuances for purposes of the preceding proviso and (b) the proviso will not be violated if Total Extensions of Credit exceed Total Commitments or an Issuing Bank’s Committed Extensions of Credit exceed its Commitment, in each case as a result of changes in Exchange Rates).  Each Letter of Credit shall (1) be denominated in Dollars, and (2) expire no later than the earlier of (x) the first anniversary of its date of issuance and (y) the date that is five Business Days prior to the Termination Date, provided that any Letter of Credit with a one-year term 

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may provide for the automatic renewal thereof for additional one-year periods (which shall in no event extend beyond the date referred to in clause (y) above).
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(ii)An Issuing Bank shall not at any time be obligated to issue any Letter of Credit if such issuance would conflict with, or cause such Issuing Bank or any L/C Participant to exceed any limits imposed by, any applicable Requirement of Law.
(iii)Existing Letters of Credit shall be deemed to be Letters of Credit issued under this Agreement on the Closing Date.
(b)Procedure for Issuance of Letter of Credit.  Each of the Company and Capital Corporation may from time to time request that an Issuing Bank issue a Letter of Credit by delivering to such Issuing Bank at its address for notices specified herein an Application therefor, currently used by the applicable Issuing Bank, completed to the reasonable satisfaction of such Issuing Bank, and such other certificates, documents and other papers and information as such Issuing Bank may reasonably request.  Upon receipt of any Application, such Issuing Bank will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its reasonable customary procedures and shall promptly issue the Letter of Credit requested thereby (but in no event shall such Issuing Bank be required to issue any Letter of Credit earlier than three Business Days after its receipt of the Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed to by such Issuing Bank and such Borrower.  An Issuing Bank shall furnish a copy of such Letter of Credit to the applicable Borrower promptly following the issuance thereof.  An Issuing Bank shall promptly furnish to the Administrative Agent, which shall in turn promptly furnish to the Banks, notice of the issuance of each Letter of Credit (including the amount thereof).
(c)Fees and Other Charges.  (i)  Each Borrower will pay a fee on all outstanding Letters of Credit issued for its account at a per annum rate equal to the Letter of Credit Fee, shared ratably among the Banks and payable quarterly in arrears on the first Business Day of each January, April, July and October of each year after the issuance date and on the Termination Date or such earlier date on which the Commitments shall terminate as provided herein.  In addition, each Borrower shall pay to an Issuing Bank for its own account a fronting fee in an amount not to exceed 0.125% per annum (or such other amount as may be agreed between each Borrower and such Issuing Bank), on the undrawn and unexpired amount of each Letter of Credit, payable quarterly in arrears on each date on which the Letter of Credit Fee is payable.
(ii)In addition to the foregoing fees, each Borrower shall pay or reimburse each Issuing Bank for such normal and customary costs and expenses as are incurred or charged by such Issuing Bank in issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of Credit issued for such Borrower’s account.
(d)L/C Participations.  (i)  Each Issuing Bank irrevocably agrees to grant and hereby grants to each L/C Participant, and, to induce each Issuing Bank to issue Letters of Credit, each L/C Participant irrevocably agrees to accept and purchase and hereby accepts and purchases from the applicable Issuing Bank, on the terms and conditions set forth below, for such L/C Participant’s own account and risk an undivided interest equal to such L/C Participant’s Commitment Percentage in such Issuing Bank’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by such Issuing Bank thereunder.  Each L/C Participant agrees with such Issuing Bank that, if a draft is paid under any Letter of Credit for which such Issuing Bank is not reimbursed in full by the Borrowers in accordance with the terms of this Agreement, such L/C Participant shall pay to such Issuing 

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Bank upon demand at such Issuing Bank’s address for notices specified herein an amount equal to such L/C Participant’s Commitment Percentage of the amount of such draft, or any part thereof, that is not so reimbursed.  Each L/C Participant’s obligation to pay such amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any setoff, counterclaim, recoupment, defense or other right that such L/C Participant may have against any Issuing Bank, the Borrowers or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Section 4, (iii) any adverse change in the condition (financial or otherwise) of the Borrowers, (iv) any breach of this Agreement by the Borrowers or any other L/C Participant or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing.
(ii)If any amount required to be paid by any L/C Participant to an Issuing Bank pursuant to subsection 2.26(d)(i) in respect of any unreimbursed portion of any payment made by such Issuing Bank under any Letter of Credit is paid to such Issuing Bank within three Business Days after the date such payment is due, such L/C Participant shall pay to such Issuing Bank on demand an amount equal to the product of (i) such amount, times (ii) the daily average applicable Overnight Rate during the period from and including the date such payment is required to the date on which such payment is immediately available to such Issuing Bank, times (iii) a fraction the numerator of which is the number of days that elapse during such period and the denominator of which is 360.  If any such amount required to be paid by any L/C Participant pursuant to subsection 2.26(d)(i) is not made available to such Issuing Bank by such L/C Participant within three Business Days after the date such payment is due, such Issuing Bank shall be entitled to recover from such L/C Participant, on demand, such amount with interest thereon calculated from such due date at the rate per annum applicable to ABR Loans.  A certificate of the applicable Issuing Bank submitted to any L/C Participant with respect to any amounts owing under this subsection shall be conclusive in the absence of manifest error.
(iii)Whenever, at any time after an Issuing Bank has made payment under any Letter of Credit and has received from any L/C Participant its pro rata share of such payment in accordance with subsection 2.26(d)(i), such Issuing Bank receives any payment related to such Letter of Credit (whether directly from the Borrowers or otherwise, including proceeds of collateral applied thereto by such Issuing Bank), or any payment of interest on account thereof, such Issuing Bank will distribute to such L/C Participant its pro rata share thereof; provided, however, that in the event that any such payment received by such Issuing Bank shall be required to be returned by such Issuing Bank, such L/C Participant shall return to such Issuing Bank the portion thereof previously distributed by such Issuing Bank to it.
(iv)Upon any cancellation of the Commitment of a Bank pursuant to subsection 2.13, 2.16 or 2.17, any replacement of a Cancelled Bank pursuant to subsection 2.19 or any increase in the Commitments pursuant to subsection 2.20, the participating interests in then outstanding Letters of Credit shall be re-allocated among the Banks to give effect to their respective Commitment Percentages as in effect after such cancellation, replacement or increase, and payment of fees payable pursuant to subsection 2.26(c) shall be made so as to give effect to such reallocation. 
(e)Reimbursement Obligation of the Borrowers.  If any draft is paid under any Letter of Credit, the Borrower for whose account such Letter of Credit was issued shall reimburse the applicable Issuing Bank for the amount of (a) the draft so paid and (b) any taxes (other than non-Indemnified Taxes), fees, charges or other costs or expenses incurred by such Issuing Bank in connection with such payment, not later than 12:00 Noon, Local Time, on the second Business Day following the Business Day that such Borrower receives notice of such draft.  Each such payment shall be made to such Issuing Bank at its 

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address for notices referred to herein in Dollars and in immediately available funds.  Interest shall be payable on any such amounts from the date on which the relevant draft is paid until payment in full is made by the Borrower at the rate set forth in (x) subsection 2.8(b), until the second Business Day next succeeding the date of the relevant notice and (y) subsection 2.8(c), thereafter.
(f)Obligations Absolute.  The obligations of the Borrowers under this subsection 2.26 shall be absolute and unconditional under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment that such Borrowers may have or have had against an Issuing Bank, any beneficiary of a Letter of Credit or any other Person.  The Borrowers also agree with each Issuing Bank that such Issuing Bank shall not be responsible for, and the Reimbursement Obligations of the Borrowers under subsection 2.26(e) shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon, even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrowers and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any claims whatsoever of the Borrowers against any beneficiary of such Letter of Credit or any such transferee.  No Issuing Bank shall be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Issuing Bank.  The Borrowers agree that any action taken or omitted by an Issuing Bank under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful misconduct, shall be binding on the Borrowers and shall not result in any liability of such Issuing Bank to the Borrowers.
(g)Letter of Credit Payments.  If any draft or drawing request shall be presented for payment under any Letter of Credit, the applicable Issuing Bank shall promptly notify the Borrower for whose account such Letter of Credit was issued of the date and amount thereof.  The responsibility of an Issuing Bank to the Borrowers in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of Credit, be limited to determining that the documents (including each draft or drawing request, if presentation of draft or drawing request is called for) delivered under such Letter of Credit in connection with such presentment are substantially in conformity with such Letter of Credit.
(h)Applications.  To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this Agreement, the provisions of this Agreement shall apply.
(i)Applicability of ISP and UCP.  Unless otherwise expressly agreed to by the relevant Issuing Bank and the relevant Borrower, when a Letter of Credit is issued (a) the rules of the ISP shall apply to each standby Letter of Credit and (b) the rules of the UCP shall apply to each commercial Letter of Credit.
2.27Capital Corporation Guaranty. In order to induce the Banks to make Loans to JD Luxembourg, the Capital Corporation hereby unconditionally and irrevocably guarantees to the Administrative Agent, for the ratable benefit of the Banks and their respective successors, indorsees, transferees and assigns, the prompt and complete payment by JD Luxembourg when due (whether at the stated maturity, by acceleration or otherwise) of the Luxembourg Obligations.
The Capital Corporation waives promptness, diligence, presentment to, demand of payment from and protest to JD Luxembourg of any Luxembourg Obligations, and also waives notice of acceptance of its obligations and notice of protest for nonpayment.  The obligations of the Capital 

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Corporation hereunder shall be absolute and unconditional and not be affected by (a) the failure of any Bank or the Administrative Agent to assert any claim or demand or to enforce any right or remedy against JD Luxembourg under the provisions of this Agreement or otherwise; (b) any rescission, waiver, amendment or modification of any of the terms or provisions of this Agreement or any other agreement; (c) the failure of any Bank to exercise any right or remedy against JD Luxembourg; (d) the invalidity or unenforceability of this Agreement; or (e) any other circumstance which might otherwise constitute a defense available to or discharge of JD Luxembourg (other than payment).
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The Capital Corporation further agrees that its agreement hereunder constitutes a promise of payment when due and not of collection, and waives any right to require that any resort be had by any Bank to any balance of any deposit account or credit on the books of any Bank in favor of JD Luxembourg or any other Person.
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The obligations of the Capital Corporation hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever, by reason of the invalidity, illegality or unenforceability of the Luxembourg Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of the Capital Corporation hereunder shall not be discharged or impaired or otherwise affected by the failure of the Administrative Agent or any Bank to assert any claim or demand or to enforce any remedy under this Agreement or any other agreement, by any waiver or modification in respect of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the Luxembourg Obligations, or by any other act or omission which may or might in any manner or to any extent vary the risk of the Capital Corporation or otherwise operate as a discharge of the Capital Corporation as a matter of law or equity.
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The Capital Corporation further agrees that its obligations hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or interest on any Luxembourg Obligation is rescinded or must otherwise be restored by the Administrative Agent or any Bank upon the bankruptcy or reorganization of JD Luxembourg or otherwise.
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In furtherance of the foregoing and not in limitation of any other right which the Administrative Agent or any Bank may have at law or in equity against the Capital Corporation by virtue hereof, upon the failure of JD Luxembourg to pay any Luxembourg Obligation when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, the Capital Corporation hereby promises to and will, upon receipt of written demand by the Administrative Agent, forthwith pay, or cause to be paid, in cash the amount of such unpaid Luxembourg Obligation.  In the event that, by reason of the bankruptcy of JD Luxembourg, (i) acceleration of Loans made to JD Luxembourg is prevented and (ii) the Capital Corporation shall not have prepaid the outstanding Loans and other amounts due hereunder owed by JD Luxembourg, the Capital Corporation will forthwith purchase such Loans at a price equal to the principal amount thereof plus accrued interest thereon and any other amounts due hereunder with respect thereto.  The Capital Corporation further agrees that if payment in respect of any Luxembourg Obligation shall be due in a currency other than Dollars and/or at a place of payment other than New York and if, by reason of any change in law, disruption of currency or foreign exchange markets, war or civil disturbance or similar event, payment of such Luxembourg Obligation in such currency or such place of payment shall be impossible or, in the reasonable judgment of any applicable Bank, not consistent with the protection of its rights or interests, then, at the election of any applicable Bank, the Capital Corporation shall make payment of such Luxembourg Obligation in Dollars (based upon the applicable Exchange Rate in effect on the date of payment) and/or in New York.  
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Notwithstanding any payment made by the Capital Corporation hereunder or any set-off or application of funds of the Capital Corporation by the Administrative Agent or any Bank, the Capital Corporation shall not be entitled to be subrogated to any of the rights of the Administrative Agent or any Bank against JD Luxembourg or any guarantee or right of offset held by the Administrative Agent or any Bank for the payment of the Luxembourg Obligations, until all amounts owing to the Administrative Agent and the Banks by JD Luxembourg on account of the Luxembourg Obligations are paid in full in cash.  If any amount shall be paid to the Capital Corporation on account of such subrogation rights at any time when all of the Luxembourg Obligations shall not have been paid in full in cash, such amount shall be held by the Capital Corporation in trust for the Administrative Agent and the Banks, segregated from its other funds, and shall, forthwith upon receipt by it, be turned over to the Administrative Agent in the exact form received by it (duly indorsed by it to the Administrative Agent, if required), to be applied against the Luxembourg Obligations, whether matured or unmatured, in such order as the Administrative Agent may determine.
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		SECTION 3.	REPRESENTATIONS AND WARRANTIES

