Document:

Exhibit 4.1

 

 

 

TERM LOAN AGREEMENT

 

Dated as of 

 

February 5, 2016

 

by and between,

 

OTTER TAIL CORPORATION,

as Borrower,

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Agent

 

 

 

J.P. MORGAN SECURITIES
LLC

 

as Lead Arranger and Book Runner

 

     

     

    

 

Table of Contents

 

	 	Page
	 	 
	Article
    I DEFINITIONS AND ACCOUNTING TERMS	1
	 	 
	Section 1.1 Defined Terms	1
	 	 
	Section 1.2 Accounting Terms and Calculations	13
	 	 
	Section 1.3 Computation of Time Periods	13
	 	 
	Section 1.4 Other Definitional Terms	13
	 	 
	Section 1.5 References to Agreements and Laws	13
	 	 
	Article II TERMS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT	13
	 	 
	Section 2.1 The Loan	13
	 	 
	Section 2.2 Advance Options	13
	 	 
	Section 2.3 Borrowing Procedures	14
	 	 
	Section 2.4 Continuation or Conversion of the Loan	15
	 	 
	Section 2.5 Evidence of Indebtedness	15
	 	 
	Section 2.6 Funding Losses	16
	 	 
	Section 2.7 [Intentionally Omitted]	16
	 	 
	Section 2.8 [Intentionally Omitted]	16
	 	 
	Section 2.9 Incremental Term Loans	17
	 	 
	Section 2.10 Purpose of the Loan	17
	 	 
	Section 2.11 Defaulting Banks	17
	 	 
	Section 2.12 Replacement of Banks	18
	 	 
	Section 2.13 Authorized Representatives	19
	 	 
	Section 2.14 [Intentionally Omitted]	19
	 	 
	Section 2.15 Tax Matters.	19

 

     

     

    

 

	Article III INTEREST AND FEES	20
	 	 
	Section 3.1 Interest	20
	 	 
	Section 3.2 [Intentionally Omitted]	20
	 	 
	Section 3.3 Computation	20
	 	 
	Section 3.4 Payment Dates	20
	 	 
	Article IV PAYMENTS, PREPAYMENTS, REDUCTION OR TERMINATION OF THE CREDIT AND SETOFF	20
	 	 
	Section 4.1 Repayment	20
	 	 
	Section 4.2 Optional Prepayments	20
	 	 
	Section 4.3 [Intentionally Omitted]	20
	 	 
	Section 4.4 Payments	21
	 	 
	Section 4.5 Proration of Payments	21
	 	 
	Article V ADDITIONAL PROVISIONS RELATING TO TERM LOANS	21
	 	 
	Section 5.1 Increased Costs	21
	 	 
	Section 5.2 Deposits Unavailable or Interest Rate Unascertainable or Inadequate; Impracticability	22
	 	 
	Section 5.3 Changes in Law Rendering LIBOR Advances Unlawful	23
	 	 
	Section 5.4 Discretion of the Banks as to Manner of Funding	23
	 	 
	Article VI CONDITIONS PRECEDENT	23
	 	 
	Section 6.1 Conditions of Closing	23
	 	 
	Section 6.2 Additional Conditions Precedent to the Loan	24
	 	 
	Article VII REPRESENTATIONS AND WARRANTIES	24
	 	 
	Section 7.1 Organization, Standing, Etc	24
	 	 
	Section 7.2 Authorization and Validity	25
	 	 
	Section 7.3 No Conflict; No Default	25
	 	 
	Section 7.4 Government Consent	25
	 	 
	Section 7.5 Financial Statements and Condition	25

 

     

     

    

 

	Section 7.6 Litigation and Contingent Liabilities	26
	 	 
	Section 7.7 Compliance	26
	 	 
	Section 7.8 Environmental, Health and Safety Laws	26
	 	 
	Section 7.9 ERISA	26
	 	 
	Section 7.10 Regulation U	26
	 	 
	Section 7.11 Ownership of Property; Liens	26
	 	 
	Section 7.12 Taxes	27
	 	 
	Section 7.13 Trademarks, Patents	27
	 	 
	Section 7.14 Investment Company Act	27
	 	 
	Section 7.15 Subsidiaries	27
	 	 
	Section 7.16 Partnerships and Joint Ventures	27
	 	 
	Section 7.17 Senior Debt	27
	 	 
	Section 7.18 Anti-Corruption Laws; Sanctions; Anti-Terrorism Laws	27
	 	 
	Article VIII AFFIRMATIVE COVENANTS	28
	 	 
	Section 8.1 Financial Statements and Reports	28
	 	 
	Section 8.2 Corporate Existence	30
	 	 
	Section 8.3 Insurance	30
	 	 
	Section 8.4 Payment of Taxes and Claims	30
	 	 
	Section 8.5 Inspection	30
	 	 
	Section 8.6 Maintenance of Properties	30
	 	 
	Section 8.7 Books and Records	31
	 	 
	Section 8.8 Compliance	31
	 	 
	Section 8.9 ERISA	31
	 	 
	Section 8.10 Environmental Matters	31
	 	 
	Section 8.11 Senior Debt	31

 

     

     

    

 

	Section 8.12 Subsidiaries	31
	 	 
	Section 8.13 Ratings	32
	 	 
	Article IX NEGATIVE COVENANTS	32
	 	 
	Section 9.1 Merger	32
	 	 
	Section 9.2 Sale of Assets	32
	 	 
	Section 9.3 Plans	33
	 	 
	Section 9.4 Ownership of Stock	33
	 	 
	Section 9.5 Other Agreements	33
	 	 
	Section 9.6 Restricted Payments	34
	 	 
	Section 9.7 Investments	34
	 	 
	Section 9.8 Liens	36
	 	 
	Section 9.9 Contingent Liabilities	39
	 	 
	Section 9.10 Transactions with Related Parties	40
	 	 
	Section 9.11 Use of Proceeds	41
	 	 
	Section 9.12 Financial Covenants	41
	 	 
	Article X EVENTS OF DEFAULT AND REMEDIES	41
	 	 
	Section 10.1 Events of Default	41
	 	 
	Section 10.2 Remedies	44
	 	 
	Section 10.3 [Intentionally Omitted]	44
	 	 
	Section 10.4 Setoff	44
	 	 
	Article XI THE AGENT	44
	 	 
	Section 11.1 Appointment and Grant of Authority	44
	 	 
	Section 11.2 Non-Reliance on Agent	45
	 	 
	Section 11.3 Responsibility of the Agent and Other Matters	45
	 	 
	Section 11.4 Action on Instructions	46

 

     

     

    

 

	Section 11.5 Indemnification	46
	 	 
	Section 11.6 JPMorgan and Affiliates	46
	 	 
	Section 11.7 Notice to Holder of Notes	46
	 	 
	Section 11.8 Successor Agent	46
	 	 
	Article XII MISCELLANEOUS	47
	 	 
	Section 12.1 No Waiver and Amendment	47
	 	 
	Section 12.2 Amendments, Etc	47
	 	 
	Section 12.3 Assignments and Participations	48
	 	 
	Section 12.4 Costs, Expenses and Taxes; Indemnification	51
	 	 
	Section 12.5 Notices	52
	 	 
	Section 12.6 [Intentionally Omitted]	52
	 	 
	Section 12.7 Severability	52
	 	 
	Section 12.8 Subsidiary References	53
	 	 
	Section 12.9 Captions	53
	 	 
	Section 12.10 Entire Agreement	53
	 	 
	Section 12.11 Counterparts	53
	 	 
	Section 12.12 Governing Law	53
	 	 
	Section 12.13 Consent to Jurisdiction	53
	 	 
	Section 12.14 Waiver of Jury Trial	54
	 	 
	Section 12.15 Customer Identification - USA PATRIOT Act Notice	54
	 	 
	Section 12.16 OFAC and Asset Control Regulations	54
	 	 
	Section 12.17 Confidentiality	54
	 	 
	Section 12.18 Interest Rate Limitation	55
	 	 
	Section 12.19 No Advisory or Fiduciary Responsibility	56

 

     

     

    

 

TERM LOAN AGREEMENT

 

THIS TERM LOAN AGREEMENT,
dated as of February 5, 2016, is by and between OTTER TAIL CORPORATION, a Minnesota corporation (the “Borrower”),
the banks or financial institutions listed on the signature pages hereof or which hereafter become parties hereto by means of assignment
and assumption as hereinafter described (individually referred to as a “Bank” or collectively as the “Banks”),
and JPMorgan Chase Bank, N.A., as Agent.

 

Preliminary Statement

 

The Borrower has requested
that the Banks make term loans available to the Borrower on the date hereof, as more particularly described herein.

 

NOW THEREFORE, for good and
valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

Article
I DEFINITIONS AND ACCOUNTING TERMS.

 

Section 1.1 Defined
Terms.    In addition to the terms defined elsewhere in this Agreement, the following terms shall have
the following respective meanings (and such meanings shall be equally applicable to both the singular and plural form of the terms
defined, as the context may require):

 

“Adjusted LIBO
Rate” means, with respect to any LIBOR Advance for any Interest Period, an interest rate per annum (rounded upwards,
if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve
Rate.

 

“Advance”
means the portion of the outstanding Loan by the Banks as to which one of the available interest rate options and, if pertinent,
an Interest Period, is applicable.    An Advance may be a “LIBOR Advance” or a “Base Rate
Advance” (each, a “type” of Advance).

 

“Adverse Event”
means the occurrence of any event that has had or could reasonably be expected to have a material adverse effect on the business,
operations, property, assets or financial condition of the Borrower and the Subsidiaries as a consolidated enterprise or on the
ability of the Borrower and the Material Subsidiaries, taken as a whole, to perform their obligations under the Loan Documents.

 

“Agent”
means JPMorgan Chase Bank, N.A. (including its branches and affiliates), as administrative agent for the Banks hereunder and each
successor, as provided in Section 11.8, who shall act as Agent.

 

“Agreement”
means this Term Loan Agreement, as it may be further amended, modified, supplemented, restated or replaced from time to time.

 

“Anti-Corruption
Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from
time to time concerning or relating to bribery or corruption.

 

    	 	1	 

     

    

 

“Applicable Margin”
means (a) with respect to LIBOR Advances, a per annum rate equal to 0.90% and (b) with respect to Base Rate Advances, a per annum
rate equal to 0.0%.

 

“Approved Fund” means any
Fund that is administered or managed by (a) a Bank, (b) an affiliate of a Bank or (c) an entity or an affiliate of an entity that
administers or manages a Bank.

 

“Augmenting Bank” has the
meaning ascribed to such term in Section 2.9.

 

“Authorized Representatives”
means any officers or employees of the Borrower designated by the Borrower for purposes of giving and receiving notices hereunder,
requesting and repaying the Loan, agreeing to rates of interest and otherwise transacting business with the Agent and the Banks
hereunder.

 

“Base Rate”
means, for any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the FRBNY
Rate in effect on such day plus 1⁄2 of 1% and (c) the Adjusted LIBO Rate for a one month Interest Period on such day
(or if such day is not a Business Day, the immediately preceding Business Day) plus 1%, provided that the Adjusted LIBO
Rate for any day shall be based on the LIBO Rate at approximately 11:00 a.m. London time on such day, subject to the interest rate
floors set forth therein.    Any change in the Base Rate due to a change in the Prime Rate, the FRBNY Rate
or the Adjusted LIBO Rate shall be effective from and including the effective date of such change in the Prime Rate, the FRBNY
Rate or the Adjusted LIBO Rate, respectively. For the avoidance of doubt, if the Base Rate shall be less than zero, such rate shall
be deemed to be zero for purposes of this Agreement.

 

“Base Rate Advance”
means an Advance designated as such in a notice of borrowing under Section 2.3 or a notice of continuation or conversion
under Section 2.4.

 

“Borrower”
shall have the meaning set forth in the introductory paragraph.

 

“Borrower Obligations”
means each and every debt, liability and other obligation of the Borrower of every type and description arising under or in connection
with any of the Loan Documents which the Borrower may now or at any time hereafter owe to a Bank or to the Banks or to the Agent,
whether such debt, liability or obligation now exists or is hereafter created or incurred, whether it is direct or indirect, due
or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or sole, joint, several or joint and
several, and including specifically, but not limited to, all indebtedness, liabilities and obligations of the Borrower arising
under this Agreement and the Notes.

 

“Business Day”
means any day (other than a Saturday, Sunday or legal holiday in the State of Minnesota) on which national banks are permitted
to be open in Minneapolis, Minnesota and New York, New York and, with respect to LIBOR Advances, a day on which dealings in Dollars
may be carried on by the Agent in the interbank LIBOR market.

 

“Capitalized Lease”
means any lease which is or should be capitalized on the books of the lessee in accordance with GAAP.

 

“Code”
means the Internal Revenue Code of 1986, as amended, or any successor statute, together with regulations thereunder.

 

    	 	2	 

     

    

 

“Commitment”
means, with respect to each Bank, the commitment of such Bank to make a Term Loan hereunder on the date hereof, subject to the
terms and conditions of the Agent, or, if so indicated, the maximum unpaid principal amount of the Term Loan of any Bank.    The
initial amount of each Bank’s Commitment is set forth on Schedule 2.01, or other documentation contemplated hereby
pursuant to which such Bank shall have assumed its Commitment, as applicable.    As of the date of this Agreement,
the aggregate Commitments of all of the Banks is $50,000,000.

 

“Compliance Certificate”
means a certificate in the form of Exhibit B, duly completed and signed by an authorized officer of the Borrower.

 

“Controlled Foreign
Corporation” means a Subsidiary that is a controlled foreign corporation under Section 957 of the Code.

 

“Default”
means any event which, with the giving of notice to the Borrower or lapse of time, or both, would constitute an Event of Default.

 

“Defaulting Bank”
means any Bank, as determined by the Agent, that has (a) failed (a “Funding Default”) to fund any portion
of its Loan (a “Defaulted Loan”) within three (3) Business Days of the date required in the determination of
the Agent to be funded by it hereunder, (b) notified the Borrower, the Agent, 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 (i) under this Agreement or (ii) under other agreements in which it is obligated
to extend credit unless, in the case of this clause (ii), such obligation is the subject of a good faith dispute, (c) failed,
within three (3) Business Days after request by the Agent, to confirm that it will comply with the terms of this Agreement relating
to its obligations to fund its Loan, (d) otherwise failed to pay over to the Agent or any other Bank any other amount required
to be paid by it hereunder within three (3) 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 or (ii) become the subject
of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, assignee for the benefit
of creditors or similar Person charged with reorganization or liquidation of its business 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, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its
business 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; provided, that a Bank shall not become a Defaulting Bank solely as the result
of (x) the acquisition or maintenance of an ownership interest in such Bank or a Person controlling such Bank or (y) the exercise
of control over a Bank or a Person controlling such Bank, in each case, by a governmental authority or an instrumentality thereof.    Any
determination by the Agent that a Bank is a Defaulting Bank will be conclusive and binding absent manifest error, and such Bank
will be deemed to be a Defaulting Bank upon notification of such determination by the Agent to the Borrower and the Banks.    

 

    	 	3	 

     

    

 

“EBIT”
means, for any period of determination, the consolidated net income of the Borrower and its Subsidiaries before provision for income
taxes, plus, (i) to the extent subtracted in determining consolidated net income, Interest Expense, all as determined in accordance
with GAAP, excluding (to the extent included): (a) non-operating gains (including, without limitation, extraordinary or nonrecurring
gains, gains from discontinuance of operations and gains arising from the sale of assets other than inventory), excluding gains
resulting from sale of fixed assets, during the applicable period; (b) similar non-operating losses, excluding losses from
sale of fixed assets, during such period; (c) payments of any premiums and any other costs, fees and expenses required to
be paid by the terms thereof in connection with the repayment or redemption of Interest-bearing Debt existing as of the date of
this Agreement and capital stock existing as of the date of this Agreement; (d) fees, cash charges and other cash expenses paid
by the Borrower or any of its Subsidiaries in connection with any permitted acquisition, permitted disposition of assets, recapitalization,
Investment, issuance of Indebtedness, issuance of equity interests, refinancing transaction or modification or amendment of any
debt instrument (including any transaction undertaken but not completed) up to an aggregate amount not to exceed $5,000,000 in
any period of four consecutive fiscal quarters; (e) non-cash charges attributable to any swap, collar or other hedging agreement;
(f) non-cash compensation charges or expenses, including any such charges arising from the grants of stock appreciation    or
similar rights, stock options, restricted stock or other management equity plans and including non-cash bonus payments; (g) the
amount of any minority interest expense (less the amount of any cash dividends paid to the holders of such minority interests);
(h) any impairment charge or asset write-off of the Borrower and its Subsidiaries, including any charge or write-off related to
intangible assets, long-lived assets or investments, including, pursuant to Financial Accounting Standards Board Statement No.
142 “Goodwill and Other Intangible Assets” or Financial Accounting Standards Board Statement No. 144 “Accounting
for the Impairment or Disposal of Long-Lived Assets” and the amortization of intangibles arising pursuant to the Financial
Accounting Standards Board Statement No. 141 “Business Combinations;” (i) plant closure, severance and other restructuring
charges up to an aggregate amount not to exceed $5,000,000 in any period of four consecutive fiscal quarters; and (j) other non-cash
charges reducing consolidated net income of the Borrower and its Subsidiaries (excluding any such non-cash charge to the extent
that it represents an accrual or reserve for potential cash charges in any future period but including impairment charges, write-offs
and write-downs), minus (ii) the sum, without duplication, of amounts for (a) non-cash gains attributable to any swap, collar or
other hedging agreement and (b) other non-cash gains increasing consolidated net income of the Borrower and its Subsidiaries for
such period (other than any such non-cash gain to the extent it represents the reversal of an accrual or reserve for potential
cash gain in any prior period); provided that if the Borrower or any Subsidiary acquires a Person (an “Acquired
Person”) in an Acquisition in such period, then all of the Acquired Person’s EBIT (calculated for such Person as
set forth above) for the period of determination shall be added to EBIT, and if the Borrower or any Subsidiary sells all or substantially
all of the stock or assets of any Subsidiary in any such period, then the EBIT of such Subsidiary (calculated for such Person as
set forth above) shall be deducted from EBIT.

 

“Electronic Signature”
means 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.

 

    	 	4	 

     

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute, together with regulations thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) that is a member of a group of which the Borrower is a member and which
is treated as a single employer under Section 414 of the Code.

 

“Event of Default”
means any event described in Section 10.1.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof
and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

 

“Federal Funds
Effective Rate” means, for any day, the rate calculated by the FRBNY based on such day’s federal funds transactions
by depository institutions (as determined in such manner as the FRBNY shall set forth on its public website from time to time)
and published on the next succeeding Business Day by the FRBNY as the federal funds effective rate. For the avoidance of doubt,
if the Federal Funds Effective Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

“Federal Reserve
Board” means the Board of Governors of the Federal Reserve System or an successor thereto.

 

“Fitch”
means Fitch Ratings and its successors.

 

“FRBNY”
means the Federal Reserve Bank of New York.

 

“FRBNY
Rate” means, 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; provided that if both such rates are not so published for any day that
is a Business Day, the term “FRBNY Rate” means the rate quoted for such day for a federal funds transaction at 11:00
a.m. on such day received by the Agent from a Federal funds broker of recognized standing selected by it; provided, further,
that if any of the aforesaid rates shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

 

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

 

“GAAP”
means generally accepted accounting principles as in effect from time to time and applied in accordance with Section 1.2.

 

“Guaranty”
means to (a) endorse, guarantee, contingently agree to purchase or to provide funds for the payment of, or otherwise become
contingently liable upon, any payment obligation of any other Person, except by the endorsement of negotiable instruments for deposit
or collection (or similar transactions) in the ordinary course of business, or (b) agree to maintain the net worth or working
capital of, or provide funds to satisfy any other financial test applicable to, or other obligations of, any other Person.

 

    	 	5	 

     

    

 

“Impacted Interest
Period” has the meaning assigned to such term in the definition of “LIBO Rate”.

 

“Increasing Bank”
has the meaning assigned to such term in Section 2.9.

 

“Incremental Term
Loan” has the meaning assigned to such term in Section 2.9.

 

“Incremental Term
Loan Amendment” has the meaning assigned to such term in Section 2.9.

 

“Ineligible Institution”
means (a) a natural person, (b) a Defaulting Bank or its parent, (c) the Borrower, any of its Subsidiaries or any of its Affiliates,
or (d) a company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s)
thereof.

 

“Indebtedness”
means, without duplication, all obligations of the Borrower or any Subsidiary:    (a) consisting of Interest-bearing
Debt; (b) on account of deposits or advances, excluding deposits and advances received in the ordinary course of business; and
(c) constituting a Guaranty by such Person in respect to indebtedness of others to the extent not included in clause (a).    For
all purposes of this Agreement, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture
in which such Person is a general partner or a joint venturer, but shall exclude trade liabilities and intercompany liabilities
incurred in the ordinary course of business.

