Document:

Exhibit 10.2

 

FIRST AMENDMENT TO TERM LOAN AGREEMENT

 

March 30, 2020

 

THIS FIRST AMENDMENT
TO TERM LOAN AGREEMENT (this “Amendment”) is by and among EQM Midstream Partners, LP, a Delaware limited partnership
(the “Borrower”), the Lenders party hereto (collectively, the “Approving Lenders”) and Toronto
Dominion (Texas) LLC, in its capacity as Administrative Agent (the “Administrative Agent”) under that certain Term
Loan Agreement, dated as of August 16, 2019 (the “Credit Agreement”), by and among the Borrower, the Approving
Lenders, any other Lenders from time to time party thereto, the Administrative Agent and any other Persons named therein. Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement, as
amended by this Amendment.

 

WHEREAS, the Borrower
has requested that the Lenders and the Administrative Agent agree to certain amendments to the Credit Agreement as more fully
described herein; and

 

WHEREAS, the Approving
Lenders and the Administrative Agent have agreed to such amendments on the terms and conditions set forth herein.

 

NOW, THEREFORE, in
consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Amendments
to the Credit Agreement. Effective automatically and immediately (the “Effective Time”), so long
as the conditions precedent set forth in Section 2 of this Amendment have been satisfied (or waived in writing by
the Administrative Agent and the Approving Lenders), the parties hereto agree that the Credit Agreement is hereby amended as follows:

 

a)             The
following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

 

“Affected Financial
Institution” means (a) any EEA Financial Institution or (b) any UK Financial Institution.

 

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

 

“Credit Letter Agreement”
means that certain Letter Agreement, dated as of February 26, 2020, by and between EQT Corporation, a Pennsylvania corporation,
and the Borrower.

 

“Deferred Revenue Adjustment”
means, as to any applicable period, an aggregate net amount determined by the Borrower in good faith equal to the difference between
the amount of revenue recognized with respect to

 

     

     

    

 

all contractual performance obligations and the amount of consideration received
with respect to all contractual performance obligations. Upon the reasonable request of the Administrative Agent, the Borrower
shall provide the Administrative Agent with supporting documentation for its calculation of the Deferred Revenue Adjustment.

 

“First Amendment”
means the First Amendment to Term Loan Agreement, dated March 30, 2020, by and among the Borrower, the Lenders party thereto,
the Administrative Agent and any other Persons party thereto.

 

“First Amendment Effective
Date” means March 30, 2020.

 

“Gas Gathering Agreement”
means that certain Gas Gathering and Compression Agreement, dated as of February 26, 2020, by and among EQT Corporation,
a Pennsylvania corporation, EQT Production Company, a Pennsylvania corporation, Rice Drilling B LLC, a Delaware limited liability
company, EQT Energy, LLC, a Delaware limited liability company, and EQM Gathering Opco, LLC, a Delaware limited liability company,
as amended, restated, supplemented, modified, waived or replaced from time to time.

 

“Intercompany Loan
Agreement” means that certain Loan Agreement, dated as of March 3, 2020, by and between the Borrower, as lender,
and ETRN, as borrower, as amended, restated, supplemented, modified, waived or replaced from time to time.

 

“Merger Agreement”
means that certain Agreement and Plan of Merger, dated as of February 26, 2020, by and among ETRN, the Borrower and the other
Persons party thereto, as amended, restated, supplemented, modified, waived or replaced from time to time.

 

“MVP Project”
means that certain Qualified Project referred to as the “MVP Project” in that certain letter agreement with respect
to Qualified Project EBITDA Adjustments, dated as of October 25, 2019, by and between the Borrower and the Wells Fargo Bank,
National Association, as administrative agent under the Revolving Credit Agreement.

 

“Resolution Authority”
means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

 

“Share Purchase Agreements”
means (i) that certain Share Purchase Agreement, dated as of February 26, 2020, by and between EQT Corporation, a Pennsylvania
corporation, and ETRN, pursuant to which ETRN agreed to purchase Equity Interests in ETRN from EQT Corporation in exchange for
cash and (ii) that certain Share Purchase Agreement, dated as of February 26, 2020, by and between EQT Corporation and
ETRN, pursuant to which ETRN agreed to purchase Equity Interests in ETRN from EQT Corporation in exchange for a

 

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promissory note
issued by ETRN in favor of EQT Corporation and which promissory note was assigned to the Borrower, in each case, as amended, restated,
supplemented, modified, waived or replaced from time to time.

 

“Specified Transactions”
means (i) the negotiation, execution and delivery of, and the consummation of the transactions under, the Merger Agreement,
(ii) the negotiation, execution and delivery of each of the Gas Gathering Agreement, the Intercompany Loan Agreement, the
Share Purchase Agreements, the letter agreement described in clause (i) of the definition of Water Services Transaction below
and any similar agreement described in clause (ii) of such definition, and the Credit Letter Agreement, and (iii) the
negotiation, execution and delivery of, and the consummation of the transactions under, any documentation governing a transaction
permitted by Sections 7.01, 7.05 (including any Partnership Rollup Event or Partnership Restructuring Event), 7.08
or 7.09, in each case, together with any amendments, restatements, supplements, modifications, waivers or replacements
to any of the foregoing.

 

“UK Financial Institution”
means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended form time to time) promulgated by the United
Kingdom Prudential Regulation Authority) or any person subject to 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.

 

“UK Resolution Authority”
means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial
Institution.

 

“Water Services Transaction”
means (i) the transactions contemplated by that certain letter agreement, dated as of February 26, 2020, by and between
affiliates of EQT Corporation, a Pennsylvania corporation, and certain Subsidiaries of the Borrower concerning the procurement,
storage, transportation and/or supply of fresh and produced water and (ii) any other material procurement, storage, transport,
and/or supply agreement for fresh and produced water, together with any amendments, restatements, supplements, modifications,
waivers or replacements to any of the foregoing.

 

b)           The
definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended as follows:

 

		(i)	by replacing the “Pricing
                                         Grid” in its entirety with the following “Pricing Grid”:

 

PRICING GRID

 

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	Pricing

 Level	 	Public Debt Ratings
 S&P/Moody’s/Fitch	 	Eurodollar 

Rate	 	 	Base

 Rate	 
	1	 	BBB+/Baa1/BBB+ or higher	 	1.000	%	 	0.000	%
	2	 	BBB/Baa2/BBB	 	1.125	%	 	0.125	%
	3	 	BBB-/Baa3/BBB-	 	1.250	%	 	0.250	%
	4	 	BB+/Ba1/BB+	 	1.625	%	 	0.625	%
	5	 	BB/Ba2/BB	 	1.875	%	 	0.875	%
	6	 	BB-/Ba3/BB-	 	2.250	%	 	1.250	%
	7	 	B+/B1/B+ or lower or unrated by S&P and Moody’s	 	2.625	%	 	1.625	%

 

		(ii)	by amending and restating the fourth sentence under the defined
                                         term “Public Debt Ratings” to read in its entirety as follows:

 

In the event
that the Borrower does not have a Public Debt Rating from at least one of S&P or Moody’s, then the Applicable Rate shall
be calculated at “Pricing Level 7” on the “Pricing Grid” above.

 

		(iii)	by amending and restating the final sentence under the defined
                                         term “Public Debt Ratings” to read in its entirety as follows:

 

For the avoidance of doubt,
the pricing level in effect on the First Amendment Effective Date shall be “Pricing Level 5” on the “Pricing
Grid” above.