Each Borrower hereby represents and warrants to the Administrative Agent and to each Bank that:
3.1Financial Condition.  The consolidated balance sheet of such Borrower and its consolidated Subsidiaries as of November 1, 2020 and the related consolidated statements of income and of cash flow for the fiscal year then ended (including the related schedules and notes) reported on by Deloitte & Touche LLP, copies of which have heretofore been furnished to each Bank, fairly present the consolidated financial condition of such Borrower and its consolidated Subsidiaries as at such date, and the consolidated results of their operations and changes in financial position for the fiscal year then ended.  All such financial statements, including the related schedules and notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America applied consistently throughout the periods involved (except as approved by such accountants or Responsible Officer, as the case may be, and as disclosed therein).
3.2Corporate Existence.  Such Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has the corporate power and authority to own its properties and to conduct the business in which it is currently engaged. 
3.3Corporate Power; Authorization; Enforceable Obligations.  Such Borrower has the corporate power and authority and the legal right to execute, deliver and perform this Agreement and to borrow hereunder and has taken all necessary corporate action to authorize its borrowings on the terms and conditions of this Agreement and to authorize its execution, delivery and performance of this Agreement.  No consent or authorization of, filing with, or other act by or in respect of, any Governmental Authority, is required in connection with the borrowings hereunder or with the execution, delivery, performance, validity or enforceability of this Agreement other than any such consents, authorizations, filings or acts as have been obtained, taken or made and are in full force and effect.  This Agreement has been duly executed and delivered on behalf of such Borrower, and this Agreement constitutes a legal, valid and binding obligation of such Borrower enforceable against such Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equity principles (whether enforcement is sought by proceedings in equity or at law).
3.4No Legal Bar.  The execution, delivery and performance of this Agreement, the issuance of the Letters of Credit, the borrowings hereunder and the use of the proceeds thereof, will not 

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violate any Requirement of Law or any Contractual Obligation of such Borrower, and will not result in, or require, the creation or imposition of any lien on any of its properties or revenues pursuant to any Requirement of Law or Contractual Obligation.
3.5No Material Litigation.   No litigation, investigation or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of such Borrower, threatened by or against such Borrower or any of its Subsidiaries or against any of its or their respective properties or revenues except actions, suits or proceedings which will not materially adversely affect the ability of such Borrower to perform its obligations hereunder.  All of the defaults, if any, of such Borrower or any of its Subsidiaries with respect to any order of any Governmental Authority do not, and will not collectively, have a material adverse effect on the business, operations, property or financial condition of such Borrower and its Subsidiaries taken as a whole.
3.6Taxes.  Each of such Borrower and its Subsidiaries has filed or caused to be filed all tax returns which, to the knowledge of such Borrower, are required to be filed (except where the failure to file such tax returns would not have a material adverse effect on the business, operations, property or financial condition of such Borrower and its Subsidiaries taken as a whole), and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than assessments, taxes, fees and other charges the amount or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of such Borrower or its Subsidiaries, as the case may be).
3.7Margin Regulations.  No part of the proceeds of any Loan hereunder will be used for any purpose which violates the provisions of Regulation U of the Board as now and from time to time hereafter in effect.  
3.8Use of Proceeds.  The proceeds of the Loans will be used by such Borrower for its general corporate purposes, which shall include, but shall not be limited to, any purchase or other acquisition of all or a portion of the debt or stock or other evidences of ownership of such Borrower or the assets or stock or other evidences of ownership of any other Person or Persons.
3.9Sanctions Laws and Regulations.  None of the Borrowers or their respective Subsidiaries is a Designated Person, nor, to the best of each Borrower’s knowledge, are any of its directors or officers or any directors or officers of its Subsidiaries.  Each of the Borrowers and their employees is subject to a Code of Business Conduct (the “Code of Conduct”) which is in full force and effect on the date hereof.  Among the commitments in the Code of Conduct is the commitment that each of the Borrowers and their Subsidiaries, and their respective employees, comply with international trade, export control, and import laws in the sale of products including export controls.  The Code of Conduct also applies to Anti-Corruption Laws and Sanctions Laws and Regulations.  The Code of Conduct will apply to all activities undertaken by each Borrower and each of their Subsidiaries, including any use of the proceeds of this Agreement. Neither the Borrower nor any of its Subsidiaries will directly or to its knowledge indirectly use the proceeds of the Loans or the Letters of Credit in violation of any Sanctions Laws and Regulations or any Anti-Corruption Laws. 
3.10Beneficial Ownership Certification.  As of the Closing Date, to the knowledge of such Borrower, the information included in the Beneficial Ownership Certification provided on or prior to the Closing Date to any Bank in connection with this Agreement is true and correct in all material respects.

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		SECTION 4.	CONDITIONS PRECEDENT

4.1Conditions to Initial Extensions of Credit.  The obligation of each Bank to make its initial Loan and of each Issuing Bank to issue Letters of Credit hereunder is subject to the satisfaction of the following conditions precedent:
(a)Counterparts.  The Administrative Agent shall have received counterparts hereof, executed by all of the parties hereto (which, subject to subsection 10.8, may include any Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page).
(b)Resolutions.  The Administrative Agent shall have received, with a counterpart for each Bank, resolutions, certified by the Secretary or an Assistant Secretary of each Borrower (or in the case of JD Luxembourg, a certificate of directors of JD Luxembourg), in form and substance satisfactory to the Administrative Agent, adopted by the Board of Directors of such Borrower authorizing the execution of this Agreement and the performance of its obligations hereunder and any borrowings hereunder from time to time.
(c)Legal Opinions.  The Administrative Agent shall have received, with a counterpart for each Bank, an opinion of Mary K.W. Jones, Esq., or her successor as General Counsel of the Company, an associate general counsel of the Company, or any other legal counsel of the Company reasonably acceptable to the Administrative Agent, dated the Closing Date and addressed to the Administrative Agent and the Banks, substantially in the form of Exhibit G, and an opinion of Kirkland & Ellis LLP, special counsel to the Borrowers, dated the Closing Date and addressed to the Administrative Agent and the Banks, substantially in the form of Exhibit H.  Such opinions shall also cover such other matters incident to the transactions contemplated by this Agreement as the Administrative Agent shall reasonably require.
(d)Incumbency Certificate.  The Administrative Agent shall have received, with a counterpart for each Bank, a certificate of the Secretary or an Assistant Secretary of each Borrower (or in the case of JD Luxembourg, a certificate signed by two directors of JD Luxembourg) certifying the names and true signatures of the officers of such Borrower authorized to sign this Agreement, together with evidence of the incumbency of such Secretary or Assistant Secretary (or in the case of JD Luxembourg, of such directors).
(e)Termination of Existing Credit Agreements.  The Administrative Agent shall have received evidence satisfactory to it that the commitment of each financial institution to make loans pursuant to (i) the $3,000,000,000 364-Day Credit Agreement, dated as of March 30, 2020, among the Company, the Capital Corporation, JD Luxembourg, the lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Documentation Agent, and Bank of America, N.A., as Syndication Agent, (ii) the $2,500,000,000 2024 Credit Agreement, dated as of March 30, 2020 (the “Existing Credit Agreement”), among the Company, the Capital Corporation, JD Luxembourg, the lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Documentation Agent, and Bank of America, N.A., as Syndication Agent and (iii) the $2,500,000,000 2025 Credit Agreement, dated as of March 30, 2020, among the Company, the Capital Corporation, JD Luxembourg, the lenders parties thereto, JPMorgan Chase Bank, N.A., as Administrative Agent, Citibank, N.A., as Documentation Agent, and Bank of America, N.A., as Syndication Agent, shall have been terminated in full and the outstanding principal amount of the indebtedness thereunder and all other amounts owing to any bank thereunder shall have been repaid or paid by the Borrowers.

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(f)No Material Adverse Change Certificate.  The Administrative Agent shall have received concurrently with the execution of this Agreement, with a counterpart for each Bank, a certificate of a Responsible Officer for each of the Company and the Capital Corporation dated the date of this Agreement certifying that since November 1, 2020, at the date of such certificate there has been no material adverse change in the business, property, operations or financial condition of such Borrower and its Subsidiaries, taken as a whole.
(g)Fees.  The Administrative Agent shall have received, for the accounts of the Banks and the Administrative Agent, and each Agent shall have received, for the account of such Agent, all accrued fees and expenses owing hereunder or in connection herewith to the Banks and the Agents to be received on the Closing Date.
(h)Beneficial Ownership Certification. To the extent any Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, at least three days prior to the Closing Date, any Bank that has requested, in a written notice to the Borrowers at least 10 days prior to the Closing Date, a Beneficial Ownership Certification in relation to the Borrower shall have received such Beneficial Ownership Certification (provided that, upon the execution and delivery by such Bank of its signature page to this Agreement, the condition set forth in this subsection 4.1(h) shall be deemed to be satisfied).
(i)Additional Matters.  All other documents which the Administrative Agent may reasonably request in connection with the transactions contemplated by this Agreement shall be reasonably satisfactory in form and substance to the Administrative Agent and its counsel.
4.2Conditions to All Extensions of Credit.  The obligation of each Bank to make Loans and of each Issuing Bank to issue Letters of Credit or increase the drawable amount thereof (which shall include the initial Loan to be made by it hereunder but shall not include any Loan made pursuant to subsection 2.20(e)(ii) or (iii) if, after the making of such Loan and the application of the proceeds thereof, the aggregate outstanding principal amount of the Committed Rate Loans would not be increased) to be made by it hereunder on any Borrowing Date is subject to the satisfaction of the following conditions precedent:
(a)Representations and Warranties.  The representations and warranties made by the Borrowers herein or which are contained in any certificate, document or financial or other statement furnished by any Borrower at any time hereunder or in connection herewith (other than any representations and warranties which by the terms of such certificate, document or financial or other statement do not survive the execution of this Agreement) shall be correct on and as of the date of such Loan, the date of such issuance of such Letter of Credit or the date of increase in the drawable amount of such Letter of Credit, as applicable, as if made on and as of such date except as such representations and warranties expressly relate to an earlier date. 
(b)No Default or Event of Default.  No Default or Event of Default shall have occurred and be continuing on such date or after giving effect to such Loan, the issuance of such Letter of Credit or the increase in the drawable amount of such Letter of Credit, as applicable, to be made on such date and the application of the proceeds thereof.
(c)Additional Conditions to Bid Loans.  If such Loan is made pursuant to subsection 2.2, all conditions set forth in subsection 2.2(f) shall have been satisfied.
Each acceptance by any Borrower of a Loan, each issuance of a Letter of Credit and each increase in the drawable amount of any Letter of Credit for the account of a Borrower, shall constitute a representation and warranty by the relevant Borrower as of the date of such Loan, the date of issuance of 

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such Letter of Credit or the date of increase in the drawable amount of such Letter of Credit, as applicable, that the applicable conditions in clauses (a), (b) and (c) of this subsection 4.2 have been satisfied.
		SECTION 5.	AFFIRMATIVE COVENANTS

Each of the Borrowers (except as otherwise specified) hereby agrees that, so long as there is any obligation by any Bank to make Loans to it hereunder, any obligation of an Issuing Bank to issue Letters of Credit hereunder, any Loan of such Borrower remains outstanding and unpaid, any Letter of Credit remains outstanding or any other amount is owing by such Borrower to any Bank, any Issuing Bank or any Agent hereunder (unless the Majority Banks shall otherwise consent in writing):
5.1Financial Statements.  Such Borrower (other than, with respect to clause (b) below, JD Luxembourg) shall furnish to each Bank:
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(a)as soon as available, but in any event within 120 days after the end of each fiscal year of such Borrower, a copy of the consolidated balance sheet of such Borrower and its consolidated Subsidiaries as at the end of such year and the related consolidated statements of income and of cash flow for such year, reported on by (i) in the case of the Company and the Capital Corporation, Deloitte & Touche LLP or other independent certified public accountants of nationally recognized standing in the United States and (ii) in the case of JD Luxembourg, Deloitte & Touche LLP or other independent certified public accountants of recognized standing in Luxembourg or the European Union; and
(b)as soon as available, but in any event not later than 60 days after the end of each of the first three quarterly periods of each fiscal year of such Borrower, the condensed unaudited consolidated balance sheet of such Borrower and its consolidated Subsidiaries as at the end of each such quarter and the related unaudited consolidated statement of income of such Borrower and its consolidated Subsidiaries for such quarterly period and the portion of the fiscal year through such date, certified by a Responsible Officer of such Borrower (subject to normal year-end audit adjustments).
All such financial statements described in clause (a) or (b) above shall present fairly the consolidated financial condition and results of operations of such Borrower and its consolidated Subsidiaries and be prepared in accordance with generally accepted accounting principles in the United States of America (or, in the case of any such financial statements furnished by JD Luxembourg, international financial reporting standards in effect from time to time as applicable to JD Luxembourg, or such other accounting standards required by any applicable Luxembourg Governmental Authority) applied consistently throughout the periods reflected therein (except as approved by such accountants or officer, as the case may be, and disclosed therein).  The Company and the Capital Corporation shall be deemed to have furnished such financial statements to each Bank when they are filed with the Securities and Exchange Commission and posted on its EDGAR system, and JD Luxembourg shall be deemed to have furnished such financial statements to each Bank when they are delivered to the Administrative Agent via electronic mail or other electronic transmission.
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5.2Certificates; Other Information.  Such Borrower (other than, with respect to clause (a) below, JD Luxembourg) shall furnish to the Administrative Agent, and the Administrative Agent shall make available to each Bank:

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(a)within 10 days of the delivery of the financial statements referred to in subsections 5.1(a) and (b) above (or, if such financial statements are filed with the Securities and Exchange Commission and posted on its EDGAR system, within 10 days of the posting of such financial statements on the EDGAR system), a certificate of a Responsible Officer of such Borrower stating that (i) he has no knowledge of the occurrence and continuance of any Default or Event of Default except as specified in such certificate, in which case such certificate shall contain a description thereof and a statement of the steps, if any, which such Borrower is taking, or proposes to take, to cure the same and (ii) the financial statements delivered pursuant to subsection 5.1 would not be materially different if prepared in accordance with GAAP except as specified in such certificate; and 
(b)promptly, such additional financial and other information as any Bank may from time to time reasonably request.
5.3Company Indenture Documents.  The Company shall, contemporaneously with the delivery thereof to the trustee, furnish to each Bank a copy of any information, document or report required to be filed with the trustee pursuant to subsection 7.03 of the Indenture dated as of September 25, 2008 between the Company and The Bank of New York Mellon, as trustee.  The Company shall be deemed to have furnished such information, document or report to each Bank when it is filed with the Securities and Exchange Commission and posted on its EDGAR system. 
5.4Capital Corporation Indenture Documents.  The Capital Corporation shall, contemporaneously with the delivery thereof to the trustee, furnish to each Bank a copy of any information, document or report required to be filed with the trustee pursuant to (i) Section 7.03 of the Indenture dated March 15, 1997, between the Capital Corporation and The Bank of New York Mellon (formerly known as The Bank of New York, successor trustee to The Chase Manhattan Bank), as trustee, as supplemented by the first supplemental indenture dated as of April 21, 2011, the second supplemental indenture dated as of April 17, 2014, and the third supplemental indenture dated as of April 7, 2017, and (ii) the Subordinated Indenture dated as of September 1, 2003, between the Capital Corporation and U.S. Bank National Association, as trustee.  The Capital Corporation shall be deemed to have furnished such information, document or report to each Bank when it is filed with the Securities and Exchange Commission and posted on its EDGAR system.  
5.5Notice of Default.  Such Borrower shall promptly give notice to the Administrative Agent of the occurrence of any Default or Event of Default, which notice shall be given in writing as soon as possible, and in any event within 10 days after a Responsible Officer of such Borrower obtains knowledge of such occurrence, with a description of the steps being taken to remedy the same (provided that such Borrower shall not be obligated to give notice of any Default or Event of Default which is remedied prior to or within 10 days after a Responsible Officer of such Borrower first acquires such knowledge).  Upon receipt of any such notice, the Administrative Agent shall promptly notify each Bank thereof.
5.6Ownership of Capital Corporation and JD Luxembourg Stock.  The Company shall continue to own, directly or through one or more wholly-owned Subsidiaries, free and clear of any lien or other encumbrance, 51% of the voting stock of (i) the Capital Corporation and (ii) JD Luxembourg for so long as JD Luxembourg is a Borrower hereunder; provided, however, that the Capital Corporation may merge or consolidate with, or sell or convey substantially all of its assets to, the Company as provided in subsection 7.4.
5.7Employee Benefit Plans.  The Company shall maintain, and cause each of its Subsidiaries to maintain, each Plan as to which it may have liability, in compliance with all applicable requirements of law and regulations.

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5.8Compliance.  Each of the Borrowers shall comply, and cause each of its Subsidiaries to comply, in all material respects with all applicable laws, rules, regulations and orders, noncompliance with which would reasonably be expected to materially adversely affect (i) the financial condition or operations of such Borrower and its consolidated Subsidiaries taken as a whole or (ii) the ability of such Borrower to perform its obligations under this Agreement.
		SECTION 6.	NEGATIVE COVENANTS OF THE COMPANY

The Company hereby agrees that, so long as there is any obligation by any Bank to make Loans hereunder, any obligation of an Issuing Bank to issue Letters of Credit hereunder, any Loan remains outstanding and unpaid, any Letter of Credit remains outstanding or any other amount is owing to any Agent, any Issuing Bank or any Bank hereunder, it shall not, nor in the case of subsections 6.2 and 6.3 shall it permit any Restricted Subsidiary to (unless the Majority Banks shall otherwise consent in writing):
6.1Company May Consolidate, etc., Only on Certain Terms.  Consolidate with or merge with or into any other corporation or convey or transfer its properties and assets, including pursuant to a Division, substantially as an entirety to any Person, unless:
(a)either the Company shall be the continuing corporation, or the corporation (if other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance, Division or transfer the properties and assets of the Company substantially as an entirety shall expressly assume, by an assumption agreement, executed and delivered to the Administrative Agent, in form satisfactory to the Majority Banks, the due and punctual payment of the principal of and interest on the Loans to the Company and the performance of every covenant of this Agreement on the part of the Company to be performed or observed;
(b)immediately after giving effect to such transaction, no Default or Event of Default, shall have happened and be continuing;
(c)if as a result thereof any property or assets of the Company or a Restricted Subsidiary would become subject to any Mortgage not permitted by (i) through (xii) of subsection 6.2(a) or subsection 6.2(b), compliance shall be effected with the first clause of subsection 6.2(a); and 
(d)the Company and the successor Person have delivered to the Administrative Agent an officers’ certificate signed by two Responsible Officers of the Company stating that such consolidation, merger, conveyance or transfer and such assumption agreement comply with this subsection 6.1 and that all conditions precedent herein provided for relating to such transaction have been complied with.
6.2Limitation on Liens.  (a)  Issue, incur, assume or guarantee any debt (hereinafter in this subsection referred to as “Debt”) secured by any mortgage, security interest, pledge, lien or other encumbrance (hereinafter called “Mortgage” or “Mortgages”) upon any Important Property, or upon any shares of stock or indebtedness issued or incurred by any Restricted Subsidiary (whether such Important Property, shares of stock or indebtedness is now owned or hereafter acquired) without in any such case effectively providing, concurrently with the issuance, incurrence, assumption or guaranty of any such Debt, that the Loans and all other amounts hereunder (together with, if the Company shall so determine, any other indebtedness of or guaranty by the Company or such Restricted Subsidiary ranking equally with the Loans then existing or thereafter created) shall be secured equally and ratably with or prior to such Debt; provided, however, that the foregoing restrictions shall not apply to: 

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(i)Mortgages on any property acquired, constructed or improved by the Company or any Restricted Subsidiary after the date of this Agreement which are created or assumed contemporaneously with, or within 120 days after, such acquisition, construction or improvement to secure or provide for the payment of all or any part of the purchase price of such property or the cost of such construction or improvement incurred after the date of this Agreement, or (in addition to Mortgages contemplated by clauses (ii), (iii) and (iv) below) Mortgages on any property existing at the time of acquisition thereof; provided that such Mortgages shall not apply to any Important Property theretofore owned by the Company or any Restricted Subsidiary other than, in the case of any such construction or improvement, any theretofore unimproved real property on which the property so constructed, or the improvement, is located;
(ii)Mortgages on any property, shares of stock, or indebtedness existing at the time of acquisition thereof from a corporation which is consolidated with or merged into, or substantially all of the assets of which are acquired by, the Company or a Restricted Subsidiary;
(iii)Mortgages on property of a corporation existing at the time such corporation becomes a Restricted Subsidiary; 
(iv)Mortgages to secure Debt of a Restricted Subsidiary to the Company or to another Restricted Subsidiary;
(v)Mortgages in favor of the United States of America or any State thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any State thereof, to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any indebtedness incurred for the purpose of financing all or any part of the purchase price or the cost of constructing or improving the property subject to such Mortgages and Mortgages given to secure indebtedness incurred in connection with the financing of construction of pollution control facilities, the interest on which indebtedness is exempt from income taxes under the Code;
(vi)any deposit or pledge of assets (1) with any surety company or clerk of any court, or in escrow, as collateral in connection with, or in lieu of, any bond on appeal from any judgment or decree against the Company or a Restricted Subsidiary, or in connection with other proceedings or actions at law or in equity by or against the Company or a Restricted Subsidiary, or (2) as security for the performance of any contract or undertaking not directly related to the borrowing of money or the securing of indebtedness, if made in the ordinary course of business, or (3) with any governmental agency, which deposit or pledge is required or permitted to qualify the Company or a Restricted Subsidiary to conduct business, to maintain self-insurance, or to obtain the benefits of any law pertaining to worker’s compensation, unemployment insurance, old age pensions, social security, or similar matters, or (4) made in the ordinary course of business to obtain the release of mechanics’, workmen’s, repairmen’s, warehousemen’s or similar liens, or the release of property in the possession of a common carrier;

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(vii)Mortgages existing on property acquired by the Company or a Restricted Subsidiary through the exercise of rights arising out of defaults on receivables acquired in the ordinary course of business;
(viii)judgment liens, so long as the finality of such judgment is being contested in good faith and execution thereon is stayed;
(ix)Mortgages for the sole purpose of extending, renewing or replacing in whole or in part Debt secured by any Mortgage referred to in the foregoing clauses (i) to (viii), inclusive, or in this clause (ix), provided, however, that the principal amount of Debt secured thereby shall not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the property which secured the Mortgage so extended, renewed or replaced (plus improvements on such property);
(x)liens for taxes or assessments or governmental charges or levies not yet due or delinquent, or which can thereafter be paid without penalty, or which are being contested in good faith by appropriate proceedings; landlord’s liens on property held under lease; and any other liens of a nature similar to those hereinabove described in this clause (x) which do not, in the opinion of the Company, materially impair the use of such property in the operation of the business of the Company or a Restricted Subsidiary or the value of such property for the purposes of such business; 
(xi)Mortgages on Margin Stock owned by the Company and its Restricted Subsidiaries to the extent such Margin Stock so mortgaged exceeds 25% of the fair market value of the sum of the Important Property of the Company and the Restricted Subsidiaries plus the shares of stock (including Margin Stock) and indebtedness issued or incurred by the Restricted Subsidiaries; and
(xii)Mortgages on any Important Property of, or any shares of stock or indebtedness issued or incurred by, any Restricted Subsidiary organized under the laws of Canada.
(b)(i)  The provisions of subsection 6.2(a) shall not apply to the issuance, incurrence, assumption or guarantee by the Company or any Restricted Subsidiary of Debt secured by a Mortgage which would otherwise be subject to the foregoing restrictions up to an aggregate amount which, together with the sum of (A) all other Debt issued or incurred by the Company and its Restricted Subsidiaries secured by Mortgages (other than Mortgages permitted by subsection 6.2(a)) which would otherwise be subject to the foregoing restrictions and (B) the Attributable Debt in respect of Sale and Lease-back Transactions in existence at such time (other than Sale and Lease-back Transactions which, if the Attributable Debt in respect of such Sale and Lease-back Transaction had been a Mortgage, would have been permitted by clause (i) of subsection 6.2(a) and other than Sale and Lease-back Transactions the proceeds of which have been applied in accordance with subsection 6.3(b)) does not at the time exceed 5% of Consolidated Net Worth.
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in accordance with GAAP; and the term “Attributable Debt” shall mean, as of any particular time, the present value, discounted at a rate per annum equal to the interest rate set forth in the Company’s 8-1/2% Debentures Due 2022, compounded semi-annually, of the obligation of a lessee for rental payments during the remaining term of any lease (including any period for which such lease has been extended or may, at the option of the lessor, be extended); the net amount of rent required to be paid for any such period shall be the total amount of the rent payable by the lessee with respect to such period, but may exclude amounts required to be paid on account of maintenance and repairs, insurance, taxes, assessments, water rates and similar charges; and, in the case of any lease which is terminable by the lessee upon the payment of a penalty, such net amount shall also include the amount of such penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which it may be so terminated.
(c)If, upon any consolidation or merger of any Restricted Subsidiary with or into any other corporation, or upon any consolidation or merger of any other corporation with or into the Company or any Restricted Subsidiary or upon any sale or conveyance of the property of any Restricted Subsidiary as an entirety or substantially as an entirety to any other Person, or upon any acquisition by the Company or any Restricted Subsidiary by purchase or otherwise of all or any part of the property of any other Person, any Important Property theretofore owned by the Company or such Restricted Subsidiary would thereupon become subject to any Mortgage not permitted by the terms of subsection (a) or (b) of this subsection 6.2, the Company, prior to such consolidation, merger, sale or conveyance, or acquisition, will, or will cause such Restricted Subsidiary to, secure payment of the principal of and interest on the Loans (equally and ratably with or prior to any other indebtedness of the Company or such Subsidiary then entitled thereto) by a direct lien on all such property prior to all liens other than any liens theretofore existing thereon by an assumption agreement or otherwise.
(d)If at any time the Company or any Restricted Subsidiary shall issue, incur, assume or guarantee any Debt secured by any Mortgage not permitted by this subsection 6.2, to which the covenant in subsection 6.2(a) is applicable, the Company will promptly deliver to the Administrative Agent (with counterparts for each Bank):
(i)an officers’ certificate signed by two Responsible Officers of the Company stating that the covenant of the Company contained in paragraph (a) or (c) of this subsection 6.2 has been complied with; and
(ii)an opinion of counsel satisfactory to the Administrative Agent to the effect that such covenant has been complied with, and that any instruments executed by the Company in the performance of such covenant comply with the requirements of such covenant.
6.3Limitations on Sale and Lease-back Transactions.  Enter into any arrangement with any Person providing for the leasing to the Company or any Restricted Subsidiary of any Important Property owned or hereafter acquired by the Company or such Restricted Subsidiary (except for temporary leases for a term, including any renewal thereof, of not more than three years and except for leases between the Company and a Restricted Subsidiary or between Restricted Subsidiaries), which Important Property has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person (herein referred to as a “Sale and Lease-back Transaction”) unless the net proceeds of such sale are at least equal to the fair value (as determined by the Board of Directors of the Company or such Restricted Subsidiary, as applicable) of such property and either (a) the Company or such Restricted 