 

“Interest and
Dividend Coverage Ratio” means the ratio, calculated for each period of four consecutive fiscal quarters of the Borrower,
of:    (a) EBIT for such period; to (b) the sum for such period of (i) Interest Expense,
plus (ii) dividends or interest on Preferred Stock.

 

“Interest-bearing
Debt” means, without duplication, all interest-bearing obligations of the Borrower or a Subsidiary on a consolidated
basis:    (a) in respect of borrowed money; (b) secured by a mortgage, pledge, security interest,
lien or charge on the assets of the Borrower or a Subsidiary, whether the obligation secured is the obligation of the owner or
another Person, provided that the amount of such obligation which has not been assumed by the Borrower or a Subsidiary shall be
the lesser of (i) the amount of such obligation and (ii) the fair market value of such assets; (c) for the deferred purchase
price of any property or services evidenced by a note, payment contract or other instrument (other than an account payable arising
in the ordinary course of business), (d) constituting the principal component of obligations as lessee under any Capitalized
Lease; (e) that are Guaranties by the Borrower or a Subsidiary in respect to Interest-bearing Debt of other Persons; (f) that
are net liabilities under interest rate swaps, collars and other interest rate hedging agreements; (g) consisting at any time
of the aggregate undrawn and unexpired amount of standby letters of credit plus the aggregate amount of drawings thereunder that
have not been reimbursed; (h) constituting the principal component of obligations that are amounts calculated in respect of synthetic
leases as if such leases were Capitalized Leases; (i) that are indebtedness attributable to Permitted Sales and Leasebacks;
and (j) that are indebtedness attributable to Permitted Securitization Transactions (only to the extent such transactions
include recourse to the Borrower or a Subsidiary).    For all purposes of this Agreement, Interest-bearing
Debt of any Person shall exclude trade liabilities and intercompany liabilities incurred in the ordinary course of business.

 

    	 	6	 

     

    

 

“Interest Expense”
means, for any period of determination, the aggregate consolidated amount, without duplication, of interest paid, accrued or scheduled
to be paid in respect of any Indebtedness of the Borrower and its Subsidiaries, including in all cases interest expense determined
in accordance with GAAP and, to the extent not otherwise included in GAAP interest expense:    (a) all
but the principal component of payments in respect of conditional sale contracts, Capitalized Leases and other title retention
agreements; (b) commissions, discounts and other fees and charges with respect to letters of credit and bankers’ acceptance
financings; (c) net costs under any interest rate swap, collar or other interest rate hedging agreements, in each case determined
in accordance with GAAP; (d) amounts calculated in respect of synthetic leases as if such leases were Capitalized Leases,
and (e) discount or other yield attributable to Permitted Securitization Transactions.

 

“Interest Period”
means, for any LIBOR Advance, the period commencing on the borrowing date of such LIBOR Advance or the date a Base Rate Advance
is converted into such LIBOR Advance, or the last day of the preceding Interest Period for such LIBOR Advance, as the case may
be, and ending one, two, three or six months, as selected by the Borrower pursuant to Section 2.3 or Section 2.4;
provided, that:

 

(a) any Interest Period which
would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day unless such next succeeding
Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day;

 

(b) any Interest Period which
begins on the last Business 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 Business Day of the calendar month at the end of such Interest
Period; and

 

(c) no Interest Period shall
extend beyond the Termination Date.

 

“Interpolated
Rate” means, at any time, for any Interest Period, the rate per annum determined by the Agent (which determination shall
be conclusive and binding absent manifest error) 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 the LIBOR Screen Rate is available for the applicable currency) that
is shorter than the Impacted Interest Period and (b) the LIBOR Screen Rate for the shortest period (for which the LIBOR Screen
Rate is available for the applicable currency) that exceeds the Impacted Interest Period, in each case, at such time.

 

“Investment”
means the acquisition, purchase, or making of any loan, advance, contribution to capital or extension of credit, and any purchase
of stock or other debt or equity securities of or any interest in another Person or any integral part of any business or the assets
comprising such business or part thereof.

 

“JPMorgan”
means JPMorgan Chase Bank, N.A.

 

    	 	7	 

     

    

 

“Laws”
shall mean, collectively, all applicable international, foreign, Federal, state, commonwealth and local statutes, treaties, rules,
guidelines, regulations ordinances, codes and administrative or judicial precedents or authorities, including the interpretation
or administration thereof by any governmental authority charged with the enforcement, interpretation or administration thereof,
and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with,
any governmental authority, in each case whether or not having the force of law.

 

“LIBOR Advance”
means an Advance designated as such in a notice of borrowing under Section 2.3 or a notice of continuation or conversion
under Section 2.4.

 

“LIBO Rate”
means, with respect to any LIBOR Advance Borrowing for any applicable Interest Period, the London interbank offered rate as administered
by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for a period
equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate
does not appear on either of such Reuters pages, 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 as shall be selected by the Agent from time
to time in its reasonable discretion (in each case the “LIBOR Screen Rate”) at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period; provided that, if the LIBOR Screen Rate
shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided, further,
that if a LIBOR Screen Rate shall not be available at such time for such Interest Period (the “Impacted Interest Period”),
then the LIBO Rate for such Interest Period shall be the Interpolated Rate; provided, that, if any Interpolated Rate shall be less
than zero, such rate shall be deemed to be zero for the purposes of this Agreement.    It is understood and
agreed that all of the terms and conditions of this definition of “LIBO Rate” shall be subject to Section 5.2.

 

“LIBOR Screen
Rate” has the meaning assigned to such term in the definition of “LIBO Rate”.

 

“Lien”
means any security interest, mortgage, pledge, lien, hypothecation, judgment lien or similar legal process, charge, encumbrance,
title retention agreement or analogous instrument or device (including, without limitation, the interest of the lessors under Capitalized
Leases and the interest of a vendor under any conditional sale or other title retention agreement).

 

“Loan Documents”
means this Agreement, the Notes and each other instrument, document, guaranty, security agreement, mortgage, or other agreement
executed and delivered by the Borrower, Material Subsidiary or any other guarantor or party granting security interests in connection
with this Agreement, the Loan or any collateral for the Loan.

 

“Loan”
means the aggregate Term Loans.

 

“Loan Documents”
means this Agreement, the Notes, each Material Subsidiary Guaranty and each other instrument, document, guaranty, security agreement,
mortgage, or other agreement executed and delivered by the Borrower, a Material Subsidiary or any guarantor or party granting security
interests in connection with this Agreement, the loan or any collateral for the Loan.

 

    	 	8	 

     

    

 

“Long Term Debt
Rating” means the rating assigned by S&P, Moody’s or Fitch to the long term, unsecured and unsubordinated indebtedness
guaranteed by the non-regulated Subsidiaries of the Borrower.

 

“Material Subsidiary”
means (a) the Subsidiaries listed on Schedule 1.1(b) hereto, and (b) any Subsidiary acquired or formed after
the date of this Agreement if at the time of such acquisition or formation or at any time thereafter either (i) the consolidated
assets of such Subsidiary and its Subsidiaries shall exceed 10.00% of the consolidated assets of the Borrower and its Subsidiaries
(excluding Otter Tail Power Company and its Subsidiaries), or (ii) the consolidated gross revenues of such Subsidiary and
its Subsidiaries shall exceed 10.00% of the consolidated gross revenues of the Borrower and its Subsidiaries (excluding Otter Tail
Power Company and its Subsidiaries).    Such assets and gross revenues shall be determined on a pro forma basis
at the time of such acquisition or formation, and shall be determined thereafter at the request of the Agent, but not less than
one time per fiscal year of the Borrower thereafter.    Notwithstanding the foregoing neither Otter Tail Power
Company nor any Subsidiary of Otter Tail Power Company shall be deemed a Material Subsidiary.

 

“Material Subsidiary
Guaranty” means the Guaranty in the form of Exhibit C hereto, duly completed and executed by each Material Subsidiary
now existing or hereafter formed or acquired, except for any Subsidiary that is a Controlled Foreign Corporation.    

 

“Moody’s”
means Moody’s Investors Service, Inc. and its successors.

 

“Notes”
means the promissory notes of the Borrower described in Section 2.5(a), substantially in the form of Exhibit A, issued by
the Borrower to each of the Banks if it has requested such a promissory note pursuant to Section 2.5(d), as such promissory note
may be amended, modified or supplemented from time to time, and such term shall include any substitutions for, or renewals of,
such promissory note.

 

“OFAC”
means the U.S. Department of the Treasury’s Office of Foreign Assets Control, and any successor thereto.

 

“Otter Tail Power
Company” shall mean Otter Tail Power Company, a Minnesota corporation, and a Subsidiary of the Borrower.

 

“Overnight
Bank Funding Rate” means, 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
FRBNY as set forth on its public website from time to time) and published on the next succeeding Business Day by the FRBNY as an
overnight bank funding rate (from and after such date as the FRBNY shall commence to publish such composite rate).

 

“PATRIOT Act”
means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as amended from time to time, and any
successor statute.

 

    	 	9	 

     

    

 

“Payment Date”
means the Termination Date, plus (a) the last day of each Interest Period for each LIBOR Advance and, if such Interest Period
is in excess of three months after the first day of such Interest Period, and thereafter each day three months after each succeeding
Payment Date; and (b) the last day of each March, June, September and December of each year for each Base Rate Advance
and for any fees.

 

“PBGC”
means the Pension Benefit Guaranty Corporation, established pursuant to Subtitle A of Title IV of ERISA, and any successor thereto
or to the functions thereof.

 

“Percentage”
means, as to any Bank, the proportion, expressed as a percentage, that such Bank’s Commitment bears to the total Commitments
of all Banks.    The Percentages of the Banks as of the date of this Agreement are set forth on Schedule 1.1(a).

 

“Permitted Divestitures”
means sales of stock or assets, transfers of stock or assets, mergers resulting in divestiture of stock or assets or other divestitures
of assets of the Borrower and Subsidiaries, which, in the aggregate for all such transactions during any one fiscal year of the
Borrower, shall not result in the sale, transfer or other divestiture of stock or assets having a value in excess of 10% of the
consolidated assets of the Borrower and its Subsidiaries as of the beginning of such fiscal year.

 

“Permitted Sales
and Leasebacks” means sales and leasebacks of assets of the Borrower or a Subsidiary involving a sale price of assets
of the Borrower and Subsidiaries not to exceed $20,000,000 in the aggregate for all transactions after the date of this Agreement,
that give rise to Interest-bearing Debt, calculated as if the relevant leases were Capitalized Leases (whether or not actually
constituting Capitalized Leases).

 

“Permitted Securitization
Transactions” means sales of accounts receivable and other securitization transactions in nominal principal amounts not
to exceed $50,000,000; provided, that such transactions may include only recourse to the Borrower or a Subsidiary (a) under
customary representations and warranties not constituting credit support for the assets sold, and (b) constituting credit
support in an amount not exceeding 10% of the nominal principal amount of the transaction.    The nominal principal
amount of any Permitted Securitization Transaction, and the discount or other yield attributable thereto for purposes of determination
of Interest Expense, shall each be determined on a reasonable basis by the Borrower as if each such transaction were a financing
transaction and not a sale.

 

“Person”
means any natural person, corporation, limited liability company, partnership, joint venture, firm, association, trust, unincorporated
organization, government or governmental agency or political subdivision or any other entity, whether acting in an individual,
fiduciary or other capacity.

 

“Plan”
means an employee benefit plan or other plan, maintained for employees of the Borrower or of any ERISA Affiliate, and subject to
Title IV of ERISA or Section 412 of the Code.

 

“Preferred Stock”
means stock of the Borrower other than common stock.

 

    	 	10	 

     

    

 

“Prime Rate”
means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect
at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change
is publicly announced as being effective.

 

“Related Party”
means any Person (other than a Subsidiary): (a) which directly or indirectly through one or more intermediaries controls,
or is controlled by, or is under common control with, the Borrower, (b) which beneficially owns or holds 10% or more of the
equity interests of the Borrower; or (c) 10% or more of the equity interests of which is beneficially owned or held by the
Borrower or a Subsidiary.    The term “control” means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting
securities, by contract or otherwise.

 

“Reportable Event”
means a reportable event as defined in Section 4043 of ERISA and the regulations issued under such Section, with respect to
a Plan, excluding, however, such events as to which the PBGC by regulation has waived the requirement of Section 4043(a) of
ERISA that it be notified within 30 days of the occurrence of such event, provided that a failure to meet the minimum funding standard
of Section 412 of the Code and Section 302 of ERISA shall be a reportable event regardless of the issuance of any such
waivers in accordance with Section 412(d) of the Code.

 

“Required Banks”
means (subject to Section 2.11 with respect to any Defaulting Bank), at any time, at least two (2) Banks whose total
Percentage exceeds 50.00%, or if no Commitments remain in effect, whose share of principal of the Loan exceeds 50.00% of the aggregate
outstanding principal of the Loan.

 

“Restricted Payments”
means any expenditure by the Borrower or any Subsidiary for purchase, redemption or other acquisition for value of any shares of
the Borrower’s or any Subsidiary’s stock, payment of any dividend thereon (other than stock dividends and dividends
payable solely by a Subsidiary to another Subsidiary or by a Subsidiary to the Borrower), any distribution on, or payment on account
of the purchase, redemption, defeasance or other acquisition or retirement for value of, any shares of the Borrower’s or
any Subsidiary’s stock (other than payment to, or on account of or for the benefit of, the Borrower or any Subsidiary only).

 

“Sanctioned Country”
means, at any time, any country or territory which is itself the subject or target of any comprehensive Sanctions.

 

“Sanctioned Person”
means, at any time, (a) any Person or group listed in any Sanctions related list of designated Persons maintained by OFAC or the
U.S. Department of State, the United Nations Security Council, the European Union or any EU member state, (b) any Person or group
operating, organized or resident in a Sanctioned Country, (c) any agency, political subdivision or instrumentality of the government
of a Sanctioned Country, or (d) any Person 50% or more owned, directly or indirectly, by any of the above.

 

    	 	11	 

     

    

 

“Sanctions”
means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government,
including those administered by OFAC or the U.S. Department of State or (b) the United Nations Security Council, the European Union
or Her Majesty’s Treasury of the United Kingdom.

 

“S&P”
means Standard & Poor’s Ratings Group and its successors.

 

“Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental
reserves) expressed as a decimal established by the Federal Reserve Board to which the Agent is subject for eurocurrency funding
(currently referred to as “Eurocurrency Liabilities” in Regulation D of the Federal Reserve Board).    Such
reserve percentages shall include those imposed pursuant to such Regulation D of the Federal Reserve Board.    LIBOR
Advances shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or
credit for proation, exemptions or offsets that may be available from time to time to any Bank under such Regulation D of the Federal
Reserve Board or any comparable regulation.    The Statutory Reserve Rate shall be adjusted automatically on
and as of the effective date of any change in any reserve percentage.

 

“Subsidiary”
of a Person means (i) any corporation more than 50% of the outstanding securities having ordinary voting power of which shall at
the time be owned or controlled, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person
and one or more of its Subsidiaries, or (ii) any partnership, limited liability company, association, joint venture or similar
business organization more than 50% of the ownership interests having ordinary voting power of which shall at the time be so owned
or controlled.    Unless otherwise expressly provided, all references herein to a “Subsidiary”
shall mean a Subsidiary of the Borrower.

 

“Term Loan”
means, with respect to any Bank, the term loan made by such Bank to the Borrower pursuant to Section 2.1.

 

“Termination Date”
means February 5, 2018.

 

“Total Capitalization”
means as of any date of determination, the sum of (a) the amounts set forth on the consolidated balance sheet of the Borrower
as the sum of the common stock, preferred stock, additional paid-in capital and retained earnings of the Borrower (excluding treasury
stock); plus (b) the principal amount of Interest-bearing Debt of the Borrower and the Subsidiaries.

 

    	 	12	 

     

    

 

Section 1.2 Accounting
Terms and Calculations.    All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data required to be submitted pursuant to this Agreement
shall be prepared in conformity with, GAAP, as in effect from time to time.    All financial ratios calculated
pursuant to Section 9.12 shall be calculated in a manner consistent with that used in preparing the audited consolidated balance
sheet of the Borrower as of December 31, 2014 and the related audited consolidated statements of operations, shareholders’
equity and cash flows for the Borrower for the fiscal years then ended for the fiscal year ended December 31, 2014, except as
otherwise specifically prescribed herein.    If at any time any change in GAAP would affect the computation
of any financial ratio set forth in any Loan Document, and either the Borrower or the Required Banks shall so request, the Agent
and the Borrower shall negotiate in good faith to amend such ratio to preserve the original intent thereof in light of such change
in GAAP (subject to the approval of the Required Banks); provided that, until so amended, (i) such ratio shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Agent a written reconciliation
in form and substance reasonably satisfactory to the Agent, between calculations of such ratio made before and after giving effect
to such change in GAAP.

 

Section 1.3 Computation
of Time Periods.    In this Agreement, in the computation of a period of
time from a specified date to a later specified date, unless otherwise stated the word “from” means “from and
including” and the word “to” or “until” each means “to but excluding.”

 

Section 1.4 Other Definitional
Terms.    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.    References to Sections, Exhibits, schedules and like references are to this Agreement
unless otherwise expressly provided.

 

Section 1.5 References
to Agreements and Laws.    Unless otherwise expressly provided herein, (a)
references to organizational documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed
to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent
that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and
(b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing
or interpreting such Law.

 

Article
II TERMS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT.

 

Section 2.1 The Loan.    Subject
to the terms and conditions hereof and in reliance upon the warranties of the Borrower herein, each Bank agrees, severally and
not jointly, to make a term loan (each, a “Term Loan” and, collectively, the “Term Loans”)
to the Borrower in a single draw on the date hereof in a principal amount equal to its Commitment. Amounts repaid on the Term
Loan may not be reborrowed. The Commitment to extend credit hereunder shall expire on the date hereof.

 

Section 2.2 Advance
Options.    The Term Loans shall be constituted of LIBOR Advances and/or
Base Rate Advances, as shall be selected by the Borrower, except as otherwise provided herein.    Any combination
of types of Advances may be outstanding at the same time, except that the total number of outstanding LIBOR Advances shall not
exceed eight (8) at any one time (or such greater number to which the Agent may from time to time agree).    Each
LIBOR Advance shall be in a minimum amount of $500,000.    Each Base Rate Advance shall be in a minimum amount
of $100,000.    

 

    	 	13	 

     

    

 

Section 2.3 Borrowing
Procedures.

 

(a)
Request by Borrower.    The request by the Borrower for the Loan shall be in writing, or by telephone
promptly confirmed in writing, and must be given so as to be received by the Agent not later than:

 

(i)
2:00 p.m., New York time, on the date of the requested Loan, if the Loan shall be comprised of Base Rate Advances; or

 

(ii)
1:00 p.m., New York time, three Business Days prior to the date of the requested Loan, if the Loan shall be, or shall include,
a LIBOR Advance.

 

The request for the Loan shall specify
(1) the borrowing date (which shall be a Business Day), (2) the amount of the Loan and the type or types of Advances
comprising the Loan, and (3) if the Loan shall include LIBOR Advances, the initial Interest Periods for such Advances.    

 

(b)
Funding of Agent.    The Agent shall promptly notify each other Bank of the receipt of such request,
the matters specified therein, and the amount of such Bank’s requested Term Loan.    On the date of the
requested Loan, each Bank shall provide its share of the requested Loan to the Agent in immediately available funds not later than
4:00 p.m., New York time.    Unless the Agent determines that any applicable condition specified in Article VI
has not been satisfied, the Agent will make the requested Loan available to the Borrower at the Agent’s principal office
in New York, New York in immediately available funds not later than 6:00 p.m. (New York time) on the lending date so requested,
provided that the Agent shall not be required to make any amount of the requested Loan available to the Borrower unless
the Agent shall have received such amount from the Banks, and provided, further, that unless the Agent shall have
been notified in writing by a Bank prior to the time the requested Loan shall be made hereunder that such Bank does not intend
to make its Percentage share of the requested Loan available to the Agent, the Agent may assume that such Bank has made such Percentage
share available to the Agent and the Agent may in reliance on such assumption make the Loan available to the Borrower in a corresponding
amount.    In any case that the Agent has made a Loan to the Borrower on behalf of a Bank but has not received
the amount of such Loan from such Bank by the time herein required, such Bank shall pay interest to the Agent on the amount so
advanced at the overnight Federal Funds rate from the date of such Term Loan to the date funds are received by the Agent from such
Bank, such interest to be payable with such remittance from such Bank of the principal amount of such Term Loan.    If
the Agent does not receive payment from such Bank by the next Business Day after the date of the Term Loan, the Agent shall be
entitled to recover such Term Loan, with interest thereon at the rate then applicable to the such Term Loan, on demand, from the
Borrower, without prejudice to the Agent’s and the Borrower’s rights against such Bank.    If such
Bank pays the Agent the amount herein required with interest at the overnight rate before the Agent has recovered from the Borrower,
such Bank shall be entitled to the interest payable by the Borrower with respect to the Term Loan in question accruing from the
date the Agent made such Term Loan.