 

c)            The
definition of “Bail-In Action” in Section 1.01 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

 

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

 

d)            The
definition of “Bail-In Legislation” in Section 1.01 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Bail-In Legislation” means, (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, rule, regulation 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,

 

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investment firms or other financial institutions or their affiliates (other
than through liquidation, administration or other insolvency proceedings).

 

e)            The
definition of “Change of Control” in Section 1.01 of the Credit Agreement is hereby amended by amending
and restating clause (b)(ii) in its entirety to read as follows:

 

(ii) the failure of the General Partner to be
the general partner of, and to Control, the Borrower.

 

f)            The
definition of “Commercial Operation Date” in Section 1.01 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

 

“Commercial Operation
Date” means, as context may require, the date on which a Qualified Project is scheduled to be or is actually substantially
complete and commercially operable or, at the option of the Borrower, (a) with respect to a Qualified Project (other than
the MVP Project) of any Designated Joint Venture, a later date determined under the terms of the Revolving Credit Agreement (or,
in the event no Revolving Credit Agreement is in effect or the terms of the Revolving Credit Agreement no longer permit the determination
of a later date, as reasonably agreed by the Borrower and the Administrative Agent in light of the anticipated timing of dividends
and distributions from such Designated Joint Venture (but in any event no later than the end of the first full fiscal quarter
after such a Qualified Project is substantially complete and commercially operable) and (b) with respect to the MVP Project,
December 31, 2020 or a later date determined under the terms of the Revolving Credit Agreement (or, in the event no Revolving
Credit Agreement is in effect or the terms of the Revolving Credit Agreement no longer permit the determination of a later date,
as reasonably agreed by the Borrower and the Administrative Agent (acting on the direction of the Required Lenders).

 

g)            The
definition of “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Consolidated EBITDA”
means, for any period, subject to Section 1.03(c), an amount equal to (a) Consolidated Net Income for such period
plus (b) to the extent deducted in determining Consolidated Net Income for such period, the aggregate amount of (i) taxes
based on or measured by income, (ii) Consolidated Interest Charges, (iii) transaction expenses incurred for such period
related to (A) the execution and delivery of the Revolving Credit Agreement and any amendments, supplements, modifications,
refinancings or replacements thereto (including, without limitation, financing fees and expenses), (B) the execution and
delivery of this Agreement and any amendments, supplements, modifications, refinancings or replacements thereto (including, without
limitation, financing fees and expenses), (C) the Specified Transactions, (D) any

 

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Qualified Acquisition and (E) any
other debt incurrence permitted under Section 7.09, provided, that, no such transaction expenses incurred
after the First Amendment Effective Date that exceed $10 million, in the aggregate, shall be added pursuant to this clause (iii),
and (iv) depreciation and amortization expense plus (c) the amount of cash dividends and cash distributions earned
in such period by the Borrower and its Subsidiaries on a consolidated basis from (i) unconsolidated subsidiaries of the Borrower
or other Persons and (ii) Designated Joint Ventures, provided that the amount of cash dividends and cash distributions earned
in such period from Designated Joint Ventures formed, designated or otherwise acquired after the First Amendment Effective Date
and added pursuant to this clause (c)(ii) shall not exceed, in the aggregate twenty-five percent (25%) of the total actual
Consolidated EBITDA for such period (which total actual Consolidated EBITDA shall be determined before giving effect to the inclusion
of any such amounts from such Designated Joint Ventures) plus (d) the amount collected during the period from finance
lease arrangements with Affiliates to the extent not already recognized in Consolidated Net Income plus (e) non-cash long
term compensation expenses plus (f) to the extent the aggregate Deferred Revenue Adjustment as determined by the Borrower
resulted from an excess of consideration received over the amount of revenue recognized, which would have had the effect of reducing
Consolidated Net Income for such period, the aggregate Deferred Revenue Adjustment minus (g) to the extent included
in determining Consolidated Net Income for such period, other income and equity in earnings from unconsolidated subsidiaries of
the Borrower minus (h) any amounts previously added to Consolidated EBITDA pursuant to clause (e) above during
a prior period to the extent they are paid in cash during the current period minus (i) to the extent the aggregate
Deferred Revenue Adjustment as determined by the Borrower resulted from an excess of revenue recognized over the amount of consideration
received, which would have had the effect of increasing Consolidated Net Income for such period, the aggregate Deferred Revenue
Adjustment.

 

h)            The
definition of “Debt” in Section 1.01 of the Credit Agreement is hereby amended by amending and restating
clauses (a) and (d) in their entirety to read as follows:

 

		(a)	all obligations of such Person
                                         for borrowed money and all obligations of such Person evidenced by bonds, debentures,
                                         notes, loan agreements or other similar instruments (provided that, at no time shall
                                         surety bonds, performance bonds or similar instruments be included within this clause
                                         (a) except to the extent of a reimbursement obligation then outstanding);

 

		(d)	debt (excluding at any time (i) prepaid interest
thereon and (ii) surety bonds, performance bonds or similar instruments to the extent there is not a reimbursement obligation
then outstanding) secured by a Lien on property owned or being purchased by such Person (including 

 

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debt arising under conditional
sales or other title retention agreements), whether or not such debt shall have been assumed by such Person or is limited in recourse;

 

i)            The
definition of “Designated Joint Venture” in Section 1.01 of the Credit Agreement is hereby amended and
restated in its entirety to read as follows:

 

“Designated Joint Venture”
means, (a) Mountain Valley Pipeline, (b) Eureka, (c) if so elected by the Borrower under the Revolving Credit Agreement
(or, in the event no Revolving Credit Agreement is in effect or the terms of the Revolving Credit Agreement no longer permit the
Borrower to make such election (or an equivalent election having a similar effect) thereunder, with the prior written consent
of the Administrative Agent), one or more of Borrower’s non-wholly owned subsidiaries, whether owned on the Closing Date
or created or acquired after the Closing Date and (d) any direct or indirect subsidiary of any Designated Joint Venture under
clause (a), (b) or (c) of this definition while such election is in effect (it being understood
and agreed that, for the avoidance of doubt, if any Designated Joint Venture under clause (a), (b) or (c) of
this definition (i) would be a wholly-owned Subsidiary of the Borrower but for its status as a Designated Joint Venture,
the Borrower may make an election to designate such Designated Joint Venture as a Subsidiary (it being further understood and
agreed that the Borrower may not subsequently elect to re-designate a wholly-owned Subsidiary as a Designated Joint Venture) or
(ii) would cease to have any direct or indirect ownership retained by the Borrower, such entity shall, automatically and
without further notice or other action, cease to be a Designated Joint Venture for all purposes under this Agreement).

 

j)            The
definition of “Fee Letters” in Section 1.01 of the Credit Agreement is hereby amended and restated in
its entirety to read as follows:

 

“Fee Letters” means, collectively,
(i) that certain Agency Fee Letter, dated as of July 30, 2019, by and between Toronto Dominion (Texas) LLC and the Borrower,
(ii) that certain Joint Fee Letter, dated as of July 30, 2019, by and among Toronto Dominion (Texas) LLC, The Toronto-Dominion
Bank, New York Branch, TD Securities (USA) LLC, JPMorgan Chase Bank, N.A. and the Borrower, and (iii) the fee letter agreement,
dated as of March 30, 2020, by and among Toronto Dominion (Texas) LLC, TD Securities (USA) LLC and the Borrower.