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Subsidiary would be entitled, pursuant to the provisions of (1) subsection 6.2(a)(i) or (2) subsection 6.2(b), to incur Debt secured by a Mortgage on the Important Property to be leased without equally and ratably securing the Loans, or (b) the Company shall, and in any such case the Company covenants that it will, within 120 days of the effective date of any such arrangement, apply an amount equal to the fair value (as so determined) of such property to the reduction of the Commitments (to be accompanied by prepayment of the Loans in accordance with subsection 2.6 to the extent that the principal amount thereof outstanding prior to such prepayment would exceed the Commitments as so reduced) or to the payment or other retirement of funded debt for money borrowed, incurred or assumed by the Company which ranks senior to or pari passu with the Loans or of funded debt for money borrowed, incurred or assumed by any Restricted Subsidiary (other than, in either case, funded debt owned by the Company or any Restricted Subsidiary).  For this purpose, funded debt means any Debt which by its terms matures at or is extendable or renewable at the sole option of the obligor without requiring the consent of the obligee to a date more than twelve months after the date of the creation of such Debt.
6.4Equipment Operations Debt.  Permit Equipment Operations Debt as at the end of any fiscal quarter of the Company and its consolidated Subsidiaries (including the last quarter of any fiscal year of the Company and its consolidated Subsidiaries) to exceed 65% of the sum, at the end of each such fiscal quarter, of (i) Equipment Operations Debt plus (ii) Total Stockholders’ Equity.
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		SECTION 7.	NEGATIVE COVENANTS OF THE CAPITAL CORPORATION

The Capital Corporation hereby agrees that, so long as there is any obligation by any Bank to make Loans to the Capital Corporation hereunder, any obligation of any Issuing Bank to issue Letters of Credit hereunder, any Loan of the Capital Corporation remains outstanding and unpaid, any Letter of Credit remains outstanding or any other amount is owing by the Capital Corporation to any Bank, any Issuing Bank or any Agent hereunder, the Capital Corporation shall not, nor in the case of the agreements set forth in subsection 7.3 shall it permit any of its Subsidiaries to, directly or indirectly (unless the Majority Banks shall otherwise consent in writing):
7.1Fixed Charges Ratio.  Permit the ratio of Net Earnings Available for Fixed Charges to Fixed Charges for any fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the last quarter of any fiscal year of the Capital Corporation and its consolidated Subsidiaries) to be less than 1.05 to 1.
7.2Consolidated Senior Debt to Consolidated Capital Base.  Permit the ratio of Consolidated Senior Debt to Consolidated Capital Base as at the end of any fiscal quarter of the Capital Corporation and its consolidated Subsidiaries (including the end of any fiscal year of the Capital Corporation and its consolidated Subsidiaries) to be more than 11 to 1.
7.3Limitation on Liens.  Issue, incur, assume or guarantee any Debt secured by any Mortgage upon any of its property or assets, or any of the property or assets of any of its Subsidiaries (whether any such property or assets is now owned or hereafter acquired) without in any such case effectively providing, concurrently with the issuance, incurrence, assumption or guaranty of any such Debt, that the Loans and all other amounts hereunder (together with, if the Capital Corporation shall so determine, any other indebtedness of or guaranty by such Borrower or such Subsidiary ranking equally with the Loans then existing or thereafter created) shall be secured equally and ratably with or prior to such Debt; provided, however, that the foregoing restrictions shall not apply to:

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(a)Mortgages on fixed assets or other physical properties hereafter acquired to secure all or part of the purchase price thereof or the acquiring hereafter of such assets or properties subject to any existing lien or charge securing indebtedness (whether or not assumed);
(b)easements, liens, franchises or other minor encumbrances on or over any real property which do not materially detract from the value of such property or its use in the business of the Capital Corporation or a Subsidiary of the Capital Corporation;
(c)any deposit or pledge of assets (i) with any surety company or clerk of any court, or in escrow, as collateral in connection with or in lieu of, any bond on appeal from any judgment or decree against the Capital Corporation or a Subsidiary of the Capital Corporation, or in connection with other proceedings or actions at law or in equity by or against the Capital Corporation or a Subsidiary of the Capital Corporation or (ii) as security for the performance of any contract or undertaking not directly or indirectly related to the borrowing of money or the securing of indebtedness, if made in the ordinary course of business, or (iii) with any governmental agency, which deposit or pledge is required or permitted to qualify the Capital Corporation or a Subsidiary of the Capital Corporation to conduct business, to maintain self-insurance, or to obtain the benefits of any law pertaining to workmen’s compensation, unemployment insurance, old age pensions, social security, or similar matters, or (iv) made in the ordinary course of business to obtain the release of mechanics’, workmen’s, repairmen’s, warehousemen’s or similar liens, or the release of property in the possession of a common carrier;
(d)Mortgages by a Subsidiary as security for indebtedness owed to the Capital Corporation or to any other Subsidiary; 
(e)liens for taxes and governmental charges not yet due or contested by appropriate proceedings in good faith;
(f)Mortgages existing on property acquired by the Capital Corporation or a Subsidiary of the Capital Corporation through the exercise of rights arising out of defaults on receivables acquired in the ordinary course of business;
(g)judgment liens, so long as the finality of such judgment is being contested in good faith and execution thereon is stayed;
(h)any Mortgage (other than directly or indirectly to secure borrowed money) if, after giving effect thereto, the aggregate principal sums secured by pledges or liens otherwise within the restrictions in clauses (a) through (h) of this subsection 7.3 do not exceed $500,000; 
(i)any Mortgage securing Securitization Indebtedness;
(j)Mortgages on Margin Stock owned by the Capital Corporation and its Subsidiaries to the extent such Margin Stock exceeds 25% of the fair market value of property and assets of the Capital Corporation and its Subsidiaries (including Margin Stock); 
(k)cash collateral provided to any counterparty of the Capital Corporation or to any Subsidiary of the Capital Corporation in connection with any Hedging Transaction; and
(l)Mortgages on the assets of Capital Corporation in connection with (i) extensions of credit by a unit of a Governmental Authority through a discount window or similar facility or arrangement and (ii) borrowings from loan or subsidy programs operated by or on behalf of a 

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Governmental Authority when the provision of such Mortgage is required by such loan or subsidy program.
7.4Consolidation; Merger.  Merge or consolidate with or sell or convey (including pursuant to a Division and other than a conveyance by way of lease) all or substantially all of its assets to, any other corporation, unless (a) the Capital Corporation shall be the surviving corporation in the case of a merger or the Division Successor in the case of a Division, or the surviving, resulting or transferee corporation or Division Successor (the “successor corporation”) shall be a corporation organized under the laws of the United States or any State thereof or the District of Columbia and shall expressly assume the due and punctual performance of all of the agreements, covenants and obligations of the Capital Corporation under this Agreement by supplemental agreement satisfactory to the Administrative Agent and executed and delivered to the Administrative Agent by the successor corporation and (b) the Capital Corporation or such successor corporation, as the case may be, shall not, immediately after such merger, consolidation, Division, sale or conveyance, be in default in the performance of any such agreements, covenants or obligations; provided, however, that the Capital Corporation may merge or consolidate with, or sell or convey substantially all of its assets to, the Company, if (i) the Company is the successor corporation (as defined above) and (ii) subclause (b) above is complied with; provided further that no Division of Capital Corporation shall be permitted unless there is a Division Successor.  Upon any such merger, consolidation, sale, Division or conveyance, the successor corporation shall succeed to and be substituted for, and may exercise every right and power of and shall be subject to all the obligations of, the Capital Corporation under this Agreement, with the same effect as if the successor corporation had been named as the Capital Corporation herein and therein.
		SECTION 8.	EVENTS OF DEFAULT

Upon the occurrence and during the continuance of any of the following events:
(a)A Borrower shall fail to pay any principal of any Loan or Reimbursement Obligation when due in accordance with the terms hereof or to pay any interest on any Loan or Reimbursement Obligation, in each case within two Business Days after any such amount becomes due in accordance with the terms hereof or shall fail to pay any other amount payable hereunder within five Business Days after any such other amount becomes due in accordance with the terms thereof or hereof; or
(b)Any representation or warranty made or pursuant to subsection 4.2 deemed made by a Borrower herein or which is contained in any material certificate, material document or material financial statement or other material statement furnished at any time under or in connection with this Agreement shall prove to have been incorrect in any material respect on or as of the date made or deemed made; or 
(c)The Company shall default in the observance or performance of any agreement contained in subsection 5.6, 6.1 or 6.4, or the Capital Corporation shall default in the observance or performance of any agreement contained in subsections 7.1, 7.2 or 7.4; or
(d)A Borrower shall default in the observance or performance of any agreement contained in this Agreement (other than those agreements referred to above in this Section 8), and such default shall continue unremedied for a period of 30 days after written notice thereof shall have been given to such Borrower by the Administrative Agent or any of the Banks through the Administrative Agent; or
(e)(i)  A Borrower or any of its Significant Subsidiaries shall default in any payment of principal of or interest on any indebtedness for borrowed money (other than the Loans and any 

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Securitization Indebtedness) in a principal amount in excess of $175,000,000 in the aggregate, or any interest or premium thereon, when due (whether at scheduled maturity or by required prepayment, acceleration, demand or otherwise) and such failure shall continue beyond the period of grace, if any, provided in the instrument or agreement under which such indebtedness was created; or (ii) any other default (other than any default arising solely out of a Borrower’s, or any of its Significant Subsidiaries’, violation of any arrangement with any Bank, or any affiliate of any Bank, in any way restricting such Borrower’s, or such Significant Subsidiary’s, right or ability to sell, pledge or otherwise dispose of Margin Stock other than Restricted Margin Stock), or any other event that with notice or the lapse of time, or both, would constitute such a default, under any agreement or instrument relating to any such indebtedness for borrowed money (other than the Loans), shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such default or event is to accelerate the maturity of such indebtedness; or (iii) any such indebtedness for borrowed money shall, by reason of default, be declared to be due and payable, or required to be prepaid, prior to the stated maturity thereof (unless such indebtedness is declared due and payable, or required to be prepaid, solely by reason of any Borrower’s, or any of its Significant Subsidiaries’, violation of any arrangement with any Bank, or any affiliate of any Bank, in any way restricting such Borrower’s, or such Significant Subsidiary’s, right or ability to sell, pledge or otherwise dispose of Margin Stock other than Restricted Margin Stock); provided that, no Event of Default under this subsection 8(e) shall occur or be continuing if such failure, default or breach has been waived by the holder(s) or trustee or agent on behalf of such holder(s) of such indebtedness unless payment of such indebtedness has been accelerated and such acceleration has not been waived; or
(f)(i)  A Borrower or any of its Significant Subsidiaries shall commence any case, proceeding or other action (A) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its assets, or such Borrower or any of its Significant Subsidiaries shall make a general assignment for the benefit of its creditors; or (ii) there shall be commenced against a Borrower or any of its Significant Subsidiaries any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of 90 days; or
(g)Any action is undertaken to terminate any Plan as to which a Borrower, or any Subsidiary of a Borrower, may have liability, or any such Plan is terminated or such Borrower or Subsidiary withdraws from such Plan, or any Reportable Event as to any such Plan shall occur, and there shall exist a deficiency in the assets available to satisfy the benefits guaranteeable under ERISA with respect to such Plan, in the aggregate for all such Plans with respect to which any of the foregoing shall have occurred in the immediately preceding 12 consecutive months, of more than 25% of the Consolidated Net Worth of such Borrower and in the reasonable judgment of the Required Banks, such occurrence is reasonably expected to have a material adverse effect on the business, operations or financial condition of the Borrowers; or 
(h)Any Person shall own beneficially, directly or indirectly, 30% or more of the common stock of the Company; or any Person shall have the power, direct or indirect, to vote securities having 30% or more of the ordinary voting power for the election of directors of the Company or shall own beneficially, directly or indirectly, securities having such power, provided that there shall not be included among the securities as to which any such Person has such power to vote or which such Person so owns securities owned by such Person as nominee for the direct or indirect beneficial owner thereof or 