 

    	 	14	 

     

    

 

Section 2.4 Continuation
or Conversion of the Loan.    The Borrower may elect to (i) continue any outstanding LIBOR Advance
from one Interest Period into a subsequent Interest Period to begin on the last day of the earlier Interest Period, or (ii) convert
any outstanding Advance into another type of Advance (on the last day of an Interest Period only, in the instance of a LIBOR Advance),
by giving the Agent notice in writing, or by telephone promptly confirmed in writing, given so as to be received by the Agent
not later than:

 

(a)
2:00 p.m., New York time, on the date of the requested continuation or conversion, if the continuing or converted Advance
shall be a Base Rate Advance; or

 

(b)
1:00 p.m., New York time, three Business Days prior to the date of the requested continuation or conversion, if the continuing
or converted Advance shall be a LIBOR Advance.

 

Each notice of continuation or conversion of
an Advance shall specify (i) the effective date of the continuation or conversion (which shall be a Business Day), (ii) the
amount and the type or types of Advances following such continuation or conversion (subject to the limitation on amount set forth
in Section 2.2), and (iii) for continuation as, or conversion into, LIBOR Advances, the Interest Periods for such
Advances.    Absent timely notice of continuation or conversion, following expiration of an Interest Period
unless the LIBOR Advance is paid in full, the Agent may at any time thereafter convert the LIBOR Advance into a Base Rate Advance.    Until
such time as such Advance is converted into a Base Rate Advance by the Agent or the Borrower or is continued as a LIBOR Advance
with a new Interest Period by notice by the Borrower as provided above, such Advance shall continue to accrue interest at a rate
equal to the interest rate applicable during the expired Interest Period adjusted, however, to reflect changes in the Applicable
Margin.    No Advance shall be continued as, or converted into, a LIBOR Advance if the shortest Interest Period
for such Advance may not transpire prior to the Termination Date or if a Default or Event of Default shall exist and the Agent
has given notice to the Borrower that no such continuations or conversions may be made.

 

Section 2.5 Evidence
of Indebtedness.    

 

(a)
Each Bank shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the
Borrower to such Bank resulting from each Loan made by such Bank, including the amounts of principal and interest payable and paid
to such Bank from time to time hereunder.

 

(b)
The Agent, acting for this purpose as an agent of the Borrower, shall maintain accounts in which it shall record (i) the
amount of each Loan made hereunder, the type thereof and the Interest Period applicable thereto, (ii) the amount of any principal
or interest due and payable or to become due and payable from the Borrower to each Bank hereunder and (iii) the amount of any sum
received by the Agent hereunder for the account of the Banks and each Bank’s share thereof (the “Register”).

 

    	 	15	 

     

    

 

(c)
The entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section 2.5 shall be prima facie
evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Bank or the Agent to
maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loan in
accordance with the terms of this Agreement.    The Borrower, the Agent and the Banks may treat each person
whose name is recorded in the Register pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary.    The Register shall be available for inspection by the Borrower or any Bank, at any
reasonable time and from time to time upon reasonable prior notice.

 

(d)
Any Bank may request that Loan made by it be evidenced by a promissory note.    In such event, the Borrower
shall prepare, execute and deliver to such Bank a Note payable to such Bank and its registered assigns.

 

Section 2.6 Funding
Losses.    In the event of (a) any failure of the Borrower to borrow, continue or convert a LIBOR
Advance on a date specified in a notice thereof, or (b) any payment (including, without limitation, any payment pursuant
to Section 4.2, 4.4 or 10.2), prepayment or conversion of any LIBOR Advance on a date other than the
last day of the Interest Period for such Advance, the Borrower agrees to pay each Bank’s costs, expenses and Interest Differential
(as determined by such Bank) incurred as a result of such event.    The term “Interest Differential”
shall mean that sum amount, not less than $0, equal to the financial loss incurred by each Bank resulting from such event, calculated
as the difference between the amount of interest such Bank would have earned (from like investments in the Money Markets as of
the first day of the Interest Period of the relevant Advance) had such event not occurred and the interest the Bank will actually
earn (from like investments in the Money Markets as of the date of such event) as a result of the redeployment of funds from such
event.    Because of the short-term nature of this facility, the Borrower agrees that the Interest Differential
shall not be discounted to its present value.    The term “Money Markets” refers to one or more
wholesale funding markets available to the Banks, including negotiable certificates of deposit, commercial paper, LIBOR deposits,
bank notes, federal funds and others.    Such determinations by each Bank of shall be conclusive in the absence
of manifest error.

 

Section 2.7 [Intentionally
Omitted].

 

Section 2.8 [Intentionally
Omitted].

 

    	 	16	 

     

    

 

Section 2.9 Incremental
Term Loans. The Borrower may, on up to two occasions, enter into one or more tranches of term loans (each an “Incremental
Term Loan”), in each case in minimum increments of $10,000,000 so long as, after giving effect thereto, the aggregate
amount of all Term Loans (including such increases and all such Incremental Term Loans) does not exceed $100,000,000.    The
Borrower and Agent working cooperatively may arrange for any such tranche to be provided by (i) one or more existing Banks (each
such existing Bank so agreeing to participate in such Incremental Term Loans, an “Increasing Bank”), or (ii)
one or more new banks, financial institutions or other entities (each such new bank, financial institution or other entity, an
“Augmenting Bank”; provided that no Ineligible Institution may be an Augmenting Bank), which agree to
participate in such Incremental Term Loans; provided that (i) each Augmenting Bank, shall be subject to the approval of
the Borrower and the Agent and (ii) the Borrower and such Augmenting Bank or Increasing Bank, as applicable, execute a joinder
agreement in form and substance reasonably acceptable to the Agent.    No consent of any Bank (other than
the Banks participating in any Incremental Term Loan) shall be required for any Incremental Term Loan pursuant to this Section
2.9.    Incremental Term Loans created pursuant to this Section 2.9 shall become effective on the date agreed
by the Borrower, the Agent and the relevant Increasing Banks or Augmenting Banks, and the Agent shall notify each Bank thereof.    Notwithstanding
the foregoing, no tranche of Incremental Term Loans shall be come effective under this paragraph unless, (i) on the proposed date
of the effectiveness of such Incremental Term Loans, (A) the conditions set forth in paragraphs (a) and (b) of Section 6.2
shall be satisfied or waived by the Required Banks and the Agent shall have received a certificate to that effect dated such
date and executed by a financial officer of the Borrower and (B) the Borrower shall be in compliance (on a pro forma basis) with
the covenants contained in Section 9.12 as if the Indebtedness evidenced by such Incremental Term Loans had been incurred
on the first day of the four fiscal quarter period most recently ended on or prior to such date for which financial statements
have been delivered pursuant to Section 8.1 (a) or (b),    and (ii) the Agent shall have received
documents and opinions consistent with those delivered on the date hereof as to the organizational power and authority of the
Borrower to borrow hereunder after giving effect to such Incremental Term Loans.    The Incremental Term Loans
(a) shall rank pari passu in right of payment with the Term Loans and shall be deemed to be Term Loans hereunder; (b) shall not
mature earlier than the Termination Date; provided that the terms and conditions applicable to any tranche of Incremental Term
Loans maturing after the Termination Date may provide for material additional or different financial or other covenants or prepayment
requirements applicable only during periods after the Termination Date.    Incremental Term Loans may be made
hereunder pursuant to an amendment or restatement (an “Incremental Term Loan Amendment”) of this Agreement
and, as appropriate, the other Loan Documents, executed by the Borrower, each Increasing Bank participating in such tranche, each
Augmenting Bank participating in such tranche, if any, and the Agent.    The Incremental Term Loan Amendment
may, without the consent of any other Banks, effect such amendments to this Agreement and the other Loan Documents as may be necessary
or appropriate, in the reasonable opinion of the Agent, to effect the provisions of this Section 2.9.    Nothing
contained in this Section 2.9 shall constitute, or otherwise be deemed to be, a commitment on the part of any Bank to provide
Incremental Term Loans, at any time.    In connection with any Incremental Term Loans pursuant to this Section
2.9, any Augmenting Bank becoming a party hereto shall (1) execute such documents and agreements as the Agent may reasonably request
and (2) in the case of any Augmenting Bank that is organized under the laws of a jurisdiction outside of the United States of
America, provide to the Agent, its name, address, tax identification number and/or such other information shall be necessary for
the Agent to comply with “know your customer” and anti-money laundering rules and regulations, including without limitation,
the Patriot Act.

 

Section 2.10 Purpose
of the Loan. The Loan shall be used for purposes of funding working capital, capital expenditures, and other corporate purposes
of the Borrower and its Subsidiaries.

 

Section 2.11 Defaulting
Banks.    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 (the “Default Period”):

 

    	 	17	 

     

    

 

(a)
Voting.    Such Defaulting Bank shall be deemed not to be a “Bank” for purposes of
voting on any matters and the outstanding Loan of such Defaulting Bank shall not be included in determining whether all Banks or
the Required Banks have taken or may take any action hereunder (including any consent to any amendment or waiver pursuant to Section 12.2).

 

(b)
Prepayments.    To the extent permitted by applicable law, until the end of the Default Period,
any voluntary prepayment of the Loan shall, if Borrower so directs at the time of making such voluntary prepayment, be applied
to the Term Loans of other Banks as if such Defaulting Bank had no Term Loan outstanding.

 

(c)
Application of Payments.    Subject to application of voluntary prepayments as described in Section 2.11(b),
any amount otherwise payable to a 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 Sections 4.1, 4.2, 4.4,
4.5 or 10.4) shall, in lieu of being distributed to such Defaulting Bank, be applied by the Agent (i) first,
to the payment of any amounts owing by such Defaulting Bank to the Agent hereunder, (ii) second, to the funding of
the Loan in respect of which such Defaulting Bank has failed to fund its Percentage thereof as required by this Agreement, as determined
by the Agent, (iv) third, at the election of the Agent and the Borrower, to repay Borrower Obligations to the
non-Defaulting Banks, in such order of application as the Agent shall designate, (v) fourth, pro rata, to the payment
of any amounts owing to the Borrower or the non-Defaulting Banks as a result of any judgment of a court of competent jurisdiction
obtained by the Borrower or any Bank against such Defaulting Bank as a result of such Defaulting Bank’s breach of its obligations
under this Agreement, (vi) fifth, if so determined by the Agent, distributed to the Banks other than the Defaulting Bank
until the ratio of the total principal amount of the Borrower Obligations owed to such Banks to the total principal amount of the
Borrower Obligations owed to all Banks equals such ratio immediately prior to the Defaulting Bank’s failure to fund any portion
of the Loan and (vii) sixth, to such Defaulting Bank or as otherwise directed by a court of competent jurisdiction.

 

(d)
Non-exclusive Remedies.    The rights and remedies against a Defaulting Bank under this Section 2.11
are in addition to other rights and remedies which Borrower may have against such Defaulting Bank with respect to any Funding Default
and which the Agent or any Bank may have against such Defaulting Bank with respect to any Funding Default.    Nothing
contained in the foregoing shall be deemed to constitute a waiver by the Borrower of any of its rights or remedies (whether in
equity or law) against any Bank which fails to fund its Term Loan hereunder at the time or in the amount required to be funded
under the terms of this Agreement.

 

Section 2.12 Replacement
of Banks.    If the Agent or a Bank provides the Borrower with a notice pursuant to Section 5.1,
5.2 or 5.3, or if any Bank becomes a Defaulting Bank, then the Borrower may, at its sole expense and effort, upon
notice to such Defaulting Bank and the Agent, require such Bank or Defaulting Bank to assign and delegate, without recourse, all
of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume
such obligations (which assignee may be another Bank, if a Bank accepts such assignment), provided that:

 

    	 	18	 

     

    

 

(a)
The Borrower shall have paid to the Agent the assignment fee specified in Section 12.3(b)(ii);

 

(b)
Such Defaulting Bank shall have received payment of an amount equal to the outstanding principal of its Term Loan accrued
interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee
(to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
and

 

(c)
Such assignment does not conflict with applicable law.

 

Section 2.13 Authorized
Representatives.    The Borrower shall act hereunder through the Authorized Representatives designated
from time to time and all notices and requests to be given and received by the Borrower, including requests for the Loan and designation
of amounts of Advances and Interest Periods, shall be given by and directed to such Authorized Representatives.

 

Section 2.14 [Intentionally
Omitted].

 

Section 2.15 Tax Matters.
 (a) No Person can become a Bank unless it is either a United States Person or an “exempt
recipient” within the meaning of Treasury Regulations Section 1.6049-4(c) based on the indicators set forth therein, unless
such Person represents and warrants to the Agent and the Borrower that it is entitled to receive interest payments without withholding
or deduction of any taxes and executes and delivers to the Agent and the Borrower a United States Internal Revenue Service Form
W-8BEN, W-8BEN-E, W-8ECI, W-8IMY and/or W-9 or any successor to any of such forms, as appropriate, properly completed and claiming
complete exemption from withholding and deduction of all Federal Income Taxes.    Solely for purposes of this
Section 2.15(b) and Section 12.3(e), a “United States Person” shall have the meaning set out in Section
7701(a)(30) of the Code and (b) if a payment made to a Bank under any Loan Document would be subject to U.S. federal withholding
tax imposed by FATCA if such Bank were to fail to comply with the applicable reporting requirements of FATCA (including those
contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Bank shall deliver to the Borrower and the Agent at
the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Agent such documentation
prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation
reasonably requested by the Borrower or the Agent as may be necessary for the Borrower and the Agent to comply with their obligations
under FATCA and to determine that such Bank has 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 Section 2.15(b) and Section
12.3(e), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

    	 	19	 

     

    

 

Article
III INTEREST AND FEES.

 

Section 3.1 Interest.

 

(a)
LIBOR Advances.    The unpaid principal amount of each LIBOR Advance shall bear interest prior
to maturity at a rate per annum equal to the LIBO Rate in effect for each Interest Period for such LIBOR Advance plus the Applicable
Margin per annum.

 

(b)
Base Rate Advances.    The unpaid principal amount of each Base Rate Advance shall bear interest
prior to maturity at a rate per annum equal to the Base Rate plus the Applicable Margin per annum.

 

(c)
Interest After Maturity.    Any amount of the Loan not paid when due, whether at the date scheduled
therefor or earlier upon acceleration, shall bear interest until paid in full at a rate per annum equal to the greater of (i) 2.00%
in excess of the rate applicable to the unpaid principal amount immediately before it became due, or (ii) 2.00% in excess
of the Base Rate in effect from time to time.

 

Section 3.2 [Intentionally
Omitted].    

 

Section 3.3 Computation.    Interest
shall be computed on the basis of actual days elapsed and a year of 360 days, provided, that any interest or fee calculated with
reference to the Base Rate shall be computed on the basis of actual days elapsed and a year of 365/366 days.

 

Section 3.4 Payment
Dates.    Accrued interest under Section 3.1(a), and (b) shall be payable on the applicable
Payment Dates.    Accrued interest under Section 3.1(c) shall be payable on demand.

 

Article
IV PAYMENTS, PREPAYMENTS, REDUCTION OR TERMINATION

OF THE CREDIT AND SETOFF.

 

Section 4.1 Repayment.    Principal
of the Loan, together with all accrued and unpaid interest thereon, shall be due and payable on the Termination Date.

 

Section 4.2 Optional
Prepayments.    The Borrower may, upon at least one (1) Business Day’s (in the case of Base Rate
Advances, or three (3) Business Days’ in the case of LIBOR Advances) prior written or telephonic notice received by the
Bank, prepay the Loan, in whole or in part, at any time subject to the provisions of Section 2.6, without any other
premium or penalty.    In the event that the Loan is being refinanced, any such notice may be made contingent
upon the closing of such refinancing.    Any such prepayment must be accompanied by accrued and unpaid interest
on the amount prepaid.    Each partial prepayment shall be in an amount of $50,000 or an integral multiple
thereof.    Any prepayment of a LIBOR Advance shall be in an amount equal to the remaining entire principal
balance of such Advance.    

 

Section 4.3 [Intentionally
Omitted].

 

    	 	20	 

     

    

 

Section 4.4 Payments.    Payments
and prepayments of principal of, and interest on, the Notes and all fees, expenses and other obligations under the Loan Documents
shall be made (subject only to required withholding by the Borrower in the case of non-compliance by a Bank with the requirements
of Section 12.3(e)) without set-off or counterclaim in immediately available funds not later than 3:00 p.m., New York
time, on the dates due at the main office of the Agent in New York, New York.    Funds received on any day
after such time shall be deemed to have been received on the next Business Day.    The Agent shall promptly
distribute in like funds to each Bank its ratable share of each such payment of principal and interest.    Subject
to the definition of the term “Interest Period”, whenever any payment to be made hereunder or on the Notes shall be
stated to be due on a day which is not a Business Day, such payment shall be made on the next succeeding Business Day and such
extension of time shall be included in the computation of any interest or fees.    The Agent is authorized
to debit the operating account of the Borrower designated by the Borrower for such purpose from time to time for all payments
when due hereunder (provided that if such account shall not have sufficient available funds to pay interest when due, the Borrower
shall pay such interest in immediately available funds).

 

Section 4.5 Proration
of Payments.    If any Bank or other holder of a Term Loan shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of offset, pursuant to the Material Subsidiary Guaranties or otherwise) on account
of principal of, interest on, or fees with respect to the Loan in excess of the share of payments and other recoveries of other
Banks or holders, such Bank or other holder shall purchase from the other Banks or holders, in a manner to be specified by the
Agent, such ratable shares in the Loan held by such other Banks or holders as shall be necessary to cause such purchasing Bank
or other holder to share the excess payment or other recovery ratably with each of such other Banks or holders; provided,
however, that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing
Bank or holder, the purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest.

 

Article
V ADDITIONAL PROVISIONS RELATING TO TERM LOANS.

 

Section 5.1 Increased
Costs.    If, as a result of any change after the date hereof of any law, rule, regulation, treaty or directive
or in the interpretation or administration thereof, or compliance by the Banks with any request or directive (whether or not having
the force of law) from any court, central bank, governmental authority, agency or instrumentality, or comparable agency, including,
notwithstanding the foregoing, all requests, rules, guidelines or directives (x) in connection with the Dodd-Frank Wall Street
Reform and Consumer Protection Act or (y) promulgated by the Bank for International Settlements, Basel Committee on Banking Regulations
and Supervisory Practices (or any successor or similar authority) or the United States financial regulatory authorities, in each
case of clauses (x) and (y), regardless of the date enacted, adopted or issued:

 

(a)
any tax, duty or other charge with respect to the Loan, the Notes or the Commitments is imposed, modified or deemed applicable,
or the basis of taxation of payments to any Bank of interest or principal of such Bank’s Term Loan (other than (i) taxes
imposed on the overall net income of such Bank by the jurisdiction in which such Bank has its principal office and (ii) any U.S.
federal withholding taxes imposed under FATCA) is changed;

 

(b)
any reserve, special deposit, special assessment or similar requirement against assets of, deposits with or for the account
of, or credit extended by, any Bank, excluding any reserve or other requirement reflected in the calculation of LIBO Rate, is imposed,
modified or deemed applicable;

 

    	 	21	 

     

    

 

(c)
any increase in the amount of capital or liquidity required or expected to be maintained by any Bank or any Person controlling
such Bank is imposed, modified or deemed applicable as a consequence of this Agreement or the Term Loan made by such Bank; or

 

(d)
any other condition (other than any condition relating to taxes, duties, or other charges as set forth in clause (a)
above) affecting this Agreement or the Commitments or the Term Loans is imposed on any Bank or the relevant funding markets;

 

and such Bank determines that, by reason thereof,
the cost to such Bank of making or maintaining its Term Loan or extending its Commitment is increased, or the amount of any sum
receivable by such Bank hereunder or under the Notes in respect of such Bank’s Term Loan is reduced to a level below which
such Bank could have achieved but for such change (taking into consideration such Bank’s policies with respect to capital
adequacy);

 

then, the Borrower shall pay to such
Bank upon demand such additional amount or amounts as will compensate such Bank (or the controlling Person in the instance of (c)
above) for such additional costs or reduction (provided that the Banks have not been compensated for such additional cost or reduction
in the calculation of the Statutory Reserve Rate).    Any Bank making such demand shall inform the Borrower
of the basis for such demand, and provide a statement showing, in reasonable detail, calculation of the amount demanded.    The
Borrower will promptly notify such Bank if the Borrower does not agree to such Bank’s determination of any such amount.    Any
Bank’s reasonable determination of such amount shall be presumed correct, absent its manifest error or negligence in determining
such amounts.    In determining such amounts, the Banks may use any reasonable averaging, attribution and allocation
methods.    Notwithstanding the foregoing, no Bank shall charge the Borrower for additional amounts for such
additional costs or reductions: (i) which additional amounts applied or accrued more than 90 days prior to the time that such
Bank became aware of the event giving rise to such additional costs or reductions; or (ii) unless such Bank is generally requiring
payment under comparable provisions of its agreements with similarly situated borrowers.