 

k)            The
definition of “Write-Down and Conversion Powers” in Section 1.01 of the Credit Agreement is hereby amended
and restated to read in its entirety as follows:

 

“Write-Down and Conversion Powers”
means, (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 

 

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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.

 

l)              Section 5.04(c) of
the Credit Agreement is hereby amended by replacing references therein to “the Borrower and its Consolidated Subsidiaries”
with “the Borrower and its Consolidated Subsidiaries (or, if applicable, ETRN and its consolidated subsidiaries)”.

 

m)            Section 5.20
of the Credit Agreement is hereby amended by replacing references therein to “EEA” with “Affected”.

 

n)            Section 6.01
of the Credit Agreement is hereby amended by

 

		(i)	amending and restating clauses (a) and (b) in their
                                         entirety to read as follows:

 

(a)          as
soon as available, and in any event within the earlier of (i) ninety (90) days after the end of each fiscal year of the Borrower
and (ii) five (5) days after such information is required to be filed with the SEC, a consolidated balance sheet of
the Borrower and its Consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of operations,
cash flows and changes in equity for such fiscal year, setting forth in each case in comparative form (to the extent applicable
and, in any event, without requiring restatements for discontinued operations) the figures for the previous fiscal year, all in
reasonable detail and prepared in accordance with GAAP, audited and accompanied by a report and opinion of an independent certified
public accountant of nationally recognized standing selected by the Borrower, which report and opinion shall be prepared in accordance
with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or
exception or any qualification or exception as to the scope of such audit. Notwithstanding the foregoing, after the “effective
time” (however denominated with respect to the closing of the relevant transactions) under the Merger Agreement, the obligations
set forth in this Section 6.01(a) may be satisfied with respect to the delivery of financial statements of the
Borrower and its Consolidated Subsidiaries by furnishing to the Administrative Agent and each Lender: (A) a consolidated
balance sheet of

 

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ETRN (or another public parent of the Borrower) and its consolidated subsidiaries as of the end of such fiscal
year and the related consolidated statements of operations, cash flows and changes in equity for such fiscal year, setting forth
in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance
with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized
standing selected by ETRN (or such other public parent of the Borrower), which report and opinion shall be prepared in accordance
with generally accepted auditing standards and shall not be subject to any “going concern” or like qualification or
exception or any qualification or exception as to the scope of such audit and (B) supplemental information reasonably available
to the Borrower that explains in reasonable detail the differences between the information relating to ETRN (or such other public
parent of the Borrower) and its consolidated subsidiaries, on the one hand, and the information relating to the Borrower and its
Consolidated Subsidiaries, on the other hand. If the financial statements of ETRN are used for this purpose, the delivery timeline
in the first clause (ii) above shall be deemed to mean five (5) days after such information is required to be filed
with the SEC with respect to ETRN (or such other public parent of the Borrower);

 

(b)          as
soon as available, and in any event within the earlier of (i) forty-five (45) days after the end of each of the first three
quarters of each fiscal year of the Borrower beginning with the fiscal quarter ended September 30, 2019 and (ii) five
(5) days after such information is required to be filed with the SEC, a consolidated balance sheet of the Borrower and its
Consolidated Subsidiaries as of the end of such quarter and the related consolidated statements of operations and cash flows for
such quarter and for the portion of the Borrower’s fiscal year ended at the end of such quarter, setting forth in the case
of such statements of operations and cash flows, in comparative form (to the extent applicable and, in any event, without requiring
restatements for discontinued operations) the figures for the corresponding quarter and the corresponding portion of the Borrower’s
previous fiscal year, all certified (subject to normal year-end adjustments and the absence of footnotes) as to fairness of presentation,
conformity to GAAP and consistency by the chief financial officer or the chief accounting officer of the General Partner, on behalf
of the Borrower. Notwithstanding the foregoing, after the “effective time” (however denominated with respect to the
closing of the relevant transactions) under the Merger Agreement, the obligations set forth in this Section 6.01(b) may
be satisfied with

 

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respect to the delivery of financial statements of the Borrower and its Consolidated Subsidiaries by furnishing
to the Administrative Agent and each Lender: (A) a consolidated balance sheet of ETRN (or another public parent of the Borrower)
and its consolidated subsidiaries as of the end of such quarter and the related consolidated statements of operations and cash
flows for such quarter and for the portion of ETRN’s (or such other public parent of the Borrower’s) fiscal year ended
at the end of such quarter, setting forth in the case of such statements of operations and cash flows, in comparative form the
figures for the corresponding quarter and the corresponding portion of ETRN’s (or such other public parent of the Borrower’s)
previous fiscal year, all certified (subject to normal year-end adjustments and the absence of footnotes) as to fairness of presentation,
conformity to GAAP and consistency by the chief financial officer or the chief accounting officer of ETRN (or such other public
parent of the Borrower) and (B) supplemental information reasonably available to the Borrower that explains in reasonable
detail the differences between the information relating to ETRN (or such other public parent of the Borrower) and its consolidated
subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated Subsidiaries, on the other hand.
If the financial statements of ETRN (or such other public parent of the Borrower) are used for this purpose, the delivery timeline
in the first clause (ii) above shall be deemed to mean five (5) days after such information is required to be filed
with the SEC with respect to ETRN (or such other public parent of the Borrower);

 

(ii)  amending the first
paragraph appearing in the flush portion of Section 6.01 of the Credit Agreement to add “, ETRN’s website
on the Internet at the website provided to the Administrative Agent (which as of the First Amendment Effective Date is https://www.equitransmidstream.com)
or another website provided to the Administrative Agent in a notice from the Borrower” immediately after the reference to
 “Schedule 10.02” appearing therein.

 

o)            Section 7.01
of the Credit Agreement is hereby amended by amending and restating clause (x) in its entirety to read as follows:

 

(x)            Liens
not otherwise permitted by the foregoing clauses of this Section securing Debt or other obligations not to exceed in the
aggregate an amount equal to 5% of Consolidated Net Tangible Assets at the time of creation, incurrence, assumption or imposition
of such Lien; and

 

p)            Section 7.02
of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

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7.02        Financial
Covenant. The Borrower will not permit the Consolidated Leverage Ratio, as at the end
of each fiscal quarter of the Borrower, to be anything other than as set forth in the table below:

 

	Fiscal
    Quarter	Consolidated
    Leverage Ratio
	Each
    fiscal quarter ending prior to the First Amendment Effective Date	Less
    than or equal to 5.00 to 1.00
	Each
    fiscal quarter ending on and after the First Amendment Effective Date and on or prior to March 31, 2021	Less
    than or equal to 5.75 to 1.00
	Each
    fiscal quarter ending on and after June 30, 2021 and on or prior to December 31, 2021	Less
    than or equal to 5.50 to 1.00
	Each
    fiscal quarter ending on and after March 31, 2022 and on or prior to December 31, 2022	Less
    than or equal to 5.25 to 1.00
	Each
    fiscal quarter ending on and after March 31, 2023	Less
    than or equal to 5.00 to 1.00

 

provided, that subsequent
to the consummation of a Qualified Acquisition (including a Qualified Acquisition consummated prior to the First Amendment Effective
Date), the maximum Consolidated Leverage Ratio permitted with respect to each of the first three consecutive quarters ending following
such Qualified Acquisition shall be increased by 0.50; provided, further, that the maximum Consolidated Leverage
Ratio permitted with respect to any of such first three consecutive fiscal quarters ending following such Qualified Acquisition
shall not exceed the greater of (x) 5.50 to 1.00 and (y) the maximum Consolidated Leverage Ratio for such fiscal quarter
specified in the table above.