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securities as to which such power to vote arises by virtue of proxies solicited by the management of the Company; or
(i)So long as any Luxembourg Obligations remain outstanding or JD Luxembourg is a party to this Agreement, the guaranty in subsection 2.27 shall cease, for any reason, to be in full force and effect or any Borrower shall so assert;
then, and in any such event, (A) if such event is an Event of Default specified in paragraph (f) above, automatically the Commitments shall immediately terminate and the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) and the Loans shall immediately become due and payable, and (B)(1) if such event is an Event of Default specified in paragraph (a) or (e), then with the consent of the Majority Banks, the Administrative Agent may, or upon the request of the Majority Banks, the Administrative Agent shall, or (2) if such event is an Event of Default specified in paragraph (b), (c), (d), (g) or (h), then with the consent of the Required Banks, the Administrative Agent may, or upon the request of the Required Banks, the Administrative Agent shall, take either or both of the following actions: (i) by notice to the Borrowers, declare the Commitments to be terminated forthwith, whereupon the Commitments shall immediately terminate; and (ii) by notice of default to the Borrowers, declare the Loans hereunder (with accrued interest thereon) and all other amounts owing under this Agreement (including all amounts of L/C Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be due and payable forthwith, whereupon the same shall immediately become due and payable.  With respect to all Letters of Credit with respect to which presentment for honor shall not have occurred at the time of an acceleration pursuant to this paragraph, the Borrowers shall at such time deposit in a cash collateral account opened by the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such Letters of Credit.  Amounts held in such cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon, if any, shall be applied to repay other obligations of the Borrowers hereunder.  After all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other obligations of the Borrowers hereunder shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrowers (or such other Person as may be lawfully entitled thereto).  Except as expressly provided above in this Section, presentment, demand, protest and all other notices of any kind are hereby expressly waived with respect to this Agreement by the Borrowers.
		SECTION 9.	THE AGENTS

9.1Appointment.  (a)  Each Bank hereby irrevocably designates and appoints JPMorgan Chase Bank, N.A. as the Administrative Agent of such Bank under this Agreement, and each Bank hereby irrevocably authorizes JPMorgan Chase Bank, N.A. as the Administrative Agent for such Bank, to take such action on its behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to the Administrative Agent by the terms of this Agreement, together with such other powers as are reasonably incidental thereto.  
(b)Notwithstanding anything to the contrary contained in this Agreement, the parties hereto hereby agree that neither the Syndication Agent, the Documentation Agent, Lead Arrangers nor Bookrunners on the cover of this Agreement shall have any rights, duties, responsibilities or liabilities in such respective capacity under this Agreement nor shall any such Person have the authority to take any action hereunder in its capacity as such.

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(c)Notwithstanding any provision to the contrary elsewhere in this Agreement, no Agent shall have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Bank, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or otherwise exist against any Agent.
(d)Each of the Banks hereby exempts the Administrative Agent and Foreign Currency Agent from the restrictions pursuant to section 181 Civil Code (Bürgerliches Gesetzbuch) and similar restrictions applicable to it pursuant to any other applicable law, in each case to the extent legally possible to such Bank. A Bank which cannot grant such exemption shall notify the Administrative Agent and Foreign Currency Agent accordingly and, upon request of the Administrative Agent or Foreign Currency Agent, as applicable, either act in accordance with the terms of this Agreement and/or any other Loan Document as required pursuant to this Agreement and/or such other Loan Document or grant a special power of attorney to a party acting on its behalf, in a manner that is not prohibited pursuant to section 181 of the German Civil Code (Bürgerliches Gesetzbuch) and/or any other applicable laws.
9.2Delegation of Duties.  Each Agent may execute any of its duties under this Agreement by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  Each Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.
9.3Exculpatory Provisions.  Neither any Agent nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable to any Bank for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement (except for its or such Person’s own gross negligence or willful misconduct as finally determined by a non-appealable judgment of a court of competent jurisdiction), or (ii) responsible in any manner to any of the Banks for any recitals, statements, representations or warranties made by the Borrowers or any officer thereof contained in this Agreement or in any certificate, report, statement or other document referred to or provided for in, or received by any Agent under or in connection with, this Agreement or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or for any failure of the Borrowers to perform their obligations hereunder.  No Agent shall be under any obligation to any Bank to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement, or to inspect the properties, books or records of the Borrowers.
9.4Reliance by Agents.  (a) Each Agent shall be entitled to rely, and shall be fully protected in relying, upon any Loan, writing, resolution, notice, consent, certificate, affidavit, letter, cablegram, telegram, facsimile, telex or teletype message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons (including, for the avoidance of doubt, in connection with the Administrative Agent’s reliance on any Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page) and upon advice and statements of legal counsel (including, without limitation, counsel to the Borrowers), independent accountants and other experts selected by such Agent.  Each Agent may deem and treat the payee of any Loan as the owner thereof for all purposes except as provided in subsections 10.5(c) and 10.5(d).  Each Agent shall be fully justified in failing or refusing to take any discretionary action under this Agreement unless it shall first receive such advice or concurrence of the Majority Banks as it deems appropriate or it shall first be indemnified to its satisfaction by the Banks against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action.  Each Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Majority Banks, the Required Banks or all of the Banks (if the consent of the Majority Banks, the Required Banks or all of the Banks, respectively, is required), and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Banks.

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(a)​(b)(i) Each Bank and each Issuing Bank hereby agrees that (x) if the Administrative Agent notifies such Bank or Issuing Bank, as applicable, that the Administrative Agent has determined in its sole discretion that any funds received by such Bank or Issuing Bank, as applicable, from the Administrative Agent or any of its affiliates (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, a “Payment”) were erroneously transmitted to such Bank or Issuing Bank, as applicable (whether or not known to such Bank or Issuing Bank, as applicable), and demands the return of such Payment (or a portion thereof), such Bank or Issuing Bank, as applicable, shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Bank or Issuing Bank, as applicable, to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect, and (y) to the extent permitted by applicable law, such Bank or Issuing Bank, as applicable, shall not assert, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Payments received, including without limitation any defense based on “discharge for value” or any similar doctrine.  A notice of the Administrative Agent to any Bank or Issuing Bank, as applicable, under this subsection 9.4(b) shall be conclusive, absent manifest error.

(ii) Each Bank and each Issuing Bank hereby further agrees that if it receives a Payment from the Administrative Agent or any of its affiliates (x) that is in a different amount than, or on a different date from, that specified in a notice of payment sent by the Administrative Agent (or any of its affiliates) with respect to such Payment (a “Payment Notice”) or (y) that was not preceded or accompanied by a Payment Notice, it shall be on notice, in each such case, that an error has been made with respect to such Payment.  Each Bank and each Issuing Bank agrees that, in each such case, or if it otherwise becomes aware a Payment (or portion thereof) may have been sent in error, such Bank or Issuing Bank, as applicable, shall promptly notify the Administrative Agent of such occurrence and, upon demand from the Administrative Agent, it shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Payment (or portion thereof) as to which such a demand was made in same day funds, together with interest thereon in respect of each day from and including the date such Payment (or portion thereof) was received by such Bank or Issuing Bank, as applicable, to the date such amount is repaid to the Administrative Agent at the greater of the NYFRB Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.
(iii) The Borrowers hereby agree that (x) in the event that the returning of an an erroneous Payment (or portion thereof) made with funds of the Administrative Agent or an affiliate thereof has been demanded by the Administrative Agent pursuant to this Subsection 9.4(b) and has not been recovered from any Bank or Issuing Bank, as applicable, that has received such Payment (or portion thereof) for any reason, the Administrative Agent shall be subrogated to all the rights of such Bank or Issuing Bank, as applicable, with respect to such amount unless and until such amounts are recovered by the Administrative Agent and (y) an erroneous Payment made by the Administrative Agent or an affiliate thereof shall not pay, prepay, repay, discharge or otherwise satisfy any Loans, Reimbursement Obligations or L/C Obligations owed by the Borrowers.
(iv) Each Bank’s and each Issuing Bank’s obligations under this subsection 9.4(b) shall survive the resignation or replacement of the Administrative Agent or any transfer of rights or obligations by, or the replacement of, a Bank or an Issuing Bank, the termination of the Commitments, the payment in full of all amounts payable hereunder and the termination of this Agreement.

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9.5Notice of Default.  The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Administrative Agent has received notice from a Bank or either Borrower referring to this Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”.  In the event that the Administrative Agent receives such a notice, the Administrative Agent shall give notice thereof to the Banks.  The Administrative Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Majority Banks, the Required Banks or all Banks, as applicable; provided that, unless and until the Administrative Agent shall have received such directions, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Banks.
9.6Non-Reliance on Agents and Other Banks.  Each Bank expressly acknowledges that neither any Agent nor any of its respective officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by such Agent hereafter taken, including any review of the affairs of the Borrowers, shall be deemed to constitute any representation or warranty by such Agent to any Bank.  Each Bank represents to each Agent that it has, independently and without reliance upon such Agent or any other Bank, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of each Borrower and made its own decision to make its Loans hereunder and enter into this Agreement.  Each Bank also represents that it will, independently and without reliance upon each Agent or any other Bank, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Borrowers.  Except for notices, reports and other documents expressly required to be furnished to the Banks by any Agent hereunder, such Agent shall not have any duty or responsibility to provide any Bank with any credit or other information concerning the business, operations, property, financial and other condition or creditworthiness of a Borrower which may come into the possession of such Agent or any of its officers, directors, employees, agents, attorneys-in-fact or affiliates.
9.7Indemnification.  (a)  The Banks agree to indemnify each Agent in its capacity as such (to the extent not reimbursed by the Borrowers and without limiting the obligation of the Borrowers to do so), ratably (as reasonably determined by the Administrative Agent), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including without limitation at any time following the payment of the Loans) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of this Agreement, or any documents contemplated by or referred to herein or the transactions contemplated hereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided that no Bank shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct.  The agreements in this subsection 9.7 shall survive the payment of the Loans and all other amounts payable hereunder.
(b)Each Bank shall indemnify the Administrative Agent for the full amount of any taxes, levies, imposts, duties, fees, deductions, withholdings or similar charges imposed by any Governmental Authority that are attributable to such Bank and that are payable or paid by the Administrative Agent, together with all interest, penalties, reasonable costs and expenses arising therefrom or with respect thereto, as determined by the Administrative Agent in good faith.  A certificate as to the amount of such payment or liability delivered to any Bank by the Administrative Agent shall be conclusive absent manifest error.  

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9.8Agents in their Individual Capacities.  Each Agent and its respective affiliates may make loans to, accept deposits from and generally engage in any kind of business with the Borrowers as though such Agent were not an Agent hereunder.  With respect to its Loans made by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement as any Bank and may exercise the same as though it were not an Agent, and the terms “Bank” and “Banks” shall include the Administrative Agent in its individual capacity.
9.9Successor Agents.  Each Agent may resign as Agent upon 30 days’ notice thereof to the Borrowers and the Banks.  If the Administrative Agent shall resign as Administrative Agent under this Agreement, then the Majority Banks shall appoint from among the Banks a successor administrative agent for the Banks which successor administrative agent shall be approved by the Borrowers, whereupon such successor administrative agent shall succeed to the rights, powers and duties of the Administrative Agent and the term “Administrative Agent” shall mean such successor administrative agent effective upon its appointment, and the former Administrative Agent’s rights, powers and duties as Administrative Agent shall be terminated, without any other or further act or deed on the part of such former Administrative Agent or any of the parties to this Agreement.  Upon any resignation by the Foreign Currency Agent, (i) the Foreign Currency Agent may appoint one of its affiliates acting through an office in the European Union as a successor Foreign Currency Agent and (ii) if the Foreign Currency Agent has not appointed one of its affiliates acting through an office in the European Union as a successor Foreign Currency Agent pursuant to clause (i) above, then the Majority Banks shall appoint from among the Banks a successor foreign currency agent for the Banks which successor foreign currency agent shall be approved by the Borrowers, whereupon in each case of clauses (i) and (ii), such successor foreign currency agent shall succeed to the rights, powers and duties of the Foreign Currency Agent and the term “Foreign Currency Agent” shall mean such successor foreign currency agent effective upon its appointment, and the former Foreign Currency Agent’s rights, powers and duties as Foreign Currency Agent shall be terminated, without any other or further act or deed on the part of such former Foreign Currency Agent or any of the parties to this Agreement. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 9 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.  
		SECTION 10.	MISCELLANEOUS

10.1Amendments and Waivers.  Subject to subsection 2.11(b), (c) and (d) and subsection 10.1(c) below, with the written consent of the Majority Banks, the Administrative Agent and the Borrowers may, from time to time, enter into written amendments, supplements or modifications hereto for the purpose of adding any provisions to this Agreement or changing in any manner the rights of the Banks or of the Borrowers hereunder, and with the consent of the Majority Banks the Administrative Agent on behalf of the Banks may execute and deliver to the Borrowers a written instrument waiving, on such terms and conditions as the Administrative Agent may specify in such instrument, any of the requirements of this Agreement or any Default or Event of Default and its consequences; provided, however, that no such waiver, amendment, supplement or modification shall (a) extend the maturity of any Loan or Reimbursement Obligation, or reduce the rate or extend the time of payment of interest thereon, or reduce the principal amount thereof, or reduce the rate of any fee payable hereunder or extend the time of payment thereof, in each case, without the written consent of (i) with respect to any such change to any Committed Rate Loan, each Bank directly affected thereby and (ii) with respect to any such change to any Bid Loan, the Bank which made such Bid Loan, or (b) change the amount of any Bank’s Commitment or the terms of its obligation to make Loans hereunder (other than in accordance with subsection 2.20), or amend, modify or waive the pro rata treatment and payment provisions of subsection 2.12(b), or amend, modify or waive any provision of this subsection 10.1 or reduce the percentage specified in the definition of Majority Banks or Required Banks, or consent to the assignment or transfer by either Borrower of any of its rights and obligations under this Agreement, in each case without the 