 

Section 5.2 Deposits
Unavailable or Interest Rate Unascertainable or Inadequate; Impracticability.    If the Agent determines
(which determination shall be conclusive and binding on the parties hereto), or in the case of Section 5.2(b), the
Agent or the Required Banks determine, that:

 

(a)
deposits of the necessary amount for the relevant Interest Period for any LIBOR Advance are not available in the relevant
markets or that, by reason of circumstances affecting such market, adequate and reasonable means do not exist for ascertaining
the LIBO Rate for such Interest Period; or

 

(b)
that the LIBO Rate will not adequately and fairly reflect the cost to the Banks of making, maintaining or funding the LIBOR
Advance for a relevant Interest Period;

 

the Agent shall promptly give notice of such
determination to the Borrower, and (i) any notice of a new LIBOR Advance previously given by the Borrower and not yet borrowed
or converted shall be deemed to be a notice to make a Base Rate Advance, and (ii) the Borrower shall be obligated to either
prepay in full any outstanding LIBOR Advances or convert any such LIBOR Advance to a Base Rate Advance, without premium or penalty
on the last day of the current Interest Period with respect thereto.

 

    	 	22	 

     

    

 

Section 5.3 Changes
in Law Rendering LIBOR Advances Unlawful.    If at any time due to the adoption of any law, rule, regulation,
treaty or directive, or any change therein or in the interpretation or administration thereof by any court, central bank, governmental
authority, agency or instrumentality, or comparable agency charged with the interpretation or administration thereof, or for any
other reason arising subsequent to the date of this Agreement, it shall become unlawful or impossible for any Bank to make or
fund any LIBOR Advance, the obligation of such Bank to provide such Advance shall, upon the happening of such event, forthwith
be suspended for the duration of such illegality or impossibility.    If any such event shall make it unlawful
or impossible for the Bank to continue any LIBOR Advance previously made by it hereunder, such Bank shall, upon the happening
of such event, notify the Agent and the Borrower thereof in writing, and the Borrower shall, at the time notified by such Bank,
either convert each such unlawful Advance to a Base Rate Advance or repay such Advance in full, together with accrued interest
thereon, subject to the provisions of Section 2.6.

 

Section 5.4 Discretion
of the Banks as to Manner of Funding.    Notwithstanding any provision of this Agreement to the contrary,
each Bank shall be entitled to fund and maintain its funding of all or any part of the Loan in any manner it elects; it being understood,
however, that for purposes of this Agreement, all determinations hereunder shall be made as if the Banks had actually funded and
maintained each LIBOR Advance during the Interest Period for such Advance through the purchase of deposits having a term corresponding
to such Interest Period and bearing an interest rate equal to the LIBO Rate for such Interest Period (whether or not any Bank shall
have granted any participations in such Advances).

 

Article
VI CONDITIONS PRECEDENT.

 

Section 6.1 Conditions
of Closing.    This Agreement shall become effective, and shall govern the Loan to be made hereunder,
subject to the satisfaction of the conditions precedent, in addition to the applicable conditions precedent set forth in Section 6.2
below, that the Agent shall have received all of the following, in form and substance satisfactory to the Agent, each duly
executed and certified or dated as of the date of this Agreement or such other date as is satisfactory to the Agent and the following
shall have occurred:

 

(a)
The Notes (if any), duly executed by the Borrower.

 

(b)
The Material Subsidiary Guaranty, duly executed by each Material Subsidiary.

 

(c)
A certificate or certificates of the Secretary or an Assistant Secretary of the Borrower, attesting to and attaching (i) a
copy of the corporate resolution of the Borrower authorizing the execution, delivery and performance of the Loan Documents, (ii) an
incumbency certificate showing the names and titles, and bearing the signatures of, the officers of the Borrower authorized to
execute the Loan Documents, (iii) a copy of the Articles or Certificate of Incorporation of the Borrower with all amendments
thereto, and (iv) a copy of the By-Laws of the Borrower with all amendments thereto.

 

    	 	23	 

     

    

 

(d)
A certificate or certificates of the Secretary or an Assistant Secretary of the Material Subsidiaries attesting to the incumbency
of the officers of the Material Subsidiary authorized to execute the Loan Documents.

 

(e)
A Certificate of Good Standing for the Borrower and each Material Subsidiary in the jurisdiction of its incorporation, certified
by the appropriate governmental officials.

 

(f)
An opinion of counsel to the Borrower and each Material Subsidiary, addressed to the Banks, in substantially the form of
Exhibit D.

 

(g) The payment of all fees
and reimbursements payable hereunder.

 

Section 6.2 Additional
Conditions Precedent to the Loan.    The obligation of the Banks to make the Loan hereunder shall be subject
to the satisfaction or waiver of the following additional conditions precedent (and the request for the Loan shall be deemed a
representation by the Borrower that the following are satisfied):

 

(a)
Before and after giving effect to the Loan, the representations and warranties contained in Article VII shall
be true and correct in all material respects with respect to representations and warranties containing qualifications as to materiality,
and true and correct in all respects with respect to representations and warranties without qualifications as to materiality, on
and as of the date of the Loan, except to the extent such representations and warranties specifically relate to an earlier date,
in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier
date; and

 

(b)
Before and after giving effect to the Loan, no Default or Event of Default shall have occurred and be continuing.

 

Article
VII REPRESENTATIONS AND WARRANTIES.

 

To induce the Agent and
the Banks to enter into this Agreement, to grant the Commitment and to make the Loan hereunder, the Borrower represents and warrants
to the Agent and the Banks:

 

Section 7.1 Organization,
Standing, Etc.    The Borrower and each of its corporate Material Subsidiaries are corporations duly incorporated
and validly existing and in good standing under the laws of the jurisdiction of their respective incorporation and have all requisite
corporate power and authority to carry on their respective businesses as now conducted, to (in the instance of the Borrower) enter
into the Loan Documents and to perform its obligations under the Loan Documents.    The Borrower and each of
the Material Subsidiaries are duly qualified and in good standing as a foreign corporation in each jurisdiction in which the character
of the properties owned, leased or operated by it or the business conducted by it makes such qualification necessary, and failure
to so qualify or remain in good standing would constitute an Adverse Event.

 

    	 	24	 

     

    

 

Section 7.2 Authorization
and Validity.    The execution, delivery and performance by the Borrower of the Loan Documents have been
duly authorized by all necessary corporate action by the Borrower, and the Loan Documents constitute the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, subject to limitations
as to enforceability which might result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors’
rights generally and subject to limitations on the availability of equitable remedies.

 

Section 7.3 No Conflict;
No Default.    The execution, delivery and performance by the Borrower of the Loan Documents will not (a) violate
any provision of any law, statute, rule or regulation or any order, writ, judgment, injunction, decree, determination or award
of any court, governmental agency or arbitrator presently in effect having applicability to the Borrower, (b) violate or contravene
any provisions of the Articles (or Certificate) of Incorporation or by-laws of the Borrower, or (c) result in a breach
of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which the
Borrower is a party or by which it or any of its properties may be bound or result in the creation of any Lien on any asset of
the Borrower or any Material Subsidiary, which in any such case under subsection (a) or (c) would reasonably constitute an
Adverse Event.    Neither the Borrower nor any Material Subsidiary is in default under or in violation of any
such law, statute, rule or regulation, order, writ, judgment, injunction, decree, determination or award or any such indenture,
loan or credit agreement or other agreement, lease or instrument in any case in which the consequences of such default or violation
would constitute an Adverse Event.    No Default or Event of Default has occurred and is continuing.

 

Section 7.4 Government
Consent.    No order, consent, approval, license, authorization or validation of, or filing, recording
or registration with, or exemption by, any governmental or public body or authority is required on the part of the Borrower to
authorize, or is required in connection with the execution, delivery and performance of, or the legality, validity, binding effect
or enforceability of, the Loan Documents, except for such orders, consents, approvals, licenses, authorizations, validations, filings,
recordings, registrations or exemptions as have been made or obtained and are in full force and effect.

 

Section 7.5 Financial
Statements and Condition.    The Borrower’s audited consolidated financial statements as of December 31,
2014, and the Borrower’s unaudited quarterly financial statements as at September 30, 2015, as heretofore furnished to the
Banks, have been prepared in accordance with GAAP on a consistent basis (except, in the case of the unaudited quarterly financial
statements, for the absence of footnotes and for year-end audit adjustments) and fairly present in all material respects the financial
condition of the Borrower and the Subsidiaries, taken as a consolidated enterprise, as at such dates and the results of their operations
for the fiscal year then ended.    As of the dates of such consolidated financial statements, neither the Borrower
nor any Material Subsidiary had any material obligation, contingent liability, liability for taxes or long term lease obligation
which is not reflected in such consolidated financial statements or in the notes thereto.    Since December 31,
2014, no Adverse Event has occurred.

 

    	 	25	 

     

    

 

Section 7.6 Litigation
and Contingent Liabilities.    Except as described in Schedule 7.6, there are no actions,
suits or proceedings pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or any Material
Subsidiary or any of their properties before any court or arbitrator, or any governmental department, board, agency or other instrumentality
which, if determined adversely to the Borrower or such Material Subsidiary, would constitute an Adverse Event.    Except
as described in Schedule 7.6, neither the Borrower nor any Material Subsidiary has any contingent liabilities which
are material to the Borrower and the Subsidiaries as a consolidated enterprise.

 

Section 7.7 Compliance.    The
Borrower and the Material Subsidiaries are in material compliance with all statutes and governmental rules and regulations applicable
to them, except where non-compliance thereof would not constitute an Adverse Event.

 

Section 7.8 Environmental,
Health and Safety Laws.    To the best of the Borrower’s knowledge, there does not exist any violation
by the Borrower or any Material Subsidiary of any applicable federal, state or local law, rule or regulation or order of any government,
governmental department, board, agency or other instrumentality relating to environmental, pollution, health or safety matters
which would constitute an Adverse Event.    Neither the Borrower nor any Material Subsidiary has received any
notice to the effect that any part of its operations or properties is not in material compliance with any such law, rule, regulation
or order or notice that it or its property is the subject of any governmental investigation evaluating whether any remedial action
is needed to respond to any release of any toxic or hazardous waste or substance into the environment, the consequences of which
non compliance or remedial action would constitute an Adverse Event.

 

Section 7.9 ERISA.    Each
Plan complies with all material applicable requirements of ERISA and the Code and with all material applicable rulings and regulations
issued under the provisions of ERISA and the Code setting forth those requirements, except where non-compliance would not constitute
an Adverse Event.    No Reportable Event which would be an Adverse Event, has occurred and is continuing with
respect to any Plan.    As of each January 1, all of the minimum funding standards applicable to such
Plans have been satisfied, except where nonsatisfaction would not constitute an Adverse Event, and there exists no event or condition
which would permit the institution of proceedings to terminate any Plan under Section 4042 of ERISA, except for any event
or condition which would not constitute an Adverse Event.

 

Section 7.10 Regulation
U.    The Borrower is not engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) and no part of the proceeds
of the Loan will be used to purchase or carry margin stock or for any other purpose which would violate any of the margin requirements
of the Board of Governors of the Federal Reserve System.

 

Section 7.11 Ownership
of Property; Liens.    Each of the Borrower and the Material Subsidiaries has good and marketable title
to, or valid leasehold interests in or easements or other limited property interests in, its real properties necessary in the
ordinary course of its business and good and sufficient title to its other material properties, except for minor defects in title
that do not materially interfere with its ability to conduct its business and to utilize such assets for their intended purposes
and except where the failure to have such title or other property interests described above would not constitute an Adverse Event.    None
of the properties, revenues or assets of the Borrower or any of the Material Subsidiaries is subject to a Lien, except for Liens
disclosed in the consolidated financial statements referred to in Section 7.5 or permitted under Section 9.8.

 

    	 	26	 

     

    

 

Section 7.12 Taxes.    Each
of the Borrower and the Material Subsidiaries has filed all federal and material state and local tax returns required to be filed
and has paid or made provision for the payment of all taxes due and payable pursuant to such returns and pursuant to any assessments
of which it has received notice made against it or any of its property and all other taxes, fees and other charges imposed on it
or any of its property by any governmental authority (other than taxes, fees, charges or assessments the amount or validity of
which is currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with
GAAP have been provided on the books of the Borrower, and other than taxes, fees, charges or assessments with respect to which
the failure to pay would not constitute an Adverse Event).    No tax Liens have been filed and no material
claims are being asserted with respect to any such taxes, fees or charges, except for Liens or claims which would not constitute
an Adverse Event.

 

Section 7.13 Trademarks,
Patents.    Each of the Borrower and the Material Subsidiaries possesses or has the right, by way of ownership,
license or otherwise, to use all of the patents, trademarks, trade names, service marks and copyrights, and applications therefor,
and all technology, know how, processes, methods and designs used in or necessary for the conduct of its business, without known
conflict with the rights of others, except where the lack of such possession or right or where the existence of such conflict would
not constitute an Adverse Event.

 

Section 7.14 Investment
Company Act.    Neither the Borrower nor any Subsidiary is an “investment company” or a company
“controlled” by an investment company within the meaning of the Investment Company Act of 1940, as amended.

 

Section 7.15 Subsidiaries.    Schedule 7.15
sets forth as of the date of this Agreement a list of all Subsidiaries and the number and percentage of the shares of
each class of capital stock owned beneficially or of record by the Borrower or any Subsidiary therein, and the jurisdiction
of incorporation of each Subsidiary.

 

Section 7.16 Partnerships
and Joint Ventures.    Schedule 7.16 sets forth as of the date of this Agreement a list of
all partnerships or joint ventures in which the Borrower or any Subsidiary is a partner (limited or general) or joint venturer.

 

Section 7.17 Senior
Debt.    The Loan is senior unsecured Indebtedness of the Borrower, and is pari passu and of equal rank
and seniority with all senior unsecured Indebtedness of the Borrower.

 

Section 7.18 Anti-Corruption
Laws; Sanctions; Anti-Terrorism Laws.

 

(a) The Borrower, its Subsidiaries
and their respective officers and employees and to the knowledge of the Borrower its directors and agents, are in compliance with
Anti- Corruption Laws and applicable Sanctions in all material respects. None of the Borrower, any Subsidiary or to the knowledge
of the Borrower or such Subsidiary any of their respective directors, officers or employees is a Sanctioned Person. No Loan, use
of the proceeds of the Loan or other transactions contemplated hereby will violate Anti-Corruption Laws or applicable Sanctions.

 

    	 	27	 

     

    

 

(b) Neither the making of the Loan
hereunder nor the use of the proceeds thereof will violate the PATRIOT Act, the Trading with the Enemy Act, as amended, or any
of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended)
or any enabling legislation or executive order relating thereto or successor statute thereto. The Borrower and its Subsidiaries
are in compliance in all material respects with the PATRIOT Act.

 

Article
VIII AFFIRMATIVE COVENANTS.

 

From the date of this Agreement
and thereafter until the Loan and all other liabilities of the Borrower to the Banks hereunder and under the Notes (other than
in respect of contingent indemnification and expense reimbursement obligations for which no claim has been made) have been paid
in full, unless the Required Banks shall otherwise expressly agree in writing the Borrower will do, and will cause each Material
Subsidiary (except in the instance of Section 8.1) to do, all of the following:

 

Section 8.1 Financial
Statements and Reports.    Furnish to the Agent for prompt distribution to the Banks:

 

(a)
As soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, (i) the annual
audited financial statements of the Borrower and its Subsidiaries prepared on a consolidated basis and in conformity with GAAP,
consisting of at least statements of income, cash flow, and a consolidated balance sheet as at the end of such year, setting forth
in each case in comparative form corresponding figures from the previous fiscal year, certified without a “going concern”
or like qualification, or a qualification arising out of the scope of the audit, by independent certified public accountants of
recognized standing selected by the Borrower (it being agreed that the furnishing of the Borrower’s annual report on Form
10-K for such year, as filed with the Securities and Exchange Commission, will satisfy the Borrower’s obligation under this
Section 8.1(a)(i) with respect to such year except with respect to the requirement that such financial statements be reported on
without a “going concern” or like qualification, or a qualification arising out of the scope of the audit), together
with any related management letters, and (ii) schedules providing consolidating detailed balance sheet, income statement results
and statement of cash flows for Varistar Corporation and its Subsidiaries, and a statement from an Authorized Representative that
the financial statements are fairly stated in all material respects when considered in relation to the basic consolidated statements
taken as a whole.

 

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(b)
As soon as available and in any event within 45 days after the end of the first three quarters of each fiscal year, (i)
a copy of the unaudited financial statements of the Borrower and its Subsidiaries prepared on a consolidated basis and in conformity
with GAAP (except for the absence of footnotes and for year-end audit adjustments), signed by a senior financial officer of the
Borrower, consisting of at least consolidated statements of income and cash flow for the Borrower and its Subsidiaries for such
quarter and for the period from the beginning of such fiscal year to the end of such quarter, and a consolidated balance sheet
of the Borrower and its Subsidiaries as at the end of such quarter (it being agreed that the furnishing of the Borrower’s
quarterly report on Form 10-Q for such quarter, as filed with the Securities and Exchange Commission, will satisfy the Borrower’s
obligation under this Section 8.1(b)(i) with respect to such quarter), and (ii) schedules providing consolidating detailed
balance sheet, income statement results and statement of cash flows for Varistar Corporation and its Subsidiaries, and a statement
from an Authorized Representative that the financial statements are fairly stated in all material respects when considered in relation
to the basic consolidated statements taken as a whole.

 

(c)
Together with the consolidated financial statements furnished by the Borrower under Sections 8.1(a) and 8.1(b),
a Compliance Certificate signed by a senior financial officer of the Borrower, which shall confirm either that as at the date of
each such financial statement there did not exist any Default or Event of Default or, that a Default or Event of Default existed,
in which case it shall specify the nature and period of existence thereof and what action the Borrower proposes to take with respect
thereto.

 

(d)
Promptly upon becoming aware of any Default or Event of Default, a notice describing the nature thereof and what action
the Borrower proposes to take with respect thereto.

 

(e)
Promptly upon becoming aware of the occurrence, with respect to any Plan, of any Reportable Event or any “prohibited
transaction” (as defined in Section 4975 of the Code), except for any Reportable Event or “prohibited transaction”
which would not constitute an Adverse Event, a notice specifying the nature thereof and what action the Borrower proposes to take
with respect thereto, and, when received, copies of any notice from PBGC of intention to terminate or have a trustee appointed
for any Plan.

 

(f)
Promptly after the same become publicly available, copies of all financial statements, reports and proxy statements mailed
to the Borrower’s shareholders, and copies of all registration statements, periodic reports and other documents filed with
the Securities and Exchange Commission (or any successor thereto) or any national securities exchange.

 

(g)
Promptly upon becoming aware of the occurrence thereof, notice of the institution of any litigation, arbitration or governmental
proceeding, or the rendering of a judgment or decision in such litigation or proceeding, which, in each case if adversely determined,
would constitute an Adverse Event.

 

(h)
Promptly upon becoming aware of the occurrence thereof, notice of any violation as to any environmental matter by the Borrower
or any Material Subsidiary and of the commencement of any judicial or administrative proceeding relating to health, safety or environmental
matters in which such violation or an adverse determination or result in such proceeding would constitute an Adverse Event.

 

    	 	29	 

     

    

 

Documents required to be delivered
pursuant to clauses (a), (b) and (f) of this Section 8.1 may be delivered electronically and if so delivered, shall be deemed
to have been delivered on the date on which such documents are filed for public availability on the Securities and Exchange Commission’s
Electronic Data Gathering and Retrieval System or made available on the Borrower’s website.

 

(i) Promptly following request thereof,
provide such information and take such actions as are reasonably requested by the Agent or any Bank in order to assist the    Agent
and the Banks in maintaining compliance with the PATRIOT Act.

 

Section 8.2 Corporate
Existence.    Except as permitted by Sections 9.1, 9.2 and 9.4, maintain its
corporate existence in good standing under the laws of its jurisdiction of incorporation and its qualification to transact business
in each jurisdiction in which the character of the properties owned, leased or operated by it or the business conducted by it
makes such qualification necessary and failure to so qualify or remain in good standing would constitute an Adverse Event, provided,
that the Borrower may cause any Material Subsidiary to be dissolved that has substantially no assets, revenues or operations.