 

q)            Section 7.09
of the Credit Agreement is hereby amended by:

 

(i)  deleting the “and”
appearing at the end of clause (g);

 

(ii)  amending and restating
clause (h) in its entirety to read as follows:

 

		(h)	other Debt of the Subsidiaries of
                                         the Borrower so long as, after giving effect to the incurrence of such Debt, the aggregate
                                         outstanding principal amount of all such Debt outstanding under

 

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 this clause (h) does
                                         not exceed 5% of Consolidated Net Tangible Assets at the time of incurrence; and

 

(iii)  adding clause (i) to
read in its entirety as follows:

 

(i)            any
Debt of a direct or indirect Subsidiary of the Borrower to the Borrower or any other direct or indirect Subsidiary of the Borrower
in connection with intercompany arrangements.

 

r)            A
new Section 7.11 of the Credit Agreement is hereby added as follows:

 

7.11.       Burdensome
Agreements. Neither the Borrower nor any Subsidiary shall enter into any Contractual
Obligation that limits the ability (i) of any Subsidiary to make cash dividends or other distributions to the Borrower or
to otherwise transfer property to the Borrower, (ii) of any Subsidiary to Guarantee the Obligations or (iii) of the
Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person to secure the Obligations,
other than, in each case, any such limitation existing under or by reason of:

 

(a)            this
Agreement or any other Loan Document;

 

(b)            applicable
Laws;

 

(c)            any
Contractual Obligation outstanding on the First Amendment Effective Date;

 

(d)            any
Contractual Obligation (i) governing property existing at the time of the acquisition thereof, so long as the limitation
related only to such property or (ii) of any Subsidiary existing at the time such Subsidiary was merged or consolidated with
or into, or acquired by the Borrower or a Subsidiary of the Borrower, or otherwise became a Subsidiary of the Borrower, in each
case not created in contemplation of such acquisition, merger or consolidation or otherwise becoming a Subsidiary of the Borrower;

 

(e)            customary
non-assignment provisions entered into in the ordinary course of business;

 

(f)            restrictions
on cash or other deposits or on net worth (or other measure of creditworthiness) imposed by customers, suppliers, landlords or
tenants under Contractual Obligations entered into in the ordinary course of business;

 

(g)            any
Contractual Obligation related to any Debt or any Lien not prohibited by this Agreement;

 

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(h)           any
Contractual Obligation related to any sale, transfer or other Disposition of a Subsidiary or any other property not prohibited
by this Agreement pending the consummation of such sale, transfer or other Disposition; provided that such restrictions
and conditions apply only to such Subsidiary or such other property that is the subject of such sale, transfer or other Disposition;

 

(i)             any
Contractual Obligation related to preferred equity interests issued by the Borrower, any Subsidiary of the Borrower, or any direct
or indirect parent of any of the foregoing, or the payment of dividends thereon in accordance with the terms thereof; provided
that (x) the issuance of such preferred equity interests is not otherwise prohibited by this Agreement and (y) the terms
of such preferred equity interests do not expressly restrict the ability of any Subsidiary to make Restricted Payments (other
than requirements to pay dividends or liquidation preferences on such preferred equity interests prior to paying any Restricted
Payments);

 

(j)            customary
provisions in joint venture agreements and other similar agreements applicable to joint ventures not otherwise prohibited by this
Agreement and applicable solely to such joint venture;

 

(k)           Contractual
Obligations related to (i) the Merger Agreement, (ii)  a Partnership Restructuring Event, (iii) a Partnership Rollup
Event or (iv)  another transaction permitted under Section 7.05;

 

(l)            Contractual
Obligations where the stated liability (for the avoidance of doubt, excluding any inchoate or contingent liabilities) of the Borrower
or any of its Subsidiaries under such Contractual Obligations does not exceed $25,000,000 per fiscal year in the aggregate at
any one time for all such Contractual Obligations;

 

(m)          customary
provisions in leases, subleases, licenses or asset sale or purchase agreements otherwise permitted by this Agreement so long as
such restrictions relate solely to the assets subject thereto;

 

(n)           customary
provisions restricting subletting or assignment of any lease governing a leasehold interest of the Borrower or any Subsidiary;

 

(o)           any
Contractual Obligation (i) with respect to surety bonds, performance bonds or similar instruments, and guarantees associated
therewith, (ii) constituting an indemnity or performance obligation and guarantees associated therewith, or (iii) evidencing
letters of credit and related documentation, in each case to the extent not otherwise prohibited by this Agreement;

 

    13

     

    

 

(p)           any
Contractual Obligation that is primarily commercial in nature, including but not limited to gas gathering agreements, water services
contracts, transportation agreements, procurement contracts for goods and services and other agreements or arrangements for the
purchase, sale, transportation, gathering, collection, supply, and/or storage, of natural gas or other hydrocarbons, or similar
transactions or services with respect to natural gas or other hydrocarbons; or

  

(q)           any
amendment, modification, restatement, renewal, increase, extension, supplement, refunding, replacement or refinancing of any restriction,
provision or Contractual Obligation otherwise permitted under this Section 7.11; provided that any such amendment,
modification, restatement, renewal, increase, extension, supplement, refunding, replacement or refinancing is no more restrictive,
when taken as a whole, with respect to such limitations than those contained in such Contractual Obligations as in effect immediately
prior to such amendment, modification, restatement, renewal, increase, extension, supplement, refunding, replacement or refinancing.

 

s)            Section 10.23
of the Credit Agreement is hereby amended by (i) replacing the references therein to “EEA Financial Institution”
with “Affected Financial Institution”, (ii) replacing the references therein to “an EEA Resolution Authority”
with “the applicable Resolution Authority” and (iii) replacing the reference therein to “any EEA Resolution
Authority” with “the applicable Resolution Authority”.

 

t)             Exhibit C
of the Credit Agreement is hereby amended and restated in the form attached hereto as Annex I.

 

2.             Conditions
of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that:

 

a)            the
Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrower, the Approving Lenders (which
shall constitute the “Required Lenders” as defined in the Credit Agreement) and the Administrative Agent;

 

b)            the
representations and warranties contained in Section 3 of this Amendment shall be true and correct in all respects
as of the Effective Time; and

 

c)            the
Borrower shall have paid all fees and other amounts required to be paid by the Borrower on or prior to the Effective Time pursuant
to the Credit Agreement and that certain fee letter agreement, dated as of March 30, 2020 by and among Toronto Dominion (Texas)
LLC, TD Securities (USA) LLC and the Borrower to the extent such fees and other amounts are invoiced to the Borrower at least
three (3) Business Days prior to the Effective Time.