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written consent of each Bank, or (c) amend, modify or waive any provision of Section 9 without the written consent of the then Administrative Agent and, if applicable, any other Agent affected by such amendment, modification or waiver, or (d) extend the Termination Date with respect to any Bank without the written consent of such Bank; provided, further, however, that no such waiver, amendment, supplement or modification shall waive, amend, supplement or otherwise modify subsections 2.16 without the written consent of the Required Banks, or (e) amend, modify or waive any provision of subsections 2.23 and 2.26 (and related defined terms), or any other provision which affects the rights or duties of an Issuing Bank under this Agreement, without the written consent of each Issuing Bank, or (f) so long as any Luxembourg Obligations remain outstanding or JD Luxembourg is a party to this Agreement, release Capital Corporation from its guarantee obligations under subsection 2.27 without the written consent of each Bank; and provided, further, that notwithstanding the foregoing, the Administrative Agent may act pursuant to subsection 2.11(b) to establish, in conjunction with the Borrowers, an alternate rate of interest.  Any such waiver and any such amendment, supplement or modification shall apply equally to each of the Banks and shall be binding upon the Borrowers, the Banks and the Agents.  In the case of any waiver, the Borrowers, the Banks and the Agents shall be restored to their former position and rights hereunder, and any Default or Event of Default waived shall be deemed to be cured and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.  Anything contained in the foregoing to the contrary notwithstanding, the relevant Borrower and the relevant Bank with respect to a Negotiated Rate Loan may, from time to time, enter into amendments, supplements or modifications for the purpose of adding any provisions to such Negotiated Rate Loans or changing in any manner the rights of such Bank and such Borrower thereunder and such Bank may waive any of the requirements of such Negotiated Rate Loan; provided, however, that such Borrower and such Bank shall notify the Administrative Agent in writing of any extension of the maturity of such Negotiated Rate Loan or reduction of the principal amount thereof; provided, further, that such Borrower and such Bank shall not extend the maturity of such Negotiated Rate Loan beyond the last day of the Commitment Period.
10.2Notices.  All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing, by facsimile transmission, by telephone confirmed in writing and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or when deposited in the mail, postage prepaid, or, in the case of facsimile transmission, when received, addressed as follows in the case of the Borrowers, the Administrative Agent, or to such address or other address as may be hereafter notified by the respective parties hereto: 
The Borrowers:
	The Company:
	Deere & Company
Attention:  Treasurer
One John Deere Place
Moline, Illinois  61265
Telephone:  309-765-9259
Facsimile:  309-765-0559

	The Capital Corporation:
	John Deere Capital Corporation
Attention:  Manager
1 East First Street
Suite 600
Reno, Nevada  89501
Telephone:  775-786-5527
Facsimile:  775-786-4145 

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	JD Luxembourg:
	John Deere Bank S.A.
43, avenue John F. Kennedy
L-1855 Luxembourg
Grand Duchy of Luxembourg 
Facsimile: + 352 26 29 90 200
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	with a copy to:
	Deere & Company
Attention:  Treasurer
One John Deere Place
Moline, Illinois  61265
Telephone:  309-765-9259
Facsimile:  309-765-0559

	The Administrative Agent:
	JPMorgan Chase Bank, N.A. 
Attention:  Loan & Agency Services Group
500 Stanton Christiana Road, NCC5, Floor 01
Newark, Delaware 19713-2107
United States
Telephone:  302-634-9770
Facsimile:  302-634-4733
Email: harmeet.kaur@chase.com
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	with a copy to:
	JPMorgan Chase Bank, N.A. 
Attention: Sean D. Bodkin
8181 Communications Pkwy 
Bldg B, Floor 06
Plano, Texas 75024-0239
Telephone:  972-324-1749
Email: sean.bodkin@chase.com
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	The Foreign Currency Agent:
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	J.P. Morgan AG
25 Bank Street
London E14 5JP
United Kingdom
Telephone: +44 203 4930699 and 
+44 207 7421911
Email: loan_and_agency_london@jpmorgan.com
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	To any other Bank:
	To it at its address (or facsimile number) set forth in its Administrative Questionnaire
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provided that any notice, request or demand to or upon the Administrative Agent or the Banks pursuant to subsections 2.1, 2.2, 2.5, 2.6, 2.9, 2.11, 2.20 and 9.9 shall not be effective until received (including receipt by telephone if permitted hereby).
10.3No Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of either Borrower, the Administrative Agent or any Bank, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the 

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exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.
10.4Payment of Expenses.  (a)  The Company agrees (i) to pay or reimburse the Administrative Agent for all its out-of-pocket costs and expenses incurred in connection with the preparation and execution of, and any amendment, supplement or modification to, this Agreement and any other documents prepared in connection herewith, and the consummation of the transactions contemplated hereby and thereby in such manner and in such amounts as shall be agreed to in writing by the Company and the Administrative Agent, (ii) to pay or reimburse the Administrative Agent for the reasonable fees and disbursements of counsel to the Administrative Agent incurred in connection with the preparation and execution of, and any amendment, supplement, modification to, this Agreement and other documents prepared in connection herewith, and the consummation of the transaction contemplated hereby and thereby, and (iii) to pay or reimburse each Bank and each Agent for all its out-of-pocket costs and expenses incurred in connection with the enforcement or preservation of any rights under this Agreement and any such other documents, including, without limitation, fees and disbursements of counsel to each Agent and one counsel representing the Banks; provided, however, that, notwithstanding anything herein to the contrary, the Company shall not be required to reimburse, indemnify or otherwise make any payment pursuant to this subsection 10.4 with respect to any registration duty payable in Luxembourg upon registration of this Agreement in Luxembourg except for any Luxembourg tax payable due to a registration of the Agreement when such registration is required to maintain, preserve, establish or enforce any rights of any Agent or Bank. 
(b)The Company and the Capital Corporation agree jointly and severally to indemnify and hold harmless each Agent, each Bank and each Issuing Bank and each director, officer, partner, employee, affiliate and agent thereof (each, an “Indemnified Person”) against, and to reimburse each Indemnified Person, upon its demand, for, any losses, claims, damages, liabilities or other expenses (“Losses”) to which such Indemnified Person may become subject insofar as such Losses arise out of or in any way relate to or result from this Agreement or the extensions of credit made hereunder (including the responsibilities, duties and obligations of the Banks hereunder and their agreement to make Loans or issue Letters of Credit hereunder), including, without limitation, Losses consisting of legal or other expenses incurred in connection with investigating, defending or participating in any legal proceeding relating to the foregoing (whether or not such Indemnified Person is a party thereto); provided, that the foregoing will not apply to any Losses to the extent they result from (i) the negligence or willful misconduct of such Indemnified Person as finally determined by a non-appealable judgment of a court of competent jurisdiction or (ii) any dispute solely among Indemnified Persons (other than any claims against an Indemnified Person in its capacity or in fulfilling its role as an Agent or Issuing Bank under this Agreement) and which does not arise out of or relate to an act or omission of the Company or any of its affiliates. This indemnity agreement shall be in addition to any liability which either Borrower may otherwise have and shall be subject to the following paragraph.
(c)Promptly after receipt by an Indemnified Person under subsection 10.4(b) of written notice of any loss, claim, damage or liability in respect of which indemnity may be sought by it hereunder, such Indemnified Person will, if a claim is to be made against the Borrowers, notify the Borrowers thereof in writing; but the omission so to notify the Borrowers will not relieve the Borrowers from any liability (otherwise than under this subsection 10.4) which they may have to any Indemnified Person except as may be required or provided otherwise than under this subsection 10.4.  Thereafter, the Indemnified Person and the Borrowers shall consult, to the extent appropriate, with a view to minimizing the cost to the Borrowers of their obligations hereunder.  In case any Indemnified Person receives written notice of any loss, claim, damage or liability in respect of which indemnity may be sought hereunder by it and it notifies the Borrowers thereof, the Borrowers will be entitled to participate therein and, to the 

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extent that they may elect by written notice delivered to the Indemnified Person promptly after receiving the aforesaid notice from such Indemnified Person, to assume the defense thereof, with counsel reasonably satisfactory at all times to such Indemnified Person; provided, however, that (i) if the parties against whom any loss, claim, damage or liability arises include both the Indemnified Person and a Borrower or any Subsidiary of a Borrower and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it or other Indemnified Persons which are different from or additional to those available to a Borrower or any Subsidiary of a Borrower and may conflict therewith, the Indemnified Person or Persons shall have the right to select one separate counsel for such Indemnified Person or Persons to assume such legal defenses and to otherwise participate in the defense of such loss, claim, damage or liability on behalf of such Indemnified Person or Persons and (ii) if any loss, claim, damage or liability arises out of actions brought by or for the benefit of a Borrower or any Subsidiary of a Borrower, the Indemnified Person or Persons shall have the right to select their counsel and to assume and direct the defense thereof and no Borrower shall be entitled to participate therein or assume the defense thereof.  Upon receipt of notice from the Borrowers to such Indemnified Person of their election so to assume the defense of such loss, claim, damage or liability and approval by the Indemnified Person of counsel, the Borrowers shall not be liable to such Indemnified Person under this subsection 10.4 for any legal or other expenses subsequently incurred by such Indemnified Person in connection with the defense thereof unless (i) the Indemnified Person shall have employed such counsel in connection with the assumption of legal defenses in accordance with the proviso to the next preceding sentence, (ii) the Borrowers shall not have employed and continued to employ counsel satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time after notice of commencement of the action or (iii) the Borrowers shall have authorized the employment of counsel for the Indemnified Person at the expense of the Borrowers.
(d)Notwithstanding any other provision contained in this subsection 10.4, (i) the Borrowers shall not be liable for any settlement, compromise or consent to the entry of any order adjudicating or otherwise disposing of any loss, claim, damage or liability effected without their consent and (ii) after the Borrowers have assumed the defense of any loss, claim, damage or liability under the preceding paragraph with respect to any Bank, they will not settle, compromise or consent to entry of any order adjudicating or otherwise disposing thereof (1) if such settlement, compromise or order involves the payment of money damages, except if the Borrowers agree with such Bank to pay such money damages, and, if not simultaneously paid, to furnish such Bank with satisfactory evidence of their ability to pay such money damages, and (2) if such settlement, compromise or order involves any relief against such Bank, other than the payment of money damages, except with the prior written consent of such Bank.
(e)Each party hereto waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding relating to the Agreement any special, exemplary, punitive or consequential damages.  
(f)The agreements in this subsection 10.4 shall survive repayment of the Loans and all other amounts payable hereunder. 
10.5Successors and Assigns; Participations; Purchasing Banks.  (a)  This Agreement shall be binding upon and inure to the benefit of the Borrowers, the Banks, the Agents and their respective successors and assigns (including any affiliate of an Issuing Bank that issues any Letter of Credit), except that the Borrowers may not assign or transfer any of their rights or obligations under this Agreement without the prior written consent of each Bank.
(b)Any Bank may, in the ordinary course of its commercial banking business and in accordance with applicable law, at any time sell to one or more banks or other financial institutions (“Participants”) participating interests in the Loans, Commitments and other interests of such Bank 

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hereunder.  In the event of any such sale by a Bank of participating interests to a Participant, such Bank’s obligations under this Agreement to the other parties to this Agreement shall remain unchanged, such Bank shall remain solely responsible for the performance thereof, such Bank shall remain the holder of any such Loan for all purposes under this Agreement, and the Borrowers, each Issuing Bank and the Administrative Agent shall continue to deal solely and directly with such Bank in connection with such Bank’s rights and obligations under this Agreement.  Each Bank that sells a participation, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”); provided that no Bank shall have any obligation to disclose all or any portion of the Participant Register to any Person other than the Borrower (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments, Loans, Letters of Credit or its other obligations under this Agreement) except to the extent that such disclosure is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall constitute prima facie evidence (absent manifest error) of the accuracy of the information so recorded, and the Borrowers, the Administrative Agent, the Issuing Banks and the Banks may treat each Person whose name is recorded in the Participant Register as the owner of such participation recorded therein for all purposes of this Agreement.
(c)Any Bank may, in the ordinary course of its commercial banking business and in accordance with applicable law, at any time assign to one or more banks or other financial institutions (“Loan Assignees”) any Bid Loan or Negotiated Rate Loan or portion thereof owing to such Bank, pursuant to a Loan Assignment executed by the assignor Bank and the Loan Assignee.  Upon such execution, from and after the Transfer Effective Date specified in such Loan Assignment, the Loan Assignee shall, to the extent of the assignment provided for in such Loan Assignment and to the extent permitted by applicable law, be deemed to have the same rights and benefits with respect to such Bid Loans and Negotiated Rate Loans and the same obligation to share pursuant to subsection 10.6 as it would have had if it were a Bank hereunder; provided, that unless such Loan Assignment shall otherwise specify and a copy of such Loan Assignment shall have been delivered to the Administrative Agent for its acceptance and recording in the Register in accordance with subsection 10.5(f), the assignor Bank shall act as collection agent for the Loan Assignee, and in the case of Bid Loans, the Administrative Agent shall pay all amounts received from the relevant Borrower which are allocable to the assigned Bid Loan directly to the assignor Bank without any further liability to the relevant Loan Assignee, and, in the case of Negotiated Rate Loans, the relevant Borrower shall pay all amounts due under the assigned Negotiated Rate Loan directly to the assignor Bank without any further liability to the Loan Assignee.  At the request of any Loan Assignee, on or promptly after the Transfer Effective Date specified in such Loan Assignment, the relevant Borrower, at its own expense, shall execute and deliver to the Loan Assignee a promissory note with respect to the Bid Loans or Negotiated Rate Loans of such Loan Assignee and its registered assigns in an amount equal to the Bid Loan or Negotiated Rate Loan assigned.  Such note shall be dated the Borrowing Date in respect of such Bid Loan or Negotiated Rate Loan and shall otherwise be in the form of Exhibit L; provided, however, that such Borrower shall not be required to execute and deliver more than an aggregate of two notes with respect to the Bid Loans of any Bank with the same Interest Period at any time outstanding.  A Loan Assignee shall not, by virtue of such Loan Assignment, become a party to this Agreement or have any rights to consent to or refrain from consenting to any amendment, waiver or other modification of any provision of this Agreement or any related document; provided, that (i) the assignor Bank and the Loan Assignee may, in their discretion, agree between themselves upon the manner in which the assignor Bank will exercise its rights under this Agreement and any related document, and (ii) if a copy of such Loan Assignment shall have been delivered to the Administrative Agent for its acceptance and recording in the Register in accordance with subsection 