 

Section 8.3 Insurance.    Maintain
with financially sound and reputable insurance companies such insurance as may be required by-law and such other insurance in such
amounts and against such hazards as is customary in the case of reputable corporations engaged in the same or similar business
and similarly situated.

 

Section 8.4 Payment
of Taxes and Claims.    File all federal and material state and local tax returns and reports which are
required by-law to be filed by it and pay before they become delinquent all federal and material state and local taxes, assessments
and governmental charges and levies imposed upon it or its property; provided that the foregoing items need not be paid
if they are being contested in good faith by appropriate proceedings and adequate reserves with respect thereto have been set
aside on the Borrower’s or such Material Subsidiary’s books in accordance with GAAP or if nonpayment thereof would
not constitute an Adverse Event.

 

Section 8.5 Inspection.    Permit
any representative of the Agent to visit and inspect any of its properties, corporate books and financial records, to examine and
to make copies of its books of accounts and other financial records, and to discuss the affairs, finances and accounts of the Borrower
and the Subsidiaries with, and to be advised as to the same by, its officers at such reasonable times during normal business hours
of the Borrower and the Subsidiaries, upon reasonable advance notice to the Borrower and the Subsidiaries; provided that, so long
as no Event of Default has occurred and is continuing, the expenses of the Agent and its representatives for such visits, inspections
and examinations shall be at the expense of the Agent, but any such visits, inspections, and examinations made while any Event
of Default is continuing shall be at the expense of the Borrower.

 

Section 8.6 Maintenance
of Properties.    Maintain its properties used or useful in the conduct of its business in good condition,
repair and working order, and supplied with all necessary equipment, and make all necessary repairs, renewals, replacements, betterments
and improvements thereto, all as may be necessary so that the business carried on in connection therewith may be properly and advantageously
conducted at all times, except where the failure to do so would not constitute an Adverse Event.

 

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Section 8.7 Books and
Records.    Keep adequate and proper records and books of account in which full and correct entries will
be made of its dealings, business and affairs in a manner that permits the preparation of financial statements in accordance with
GAAP.

 

Section 8.8 Compliance.    Comply
in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards, including,
without limitation, all Anti-Corruption Laws and applicable Sanctions, to which it may be subject, except where the failure so
to comply would not constitute an Adverse Event.

 

Section 8.9 ERISA.    Maintain
each Plan in compliance with all material applicable requirements of ERISA and of the Code and with all material applicable rulings
and regulations issued under the provisions of ERISA and of the Code, including without limitation minimum funding standards, except
where the failure so to comply would not constitute an Adverse Event.

 

Section 8.10 Environmental
Matters.    Observe and comply with all laws, rules, regulations and orders of any government or government
agency relating to health, safety, pollution, hazardous materials or other environmental matters to the extent non compliance would
constitute an Adverse Event.

 

Section 8.11 Senior
Debt.    Take all actions necessary to assure that the Loan is senior unsecured Indebtedness of the Borrower,
and is and remains pari passu and of equal rank and seniority with all senior unsecured Indebtedness of the Borrower (without limiting
the obligation of the Borrower to deliver cash collateral or deposits under certain circumstances, as specifically provided herein).

 

Section 8.12 Subsidiaries.    Within
30 days after the formation or acquisition of any Subsidiary that is a Material Subsidiary, other than a Material Subsidiary that
is a Controlled Foreign Corporation or is dissolved, disposed of or merged during such 30 day period in a manner permitted under
this Agreement, the Borrower will cause such Material Subsidiary to execute and deliver a Material Subsidiary Guaranty to the
Agent for the benefit of the Banks, and provide (a) a certificate or certificates of the Secretary or an Assistant Secretary
of such Material Subsidiaries attesting to the incumbency of the officers of such Material Subsidiary authorized to execute the
Material Subsidiary Guaranty and attaching copies of the Articles or Certificate of Incorporation or By-Laws (or other governing
documents); (b) a Certificate of Good Standing for such Material Subsidiary in the jurisdiction of its incorporation, certified
by the appropriate governmental officials, and (c) at the request of the Agent, an opinion of counsel to such Material Subsidiary,
addressed to the Banks, addressing with respect to such Material Subsidiary, the matters addressed with respect to the Material
Subsidiaries in the opinion of counsel the form of Exhibit D.    At any time the Borrower determines
that a Subsidiary which has executed the Material Subsidiary Guaranty is not required to be a party to the Material Subsidiary
Guaranty under the definition of “Material Subsidiary,” including upon the addition of another Subsidiary as a Material
Subsidiary, the Borrower shall provide the Agent with written notice thereof setting forth information in reasonable detail describing
why such Subsidiary is no longer required to be a party to the Material Subsidiary Guaranty.    Upon the Agent’s
reasonable determination that such Subsidiary is no longer required to be a party to the Material Subsidiary Guaranty, the Agent
shall, at the Borrower’s expense, release such Subsidiary from the Material Subsidiary Guaranty pursuant to such documentation
as the Borrower shall reasonably request.

 

    	 	31	 

     

    

 

Section 8.13 Ratings.    The
Borrower shall use commercially reasonable efforts to obtain and maintain Long Term Debt Ratings with S&P, Moody’s and
Fitch.

 

Article
IX NEGATIVE COVENANTS.

 

From the date of this Agreement
and thereafter until the Loan and all other liabilities of the Borrower to the Banks hereunder and under the Notes (other than
in respect of contingent indemnification and expense reimbursement obligations for which no claim has been made) have been paid
in full, unless the Required Banks shall otherwise expressly agree in writing the Borrower will not, and will not permit any Material
Subsidiary to, do any of the following:

 

Section 9.1 Merger.    Merge
or consolidate or enter into an analogous reorganization or transaction with any Person; provided, however, that
(a) any Subsidiary may be merged with or liquidated into the Borrower (if the Borrower is the surviving corporation) or any
other wholly-owned Subsidiary (if such wholly-owned Subsidiary is the surviving corporation); (b) the Borrower and Material
Subsidiaries may enter into Permitted Divestitures; (c) any wholly-owned Subsidiary may merge with any other Person in order
to effect an Investment permitted pursuant to Section 9.7 so long as the continuing or surviving Person shall be a wholly-owned
Subsidiary; and (d) any non-wholly-owned Subsidiary of the Borrower may merge into another Subsidiary of the Borrower to the extent
permitted under Section 9.2(c).

 

Section 9.2 Sale of
Assets.    Sell, transfer, lease or otherwise convey all or any substantial part of its assets except for:

 

(a)
sales, subleases, leases and licensing of assets in the ordinary course of business;

 

(b)
sales or other transfers (i) by a wholly-owned Subsidiary to the Borrower or another wholly-owned Subsidiary, (ii) by a
non-wholly-owned Subsidiary of the Borrower to the Borrower or a wholly-owned Subsidiary of the Borrower and (iii) by a non-wholly-owned
Subsidiary to another non-wholly-owned Subsidiary to the extent permitted under clause (c), below;

 

(c)
Permitted Divestitures;

 

(d)
Permitted Securitization Transactions;

 

(e)
Permitted Sales and Leasebacks;

 

(f)
sales of used, obsolete, worn out or surplus property or property no longer used or useful in the conduct of its business;

 

(g)
sales of permitted cash equivalents for cash or cash equivalents;

 

(h)
synthetic leases described in subsection (h) of the definition of Interest-bearing Debt and subsection (d) of the definition
of Interest Expense;

 

    	 	32	 

     

    

 

(i)
abandonment of non-material intellectual property assets in the ordinary course of business;

 

(j)
surrender, release or waiver of contract rights in the ordinary course of business;

 

(k)
sales or other dispositions of property to the extent that such property is exchanged for credit against the purchase price
of similar replacement property or the proceeds of such sale or other disposition are promptly applied to the purchase price of
such replacement property;

 

(l)
charitable donations in the ordinary course of business and consistent with past practices; and

 

(m)
sales to or other dispositions of Investments or assets into joint ventures to the extent required by, or made pursuant
to buy/sell arrangements between the joint venture parties set forth in, joint venture arrangements and similar binding arrangements
in effect on the date hereof or pursuant to an Investment permitted by Section 9.7.

 

Section 9.3 Plans.    Permit
any condition to exist in connection with any Plan which would constitute grounds for the PBGC to institute proceedings to have
such Plan terminated or a trustee appointed to administer such Plan, or permit any Plan to terminate under any circumstances which
would cause the lien provided for in Section 4068 of ERISA to attach to any property, revenue or asset of the Borrower or
any Subsidiary.

 

Section 9.4 Ownership
of Stock.    Except as set forth on Schedule 9.4, take any action, or permit any Material Subsidiary
to take any action, which would result in a decrease in the Borrower’s or any Material Subsidiary’s ownership interest
in any Material Subsidiary (including, without limitation, decrease in the percentage of the shares of any class of stock owned),
other than as permitted under Sections 9.1 and 9.2.

 

Section 9.5 Other Agreements.    Enter
into any agreement, bond, note or other instrument with or for the benefit of any Person other than the Banks or the Agent which
would: (a) be violated or breached by the Borrower’s performance of its obligations under the Loan Documents, except
where such violation or breach would not constitute an Adverse Event, or (b) other than this Agreement or the other Loan Documents,
prohibit any Subsidiary of the Borrower from paying dividends or distributions on, or redeeming, acquiring or retiring for value,
any shares of stock or other ownership interest that the Borrower holds in such Subsidiary, except for (i) any such prohibition
that applies only when a default shall exist under such agreement or shall result from such payment, acquisition or retirement;
(ii) as to clause (b), agreements and instruments entered into in connection with Permitted Securitization Transactions; (iii)
customary prohibitions or restrictions in joint venture agreements and similar agreements that relate solely to the activities
of such joint venture; (iv) as to clause (b), customary prohibitions or restrictions contained in agreements relating to any asset
sale or disposition pending such sale or disposition, provided that such prohibitions and restrictions apply only to the
Subsidiary or its assets to be sold or disposed of and such sale or disposition is permitted hereunder; (v) as to clause (b),
restrictions and conditions imposed by any governmental authority;    (vi) as to clause (b), any such prohibition
contained in any agreement, bond, note or other instrument (or any refinancing thereof) with respect to any Person or the property
or assets of such Person acquired by the Borrower or any Subsidiary in an acquisition permitted hereunder and existing at the
time of such acquisition; provided that such prohibition is not applicable to any Person or the property or assets of any
Person other than such acquired Person or the property or assets of such acquired Person; (vii) any agreement evidencing any permitted
renewal, extension, replacement or refinancing of any agreement referred to in the foregoing clause (vi) so long as such renewal,
extension, replacement or refinancing does not expand the scope of the restrictions described in clause (b); and (viii) as to
clause (b), limitations or restrictions consisting of customary net worth, leverage or other financial covenants in each case
contained in, or required by, any contractual obligation governing Indebtedness of a Subsidiary.

 

    	 	33	 

     

    

 

Section 9.6 Restricted
Payments.    Either: (a) make any Restricted Payment, other than any dividend or distribution payable
solely in shares or other equity interests to the holders of such shares or other equity interests, if any Default or Event of
Default shall exist or shall result from the making of such Restricted Payment; or (b) directly or indirectly make any payment
on, or redeem, repurchase, defease, or make any sinking fund payment on account of, or otherwise pay, acquire or retire for value
any Indebtedness of the Borrower or any Subsidiary that is expressly subordinated in right of payment to the Loan, except for (i) regularly-scheduled
payments of interest and principal and mandatory prepayments of principal that are not otherwise prohibited by any document or
agreement stating the terms of subordination of such other Indebtedness, and (ii) refinancing of the Indebtedness of the Borrower
or a Subsidiary that is expressly subordinated in right of payment to the Loan by the incurrence of Indebtedness that is similarly
subordinated in right of payment to the Loan.

 

Section 9.7 Investments.    Acquire
for value, make, have or hold any Investments in any other Person, except:

 

(a)
Investments outstanding or contemplated on the date hereof and listed on Schedule 9.7, and any increases or
decreases in the value thereof or write-ups, write-downs, write-offs, reinvestments, renewals and extensions with respect to such
Investments;

 

(b)
loans and advances to officers and employees in the ordinary course of business;

 

(c)
Investments in readily marketable direct obligations of the United States of America having maturities of one year or less
from the date of acquisition;

 

(d)
certificates of deposit or bankers’ acceptances, each maturing within one year from the date of acquisition, issued
by any commercial bank organized under the laws of the United States or any State thereof which has (i) combined capital,
surplus and undivided profits of at least $100,000,000, and (ii) a credit rating with respect to its unsecured indebtedness
from S&P that is rated A- (or the equivalent thereof from any other nationally recognized rating service)
or higher;

 

(e)
commercial paper maturing within 270 days from the date of issuance and given the highest rating by a nationally recognized
rating service;

 

(f)
repurchase agreements relating to securities issued or guaranteed as to principal and interest by the United States of America;

 

    	 	34	 

     

    

 

(g)
cash and demand deposits with any bank or trust company;

 

(h)
money market funds substantially all the assets of which are comprised of securities of the types described in any of clauses
(c) through (f) above;

 

(i)
in the case of foreign Subsidiaries, short-term Investments comparable to clauses (c) through (h) above;

 

(j)
Investments in the nature of an indebtedness owed by the Borrower to any Subsidiary or any Subsidiary to the Borrower or
another Subsidiary in connection with cash management of the Borrower and its Subsidiaries in the ordinary course of business consistent
with past practices;

 

(k)
Investments by the Borrower or any Material Subsidiary (i) outstanding on the date hereof (or refinancings thereof) in Subsidiaries
(other than Material Subsidiaries) and (ii) in the Borrower or any Material Subsidiary;

 

(l)
Investments made after the date hereof in Subsidiaries that are not Material Subsidiaries, provided, that such Investments
in the aggregate to such Subsidiaries that are not Material Subsidiaries shall not exceed $15,000,000 in aggregate amounts outstanding
at any time (net of any repayment of loans or return of equity);

 

(m)
Investments not otherwise permitted hereunder which shall not exceed (based on total consideration paid by the Borrower
or a Material Subsidiary): (i) $40,000,000 for any single Investment or series of related Investments in any Person not engaged
in one or more of the Borrower’s and Subsidiaries’ present lines of business, or (ii) $80,000,000 for any single
Investment or series of related Investments in any Person that is engaged in one or more of the Borrower’s and Subsidiaries’
present lines of business or lines of business reasonably related to such present lines of business, provided, that not
less than 10 Business Days prior to consummation of such Investment, the Borrower shall have provided pro forma financial statements
to the Agent demonstrating that in the good faith judgment of the Borrower, the Borrower will continue to comply with the covenants
of this Agreement after giving effect to such Investment, and provided, further, that consent of the Required Banks
to such Investments in excess of such limits shall not be unreasonably withheld;

 

(n)
Investments arising out of the receipt by the Borrower or any Subsidiary of noncash consideration for the sale of assets
permitted under Section 9.2;

 

(o)
Investments consisting of hedging arrangements not otherwise prohibited hereunder relating to interest rate, commodity price
or foreign exchange rate exposure not entered into for any speculative purpose;

 

(p)
accounts receivable, notes receivable and security deposits and prepayments arising and trade credit granted in the ordinary
course of business and any prepayments and other credits to suppliers made in the ordinary course of business;

 

(q)
Investments resulting from pledges and deposits permitted by Section 9.8;

 

    	 	35	 

     

    

 

(r)
Investments in the form of Guaranties permitted by Section 9.9;

 

(s)
Investments consisting of the licensing or contribution of intellectual property pursuant to joint marketing arrangements
with other Persons;

 

(t)
Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes
with or judgments against, customers and suppliers, in each case in the ordinary course of business or Investments acquired by
the Borrower or a Material Subsidiary as a result of a foreclosure by the Borrower or any of the Material Subsidiaries with respect
to any Investments or other transfer of title with respect to any Investment in default;

 

(u)
Investments of a Material Subsidiary acquired after the date hereof or of a corporation merged into the Borrower or merged
into or consolidated with a Material Subsidiary in accordance with Section 9.1 after the date hereof to the extent that
such Investments were not made in contemplation of or in connection with such acquisition, merger or consolidation and were in
existence on the date of such acquisition, merger or consolidation;

 

(v)
Investments in the ordinary course of business consisting of Uniform Commercial Code Article 3 endorsements for collection
or deposit and Uniform Commercial Code Article 4 customary trade arrangements with customers consistent with past practices;

 

(w)
Investments by the Borrower or any Material Subsidiary, if the Borrower or any Material Subsidiary would otherwise be permitted
to make a dividend or distribution in such amount (provided that the amount of any such Investment shall also be deemed to be a
distribution under the appropriate clause of Section 9.6);

 

(x)
Investments in Otter Tail Assurance Limited, in an aggregate amount not to exceed $10,000,000 at any time outstanding;

 

(y)
Investments in joint ventures in one or more of the Borrower’s and Subsidiaries’ present lines of business in
an aggregate amount not to exceed $15,000,000 at any time outstanding; and

 

(z)
any other Investments not otherwise permitted hereunder not to exceed $15,000,000 at any time outstanding.

 

Section 9.8 Liens.    Create,
incur, assume or suffer to exist any Lien with respect to any property, revenues or assets now owned or hereafter arising or acquired,
except:

 

(a)
Liens in connection with the acquisition of property by way of purchase money mortgage and security interests, conditional
sale or other title retention agreement, Capitalized Lease or other deferred payment contract, and attaching only to the property
being acquired (or accessions to such property, related records and proceeds thereof);

 

(b)
Liens existing on assets of Material Subsidiaries acquired after the date of this Agreement, which existed at the time of
such acquisition and attach only to the assets of such Material Subsidiaries;

 

    	 	36	 

     

    

 

(c)
Liens existing on the date of this Agreement and disclosed on Schedule 9.8 hereto and Liens securing any extension,
renewal, restatement or replacement of the credit facilities described on Schedule 9.8, provided, that Liens securing such
extensions, renewals, restatements or replacement credit facilities shall not attach to materially different assets than the Liens
disclosed on such Schedule 9.8 and shall not secure indebtedness exceeding the amount of credit facilities described on
Schedule 9.8 (other than premiums, interest, fees or costs capitalized or required to be paid in connection with such extension,
renewal, restatement or replacement credit facility);

 

(d)
Deposits or pledges and other Liens to secure payment of workers’ compensation, unemployment insurance, old age pensions
or other social security obligations, and deposits securing liability to insurance carriers under insurance or self-insurance arrangements
in respect of such obligations, in each case in the ordinary course of business of the Borrower or a Subsidiary;

 

(e)
Liens of landlord’s, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s,
construction or other like Liens arising in the ordinary course of business or imposed by-law and securing obligations that are
not overdue by more than 30 days or that are being contested in good faith by appropriate proceedings and in respect of which,
if applicable, the Borrower or any Subsidiary shall have set aside on its books reserves in accordance with GAAP;

 

(f)
Deposits and other Liens to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal
bonds, performance and return of money bonds, bids, leases, government contracts, trade contracts, agreements with public utilities,
and other obligations of a like nature (including letters of credit in lieu of any such bonds or to support the issuance thereof)
incurred by the Borrower or any Material Subsidiary in the ordinary course of business, including those incurred to secure health,
safety and environmental obligations in the ordinary course of business;

 

(g)
Liens granted to secure obligations to any other holder of senior Indebtedness of the Borrower (including without limitation
obligations to insurers of bond obligations of the Borrower constituting Interest-bearing Debt), provided, that (i) such Liens
were required to be granted pursuant to agreements and instruments entered into by the Borrower prior to the date of this Agreement,
and (ii) the Agent is granted a pari passu Lien, not subordinate in priority (whether due to time of filing or otherwise)
to such Lien attaching to either (x) the same assets and rights as the Lien in favor of such other holder of senior Indebtedness
(in which case if the Agent shall so notify the Borrower, the holder of such senior Indebtedness shall enter into an inter-creditor
agreement reasonably satisfactory to the Agent confirming such respective priorities of such Liens), or (y) other assets that
are reasonably acceptable to the Required Banks in their sole discretion to secure all Indebtedness and obligations of the Borrower
hereunder, whether then existing or thereafter arising;

 

(h)
Liens of lessors of real property on which facilities owned or leased by the Borrower or any Subsidiary are located;

 

    	 	37	 

     

    

 

(i)
Liens (to the extent falling under the definition of “Lien”) consisting of ownership interests (and protective
filings respecting such ownership interests) of lessors of assets to the Borrower or any Subsidiary under any operating lease,
and of licensors of intellectual property or other rights to the Borrower or any Subsidiary;

 

(j)
Liens (to the extent falling under the definition of “Lien”) consisting of rights of lessees or sublessees
of assets of the Borrower or any Subsidiary leased in the ordinary course of the Borrower’s or such Subsidiary’s business,
which leases do not materially interfere with the ordinary course of business of the Borrower or such Subsidiary;

 

(k)
Liens in favor of customs and revenue authorities to secure payment of customs duties in connection with the importation
of goods by the Borrower or any Subsidiary in the ordinary course of business and other similar Liens arising in the ordinary course
of business of the Borrower or any Subsidiary;