 

    14

     

    

 

3.             Representations
and Warranties. The Borrower hereby represents and warrants as follows as of the Effective Time:

 

a)             The
Borrower has taken all necessary corporate or other organizational action to authorize the execution and delivery of this Agreement
and performance of the Credit Agreement, as amended by this Agreement. Each of this Amendment and the Credit Agreement as modified
hereby constitutes the valid and binding obligation of the Borrower, enforceable in accordance with its terms, except as such
enforcement may be limited by bankruptcy, insolvency, or similar laws of general application relating to the enforcement of creditors’
rights; and

 

b)             The
representations and warranties of the Borrower contained in Article V of the Credit Agreement (except the representations
and warranties in Sections 5.04(d) and 5.05 of the Credit Agreement, as to any matter which has heretofore
been disclosed in writing by the Borrower to the Lenders by written notice given to the Administrative Agent), shall be true and
correct in all material respects (provided that (i) if a representation or warranty is qualified by materiality or Material
Adverse Effect, then it shall be true and correct in all respects, and (ii) the representation and warranty made in Section 5.15(a) of
the Credit Agreement is true and correct in all respects) on and as of the Effective Time (or, if such representation or warranty
speaks as of an earlier date, as of such earlier date).

 

c)             No
Default exists immediately prior to and immediately after giving effect hereto.

 

4.            Reference
to and Effect on the Credit Agreement.

 

a)            This
Amendment shall be deemed to constitute a Loan Document for all purposes and in all respects. Upon the effectiveness hereof, each
reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit
Agreement, as amended hereby.

 

b)            Each
Loan Document and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain
in full force and effect and are hereby ratified and confirmed.

 

c)            THIS
AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
Except with respect to the subject matter hereof and the changes contemplated hereby, the execution, delivery and effectiveness
of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or any Lender, nor constitute
a waiver of any provision of the Credit Agreement, the Loan Documents or any other documents, instruments and agreements executed
and/or delivered in connection therewith.

 

5.             Governing
Law; Venue; Waiver of Right to Trial by Jury; No General Partner’s Liability for Facility. This
Amendment shall be governed by, and construed in accordance with,

 

    15

     

    

 

the law of the State of New York. Sections 10.17(b), 10.19
and 10.22 of the Credit Agreement shall apply to this Amendment, mutatis mutandis.

 

6.             Headings.
Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part
of this Amendment for any other purpose.

 

7.             Counterparts.
This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument. Signatures delivered by facsimile or PDF shall have
the same force and effect as manual signatures delivered in person.

 

[Signature Pages Follow]

 

    16

     

    

 

IN WITNESS WHEREOF,
this Amendment has been duly executed as of the day and year first above written.

 

	 	EQM MIDSTREAM PARTNERS, LP, as the Borrower
	 
	 	By: EQGP Services, LLC, its general partner
	 	 

		By:	/s/ Kirk R. Oliver

		Name:	Kirk R. Oliver

		Title:	Senior Vice President and Chief Financial Officer

 

Signature Page to First Amendment
to Term Loan Agreement

 

    

     

    

 

	 	TORONTO DOMINION (TEXAS) LLC, as Administrative Agent

 

		By:	/s/ Angela Del Duca 
		Name:	Angela Del Duca 
		Title:	Authorized Signatory

 

Signature Page to First Amendment
to Term Loan Agreement

 

    

     

    

  

	 	THE TORONTO-DOMINION BANK, NEW YORK BRANCH, as an Approving Lender
	 	 
	 	By:	/s/ Annie Dorval
	 	Name:	Annie Dorval
	 	Title:	Authorized Signatory

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	JPMORGAN CHASE BANK, N.A., as an Approving Lender
	 	 
	 	By:	/s/ Stephanie Balette
	 	Name:	Stephanie Balette
	 	Title:	Authorized Officer

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	BANK OF AMERICA, N.A., as an Approving Lender
	 	 
	 	By:	/s/ Ronald E. McKaig
	 	Name:	Ronald E. McKaig
	 	Title:	Managing Director

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	BMO HARRIS BANK N.A., as an Approving Lender
	 	 
	 	By:	/s/ Kevin Utsey
	 	Name:	Kevin Utsey
	 	Title:	Managing Director

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	CITIBANK, N.A., as an Approving Lender
	 	 
	 	By:	/s/ Michael Zeller
	 	Name:	Michael Zeller
	 	Title:	Vice President

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	MUFG BANK, LTD., as an Approving Lender
	 	 
	 	By:	/s/ Kevin Sparks
	 	Name:	Kevin Sparks
	 	Title:	Director

 

Signature Page to First Amendment
to Term Loan Agreement

     

     

    

 

	 	PNC BANK, NATIONAL ASSOCIATION., as an Approving Lender
	 	 
	 	By:	/s/ Kyle T. Helfrich
	 	Name:	Kyle T. Helfrich
	 	Title:	Vice President

 

Signature Page to First Amendment
to Term Loan Agreement

 

     

     

    

 

	 	THE BANK OF NOVA SCOTIA, HOUSTON BRANCH, as an Approving Lender
	 	 
	 	By:	/s/ Marc Graham
	 	Name:	Marc Graham
	 	Title:	Managing Director

  

Signature Page to First Amendment
to Term Loan Agreement

 

    

     

    

 

Annex I

Exhibit C

(See attached)

 

     

     

    

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

 

Financial Statement Date: _______________,
_____

 

To:Toronto Dominion (Texas) LLC, as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Term
Loan Agreement, dated as of August 16, 2019 (as amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among EQM Midstream
Partners, LP, a Delaware limited partnership (the “Borrower”), the Lenders from time to time party thereto,
and Toronto Dominion (Texas) LLC, as Administrative Agent .

 

The undersigned Responsible Officer hereby
certifies to the Administrative Agent and the Lenders (solely in his/her official capacity and not any individual capacity) as
of the date hereof that he/she is the ____________________________________1
of the General Partner, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent
on the behalf of the General Partner, acting on behalf of the Borrower, and that:

 

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

 

1.       The
[(A)]2 year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal year of [the Borrower / ETRN / [  ̃ ]3]4
ended as of the above date, together with the report and opinion of an independent certified public accountant [and
(B) supplemental information that explains in reasonable detail the differences between the information relating to [ETRN / [  ̃ ]
5]]6
and its consolidated subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated
Subsidiaries, on the other hand, in each case as]7
required by such section are:

 

[select one]:

 

[attached hereto as Schedule 1]

 

-- or --

 

 

1
If this is a quarterly compliance certificate, it must be signed by the chief financial officer or the chief accounting
officer.

2
Select bracketed language if the financial statements of ETRN or another public parent are being delivered to satisfy
the requirements of Section 6.01(a).

3
Legal name of other public parent.

4
Select as appropriate.

5
Legal name of other public parent.

6
Select as appropriate.

7
Select bracketed language if the financial statements of ETRN or another public parent are being delivered to satisfy
the requirements of Section 6.01(a).

 

     

     

    

 

[available in electronic format and have
been delivered pursuant to Section 6.01 of the Agreement].

 

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

 

1.       The
[(A)]8 unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter of [the Borrower/ ETRN / [  ̃ ]
9]10
ended as of the above date [and (B) supplemental information that explains in reasonable detail the differences between
the information relating to [ETRN / [  ̃ ] 11]12
and its consolidated subsidiaries, on the one hand, and the information relating to the Borrower and its Consolidated
Subsidiaries, on the other hand, in each case as]13
required by such section are:

 

[select one]:

 

[attached hereto as Schedule 1]

 

-- or --

 

[available in electronic format and have
been delivered pursuant to Section 6.01 of the Agreement].

 

Such financial statements
fairly present, in all material respects, the consolidated financial condition, results of operations and cash flows of the [Borrower
and its Consolidated Subsidiaries / ETRN and its consolidated subsidiaries / [  ̃ ]
14 and its consolidated subsidiaries]15
in accordance with GAAP consistently applied as at such date and for such period, subject only to normal year-end audit adjustments
and the absence of footnotes.