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10.5(f), neither the principal amount of, the interest rate on, nor the maturity date of, any Bid Loan or Negotiated Rate Loan assigned to a Loan Assignee will be modified without written consent of such Loan Assignee. 
(d)Any Bank may, in the ordinary course of its commercial banking business and in accordance with applicable law, sell to any Bank or any affiliate thereof (other than a natural Person) and to one or more additional banks or other financial institutions (“Purchasing Banks”), all or any portion (subject to the last sentence of this subsection 10.5(d)) of its rights (which rights may include such Bank’s rights in respect of Loans it has disbursed) and obligations under this Agreement, with the prior written consent (such consent not to be unreasonably withheld or delayed) of (i) the Company, (ii) each Issuing Bank and (iii) the Administrative Agent.  Such sale shall be made pursuant to a Loan Assignment, executed by such Purchasing Bank and such transferor Bank (and, in the case of a Purchasing Bank that is not then a Bank or an affiliate thereof, by the Borrowers and the Administrative Agent), and delivered to the Administrative Agent for its acceptance and recording in the Register.  Upon such execution, delivery, acceptance and recording, from and after the Transfer Effective Date specified in such Loan Assignment, (i) the Purchasing Bank thereunder shall be a party hereto with respect to the interest purchased and, to the extent provided in such Loan Assignment, have the rights and obligations of a Bank hereunder with a Commitment as set forth therein, and (ii) the transferor Bank thereunder shall cease to have those rights and obligations under this Agreement to which the Purchasing Bank has succeeded (and, in the case of a Loan Assignment covering all or the remaining portion of a transferor Bank’s rights and obligations under this Agreement, such transferor Bank shall cease to be a party hereto).  Such Loan Assignment shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of such Purchasing Bank and the resulting adjustment of Commitments and Commitment Percentages arising from the purchase by such Purchasing Bank of a portion of the rights and obligations of such transferor Bank under this Agreement.  On or promptly after the Transfer Effective Date specified in such Loan Assignment, the Purchasing Bank and the Administrative Agent, on behalf of such Purchasing Bank, shall open and maintain in the name of each Borrower a Loan Account with respect to such Purchasing Bank’s Committed Rate Loans and Bid Loans to such Borrower.  Anything contained in this Agreement to the contrary notwithstanding, no Bank may sell any portion of its rights and obligations under this subsection 10.5(d) to any bank or financial institution without the prior written consent (such consent not to be unreasonably withheld or delayed) of the Company if, after giving effect to such sale or at the time of such sale, as the case may be, (i) the Commitment of either of the selling and purchasing institutions would be greater than $0 but less than $5,000,000, (ii) the Purchasing Bank, together with all of its affiliates, would have a Commitment Percentage of more than 15% (or, if the Commitments shall have been terminated, such Purchasing Bank, together with all of its affiliates, would hold Loans aggregating to more than 15% in principal amount of all outstanding Loans), (iii) the Credit Rating of any Purchasing Bank shall be less than BBB+ from S&P or less than Baa1 from Moody’s or such Purchasing Bank shall have no Credit Rating or (iv) the Purchasing Bank is not a bank, insurance company, other financial institution or an affiliate of any thereof that is engaged in making, purchasing, holding or investing in bank loans or similar extensions of credit in the ordinary course of its business.
(e)The Administrative Agent shall maintain at its address referred to in subsection 10.2 a copy of each Loan Assignment delivered to it and a register (the “Register”) for the recordation of (i) the names and addresses of the Banks and the Commitment of, and principal amount (and stated interest) of the Loans (other than Negotiated Rate Loans) and L/C Obligations owing to, each Bank from time to time, and (ii) with respect to each Loan Assignment delivered to the Administrative Agent, the name and address of the Loan Assignee and the principal amount of each Bid Loan owing to such Loan Assignee.  The entries in the Register shall constitute prima facie evidence (absent manifest error) of the accuracy of the information so recorded, and the Borrowers, the Administrative Agent, each Issuing Bank and the Banks may treat each Person whose name is recorded in the Register as the owner of the Loan recorded therein for all purposes of this Agreement.  The Register shall be available for inspection by the 

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Company, each Issuing Bank or any Bank or Loan Assignee at any reasonable time and from time to time upon reasonable prior notice.
(f)Upon its receipt of a Loan Assignment executed by an assignor Bank and a Loan Assignee and an Administrative Questionnaire from the Loan Assignee if it is not then a Bank, together with payment to the Administrative Agent (by the assignor Bank or the Loan Assignee, as agreed between them) of a registration and processing fee of $3,500, the Administrative Agent shall (i) accept such Loan Assignment, (ii) record the information contained therein in the Register and (iii) give prompt notice of such acceptance and recordation to the assignor Bank, the Loan Assignee and the Borrowers.  Upon its receipt of a Loan Assignment executed by a transferor Bank and a Purchasing Bank (and, in the case of a Purchasing Bank that is not then a Bank or an affiliate thereof, by the Borrowers and the Administrative Agent) and an Administrative Questionnaire from the Purchasing Bank if it is not then a Bank, together with payment to the Administrative Agent (by the transferor Bank or the Purchasing Bank, as agreed between them) of a registration and processing fee of $3,500 for each Purchasing Bank listed in such Loan Assignment, the Administrative Agent shall (A) accept such Loan Assignment, (B) record the information contained therein in the Register and (C) give prompt notice of such acceptance and recordation to the Banks and the Borrowers.
(g)The Company authorizes each Bank to disclose to any Participant, Loan Assignee or Purchasing Bank (each, a “Transferee”) and any prospective Transferee any and all financial information in such Bank’s possession concerning the Borrowers and their Subsidiaries which has been delivered to such Bank by or on behalf of the Borrowers pursuant to this Agreement or in connection with such Bank’s credit evaluation of the Borrowers and their Subsidiaries prior to becoming a party to this Agreement, provided that with respect to confidential data or information described in subsection 10.7, such confidential data may be disclosed only to (i) a Purchasing Bank and/or (ii) any other Transferee or prospective Transferee with the Borrowers’ prior written consent, which consent shall not be unreasonably withheld with respect to prospective Participants, Participants, prospective Loan Assignees and Loan Assignees; provided, however, that such Bank shall not disclose any such confidential data or information pursuant to this subsection 10.5(g) unless (i) it has notified the Purchasing Bank or other Transferee or potential Transferee that such data or information are confidential, such notification to be in writing if such data or information are disclosed in writing and orally if such data or information are disclosed orally, and (ii) such Purchasing Bank, Transferee or potential Transferee has agreed in writing to be bound by the provisions of subsection 10.7. 
(h)If, pursuant to this subsection, any loan participation or series of loan participations is sold or any interest in this Agreement is transferred to any Transferee, the transferor Bank shall cause such Transferee, concurrently with the effectiveness of such transfer or the first transfer to occur in a series of transfers between such transferor Bank and such Transferee, to comply with subsection 2.17(c), subsection 2.17(d), subsection 2.17(e) and subsection 2.17(f) as if it were a Bank.  The Administrative Agent shall not be responsible for obtaining such documentation except from its own Transferees.
(i)Nothing in this subsection 10.5 shall prohibit any Bank from pledging or assigning its Loans to any Federal Reserve Bank in accordance with applicable law.
(j)The Borrowers, upon receipt of written notice from the relevant Bank, agree to issue Notes to any Bank requiring Notes to facilitate transactions of the type described in paragraph (i) above.
(k)Notwithstanding anything to the contrary contained herein, any Bank (a “Granting Bank”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Bank to the Administrative Agent and the Company, the option to provide to the Borrowers all or any part of any Loan that such Granting Bank would otherwise be obligated to make to 

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the Borrowers pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan, (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Bank shall be obligated to make such Loan pursuant to the terms hereof.  The making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Bank to the same extent, and as if, such Loan were made by such Granting Bank.  Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the Granting Bank).  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof.  In addition, notwithstanding anything to the contrary contained in this subsection 10.5(k) any SPC may (i) with notice to, but without the prior written consent of, the Company and the Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Bank or to any financial institutions (consented to by the Company and Administrative Agent) providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC.  This subsection 10.5(k) may not be amended without the written consent of the SPC.
10.6Adjustments.  Except as otherwise provided in this Agreement or as otherwise provided by court order, if any Bank (a “benefitted Bank”) shall at any time receive any payment of all or part of its Committed Rate Loans or L/C Obligations, or interest thereon or commitment fee or letter of credit fee hereunder, or receive any collateral in respect thereof (whether voluntarily or involuntarily, by set-off, pursuant to events or proceedings of the nature referred to in clause (e) of Section 8, or otherwise) in a greater proportion than any such payment to and collateral received by any other Bank, if any, in respect of such other Bank’s Committed Rate Loans or L/C Obligations, or interest thereon, or commitment fee or letter of credit fee hereunder, such benefitted Bank shall purchase for cash from the other Banks such portion of each such other Bank’s Committed Rate Loans or L/C Obligations, or shall provide such other Banks with the benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such benefitted Bank to share the excess payment or benefits of such collateral or proceeds ratably with each of such other Banks; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such benefitted Bank, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without interest.  The Borrowers agree that each Bank so purchasing a portion of another Bank’s Committed Rate Loans or L/C Obligations may exercise all rights of payment (including, without limitation, rights of set-off) with respect to such portion as fully as if such Bank were the direct holder of such portion.
10.7Confidentiality.  (a)  Each of the Agents and the Banks shall, subject as hereinafter provided, keep confidential from any third party any data or information received by them from the Borrowers pursuant to this Agreement which, if provided in writing, is designated in writing as confidential, and if provided orally, is designated orally as confidential by the Borrowers except:
(i)any such data or information as is or becomes publicly available or generally known otherwise than as a result of any breach of the provisions of this subsection 10.7;

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(ii)as required by law, rule, regulation or official direction or any Governmental Authority or self-regulatory body having or claiming authority or oversight over any Bank or its affiliates; 
(iii)as may be necessary to protect as against the Borrowers or any of them the interests of the Banks or any of them under this Agreement;
(iv)to the extent permitted under subsection 10.5; and
(v)with respect to any Bank, to affiliates of such Bank on a need to know basis (as long as such affiliates are subject to confidentiality provisions no less restrictive than those set forth in this Agreement) and the attorneys, accountants and regulators of such Bank and such affiliates, and to each other Bank.
(b)Each of the Agents and the Banks shall use their reasonable efforts to ensure that any confidential data or information received by them from the Borrowers pursuant to this Agreement which is disclosed to employees of such Agent or Bank (as the case may be) or their respective affiliates pursuant to clause (a) above, is so disclosed only to the extent necessary for purpose of the administration of this Agreement and, in all cases, on the condition that such information and data shall be kept confidential except for such purpose.
(c)For the avoidance of doubt, the Agents and the Banks may provide to data service providers that serve the lending industry, including market data collectors and league table providers, and insurers to the Agents and the Banks information pertaining to this Agreement routinely provided by arrangers and lenders to such data service providers and insurers if presented in a manner that does not disclose the identity of the Borrowers.
(d)The provisions of this subsection 10.7 shall survive the payment in full of all amounts payable hereunder and the termination of this Agreement.
10.8Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrowers and the Administrative Agent. Delivery of an executed counterpart of a signature page of (x) this Agreement, (y) any other Loan Document and/or (z) any document, amendment, approval, consent, information, notice (including, for the avoidance of doubt, any notice delivered pursuant to subsection 10.2), certificate, request, statement, disclosure or authorization related to this Agreement, any other Loan Document and/or the transactions contemplated hereby and/or thereby (each an “Ancillary Document”) that is an Electronic Signature transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page shall be effective as delivery of a manually executed counterpart of this Agreement, such other Loan Document or such Ancillary Document, as applicable.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to this Agreement, any other Loan Document and/or any Ancillary Document shall be deemed to include Electronic Signatures, deliveries or the keeping of records in any electronic form (including deliveries by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page), each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be; provided that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent and pursuant to procedures approved by it; provided, further, without limiting the foregoing, (i) to 