 

(l)
Liens in favor of the Agent for the benefit of the Agent and the Banks under any provisions of this Agreement or any other
Loan Document or any replacement, additional or successor agreement hereto or thereto, creating such Liens;

 

(m)
Liens for taxes, assessments or other governmental charges or levies not yet delinquent or that are being contested in compliance
with Section 8.4;

 

(n)
(i) Liens securing Indebtedness incurred to pay annual premiums for property, casualty or liability insurance policies maintained
by the Borrower or any Subsidiary; provided that such Liens attach only to insurance policies and proceeds thereof, and
(ii) pledges and deposits and other Liens securing liability for reimbursement or indemnification obligations of (including obligations
in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability
insurance to the Borrower or any Subsidiary;

 

(o)
Liens created under any agreement relating to the sale, transfer or other disposition of assets permitted hereunder; provided
that such Liens relate solely to the assets to be sold, transferred or otherwise disposed of;

 

(p)
survey exceptions, encroachments, protrusions, easements, restrictions, reservations, licenses, rights-of-way, sewers, electric
lines, telegraphs and telephone lines and other similar minor title defects affecting the real property, or zoning or other restrictions
as to the use of the real property or Liens incidental to the conduct of the business of the Borrower or any Material Subsidiary
or to the ownership of its properties, in each case which were not incurred in connection with Indebtedness and which do not individually
or in the aggregate materially and adversely affect the value of said properties or materially impair their use in the operation
of the business of the Borrower or any Material Subsidiary;

 

(q)
Liens securing judgments for the payment of money not constituting an Event of Default under Section 10.1(h);

 

(r)
Liens encumbering cash collateral or other financial assets securing Investments consisting of hedging arrangements not
otherwise prohibited hereunder relating to interest rate, commodity price or foreign exchange rate exposure not entered into for
any speculative purpose;

 

    	 	38	 

     

    

 

(s)
Liens arising under or related to any statutory or common law provisions or other customary or contractual rights (i) relating
to the establishment of depository relations with banks or other financial institutions not given in connection with the issuance
of Indebtedness, including banker’s liens, rights of setoff or similar rights and remedies as to deposit or securities accounts
or other funds or instruments maintained or held with a depositary or other financial institution or securities intermediary, (ii)
relating to pooled deposit or sweep accounts of the Borrower or any Material Subsidiary to permit satisfaction of overdraft or
similar obligations incurred in the ordinary course of business of the Borrower and the Material Subsidiaries or (iii) relating
to purchase orders and other agreements entered into with customers of the Borrower or any Material Subsidiary in the ordinary
course of business;

 

(t)
Any encumbrance or restriction with respect to the equity interests of any joint venture or similar arrangement pursuant
to any joint venture or similar agreement;

 

(u)
Liens on securities that are the subject of repurchase agreements permitted by Section 9.7;

 

(v)
Liens solely on any cash earnest money deposits made by the Borrower or any Material Subsidiary in connection with any letter
of intent or purchase agreement permitted hereunder; and

 

(w)
Liens not otherwise permitted by this Section securing Indebtedness or other obligations not to exceed $15,000,000
in the aggregate at any time outstanding.

 

In no case shall Liens permitted hereunder
apply to the stock of any Subsidiary (other than Liens, if any, under clause (g)) and in no case shall Liens under clause (d),
(e), (f), (i), (j), (k), (m), (o) or (p) secure any Indebtedness for borrowed money or Indebtedness constituting obligations to
issuers of letters of credit. 

 

Section 9.9 Contingent
Liabilities.    Guaranty obligations of any other Person, except for:

 

(a)
Guaranties by the Borrower or any Material Subsidiary of obligations of the Borrower or any Subsidiary as lessee under any
lease that is not a Capitalized Lease;

 

(b)
[Intentionally omitted];

 

(c)
Guaranties by the Borrower to assure payment of workers’ compensation, unemployment insurance, old age pensions or
other social security obligations, or performance, surety, statutory, stay, customs or appeal bonds, performance and completion
guarantees, and other similar obligations, in the ordinary course of business of the Borrower or a Material Subsidiary or consistent
with past practice;

 

(d)
[Intentionally omitted];

 

    	 	39	 

     

    

 

(e)
Guaranties by the Borrower of the obligations of a Subsidiary under any Agreement involving the sale of accounts receivable
permitted by Section 9.2(d), provided, that such Guaranties shall not, in the aggregate, Guaranty receivables
sale arrangements involving account receivable sales at any time remaining outstanding in excess of $50,000,000;

 

(f)
Guaranties by the Borrower or any Subsidiary of the obligations of the Borrower or any Material Subsidiary under any unsecured
Interest-bearing Debt the incurrence of which does not cause a Default or Event of Default; and

 

(g)
Other Guaranties limited as to principal of recovery to not more than $30,000,000 in the aggregate at any time outstanding.

 

Section 9.10 Transactions
with Related Parties.    Enter into or be a party to any transaction or arrangement, including, without
limitation, the purchase, sale lease or exchange of property or the rendering of any service, with any Related Party, except upon
fair and reasonable terms no less favorable to the Borrower or such Material Subsidiary than such entity would obtain in a comparable
arm’s-length transaction with a Person not a Related Party, excluding (i) transactions between the Borrower and Otter Tail
Power Company, a Subsidiary of Otter Tail Power Company, or a Material Subsidiary and transactions between Material Subsidiaries,
(ii) transactions otherwise expressly permitted (or required) with such Related Parties under this Agreement, (iii) any issuance
of securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of, employment
arrangements, equity purchase agreements, stock options and stock ownership plans approved by the Board of Directors of the Borrower
or a Material Subsidiary, (iv) loans or advances to employees or consultants of the Borrower or any of its Subsidiaries otherwise
permitted hereunder, (v) transactions among the Borrower or any Subsidiary permitted by this Agreement, (vi) the payment of fees,
reasonable out-of-pocket costs and indemnities and provision of indemnification to directors, officers, consultants and employees
of the Borrower and the Subsidiaries in the ordinary course of business, (vii) any employment agreement, benefit plan or arrangement
or any health, disability or similar insurance plan which covers employees, entered into by the Borrower or any of the Subsidiaries
in the ordinary course of business, (viii) any subscription agreement or similar agreement pertaining to the repurchase of equity
interests pursuant to put/call rights or similar rights with employees, officers or directors, (ix) payments or loans (or cancellation
of loans) to employees or consultants that are (A) approved by a majority of the Board of Directors of the Borrower in good faith,
(B) made in compliance with applicable law and (C) otherwise permitted under this Agreement, (x) transactions with wholly-owned
Subsidiaries for the purchase or sale of goods, products, parts and services entered into in the ordinary course of business in
a manner consistent with past practice, (xi) transactions between the Borrower or any of the Subsidiaries and any person, a director
of which is also a director of the Borrower or a Material Subsidiary, provided, however, that (A) such director abstains from
voting as a director of the Borrower or a Material Subsidiary on any matter involving such other person and (B) such person is
not a Related Party for any reason other than such director’s acting in such capacity, (xii) transactions with joint ventures
for the purchase or sale of goods, equipment and services entered into in the ordinary course of business and in a manner consistent
with past practice, (xiii) intercompany transactions for the purpose of improving the consolidated tax efficiency of the Borrower
and the Subsidiaries, (xiv) payments by the Borrower and the Subsidiaries pursuant to tax sharing agreements among the Borrower
and the Subsidiaries on customary terms that require each party to make payments when such taxes are due or refunds received of
amounts equal to the income tax liabilities and refunds generated by each such party calculated on a separate return basis and
payments to the party generating tax benefits and credits of amounts equal to the value of such tax benefits and credits made
available to the group by such party, and (xv) the payment of fees, expenses, indemnities or other payments pursuant to the agreements
in existence on the date hereof and set forth on Schedule 9.10 or any amendment thereto to the extent such an amendment
is not adverse to the Banks in any material respect.

 

    	 	40	 

     

    

 

Section 9.11 Use of
Proceeds.    Permit any proceeds of the Loan to be used, either directly or indirectly, for the purpose,
whether immediate, incidental or ultimate, of “purchasing or carrying any margin stock” within the meaning of Regulation
U of the Federal Reserve Board, as amended from time to time; nor shall the Borrower use, and the Borrower shall ensure that its
Subsidiaries and its or their respective directors, officers, employees and agents shall not use, the proceeds of the    Loan
(i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of
value, to any Person in violation of any Anti-Corruption Laws or (ii) in any manner that would result in the violation of any applicable
Sanctions.

 

Section 9.12 Financial
Covenants:

 

Permit, at any time:

 

(a)
the ratio, as of the last day of any fiscal quarter of the Borrower, of (i) Interest-bearing Debt, to (ii) Total
Capitalization to be greater than 0.60 to 1.00; or

 

(b)
the Interest and Dividend Coverage Ratio for any period of four consecutive fiscal quarters to be less than 1.50 to 1.00.

 

Article
X EVENTS OF DEFAULT AND REMEDIES.

 

Section 10.1 Events
of Default.    The occurrence of any one or more of the following events shall constitute an Event of Default:

 

(a)
The Borrower shall fail to make when due, whether by acceleration or otherwise, any payment of principal of the Loan, or
the Borrower shall fail to make within three (3) Business Days after the same becomes due, any interest on the loan or any fee
or other amount required to be made to the Banks pursuant to the Loan Documents;

 

(b)
Any representation or warranty made or deemed to have been made by or on behalf of the Borrower or any Material Subsidiary
by any of the Loan Documents or by or on behalf of the Borrower or any Material Subsidiary in any certificate, statement, report
or other writing required to be furnished by or on behalf of the Borrower to the Banks pursuant to the Loan Documents shall prove
to have been false or misleading in any material respect on the date as of which the facts set forth are stated or certified or
deemed to have been stated or certified;

 

(c)
The Borrower shall fail to comply with Section 8.2 or any Section of Article IX;

 

    	 	41	 

     

    

 

(d)
The Borrower shall fail to comply with any agreement, covenant, condition, provision or term contained in the Loan Documents
(and such failure shall not constitute an Event of Default under any of the other provisions of this Section 10.1)
and such failure to comply shall continue for thirty (30) calendar days after the Borrower obtains knowledge of such non-compliance;

 

(e)
The Borrower, any Material Subsidiary or Otter Tail Power Company shall admit in writing that it is insolvent or shall generally
not pay its debts as they mature or shall apply for, shall consent to, or shall acquiesce in the appointment of a custodian, trustee
or receiver of the Borrower, any Material Subsidiary or Otter Tail Power Company or for a substantial part of the property thereof
or, in the absence of such application, consent or acquiescence, a custodian, trustee or receiver shall be appointed for the Borrower,
any Material Subsidiary or Otter Tail Power Company or for a substantial part of the property thereof and such appointment shall
not be discharged, dismissed or stayed within 60 days;

 

(f)
Any bankruptcy, reorganization, debt arrangement or other proceedings under any bankruptcy or insolvency law shall be instituted
by or against the Borrower, any Material Subsidiary or Otter Tail Power Company, and, if instituted against the Borrower, any Material
Subsidiary or Otter Tail Power Company, shall have been consented to or acquiesced in by the Borrower, such Material Subsidiary
or Otter Tail Power Company, or shall remain undischarged, undismissed, unstayed or unbonded for 60 days, or an order for relief
shall have been entered against the Borrower, such Material Subsidiary or Otter Tail Power Company, or the Borrower, any Material
Subsidiary or Otter Tail Power Company shall take any corporate action to approve institution of, or acquiescence in, such a proceeding;

 

(g)
Any dissolution or liquidation proceeding shall be instituted by or against the Borrower, any Material Subsidiary or Otter
Tail Power Company and, if instituted against the Borrower, any Material Subsidiary or Otter Tail Power Company, shall be consented
to or acquiesced in by the Borrower, any Material Subsidiary or Otter Tail Power Company or shall remain for 30 days undismissed,
undischarged, unstayed or unbonded, or the Borrower, any Material Subsidiary or Otter Tail Power Company shall consent to or acquiescence
in such a proceeding; provided that any dissolution or proceeding not prohibited by Section 9.1 or Section 9.2 shall
not constitute an Event of Default;

 

(h)
A final judgment or judgments for the payment of money in excess of the sum of $20,000,000 in the aggregate (to the extent
not covered by third-party insurance as to which the insurer has not denied coverage in respect thereof) shall be rendered against
the Borrower or a Material Subsidiary, and there is a period of 30 consecutive days during which (i) the Borrower or such Material
Subsidiary has not discharged the same or provided for its discharge in accordance with its terms, or (ii) the Borrower or such
Material Subsidiary has not procured a stay of execution, prior to any execution on such judgment or (iii) such judgment has not
otherwise been dismissed, vacated or bonded pending appeal;

 

    	 	42	 

     

    

 

(i)
The termination of any Plan by the Borrower or any ERISA Affiliate if in order to effectuate such termination, the Borrower
or any ERISA Affiliate would be required to make a contribution to such Plan, or would incur a liability or obligation to such
Plan, and the requirement to make such contribution or the incurrence of such liability or obligations shall constitute an Adverse
Event, or the termination of any such Plan by the PBGC if in order to effectuate such termination, the Borrower or any ERISA Affiliate
would be required to make a contribution to such Plan, or would incur a liability or obligation to such Plan, and the requirement
to make such contribution or the incurrence of such liability or obligations shall constitute an Adverse Event;

 

(j)
The maturity of any Indebtedness of the Borrower (other than Indebtedness under this Agreement) or a Material Subsidiary
in the aggregate in excess of $20,000,000 shall be accelerated, or the Borrower or a Material Subsidiary shall fail to pay any
such Indebtedness (in excess of such amount) when due (beyond the applicable grace period with respect thereto) or, in the case
of such Indebtedness payable on demand, when demanded (beyond the applicable grace period with respect thereto), or any other event
shall occur or condition shall exist and shall continue for more than the period of grace, if any, applicable thereto and, in each
case, such nonpayment or other event shall have the effect of causing, or permitting (any required notice having been given and
grace period having expired) the holder of any such Indebtedness (in excess of such amount) or any trustee or other Person acting
on behalf of such holder to cause, such Indebtedness to become due prior to its stated maturity; provided that this clause (j)
shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets
securing such Indebtedness if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness,
and provided further, that an Event of Default under this clause (j) caused by the occurrence of a breach or default with respect
to Indebtedness in the aggregate in excess of $20,000,000 shall be cured for purposes of this Agreement upon the Person asserting
such breach or default waiving such breach or default or upon the Borrower or a Material Subsidiary curing such breach or default
if, at the time of such waiver or such cure the Agent has not exercised any rights or remedies with respect to an Event of Default
under this clause (j);

 

(k)
Any material provision of any Loan Document shall not be, or shall cease to be, enforceable and binding in accordance with
its terms (other than as permitted hereunder or thereunder), or the Borrower or any Material Subsidiary shall disavow or contest    in
writing its obligations under such Loan Document (other than as permitted hereunder or thereunder; or

 

(l)
Either (i) the Borrower shall cease to own, directly or indirectly, all of the voting stock of Varistar Corporation, or
(ii) any person or group (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934), that owned
less than 5% of the shares of any voting class stock of the Borrower shall have acquired more than 25% of the shares of such voting
stock.

 

    	 	43	 

     

    

 

Section 10.2 Remedies.    If
(a) any Event of Default described in Sections 10.1(e), (f) or (g) shall occur and be continuing
with respect to the Borrower, the outstanding unpaid principal balance of the Loan, the accrued interest thereon and all other
obligations of the Borrower to the Banks and the Agent under the Loan Documents shall automatically become immediately due and
payable; or (b) any other Event of Default shall occur and be continuing, then the Agent may (with the consent of the Required
Banks) take any or all of the following actions (and shall take any or all of the following actions on direction of the Required
Banks): (i) declare that the outstanding unpaid principal balance of the Loan, the accrued and unpaid interest thereon and
all other obligations of the Borrower to the Banks and the Agent under the Loan Documents to be forthwith due and payable, whereupon
the Loan, all accrued and unpaid interest thereon and all such obligations shall immediately become due and payable, in each case
without demand or notice of any kind, all of which are hereby expressly waived, anything in this Agreement or in any other Loan
Document to the contrary notwithstanding, (ii) exercise all rights and remedies under any other Loan Document, and (iii) enforce
all rights and remedies under any applicable law.

 

Section 10.3 [Intentionally
Omitted].

 

Section 10.4 Setoff.    In
addition to, and without limitation of, any rights of the Banks under applicable law, if any Event of Default occurs and is continuing,
upon written direction by the Agent to such effect any and all deposits (including all account balances, whether provisional or
final and whether or not collected or available) and any other Indebtedness at any time held or owing by any Bank to or for the
credit or account of the Borrower may be offset and applied toward the payment of the Borrower Obligations then due and payable
owing to such Bank.    Each Bank agrees to promptly notify the Borrower and the Agent after any such setoff
and application made by such Bank; provided that the failure to give such notice shall not affect the validity of such setoff and
application.

 

Article
XI THE AGENT.

 

Section 11.1 Appointment
and Grant of Authority.    Each Bank hereby appoints the Agent, and the Agent hereby agrees to act, as
agent under this Agreement and the other Loan Documents.    The Agent shall have and may exercise such powers
under this Agreement and the other Loan Documents as are specifically delegated to the Agent by the terms hereof and thereof, together
with such other powers as are reasonably incidental thereto.    Each Bank hereby authorizes, consents to, and
directs the Borrower to deal with the Agent as the true and lawful agent of such Bank to the extent set forth in this Agreement
and the other Loan Documents.    The provisions of this Article are solely for the benefit of the Agent and
the Banks and neither the Borrower nor any other Person shall have rights as a third party beneficiary of any of such provisions.
It is understood and agreed that the use of the term “agent” as used herein or in any other Loan Documents (or any
similar term) with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable law.    Instead, such term is used as a matter of market custom, and
is intended to create or reflect only an administrative relationship between independent contracting parties.

 

    	 	44	 

     

    

 

Section 11.2 Non-Reliance
on Agent.        Each Bank acknowledges and agrees that the extensions of credit made
hereunder are commercial loans and not investments in a business enterprise or securities.    Each Bank agrees
that it has, independently and without reliance on the Agent or any other Bank, and based on such documents and information as
it has deemed appropriate, made its own credit analysis of the Borrower and decision to enter into this Agreement and that it will,
independently and without reliance upon the Agent, and based on such documents and information as it shall deem appropriate at
the time, continue to make its own analysis and decisions in taking or not taking action under this Agreement.    The
Agent shall not be required to keep informed as to the performance or observance by the Borrower of this Agreement and the Loan
Documents or to inspect the properties or books of the Borrower.    Except for notices, reports and other documents
and information expressly required to be furnished to the Banks by the Agent hereunder, the Agent shall not have any duty or responsibility
to provide any Bank with any credit or other information concerning the affairs, financial condition or business of the Borrower
(or any of its related companies) which may come into the Agent’s possession.

 

Section 11.3 Responsibility
of the Agent and Other Matters.

 

(a)
The Agent shall have no duties or responsibilities except those expressly set forth in this Agreement and those duties and
liabilities shall be subject to the limitations and qualifications set forth in this Section.    The duties
of the Agent shall be mechanical and administrative in nature.

 

(b)
Neither the Agent nor any of its directors, officers or employees shall be liable for any action taken or omitted (whether
or not such action taken or omitted is within or without the Agent’s responsibilities and duties expressly set forth in this
Agreement) under or in connection with this Agreement, or any other instrument or document in connection herewith, except for gross
negligence, bad faith or willful misconduct as determined in a final, non-appealable judgment in a court of competent jurisdiction.    Without
limiting the foregoing, neither the Agent nor any of its directors, officers or employees shall be responsible for, or have any
duty to examine: (i) the genuineness, execution, validity, effectiveness, enforceability, value or sufficiency of the Loan
Agreements; (ii) the collectability of any amounts owed by the Borrower; (iii) any recitals or statements or representations
or warranties in connection with this Agreement or the Notes; (iv) any    failure of any party to this
Agreement to receive any communication sent; or (v) the assets, liabilities, financial condition, results of operations, business
or creditworthiness of the Borrower.

 

(c)
The Agent shall be entitled to act, and shall be fully protected in acting upon, any communication in whatever form believed
by the Agent in good faith to be genuine and correct and to have been signed or sent or made by a proper person or persons or entity.    The
Agent may consult counsel and shall be entitled to act,    and shall be fully protected in-any action taken
in good faith, in accordance with advice given by counsel.    The Agent may employ agents and attorneys-in-fact
and shall not be liable for the default or misconduct of any such agents or attorneys-in-fact selected by the Agent with reasonable
care.    The Agent shall not be bound to ascertain or inquire as to the performance or observance of any of
the terms, provisions or conditions of this Agreement or the Notes on the Borrower’s part.