 

2.       The
undersigned has reviewed and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision,
a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered
by the financial statements referenced in paragraph 1 above.

 

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

 

[select one]:

 

[to the best knowledge of the undersigned
during such fiscal period, (a) the Borrower performed and observed each covenant and condition of the Loan Documents applicable
to it, and (b) no Default exists.]

 

 

8
Select bracketed language if the financial statements of ETRN or another public parent are being delivered to satisfy
the requirements of Section 6.01(b).

9
Legal name of other public parent.

10
Select as appropriate.

11
Legal name of other public parent.

12
Select as appropriate.

13
Select bracketed language if the financial statements of ETRN or another public parent are being delivered to satisfy
the requirements of Section 6.01(b).

14
Legal name of other public parent.

15
Select as appropriate.

 

     

     

    

 

--or--

 

[the following covenants or conditions
have not been performed or observed [or: the following Default exists] and the following is a list of each such Default and its
nature and status:]

 

4.       The
financial covenant analyses and information set forth on Schedule 2 attached hereto are true and accurate in all material
respects as of the “Financial Statement Date” referenced above.

 

5.       Attached
hereto as Schedule 3 is a complete and accurate list as of the last day of the fiscal period referenced above of each of
the Borrower’s Subsidiaries, together with its jurisdiction of formation, and the Borrower’s direct or indirect percentage
ownership therein. As of the date hereof, each such Subsidiary is duly incorporated or formed, validly existing and in good standing
under the laws of its jurisdiction of incorporation or formation, and has all corporate or other organizational powers and all
material governmental authorizations required to carry on its business as now conducted, except where the absence of any of the
foregoing would not reasonably be expected to have a Material Adverse Effect.

 

[signature page follows]

 

     

     

    

 

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

 

	 	EQM MIDSTREAM PARTNERS, LP, a Delaware limited partnership
	 	 	 
	 	By: EQGP Services, LLC, its general partner, a Delaware limited liability company
	 	 	 
	 	By:	           
	 	Name:
	 	Title:

 

     

     

    

 

Schedule 1

to the Compliance Certificate

 

Financial Statements

 

 

[select one]:

 

[See attached]

 

-- or --

 

[Available in electronic format and have been delivered pursuant
to Section 6.01 of the Agreement]

 

     

     

    

 

Schedule 2

to the Compliance Certificate

($ in 000’s)

 

For the Quarter/Year ended

___________________ (“Statement Date”)

 

Section 7.02 – Consolidated Leverage Ratio.

 

	I.	
        Consolidated Debt for fiscal quarter ended the Statement
Date 
	 

  

	 	
        A.      
	Debt
of the Borrower and its Subsidiaries on a consolidated basis at Statement Date: 
	$____________________

 

	 	
        B.      
	Debt
of the Borrower or a Subsidiary solely resulting from a pledge of the membership interests or other equity interests in a Designated
Joint Venture owned by the Borrower or such Subsidiary securing indebtedness of such Designated Joint Venture: 
	$____________________

 

	 	
        C.  
	Consolidated
Debt on the Statement Date

(Lines 1.A. - 1.B.): 
	$____________________

 

	II.	
        Consolidated EBITDA for the period of four consecutive
fiscal quarters ended on the Statement Date 
	 

 

	 	
        A.     
	Consolidated
Net Income for such period: 
	$____________________

 

	 	
        B.  
	to
the extent deducted in determining Consolidated Net Income for such period, taxes based on or measured by income: 
	$____________________

 

	 	
        C.   
	to
the extent deducted in determining Consolidated Net Income for such period, Consolidated Interest Charges: 
	$____________________

 

	 	
        D.  
	to
the extent deducted in determining Consolidated Net Income for such period, transaction expenses, provided, that, no such transaction
expenses incurred after the First Amendment Effective Date that exceed $10.0 million, in the aggregate, shall be added pursuant
to this Line II.D, related to: 
	 

 

	 	i.  	 the execution and delivery of the Revolving Credit
Agreement and any amendments, supplements, modifications, refinancings or replacements thereto (including, without limitation,
financing fees and expenses):	$____________________

 

     

     

    

 

	 	ii.  	the execution and delivery of this Agreement and any
amendments, supplements, modifications, refinancings or replacements thereto (including, without limitation, financing fees and
expenses):	$____________________

 

	 	iii. 	 the Specified Transactions16:	$____________________

 

	 	iv.  	any Qualified Acquisition17:	$____________________

	 	v. 	 any other debt incurrence permitted under Section
7.09:	$____________________

	 	Total for Line II.D. (Lines II.D.i + II.D.ii + II.D.iii + II.D.iv + II.D.v):	$____________________

	 	
        E.    
	to
        the extent deducted in determining Consolidated Net Income for such period, depreciation and amortization expense:

         
	$____________________

 

	 	F.	the amount of cash dividends and cash distributions
earned in such period by the Borrower and its Subsidiaries on a consolidated basis from (i) unconsolidated subsidiaries of the
Borrower or other Persons and (ii) Designated Joint Ventures, provided that the amount of cash dividends and cash distributions
earned in such period from Designated Joint Ventures formed, designated or otherwise acquired after the First Amendment Effective
Date and added pursuant to this Line II.F.ii shall not exceed, in the aggregate twenty-five percent (25%) of the total actual
Consolidated EBITDA for such period (which total actual Consolidated EBITDA shall be determined before giving effect to the inclusion
of any such amounts from such Designated Joint Ventures):	$____________________

 

 

16
(i) The negotiation, execution and delivery of, and the consummation of the transactions under, the Merger Agreement,
(ii) the negotiation, execution and delivery of each of the Gas Gathering Agreement, the Intercompany Loan Agreement, the Share
Purchase Agreements, the letter agreement described in clause (i) of the definition of Water Services Transaction and any similar
agreement described in clause (ii) of such definition, and the Credit Letter Agreement, and (iii) the negotiation, execution and
delivery of, and the consummation of the transactions under, any documentation governing a transaction permitted by Sections 7.01,
7.05 (including any Partnership Rollup Event or Partnership Restructuring Event), 7.08 or 7.09 of the Agreement, in each case,
together with any amendments, restatements, supplements, modifications, waivers or replacements to any of the foregoing.

17
An Acquisition by the Borrower or any Subsidiary, the aggregate purchase price for which, when combined with the
aggregate purchase price for all other Acquisitions by the Borrower and its Subsidiaries in any rolling 12-month period, is greater
than or equal to $25,000,000.