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the extent the Administrative Agent has agreed to accept any Electronic Signature, the Administrative Agent and each of the Banks shall be entitled to rely on such Electronic Signature purportedly given by or on behalf of the Borrowers without further verification thereof and without any obligation to review the appearance or form of any such Electronic Signature and (ii) upon the request of the Administrative Agent or any Bank, any Electronic Signature shall be promptly followed by a manually executed counterpart.  Without limiting the generality of the foregoing, the Borrowers hereby (i) agree that, for all purposes, including without limitation, in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Banks, and the Borrowers, Electronic Signatures transmitted by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page and/or any electronic images of this Agreement, any other Loan Document and/or any Ancillary Document shall have the same legal effect, validity and enforceability as any paper original, (ii) the Administrative Agent and each of the Banks may, at its option, create one or more copies of this Agreement, any other Loan Document and/or any Ancillary Document in the form of an imaged electronic record in any format, which shall be deemed created in the ordinary course of such Person’s business, and destroy the original paper document (and all such electronic records shall be considered an original for all purposes and shall have the same legal effect, validity and enforceability as a paper record), (iii) waives any argument, defense or right to contest the legal effect, validity or enforceability of this Agreement, any other Loan Document and/or any Ancillary Document based solely on the lack of paper original copies of this Agreement, such other Loan Document and/or such Ancillary Document, respectively, including with respect to any signature pages thereto and (iv) waives any claim against any Indemnified Person for any Losses arising solely from the Administrative Agent’s and/or any Bank’s reliance on or use of Electronic Signatures and/or transmissions by telecopy, emailed pdf. or any other electronic means that reproduces an image of an actual executed signature page, including any Losses arising as a result of the failure of a Borrower to use any available security measures in connection with the execution, delivery or transmission of any Electronic Signature. 
10.9GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
10.10Consent to Jurisdiction and Service of Process.  All judicial proceedings brought against the Borrowers with respect to this Agreement shall be brought in the United States District Court for the Southern District of New York sitting in the Borough of Manhattan (or if such court lacks subject matter jurisdiction, the Supreme Court of the State of New York sitting in the Borough of Manhattan), and, by execution and delivery of this Agreement, the Borrowers accept, for themselves and in connection with their properties, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts and irrevocably agree to be bound by any final judgment rendered thereby in connection with this Agreement from which no appeal has been taken or is available.  The Borrowers irrevocably agree that all process in any such proceedings in any such court may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to them at their addresses set forth in subsection 10.2 or at such other address of which the Administrative Agent shall have been notified pursuant thereto, such service being hereby acknowledged by the Borrowers to be effective and binding service in every respect.  Each of the Borrowers, the Agents and the Banks irrevocably waives any objection, including without limitation, any objection to the laying of venue or based on the grounds of forum non conveniens which it may now or hereafter have to the bringing of any such action or proceeding in any such jurisdiction.  Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit the right of any Agent or any Bank to bring proceedings against the Borrowers in the courts of any other jurisdiction.  JD Luxembourg irrevocably appoints the Company as its agent to receive process with respect to this Agreement.

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10.11WAIVERS OF JURY TRIAL.  Each Borrower, the Administrative Agent and the Banks hereby irrevocably and unconditionally waive trial by jury in any legal action or proceeding relating to this agreement or any other loan document and for any counterclaim therein.
10.12USA Patriot Act.  Each Bank hereby notifies the Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrowers, which information includes the name and address of the Borrowers and other information that will allow such Bank to identify the Borrowers in accordance with the Act.  The Borrowers shall promptly provide such information upon request by any Bank.
10.13No Fiduciary Duty.  The Borrowers acknowledge and agree that (a) no fiduciary, advisory or agency relationship between the Borrowers and the Agents and the Banks is intended to be or has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether the Agents and the Banks have advised or are advising the Borrowers on other matters, (b) the Agents and the Banks, on the one hand, and the Borrowers, on the other hand, have an arm's length business relationship that does not directly or indirectly give rise to, nor do the Borrowers rely on, any fiduciary duty to the Borrowers or their respective affiliates on the part of the Agents and the Banks, (c) the Borrowers are capable of evaluating and understanding, and the Borrowers understand and accept, the terms, risks and conditions of the transactions contemplated by this Agreement, (d) the Borrowers have been advised that the Agents and the Banks are engaged in a broad range of transactions that may involve interests that differ from the Borrowers’ interests and that the Agents and the Banks have no obligation to disclose such interests and transactions to the Borrowers, (e) the Borrowers have consulted their own legal, accounting, regulatory and tax advisors to the extent the Borrowers have deemed appropriate, (f) each Agent and Bank has been, is, and will be acting solely as a principal and, except as otherwise expressly agreed in writing by it and the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for the Borrowers, any of the Borrowers’ affiliates or any other Person and (g) none of the Agents nor Banks has any obligation to the Borrowers or their respective affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein or in any other express writing executed and delivered by such Agent or Bank and the Borrowers or any such affiliate.
10.14Headings.  Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
10.15Acknowledgment and Consent to Bail-In of Affected Financial Institutions.  (a) Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties to the Loan Documents, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of a Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(i)the application of any Write-Down and Conversion Powers by a Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and
(ii)the effects of any Bail-In Action on any such liability, including, if applicable:

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(x)a reduction in full or in part or cancellation of any such liability;
(y)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(z)the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any Resolution Authority.
(b)Each party hereto agrees that it will notify the Company and the Administrative Agent, as soon as practicable, of such party becoming the subject of a Bail-In Action, unless such notification is prohibited by law, regulation or order.
10.16Bank ERISA Representations.  (a) Each Bank (x) represents and warrants, as of the date such Person became a Bank party hereto, to, and (y) covenants, from the date such Person became a Bank party hereto to the date such Person ceases being a Bank party hereto, for the benefit of, the Administrative Agent and each lead arranger and their respective affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrowers, that at least one of the following is and will be true:
(i) such Bank is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of ERISA) of one or more Benefit Plans (defined below) in connection with the Loans or the Commitments,
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(ii) the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to, and all of the conditions of which are and will continue to be satisfied in connection with, such Bank’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement,
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(iii) (A) such Bank is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Bank to enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Bank, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Bank’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement, or
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(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Bank.
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(b)In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Bank or (2) a Bank has provided another representation, warranty and 

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covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Bank further (x) represents and warrants, as of the date such Person became a Bank party hereto, and (y) covenants, from the date such Person became a Bank party hereto to the date such Person ceases being a Bank party hereto, for the benefit of, the Administrative Agent and each lead arranger, and not, for the avoidance of doubt, to or for the benefit of the Borrowers, that the Administrative Agent is not a fiduciary with respect to the assets of such Bank involved in such Bank’s entrance into, participation in, administration of and performance of the Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement or any documents related hereto or thereto). 
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As used in this Section, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
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“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in Section 4975 of the Code, to which Section 4975 of the Code applies, and (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
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“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.
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	DEERE & COMPANY
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By:/s/ Andrew M. Recker​ ​
Name: Andrew M. Recker
Title: Assistant Treasurer
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	JOHN DEERE CAPITAL CORPORATION
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By:/s/ Andrew M. Recker​ ​
Name: Andrew M. Recker
Title: Assistant Treasurer
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	JOHN DEERE BANK S.A.
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By:/s/ Andrew Traeger​ ​
Name: Andrew Traeger
Title: Member of the Board
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By:/s/ Jeffrey A Trahan​ ​
Name: Jeffrey A Trahan
Title: VP & Treasurer

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[Signature Page to the Deere & Company 2025 Credit Agreement]‌

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	JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and as a Bank
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By:/s/ Sean Bodkin​ ​
Name: Sean Bodkin
Title: Vice President

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[Signature Page to the Deere & Company 2025 Credit Agreement]‌

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	BANK OF AMERICA, N.A.,
as Syndication Agent and as a Bank
​
​
By:/s/ Brian Lukehart​ ​
Name:  Brian Lukehart
Title:  Managing Director

​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

​
​
	​
	CITIBANK, N.A.,
as a Documentation Agent and as a Bank
​
​
By:/s/ Susan Olsen_______________________
Name: Susan Olsen
Title: Vice President

​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	BARCLAYS BANK PLC,
as a Bank
​
​
By:/s/ Craig Malloy​ ​
Name: Craig Malloy
Title:  Director

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	HSBC BANK USA, N.A.,
as a Bank
​
​
By:/s/ Matthew McLaurin​ ​
Name: Matthew McLaurin
Title:  Director

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	MUFG Bank Ltd.,
as a Bank
​
​
By:/s/ Mark Maloney​ ​
Name: Mark Maloney
Title:  Authorized Signatory

​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	ROYAL BANK OF CANADA,
as a Bank
​
​
By:/s/ Benjamin Lennon​ ​
Name: Benjamin Lennon
Title:  Authorized Signatory

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	THE TORONTO-DOMINION BANK, NEW YORK BRANCH,
as a Bank
​
​
By:/s/ Michael Borowiecki​ ​
Name: Michael Borowiecki
Title:  Authorized Signatory
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
as a Bank
​
​
By:/s/ Gordon Yip​ ​
Name: Gordon Yip
Title:  Director
​
By:/s/ Jill Wong​ ​
Name: Jill Wong
Title:  Director
​
​

	​
	​

​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	DEUTSCHE BANK AG NEW YORK BRANCH,
as a Bank
​
​
By:/s/ Ming K. Chu​ ​
Name: Ming K. Chu
Title:  Director
​
By:/s/ Marko Lukin​ ​
Name: Marko Lukin
Title:  Vice President

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	GOLDMAN SACHS BANK USA,
as a Bank
​
​
By:/s/ Ryan Durkin​ ​
Name: Ryan Durkin
Title:  Authorized Signatory 
​

	​
	​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	BNP Paribas,
as a Bank
​
​
By:/s/ Tony Baratta​ ​
Name: Tony Baratta
Title:  Managing Director
​
By:/s/ Nader Tannous​ ​
Name: Nader Tannous
Title:  Managing Director 
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	Commerzbank AG, New York Branch,
as a Bank
​
​
By:/s/ Mathew Ward​ ​
Name: Mathew Ward
Title:  Director
​
By:/s/ Robert Sullivan​ ​
Name: Robert Sullivan
Title:  Vice President 
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	BANCO BILBAO VIZCAYA ARGENTARIA, S.A. NEW YORK BRANCH,
as a Bank
​
​
By:/s/ Cara Younger​ ​
Name: Cara Younger
Title:  Executive Director
​
By:/s/ Miriam Trautmann​ ​
Name: Miriam Trautmann
Title:  Senior Vice President 
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	BANCO SANTANDER, S.A., NEW YORK BRANCH,
as a Bank
​
​
By:/s/ Juan Galan​ ​
Name: Juan Galan
Title:  Managing Director
​
 ​
By:/s/ Andres Barbosa​ ​
Name: Andres Barbosa
Title:  Managing Director
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	THE BANK OF NEW YORK MELLON,
as a Bank
​
​
By:/s/ Thomas J. Tarasovich, Jr.​ ​
Name: Thomas J. Tarasovich, Jr.
Title:  Vice President 
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	THE BANK OF NOVA SCOTIA,
as a Bank
​
​
By:/s/ David Vishny​ ​
Name: David Vishny
Title:  Managing Director 
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	PNC Bank, National Association,
as a Bank
​
​
By:/s/ Debra Hoffenkamp​ ​
Name: Debra Hoffenkamp
Title:  Assistant Vice President
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	SUMITOMO MITSUI BANKING CORPORATION,
as a Bank
​
​
By:/s/ Jun Ashley​ ​
Name: Jun Ashley
Title:  Director
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	STANDARD CHARTERED BANK,
as a Bank
​
​
By:/s/ James Beck​ ​
Name: James Beck
Title:  Associate Director 
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	U.S. Bank National Association,
as a Bank
​
​
By:/s/ James N. DeVries​ ​
Name: James N. DeVries
Title:  Senior Vice President
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	Wells Fargo Bank, National Association,
as a Bank
​
​
By:/s/ Matthew J. Perrizo​ ​
Name: Matthew J. Perrizo
Title:  Director
​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	Bank of China, Chicago Branch,
as a Bank
​
​
By:/s/ Kai Wu​ ​
Name: Kai Wu
Title:  SVP & Deputy Branch Manager
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

	​
	ICICI Bank Limited New York Branch,
as a Bank
​
​
By:/s/ Akshay Chatuvedi​ ​
Name: Akshay Chaturvedi
Title:  Country Head 
​
 ​
​

​
​
​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

​

​
	​
	Nordea Bank Abp, New York Branch,
as a Bank
​
​
By:/s/ Leena Parker​ ​
Name: Leena Parker
Title:  Senior Vice President
​
 ​
By:/s/ Ola Anderssen​ ​
Name: Ola Anderssen
Title:  First Vice President
​

​

[Signature Page to the Deere & Company 2025 Credit Agreement]‌

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