 

(d)
The Banks are not partners or co-venturers, and no Bank shall be liable for the acts or omissions of, or (except as otherwise
set forth herein in case of the Agent) authorized to act for, any other Bank.    The Agent shall have the exclusive
right on behalf of the Banks to enforce the payment of the principal of and interest on the Loan after the date such principal
or interest has become due and payable pursuant to the terms of this Agreement.

 

    	 	45	 

     

    

 

Section 11.4 Action
on Instructions.    The Agent shall be entitled to act or refrain from acting, and in all cases shall be
fully protected in acting or refraining from acting under this Agreement or the Notes or any other instrument or document in connection
herewith or therewith in accordance with instructions in writing from (i) the Required Banks except for instructions which
under the express provisions hereof must be received by the Agent from all the Banks, and (ii) in the case of such instructions,
from all the Banks.

 

Section 11.5 Indemnification.    To
the extent the Borrower does not reimburse and save the Agent harmless according to the terms hereof for and from all costs, expenses
and disbursements in connection herewith or with the other Loan Documents, such costs, expenses and disbursements to the extent
reasonable shall be borne by the Banks ratably in accordance with their Percentages and the Banks hereby agree on such basis (a) to
reimburse the Agent for all such reasonable costs, expenses and disbursements on request and (b) to indemnify and save harmless
the Agent against and from any and all losses, obligations, penalties, actions, judgments and suits and other reasonable costs,
expenses and disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Agent,
other than as a consequence of actual gross negligence, bad faith or willful misconduct on the part of the Agent as determined
by final, non-appealable judgment in a court of competent jurisdiction, arising out of or in connection with this Agreement or
the Notes or any instrument or document in connection herewith or therewith, or any request of the Banks,
including without limitation the reasonable and documented costs, expenses and disbursements in connection with defending itself
against any claim or liability, or answering any subpoena, related to the exercise or performance of any of its powers or duties
under this Agreement or the other Loan Documents or the taking of any action under or in connection with this Agreement or the
Notes.

 

Section 11.6 JPMorgan
and Affiliates.    With respect to JPMorgan’s Commitment and any Loan by JPMorgan under this Agreement
and any Note and any interest of JPMorgan in any Note, JPMorgan shall have the same rights, powers and duties under this Agreement
and such Note as any other Bank and may exercise the same as though it were not the Agent.    JPMorgan and
its affiliates may accept deposits from, lend money to, and generally engage, and continue to engage, in any
kind of business with the Borrower as if JPMorgan were not the Agent.

 

Section 11.7 Notice
to Holder of Notes.    The Agent may deem and treat the payees of the Notes as the owners thereof for all
purposes unless a written notice of assignment, negotiation or transfer thereof has been filed with the Agent.    Any
request, authority or consent of any holder of any Note shall be conclusive and binding on any subsequent holder, transferee or
assignee of such Note.

 

Section 11.8 Successor
Agent.    The Agent may resign at any time by giving at least 30 days written notice thereof to the Banks
and the Borrower, with the effectiveness of such resignation subject to the appointment and acceptance of a successor Agent.    Upon
any such resignation, the Required Banks shall have the right to appoint a successor Agent (subject to the Borrower’s approval,
such approval not to be unreasonably withheld or delayed).    If no successor Agent shall have been appointed
by the Required Banks and shall have accepted such appointment within 30 days after the retiring Agent’s giving notice of
resignation, then the retiring Agent may, but shall not be required to, on behalf of the Banks, appoint a successor Agent with
a combined capital and surplus of at least $500,000,000 (or an affiliate of any such bank).

 

    	 	46	 

     

    

 

Article
XII MISCELLANEOUS.

 

Section 12.1 No Waiver
and Amendment.    No failure on the part of the Banks or the holder of the Notes to exercise and no delay
in exercising any power or right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single
or partial exercise of any power or right preclude any other or further exercise thereof or the exercise of any other power or
right.    The remedies herein and in any other instrument, document or agreement delivered or to be delivered
to the Banks hereunder or in connection herewith are cumulative and not exclusive of any remedies provided by-law.    No
notice to or demand on the Borrower not required hereunder or under the Notes shall in any event entitle the Borrower to any other
or further notice or demand in similar or other circumstances or constitute a waiver of the right of the Banks or the holder of
the Notes to any other or further action in any circumstances without notice or demand.

 

Section 12.2 Amendments,
Etc.    No amendment or waiver of any provision of this Agreement, nor consent to any departure by the
Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Borrower and the Agent
upon direction of the Required Banks (subject to Section 2.11 with respect to any Defaulting Bank) and then such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which given; provided that Agent
may, with the consent of Borrower only, amend, modify or supplement this Agreement to cure any ambiguity, omission, defect or
inconsistency, so long as such amendment, modification or supplement does not materially and adversely affect the rights of any
Bank; provided further, however, that no amendment, waiver or consent shall, unless agreed to by the
Agent and each of the Banks directly affected thereby (subject to Section 2.11 with respect to any Defaulting Bank):

 

(a)
increase the amounts of or extend the terms of the Commitment of such Bank (it being understood that a waiver or modification
of any condition precedent, covenant, Default, Event of Default, mandatory prepayment or mandatory reduction of the Commitment
shall not constitute an extension or increase of any Commitment of any Bank);

 

(b)
decrease or forgive the principal of, or decrease the rate of interest on, the Term Loan of such Bank, or decrease any fees
or other amounts payable hereunder to such Bank;

 

(c)
postpone any date fixed for any payment of principal of, or interest on, the Term Loan of such Bank, or any fees or other
amounts payable hereunder to such Bank;

 

(d)
release all or substantially all of the Material Subsidiaries from the Material Subsidiary Guaranty (except pursuant to
a transaction or series of transactions permitted by Section 8.12, 9.1 or 9.2) or release all or substantially
all of the collateral held subject to Section 10.3, except as contemplated by such Section; or

 

(e)
reduce the percentage in the definition of Required Banks or amend this Section 12.2.

 

    	 	47	 

     

    

 

provided, further that amendments,
waivers or consents adversely affecting the rights of the Agent shall also require the consent of the Agent.    Notwithstanding
the foregoing provisions of this Section 12.2, with the agreement and consents of the Persons referred to therein, and without
the necessity of obtaining the approval of any other Banks hereunder, amendments may be entered into as provided in Section
2.9.

 

Section 12.3 Assignments
and Participations.

 

(a)
Assignments.    Each Bank shall have the right, subject to the further provisions of this Sections 12.3,
to sell or assign all or any part of its Term Loan, Note, and other rights and obligations under this Agreement and related documents
(such transfer, an “Assignment”) to any commercial lender, other financial institution or other entity other
Ineligible Institutions (an “Assignee”).    Upon such Assignment becoming effective as provided
in Section 12.3(b), the assigning Bank shall be relieved from the portion of its Commitment, obligations to indemnify
the Agent and other obligations hereunder to the extent assumed and undertaken by the Assignee, and to such extent the Assignee
shall have the rights and obligations of a “Bank” hereunder.    Notwithstanding the foregoing,
unless otherwise consented to by the Borrower and the Agent, each Assignment shall be in the initial principal amount of not less
than $10,000,000 in the aggregate for the Term Loan assigned, or an integral multiple of $1,000,000 if above such amount.    Each
Assignment shall be documented by an agreement between the assigning Bank and the Assignee (an “Assignment and Assumption
Agreement”) substantially in the form of Exhibit E attached hereto.

 

(b)
Effectiveness of Assignments.    An Assignment shall become effective hereunder when all of the
following shall have occurred: (i) the Agent and the Borrower (or, following occurrence and during continuance of an Event
of Default, the Agent only and not the Borrower; provided that the Borrower shall be deemed to have consented to any such assignment
unless it shall object thereto by written notice to the Agent within five (5) Business Days after having received notice thereof)
shall consent to such Assignment (which consents shall not be unreasonably withheld), by either written notice of such consent
or by executing and delivering    such Assignments, provided that no such consents shall be required for an
assignment to one of the Banks or an affiliate of a Bank or an Approved Fund, (ii) either the assigning Bank or the Assignee
shall have paid a processing fee of $3,500 to the Agent for its own account (unless waived by the Agent), (iii) the Assignee
shall have submitted the Assignment and Assumption Agreement to the Agent with a copy for the Borrower, and shall have provided
to the Agent information the Agent shall have reasonably requested to make payments to the Assignee, (iv) the assigning Bank
and the Agent shall have agreed upon a date upon which the Assignment shall become effective, and (v) the Agent shall have recorded
such Assignment in the Register (the Agent, acting for this purpose as a non-fiduciary agent of the Borrower, shall maintain at
one of its offices a copy of each Assignment and Assumption Agreement delivered to it and a register for the recordation of the
names and addresses of the Banks, and the Commitment of, and principal amount (and stated interest) of the Loan owing to, each
Bank pursuant to the terms hereof from time to time; the entries in the Register shall be conclusive, and the Borrower, the Agent
and the Banks shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Bank hereunder for
all purposes of this Agreement, notwithstanding notice to the contrary;    the Register shall be available
for inspection by the Borrower and any Bank, at any reasonable time and from time to time upon reasonable prior notice); provided
that assignments pursuant to Section 2.12 shall not require the signature or agreement of the assigning Bank to become effective,
and any processing fee in connection with such assignments may be paid by the Borrower.    Upon the Assignment
becoming effective, (x) if requested by the assigning Bank, the Agent and the Borrower shall make appropriate arrangements
so that new Notes are issued to the assigning Bank and the Assignee; and (y) the Agent shall forward all payments of interest,
principal, fees and other amounts that would have been made to the assigning Bank, in proportion to the percentage of the assigning
Bank’s rights transferred, to the Assignee.    Any assignment or transfer by a Bank of rights or obligations
under this Agreement that does not comply with clauses 12.3(a) and (b) shall be treated for purposes of this Agreement as a sale
by such Bank of a participation in such rights and obligations in accordance with Section 12.3(c).

 

    	 	48	 

     

    

 

(c)
Participations.    Each Bank shall have the right, subject to the further provisions of this
Section 12.3, to grant or sell a participation in all or any part of its Term Loan, Notes and Commitments (a “Participation”)
to any commercial lender, other financial institution or other entity (a “Participant”) without the consent
of the Borrower, the Agent of any other party hereto.    The Borrower agrees that if amounts outstanding under
this agreement and the Notes are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence
and during the continuance of an Event of Default, each Participant shall be deemed to have the right of setoff in respect of its
Participation in amounts owing under this Agreement and any Note to the same extent as if the amount of its Participation were
owing directly to it as a Bank under this Agreement or any Note; provided, that such right of setoff shall be subject to the obligation
of such Participant to share with the Banks, and the Banks agree to share with such Participant, as provided in Section 4.5.    The
Borrower also agrees that each Participant shall be entitled to the benefits of Article V with respect to its Participation,
provided, that no Participant shall be entitled to receive any greater amount pursuant to such Sections than the transferor
Bank would have been entitled to receive in respect of the amount of the Participation transferred by such transferor Bank to such
Participant had no such transfer occurred. Each Bank that sells a participation shall, acting solely for this purpose as a non-fiduciary
agent of the Borrower, 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 Loan or other obligations under the Loan Documents (the “Participant
Register”); provided that no Bank shall have any obligation to disclose all or any portion of the Participant
Register (including the identity of any Participant or any information relating to a Participant’s interest in any Commitments,
Loan or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to
establish that such Commitment, Loan or other obligation is in registered form under Section 5f.103-1(c) of the United States
Treasury Regulations.

 

    	 	49	 

     

    

 

(d)
Limitation of Rights of any Assignee or Participant.    Notwithstanding anything in the foregoing
to the contrary, except in the instance of an Assignment that has become effective as provided in Section 12.3(b),
(i) no Assignee or Participant shall have any direct rights hereunder, (ii) the Borrower, the Agent and the Banks other
than the assigning or selling Bank shall deal solely with the assigning or selling Bank and shall not be obligated to extend any
rights or make any payment to, or seek any consent of, the Assignee or Participant, (iii) no Assignment or Participation shall
relieve the assigning or selling Bank from its Commitment to make its Term Loan hereunder or any of its other obligations hereunder
and such Bank shall remain solely responsible for the performance hereof, the (iv) no Assignee or Participant, other than
an affiliate of the assigning or selling Bank, shall be entitled to require such Bank to take or omit to take any action hereunder,
except that such Bank may agree with such Assignee or Participant that such Bank will not, without such Assignee’s or Participant’s
consent, take any action which would, in the case of any principal, interest or fee in which the Assignee or Participant has an
ownership or beneficial interest: (x) extend the final maturity of the Loan or extend the Termination Date, (y) reduce
the interest rate on the Loan, or (z) forgive any principal of, or interest on, the Loan or any fees.

 

(e)
Tax Matters. No Bank shall be permitted to enter into any Assignment or Participation with any Assignee or Participant
who (i) is not a United States Person or (ii) is a United States Person that the Borrower may not treat as an “exempt
recipient” within the meaning of Treasury Regulations Section 1.6049-4(c) based on the indicators set forth therein,
unless such Assignee or Participant represents and warrants to such Bank, the Agent and the Borrower that, as at the date of such
Assignment or Participation, it is entitled to receive interest payments without withholding or deduction of any taxes and such
Assignee or Participant executes and delivers to such Bank on or before the date of execution and delivery of documentation of
such Participation or Assignment, a United States Internal Revenue Service Form W-8BEN, W-8BEN-E, W-8ECI, W-8IMY and/or W-9 or
any successor to any of such forms, as appropriate, properly completed and claiming complete exemption from withholding and deduction
of all Federal Income Taxes.    In addition, if a payment made to an Assignee or Participant under any Loan
Document would be subject to U.S. federal withholding tax imposed by FATCA if such Assignee or Participant were to fail to comply
with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable),
such Assignee or Participant shall deliver to the Borrower and the Agent at the time or times prescribed by law and at such time
or times reasonably requested by the Borrower or the Agent such documentation prescribed by applicable law (including as prescribed
by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Agent as
may be necessary for the Borrower and the Agent to comply with their obligations under FATCA and to determine that such Assignee
or Participant has complied with such Assignee’s or Participant’s obligations under FATCA or to determine the amount
to deduct and withhold from such payment.

 

(f)
Information.    Each Bank may furnish any information concerning the Borrower in the possession
of such Bank from time to time to Assignees and Participants and potential Assignees and Participants, so long as such entities
agree in writing to keep such information confidential in accordance with Section 12.17.

 

    	 	50	 

     

    

 

(g)
Federal Reserve Bank.    Nothing herein stated shall limit the right of any Bank to assign a
security interest in all or any portion of its rights herein and in any Note to secure obligations of such Bank, including any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such assignment of a security interest shall
release a Bank from any of its obligations hereunder or substitute any such assignee for such Bank as a party hereto.

 

Section 12.4 Costs,
Expenses and Taxes; Indemnification.

 

(a)
The Borrower agrees, whether or not any Advance is made hereunder, to pay promptly on written demand: (i) all reasonable
and documented out-of-pocket costs and expenses of the Agent (including the reasonable fees and expenses of one counsel to the
Agent and Banks taken as a whole) incurred in connection with the preparation, execution and delivery of the Loan Documents and
the preparation, negotiation and execution of any and all amendments to each thereof, and (ii) all reasonable and documented
out-of-pocket costs and expenses of the Agent and each of the Banks incurred after the occurrence and during the continuance of
an Event of Default in connection with the enforcement of the Loan Documents.    The Borrower agrees to pay,
and save the Banks harmless from all liability for, any stamp or other taxes which may be payable with respect to the execution
or delivery of the Loan Documents.    The Borrower agrees to indemnify and hold the Banks harmless from any
loss or expense which may arise or be created by the acceptance in good faith by the Agent of telephonic or other instructions
for making Advances or disbursing the proceeds thereof, except to the extent resulting from the gross negligence or willful misconduct
as determined in a final, non-appealable judgment by a court of competent jurisdiction.

 

(b)
The Borrower agrees to defend, protect, indemnify, and hold harmless the Agent and each and all of the Banks, each of their
respective affiliates and each of the respective officers, directors, employees and agents of each of the foregoing (each an “Indemnified
Person” and, collectively, the “Indemnified Persons”) from and against any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever
(including, without limitation, the reasonable fees and disbursements of counsel to such Indemnified Persons) in connection with
any investigative, administrative or judicial proceeding, whether direct, indirect or consequential and whether based on any federal
or state laws or other statutory regulations, including, without limitation, securities and commercial laws and regulations, under
common law or at equitable cause, or on contract or otherwise, arising out of or in connection with the Commitment, the making
of, management of and participation in the Advances or the use or intended use of the proceeds of the Advances, provided that the
Borrower shall have no obligation under this Section 12.4(b) to an Indemnified Person with respect to any of the foregoing
to the extent resulting from the gross negligence, bad faith or willful misconduct of such Indemnified Person or arising solely
from claims between one such Indemnified Person and another such Indemnified Person, in each case, as determined in a final, non-appealable
judgment by a court of competent jurisdiction.    The indemnity set forth herein shall be in addition to any
other obligations or liabilities of the Borrower to each Indemnified Person under the Loan Documents or at common law or otherwise.    To
the extent permitted by applicable law, any Person seeking to be indemnified under this Section 12.4(b) shall, upon obtaining
knowledge thereof, use commercially reasonable efforts to give prompt written notice to the Borrower of the commencement of any
action or proceeding giving rise to such indemnification claim, provided that the failure to give such notice shall not relieve
the Borrower of any indemnification obligations hereunder.

 

    	 	51	 

     

    

 

(c)
To the extent permitted by applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnified
Person for any damages arising from the use by others of information or other materials obtained through telecommunications, electronic
or other information transmission systems (including the Internet).    To the extent permitted by applicable
law, except in the case of the Borrower, to the extent otherwise subject to indemnification pursuant to clause (b) alone, neither
the Borrower, the Agent nor any Bank shall assert, and each hereby waives, any claim against any other party hereto for any damages on
any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the Transactions, any Loan or the use of the proceeds thereof.    

 

(d)
The obligations of the Borrower under this Section 12.4 shall survive any termination of this Agreement.

 

Section 12.5 Notices.

 

(a)
Except when telephonic or electronic notice is expressly authorized by this Agreement, any notice or other communication
to any party in connection with this Agreement shall be in writing and shall be sent by manual delivery, facsimile transmission,
overnight courier or United States mail (postage prepaid) addressed to such party at the address specified on the signature page
hereof, or at such other address as such party shall have specified to the other party hereto in writing.    All
periods of notice shall be measured from the date of delivery thereof if manually delivered, from the date of sending thereof if
sent by facsimile transmission, from the first Business Day after the date of sending if sent by overnight courier, or from four
days after the date of mailing if mailed; provided, however, that any notice to the Agent under Article II
shall be deemed to have been given only when received by the Agent.

 

(b)
Financial statements, reports and letters under Section 8.1(a), (b), (c), (f), (g) and (h) and other ordinary course
requests or communications by the Borrower to the Agent may be sent by the Borrower to the Agent by e-mail, and may be distributed
by the Agent to the Bank by similar means or by posting to DebtX, or other coded commercial service selected for such purpose by
the Agent.

 

Section 12.6 [Intentionally
Omitted].    

 

Section 12.7 Severability.    Any
provision of the Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity
or enforceability of such provision in any other jurisdiction.

 

    	 	52	 

     

    

 

Section 12.8 Subsidiary
References.    The provisions of this Agreement relating to Subsidiaries shall apply only during such times
as the Borrower has one or more Subsidiaries.

 

Section 12.9 Captions.    The
captions or headings herein and any table of contents hereto are for convenience only and in no way define, limit or describe the
scope or intent of any provision of this Agreement.

 

Section 12.10 Entire
Agreement.    The Loan Documents embody the entire agreement and understanding between the Borrower, the
Banks and the Agent with respect to the subject matter hereof and thereof.    This Agreement supersedes all
prior agreements and understandings relating to the subject matter hereof.

 

Section 12.11 Counterparts.    This
Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument,
and either of the parties hereto may execute this Agreement by signing any such counterpart.    Delivery of
an executed counterpart to this Agreement by facsimile transmission or in PDF or other electronic format shall be as effective
as delivery of a manually signed original.    The words “execution,” “signed,” “signature,”
“delivery,” and words of like import in or relating to any document to be signed in connection
with this Agreement and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the
keeping of records in electronic form, 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, to the extent
and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the
New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions
Act.

 

Section 12.12 Governing
Law.    THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS AGREEMENT AND THE NOTES SHALL BE GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT
TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS.