 

     

     

    

 

	 	
        G.    
	the
amount collected during the period from finance lease arrangements with Affiliates to the extent not already recognized in Consolidated
Net Income:
	$____________________

 

	 	
        H.    
	non-cash
long term compensation expenses:
	$____________________

 

	 	
        I.      
	to
the extent the aggregate Deferred Revenue Adjustment as determined by the Borrower resulted from an excess of consideration received
over the amount of revenue recognized, which would have had the effect of reducing Consolidated Net Income for such period, the
aggregate Deferred Revenue Adjustment:
	$____________________

 

	 	
        J.    
	to
        the extent included in determining Consolidated Net Income for such period, other income and equity in earnings from unconsolidated
        subsidiaries of the Borrower:

         
	$____________________

	 	
        K.  
	any
        amounts previously added to Consolidated EBITDA pursuant to Line II.H above during a prior period to the extent they are paid in
        cash during the current period:

         
	$____________________

	 	
        L.     
	to
        the extent the aggregate Deferred Revenue Adjustment as determined by the Borrower resulted from an excess of revenue recognized
        over the amount of consideration received, which would have had the effect of increasing Consolidated Net Income for such period,
        the aggregate Deferred Revenue Adjustment:

         
	$____________________

 

	 	
        M.     
	Consolidated
EBITDA at Statement Date (Lines II.A. + II.B. + II.C. + II.D. + II. E. + II.F + II.G + II.H + II.I – II.J – II.K -
II.L.):18
	$____________________

 

	III.	
        Consolidated
        Debt to Consolidated EBITDA for fiscal quarter ended the Statement Date:

        (Line I.C.  ̧ Line
        II.M.)

         

        Maximum permitted:19
	____________________

 

	Fiscal Quarter	
        Maximum

        Consolidated Leverage Ratio

	Each fiscal quarter ending prior to the First Amendment Effective Date	5.00 to 1.00
	Each fiscal quarter ending on and after the First Amendment Effective Date and on or prior to March 31, 2021	5.75 to 1.00
	Each fiscal quarter ending on and after June 30, 2021 and on or prior to December 31, 2021	5.50 to 1.00
	Each fiscal quarter ending on and after March 31, 2022 and on or prior to December 31, 2022	5.25 to 1.00
	Each fiscal quarter ending on and after March 31, 2023	5.00 to 1.00

  

 

18
May include, at Borrower’s option, Qualified Project EBITDA Adjustments as provided in, and in accordance with
the terms of, Section 1.03(c)(ii) and the definition of “Qualified Project EBITDA Adjustments” set forth in the Credit
Agreement

19
Subsequent to the consummation of a Qualified Acquisition (including a Qualified Acquisition consummated prior to
the First Amendment Effective Date), the maximum Consolidated Leverage Ratio permitted with respect to each of the first three
consecutive quarters ending following such Qualified Acquisition shall be increased by 0.50; provided, further,
that the maximum Consolidated Leverage Ratio permitted with respect to any of such first three consecutive fiscal quarters ending
following such Qualified Acquisition shall not exceed the greater of (x) 5.50 to 1.00 and (y) the maximum Consolidated Leverage
Ratio specified for any applicable period in the table below Line III.

 

     

     

    

 

Schedule 3

 

 

	Name of Subsidiary	Jurisdiction of Organization	Direct/Indirect Ownership Percentageclcs_ex1047.htm

EXHIBIT 10.47
  
 NEITHER THIS NOTE NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER ANY STATE SECURITIES LAW AND NEITHER THIS NOTE NOR ANY INTEREST THEREIN NOR THE SECURITIES INTO WHICH THIS NOTE IS CONVERTIBLE MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, IS AVAILABLE.
  
 CELL SOURCE, INC.
  
 8.0% Convertible Note
  
  
 	 Maturity Date:
	 October 31, 2020

	  
	  

	 Principal Amount:
	 $1,500,000

  
 This Convertible Note (the “Note”) is issued by Cell Source, Inc., a Nevada corporation (the “Company”), effective as of the 28th day of October 2019 (the “Issuance Date”), to Darlene D. Soave (the “Lender”) pursuant to the exemptions from registration under the Securities Act of 1933, as amended.
  
 ARTICLE I
 PAYMENTS OF PRINCIPAL AND INTEREST; EVENTS F DEFAULT
  
 Section 1.1 For value received, the Company promises to pay to Lender, or her registered assigns, the lesser of (a) One Million Five Hundred Thousand Dollars ($1,500,000) or (b) the actual amount advanced to the Company by the Lender (the “Principal Amount”) pursuant to the terms, conditions and provisions of this Note. The Company shall pay interest to the Lender on the outstanding Principal Amount of this Note in accordance with Section 1.2 below and such interest shall accrue on each advance of funds from the Lender (each an “Advance”) from the date of such Advance. The Company hereby acknowledges that as of the Issuance Date, the Lender has advanced Five Hundred Thousand Dollars ($500,000) to the Company and it is anticipated that Lender will make additional Advances in the aggregate amount of One Million Dollars ($1,000,000) during the four (4) month period following the Issuance Date. The Principal Amount and all accrued and unpaid interest thereon shall be due on October 31, 2020 (the Maturity Date”).
  
 Section 1.2 Interest shall accrue daily from the date of each Advance at a rate equal to eight percent (8%) per annum and shall be payable on the Maturity Date.
  
 Section 1.3 All payments of principal and interest shall be made to the Lender at the address set forth in Section 3.1or such other address as the Lender shall notify the Company in writing ten (10) days prior to the due date of any payment or upon any prepayment of this Note as provided herein.
  
 	 
	 
	  

	 

  
 Section 1.4 The occurrence of any of the following events of default ( each an “Event of Default”) shall, at the option of the Lender, make all sums of principal and interest then remaining unpaid hereon and all other amounts payable hereunder immediately due and payable, upon demand, without presentment:
  
 (a) the Company fails to pay the Principal Amount and all accrued and unpaid interest on or before the Maturity Date.
  
 (b) the Company breaches any other provision of this Note and such breach is not cured within twenty (20) days after written notice thereof to the Company.
  
 (c) bankruptcy or insolvency proceedings or other proceedings or relief under any bankruptcy law or any other law, or the issuance of any notice in relation to such event, for the relief of debtors shall be instituted by the Company.
  
 ARTICLE II
 CONVERSION RIGHTS; CONVERSION PRICE
  
 Section 2.1 Conversion. The Lender shall have the right, at any time after the Company sells shares of its Series B Convertible Preferred Stock (the “Series B Stock”) to convert at any time, all or a portion of the outstanding Principal Amount and accrued and unpaid interest into fully paid and non-assessable shares of the Company’s Series B Convertible Preferred Stock (the “Series B Stock”) at a conversion price (the “Conversion Price”) equal to the price paid by the investors in the Company’s offering of Series B Stock (expected to be $7.50 per share). Promptly after the surrender of this Note, accompanied by a Notice of Conversion of Convertible Note in the form attached hereto as Exhibit 1, properly completed and duly executed by the Lender (a “Conversion Notice”), the Company shall issue and deliver to or upon the order of the Lender that number of shares of Series B Stock for that portion of this Note to be converted as shall be determined in accordance herewith.
  
 No fraction of a share or scrip representing a fraction of a share will be issued on conversion, but the number of shares issuable shall be rounded to the nearest whole share. The date on which Notice of Conversion is given (the “Conversion Date”) shall be deemed to be the date on which the Lender delivers the Notice of Conversion duly executed to the Company. Electronic delivery of the Notice of Conversion shall be accepted by the Company at the e-mail address: “ishimrat@cell-source.com”. Certificates representing Series B Stock issuable upon conversion will be delivered to the Lender within five (5) Days of the date the Notice of Conversion is delivered to the Company. Delivery of shares upon conversion shall be made to the address specified by the Lender in the Notice of Conversion.
  
 Section 2.2 Conversion. The number of shares of Series B Stock to be issued upon each conversion of this Note shall be determined by dividing (i) the amount of the Principal Amount and accrued and unpaid interest to be converted by (ii) the Conversion Price.
  
 	 
	2
	  

	 

   
 Section 2.3 Option. In the event that the Company is awarded a a grant by the Cancer Prevention and Research Institute of Texas ( a “CPRIT Grant”) and the Lender has converted all or a portion of this Note into Series B Stock, then the Lender will have the option (the “Option”), but not the obligation to purchase, at an exercise price of $1.25 per share, a number of shares of the Company’s Common Stock that shall be determined by multiplying 7,400,000 by a fraction, the numerator of which shall be the number of shares of Series B Stock owned by the Lender and the denominator of which shall be 666,666. The Company shall provide written notice to the Lender of each funding of the CPRIT Grant and the Option must be exercised within thirty (30) says after the receipt of such notice (the “Funding Notice”) by the Lender sending written notice to the Company of the exercise of the Option and the number of shares being purchased. The number of shares that may be purchased following the receipt of the Funding Notice shall be proportionate to the ratio that the amount being funded bears to the total amount of the CPRIT Grant. By way of example, if 1/3 of the total CPRIT Grant is being funded, then only 1/3 of the shares subject to this Option may be purchased.
  
 Section 2.4 Notice of Corporate Action. If at any time:
  
 (a) the Company shall take a record of the holders of its Common Stock or Series B stock for the purpose of entitling them to receive a dividend or other distribution, or any right to subscribe or purchase any evidences of indebtedness, any shares of stock of any class or any other securities or property, or to receive any other right, or
  
 (b) there shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all or substantially all of the property, assets or business of the Company to, another corporation or,
  
 (c) there shall a voluntary or involuntary dissolution, liquidation or winding up of the Company; then, in any one or more of such cases, the Company shall give to Lender (i) at least 10 days’ prior written notice of the date on which a record date shall be selected for such dividend, distribution or right or for determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, at least 10 days’ prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause also shall specify (x) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, the date on which the holders of Common Stock or Series B Stock shall be entitled to any such dividend, distribution or right, and the amount and character thereof, and (y) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock or Series B Stock shall be entitled to exchange their shares of Common Stock or series B Stock for securities or other property deliverable upon such disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if addressed to Lender at the last address of Lender appearing on the books of the Company and delivered in accordance with Section 4.1.
  
 Section 2.5 Restrictions on Securities. This Note has been issued by the Company pursuant to the exemption from registration under the Securities Act of 1933, as amended (the “Act”). None of this Note or the shares of Series B Stock issuable upon conversion of this Note may be offered, sold or otherwise transferred unless (i) they first shall have been registered under the Act and applicable state securities laws or (ii) the Company shall have been furnished with an opinion of legal counsel (in form, substance and scope reasonably acceptable to Company) to the effect that such sale or transfer is exempt from the registration requirements of the Act. Each certificate for shares of Series B Stock issuable upon conversion of this Note that have not been so registered and that have not been sold pursuant to an exemption that permits removal of the applicable legend, shall bear a legend substantially in the following form, as appropriate.
  
 	 
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	 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). THE SECURITIES REPRESENTED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS, OR SUCH OFFERS, SALES AND TRANSFERS ARE MADE PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THOSE LAWS.
	  

  
 Upon the request of a holder of a certificate representing any shares of Series B Stock issuable upon conversion of this Note, the Company shall remove the foregoing legend from the certificate or issue to such Lender a new certificate free of any transfer legend, if (a) with such request, the Company shall have received an opinion of counsel, reasonably satisfactory to the Company in form, substance and scope, to the effect that any such legend may be removed from such certificate or (b) a registration statement under the Act covering such securities is in effect.
  
 ARTICLE III
 MISCELLANEOUS
  
 Section 3.1 Notices. Any notice herein required or permitted to be given shall be in writing and may be personally served or delivered by courier or sent by United States mail and shall be deemed to have been given upon receipt if personally served (which shall include telephone line facsimile transmission) or sent by courier or three (3) days after being deposited in the United States mail, certified, with postage pre-paid and properly addressed, if sent by mail. For the purposes hereof, the address of the Lender shall be 341 Lakewood Drive, Bloomfield Hills, Michigan 48304; and the address of the Company shall be 57 West 57th Street, Suite 400, New York, New York 10019. The Company shall accept electronic notice at “ishimrat@cell-source.com”. Both the Lender and the Company may change the address for service by delivery of written notice to the other as herein provided.
  
 Section 3.2 Entire Agreement and Amendment Provision. This Note represents the entire agreement between the parties hereto with respect to the subject matter hereof and there are no representations, warranties or commitments, except as set forth herein. This Note and any provision hereof may be amended only by an instrument in writing signed by the Company and the Lender.
  
 Section 3.3 Assignability. This Note shall be binding upon the Company and its successors and assigns and shall inure to the benefit of the Lender and its successors and assigns; provided, however, that so long as no Event of Default has occurred, this Note shall only be transferable in whole subject to the restrictions contained in the restrictive legend on the first page of this Note.
  
 	 
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 Section 3.4 Governing Law. This Note shall be governed by the internal laws of the State of New York, without regard to conflicts of laws principles. The parties hereby submit to the exclusive jurisdiction and venue of the state or federal courts sited in the State of New Jersey with respect to any dispute arising under this Note.
  
 Section 3.5 Replacement of Note. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Note, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which shall not include the posting of any bond), and upon surrender and cancellation of such Note, if mutilated, the Company will make and deliver a new Note of like tenor.
  
 Section 3.6 This Note shall not entitle the Lender to any of the rights of a stockholder of the Company, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Company, unless and to the extent converted into shares of Series B Stock in accordance with the terms hereof.
  
 Section 3.7 Severability. In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected or impaired thereby.
  
 Section 3.8 Headings. The headings of the sections of this Note are inserted for convenience only and do not affect the meaning of such section.
  
 Section 3.9 Counterparts. This Note may be executed in multiple counterparts, each of which shall be an original, but all of this shall be deemed to constitute one instrument.
  
 	 
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 IN WITNESS WHEREOF, with the intent to be legally bound hereby, the Company has executed this Note on November __ but effective as of October 28, 2019t.
  
 	 	 CELL SOURCE, INC.
	
	 	 	 	 
		By:	/s/ Itamar Shimrat	
	  
	 Name:
	Itamar Shimrat	 
	 	Title:	Chief Executive Officer	 

  
 	 
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 EXHIBIT 1
  
 CONVERSION NOTICE
  
 	  

	  

	 (To be executed by the Lender in order to Convert the Note)

   
 TO:
  
 The undersigned hereby irrevocably elects to convert US $__________ of the Principal Amount outstanding under the above Note into shares of Series B Convertible Stock of Cell Source, Inc., according to the conditions stated therein. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay all transfer taxes payable with respect thereto and is delivering herewith such certificates and opinions as reasonably requested by the Company in accordance therewith. No fee will be charged to the Lender for any conversion, except for such transfer taxes, if any.
  
 Conversion Date:_______________________________________________________
  
 Applicable Conversion Price: $_____________________________________________
  
 Signature:                           _________________________________________________ 
  
 Name:                                 _________________________________________________ 
  
 Address:                            _________________________________________________ 
  
                                             _________________________________________________ 
  
 Tax I.D. or Soc. Sec. No.: _________________________________________________
  
 Principal Amount to be converted: US $______________________________________ 
  
 Amount of Note unconverted: US $_________________________________________ 
  
 Number of shares of Series B Stock to be issued:_______________________________
  
 	 
	 A-I

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