 

Section 12.13 Consent
to Jurisdiction.    THIS AGREEMENT AND THE NOTES MAY BE ENFORCED IN ANY FEDERAL COURT SITTING IN MINNESOTA;
AND EACH PARTY HERETO CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS
IS NOT CONVENIENT.    IN THE EVENT ANY PARTY HERETO COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER
ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT, ANY OTHER PARTY TO
SUCH ACTION AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE DESCRIBED,
OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

 

    	 	53	 

     

    

 

Section 12.14 Waiver
of Jury Trial.    THE BORROWER, THE BANKS AND THE AGENT EACH WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS AGREEMENT OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT
OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR (b) ARISING FROM ANY BANKING RELATIONSHIP
EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT
BEFORE A JURY.

 

Section 12.15 Customer
Identification - USA PATRIOT Act Notice.    Each Bank (for itself and not on behalf of any other party)
hereby notifies the Borrower 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 Borrower, which information includes the name and address of the Borrower and other information that will allow such Bank,
as applicable, to identify the Borrower in accordance with the Act.

 

Section 12.16 OFAC
and Asset Control Regulations.    The Borrower shall (a) ensure, and cause each Subsidiary to ensure,
that no Person who owns a controlling interest in or otherwise controls the Borrower or any Subsidiary is or shall be listed on
the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control
(“OFAC”), the Department of the Treasury, or included in any Executive Orders, and (b) not use or permit
the use of the proceeds of the Loan to violate any of the foreign asset control regulations of OFAC or any enabling statute or
Executive Order relating thereto.

 

Section 12.17 Confidentiality.    Each
of the Banks and the Agent agrees that it shall maintain in confidence any information relating to the Borrower and its Subsidiaries
and their respective businesses furnished to it by or on behalf of the Borrower or any of its Subsidiaries and shall not reveal
the same except: (a) to its and its affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such information and instructed to keep such information confidential), (b) to the extent requested by any governmental
authority (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement,
(e) in connection with the exercise of any remedies under this Agreement or any other Loan Document or any suit, action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to a written
agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or
any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations,
(g) on a confidential basis to any rating agency in connection with rating the Borrower or its Subsidiaries or the credit facilities
provided for herein, (h) with the consent of the Borrower and (i) to the extent such information (i) becomes publicly available
other than as a result of a breach of this Section 12.17 or (ii) becomes available to the Agent or any Bank on a nonconfidential
basis from a source other than the Borrower.    Notwithstanding the foregoing, at any time after the fifth
Business Day following the date of this Agreement, the Agent and the Banks may disclose customary limited information pertaining
to this Agreement routinely provided by arrangers to data service providers (which information would include borrower name, facility
amount, closing and maturity date and agent and arranger titles), including league table providers, that serve the lending industry;
provided that, in the case of information received from the Borrower after the date hereof, such information is clearly
identified at the time of delivery as confidential.    Any Person required to maintain the confidentiality
of information as provided in this Section shall be considered to have complied with its obligation to do so if such Person
has exercised the same degree of care to maintain the confidentiality of such information as such Person would accord to its own
confidential information.

 

    	 	54	 

     

    

 

EACH BANK ACKNOWLEDGES
THAT INFORMATION AS DEFINED IN THE IMMEDIATELY PRECEDING PARAGRAPH FURNISHED TO IT PURSUANT TO THIS AGREEMENT MAY INCLUDE MATERIAL
NON-PUBLIC INFORMATION CONCERNING THE BORROWER AND    ITS RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND
CONFIRMS THAT IT HAS DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT WILL HANDLE
SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE LAW, INCLUDING FEDERAL AND STATE SECURITIES
LAWS.

 

ALL INFORMATION, INCLUDING
REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWER OR THE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS
AGREEMENT WILL BE SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE BORROWER, AND ITS RELATED
PARTIES OR THEIR RESPECTIVE SECURITIES.    ACCORDINGLY, EACH BANK REPRESENTS TO THE BORROWER AND THE AGENT
THAT IT HAS IDENTIFIED IN ITS ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW.

 

Section 12.18 Interest
Rate Limitation.    Notwithstanding anything herein to the contrary, if at any time the interest rate
applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable
law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”)
which may be contracted for, charged, taken, received or reserved by the Bank holding such Loan in accordance with applicable
law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall
be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of
such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges payable
to such Bank in respect of other Loan or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received
by such Bank.

 

    	 	55	 

     

    

 

Section 12.19 No Advisory
or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Loan Document), the Borrower acknowledges and agrees that:    (i) (A) the
arranging and other services regarding this Agreement provided by the Banks are arm’s-length commercial transactions between
the Borrower and its Affiliates, on the one hand, and the Banks and their Affiliates, on the other hand, (B) the Borrower
has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate, and (C) the
Borrower is capable of evaluating, and understands and accepts, the terms, risks and conditions of the transactions contemplated
hereby and by the other Loan Documents; (ii) (A) each of the Banks and their Affiliates is and has been acting solely
as a principal and, except as expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting
as an advisor, agent or fiduciary for the Borrower or any of its Affiliates, or any other Person and (B) no Bank or any of
its Affiliates has any obligation to the Borrower or any of its Affiliates with respect to the transactions contemplated hereby
except, in the case of a Bank, those obligations expressly set forth herein and in the other Loan Documents; and (iii) each
of the Banks and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ
from those of the Borrower and its Affiliates, and no Bank or any of its Affiliates has any obligation to disclose any of such
interests to the Borrower or its Affiliates.    To the fullest extent permitted by law, the Borrower hereby
waives and releases any claims that it may have against each of the Banks and their Affiliates with respect to any breach or alleged
breach of agency or fiduciary duty in connection with any aspect of any transaction contemplated hereby.

 

(signature pages follow)

 

    	 	56	 

     

    

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed as of the date first above.

 

	 	OTTER TAIL CORPORATION
	 	 	 
	 	By:	/s/ Kevin Moug
	 	Title:    Chief Financial Officer
	 	 
	 	4334 18th Avenue South
	 	Suite 200
	 	Fargo, North Dakota 58103
	 	Attention:      Mr. Kevin G. Moug
	 	Chief Financial Officer
	 	Telephone:    (701) 451-3562
	 	Fax:    (701) 232-4108

 

Signature Page to
Otter Tail Term Loan Agreement

 

    	 	57	 

     

    

 

	 	JPMORGAN CHASE BANK, N.A.,
	 	as Agent and a Bank
	 	 	 
	 	By:	/s/ Justin Martin
	 	Name:	Justin Martin
	 	Title:	Authorized Officer

 

Signature Page to
Otter Tail Term Loan Agreement

 

    	 	58	 

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION, as a Bank
	 	 	 
	 	By:	/s/ Jacquelyn Ness
	 	Name:	Jacquelyn Ness
	 	Title:	Vice President

 

Signature Page to
Otter Tail Term Loan Agreement

 

    	 	59	 

     

    

 

	 	BANK OF AMERICA, N.A., as a Bank
	 	 	 
	 	By:	/s/ Casey Klepsch
	 	Name:	Casey Klepsch
	 	Title:	Assistant Vice President

 

Signature Page to Otter Tail Term Loan Agreement

 

    	 	60	 

     

    

 

	EXHIBITS
	 	 
	Exhibit	Contents
	 	 
	A	Form of Note
	 	 
	B	Compliance Certificate
	 	 
	C	Material Subsidiary Guaranty
	 	 
	D	Form of Legal Opinion
	 	 
	E	Assignment and Assumption
	 	 
	 	 
	Schedules 	 
	 	 
	1.1(a)	Commitments and Percentages
	 	 
	1.1(b)	Material Subsidiaries
	 	 
	7.15	Subsidiaries (Section 7.15)
	 	 
	7.16	Partnerships/Joint Ventures (Section 7.16)
	 	 
	9.4	Exceptions to Ownership of Material Subsidiaries (Section 9.4)
	 	 
	9.7	Investments (Section 9.7)
	 	 
	9.8	Existing Liens (Sections 7.11 and 9.8)
	 	 
	9.10	Certain Transactions with Related Parties (Section 9.10)

 

    	 	61	 

     

    

 

EXHIBIT A

 

FORM OF PROMISSORY NOTE

 

	$[Commitment]	 [_______], 20[__]

 

FOR VALUE RECEIVED, the
undersigned OTTER TAIL CORPORATION, a Minnesota corporation (the “Borrower”), promises to pay to the order of [BANK]
(the “Bank”), on the Termination Date, or other due date or dates determined under the Term Loan Agreement hereinafter
referred to, the principal sum of                                            DOLLARS
($[Commitment]), or if less, the then aggregate unpaid principal amount of the Loan (as such terms are defined in the Term Loan
Agreement) as may be borrowed by the Borrower from the Bank under the Term Loan Agreement.    All Loan and
all payments of principal shall be recorded by the holder in its records which records shall be conclusive evidence of the subject
matter thereof, absent manifest error.

 

The Borrower further promises
to pay to the order of the Bank interest on the aggregate unpaid principal amount hereof from time to time outstanding from the
date hereof until paid in full at the rates per annum which shall be determined in accordance with the provisions of the Term Loan
Agreement.    Accrued interest shall be payable on the dates specified in the Term Loan Agreement.

 

All payments of principal
and interest under this Promissory Note (this “Note”) shall be made in lawful money of the United States of America
in immediately available funds at the office of JPMorgan Chase Bank, N.A., at 10 South Dearborn Street, Chicago, Illinois 60603,
or at such other place as may be designated by the Agent to the Borrower in writing.

 

This Note is the Note referred
to in, and evidences indebtedness incurred under, the Term Loan Agreement dated as of February 5, 2016 (herein, as it may be amended,
modified or supplemented from time to time, called the “Term Loan Agreement”) among the Borrower, the Banks, as defined
therein (including the Bank) and JPMorgan Chase Bank, N.A., as Agent, to which Term Loan Agreement reference is made for a statement
of the terms and provisions thereof, including those under which the Borrower is permitted and required to make prepayments and
repayments of principal of such indebtedness and under which such indebtedness may be declared to be immediately due and payable.

 

All parties hereto, whether
as makers, endorsers or otherwise, severally waive presentment, demand, protest and notice of dishonor in connection with this
Note.

 

This Note is made under
and governed by the internal laws of the State of Minnesota.

 

	 	OTTER TAIL CORPORATION
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

    	 	62	 

     

    

 

EXHIBIT B

 

Compliance Certificate

 

_________, 20__

JPMorgan Chase Bank, N.A.

10 South Dearborn

Chicago, Illinois 60603

Attention: Justin Martin

Telephone: 312-732-4441

Fax: 312-732-1762

Ladies/Gentlemen:

 

Reference is made to that
certain Term Loan Agreement, dated as of February 5, 2016 (as amended from time to time, the “Term Loan Agreement”),
among OTTER TAIL CORPORATION (the “Borrower”), the Banks named therein and JPMORGAN CHASE BANK, N.A., as Agent (the
“Agent”).    Terms not otherwise expressly defined herein shall have the meanings set forth in
the Term Loan Agreement.

 

As required pursuant to
Section 8.1(c) of the Term Loan Agreement, the Borrower hereby certifies that as of _____________, 20__, the following is
true, correct and accurate in all respects:

 

1.    The
consolidated financial statements submitted herewith or as most recently filed with the Securities Exchange Commission are fairly
presented in all material respects.

 

2.    No
Default and no Event of Default, has occurred and is continuing.

 

3.    Covenant
compliance is demonstrated as follows (include 9.14 or 9.15 as applicable):

 

Section 9.12    Financial
Covenants.

 

(a) Interest-bearing
Debt to Total Capitalization.

 

	Interest-bearing Debt:	$__________
	to:	 
	 	 
	Total Capitalization:	$__________
	 	 	 

 

(Required: not greater than 0.60
to 1.00).

 

    	 	63	 

     

    

 

(b) Interest and
Dividend Coverage Ratio.    For the four-quarter period ending on the date of the enclosed consolidated
financial statements:

 

	EBIT:	$__________
	 	 
	to:	 
	 	 
	sum of	 
	Interest Expense:	$_______
	Dividends on Preferred Stock:	$_______
	$___________	 
	 	 
	Ratio:    ___ to 1.00	 

 

(Required: not less than 1.50
to 1.00).

 

    	 	64	 

     

    

 

EXHIBIT C

 

GUARANTY

(Joint and Several)

 

FOR VALUE RECEIVED and
in consideration of entry by the Banks (as defined in the Term Loan Agreement referred to below) and JPMORGAN CHASE BANK, N.A.,
as agent for the Banks (in such capacity, together with it successors and assigns, called the “Agent”) into that certain
Term Loan Agreement, dated as of February 5, 2016 (as thereafter amended, modified, extended, renewed, restated or replaced from
time to time called the “Term Loan Agreement”) among the Banks, the Agent and OTTER TAIL CORPORATION, a Minnesota corporation
(hereinafter called the “Debtor”), the undersigned corporations (the “Guarantors”) hereby JOINTLY AND SEVERALLY
unconditionally guarantee the full and prompt payment when due, whether by acceleration or otherwise, and at all times thereafter,
of all obligations of the Debtor to the Banks or the Agent under the Term Loan Agreement, each Note issued thereunder, and each
other Loan Document (as defined therein), including without limitation all future advances, and all obligations to reimburse the
Agent for all of such obligations that arise after the filing of a petition by or against the Debtor under the Bankruptcy Code,
even if the obligations do not accrue because of the automatic stay under Bankruptcy Code Section 362 or otherwise (all such
obligations being hereinafter collectively called the “Liabilities”), and the Guarantors further jointly and severally
agree to pay all expenses (including attorneys’ fees and legal expenses) paid or incurred by the Banks or Agent in endeavoring
to collect the Liabilities, or any part thereof, and in enforcing this guaranty.

 

The Guarantors agree that,
in the event of the dissolution or insolvency of the Debtor or any Guarantor, or the inability of the Debtor or any Guarantor to
pay debts as they mature, or an assignment by the Debtor or any Guarantor for the benefit of creditors, or the institution of any
proceeding by or against the Debtor or the Guarantor alleging that the Debtor or any Guarantor is insolvent or unable to pay debts
as they mature, and if such event shall occur at a time when any of the Liabilities may not then be due and payable, the Guarantors
will pay to the Agent forthwith the full amount which would be payable hereunder by the Guarantors if all Liabilities were then
due and payable.

 

In addition to, and without
limitation of, any rights of the Agent and the Banks under applicable law, if any Event of Default occurs and is continuing under
the Term Loan Agreement, upon written direction by the Agent to such effect any and all deposits (including all account balances,
whether provisional or final and whether or not collected or available) and any other Indebtedness (as defined in the Term Loan
Agreement) at any time held or owing by the Agent or any Bank to or for the credit or account of any Guarantor may be offset and
applied toward the payment of the Liabilities and all obligations of the Guarantors hereunder, whether or not the Liabilities and
all obligations of the Guarantors hereunder, or any part thereof, shall then be due.

 

This guaranty shall in
all respects be a continuing, absolute and unconditional guaranty, and shall remain in full force and effect (notwithstanding,
without limitation, the dissolution of any Guarantor or that at any time or from time to time all Liabilities may have been paid
in full).    This guaranty is a guaranty of payment and performance and not merely a guaranty of collection.

 

    	 	65	 

     

    

 

The Guarantors further
agree that, if at any time all or any part of any payment theretofore applied by the Agent or the Banks to any of the Liabilities
is or must be rescinded or returned by the Agent or the Banks for any reason whatsoever (including, without limitation, the insolvency,
bankruptcy or reorganization of the Debtor), such Liabilities shall, for the purposes of this guaranty, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in existence, notwithstanding such application by the
Agent or the Banks, and this guaranty shall continue to be effective or be reinstated, as the case may be, as to such Liabilities,
all as though such application by the Agent or the Banks had not been made.

 

The Agent and the Banks
may, from time to time, at their sole discretion and without notice to any Guarantor, take any or all of the following actions:    (a) be
granted a security interest in any property to secure any of the Liabilities or the Guaranty Obligations, (b) retain or obtain
the primary or secondary obligation of any obligor or obligors, in addition to the Guarantors, with respect to any of the Liabilities,
(c) extend or renew for one or more periods (whether or not longer than the original period), alter or exchange any of the
Liabilities, or release or compromise any obligation of any nature of any other obligor with respect to any of the Liabilities,
(d) release its security interest in, or surrender, release or permit any substitution or exchange for, all or any part of
any property securing any of the Liabilities or any obligation hereunder, or extend or renew for one or more periods (whether or
not longer than the original period) or release, compromise, alter or exchange any obligations of any nature of any obligor with
respect to any such property, and (e) resort to any Guarantor for payment of any of the Liabilities, whether or not the Agent
and the Banks (i) shall have resorted to any property securing any of the Liabilities or (ii) shall have proceeded against
any other obligor primarily or secondarily obligated with respect to any of the Liabilities including without limitation any other
Guarantor (all of the actions referred to in preceding clauses (i) and (ii) being hereby expressly waived by each Guarantor).

 

Any amounts received by
the Agent and the Banks from whatsoever source on account of the Liabilities may be applied by it toward the payment of such of
the Liabilities, and in such order of application, as the Agent may from time to time elect.

 

Until such time as this
guaranty shall have been discontinued and the Agent and the Banks shall have received payment of the full amount of all Liabilities
and of all obligations of the Guarantors hereunder, no payment made by or for the account of the Guarantors pursuant to this guaranty
shall entitle the Guarantors by subrogation or otherwise to any payment by the Debtor or from or out of any property of the Debtor
and the Guarantors shall not exercise any right or remedy against the Debtor or any property of the Debtor by reason of any performance
by the Guarantors of this guaranty.

 

The Guarantors hereby expressly
waive: (a) notice of the acceptance by the Agent or the Banks of this guaranty, (b) notice of the existence or creation
or non-payment of all or any of the Liabilities, (c) presentment, demand, notice of dishonor, protest, and all other notices
whatsoever, and (d) all diligence in collection or protection of or realization upon the Liabilities or any part thereof,
any obligation hereunder, or any security for, or guaranty of, any of the foregoing.

 

    	 	66	 

     

    

 

Each Bank may from time
to time without notice to the Guarantors, assign or transfer its Percentage (as defined in the Term Loan Agreement) or any or all
of the Liabilities or any interest therein; and, notwithstanding any such assignment or transfer or any subsequent assignment or
transfer thereof, such Liabilities shall be and remain Liabilities for the purposes of this guaranty, and each and every immediate
and successive assignee or transferee of any of the Liabilities or of any interest therein shall, to the extent of the interest
of such assignee or transferee in the Liabilities, be entitled to the benefits of this guaranty to the same extent as if such assignee
or transferee were such Bank.

 

Unless the Agent shall
otherwise consent in writing, the Agent shall have the sole right to enforce this guaranty, as Agent as provided in the Term Loan
Agreement, for the benefit of the Agent and the Banks (including any transferee, as provided in the prior paragraph).

 

Each Guarantor hereby warrants
to the Agent and the Banks that such Guarantor now has, and will continue to have independent means of obtaining information concerning
the affairs, financial condition and business of the Debtor.    Neither the Agent nor the Bank shall have any
duty or responsibility to provide the Guarantors with any credit or other information concerning the affairs, financial condition
or business of the Debtor which may come into the Agent’s or the Bank’s possession.

 

No delay on the part of
the Agent or any Bank in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise
by the Agent or any Bank of any right or remedy shall preclude other or further exercise thereof or the exercise of any other right
or remedy; nor shall any modification or waiver of any of the provisions of this guaranty be binding upon the Agent or any Bank
except as expressly set forth in a writing duly signed and delivered on behalf of the Agent and the Required Banks (as defined
in the Term Loan Agreement).    No action of the Agent or the Banks permitted hereunder shall in any way affect
or impair the rights of the Agent or the Banks and the obligations of the Guarantors under this guaranty.    For
the purposes of this guaranty, Liabilities shall include all obligations of the Debtor to the Agent or the Banks specified as Liabilities,
notwithstanding any right or power of the Debtor or anyone else to assert any claim or defense as to the invalidity or unenforceability
of any such obligation, and no such claim or defense shall affect or impair the obligations of the Guarantors hereunder, and shall
specifically include, without limitation, any and all interest, fees or commissions included in the Liabilities and accruing or
payable after the commencement of any bankruptcy or insolvency proceedings, notwithstanding any provision or rule of law which
might restrict the rights of the Bank to collect such obligations from the Debtor.    The obligations of the
Guarantors under this guaranty shall be absolute and unconditional irrespective of any circumstance whatsoever which might constitute
a legal or equitable discharge or defense of any Guarantor.    The Guarantors hereby acknowledge that there
are no conditions to the effectiveness of this guaranty.

 

This guaranty shall be
binding upon each Guarantor, and upon the successors and assigns of each Guarantor.

 

    	 	67	 

     

    

 

Wherever possible, each
provision of this guaranty shall be interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this guaranty shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this guaranty.

 

To the extent that any
Guarantor shall make a payment under this guaranty (a “Guarantor Payment”) which, taking into account all other Guarantor
Payments then previously or concurrently made by any other Guarantor, exceeds the amount which otherwise would have been paid by
or attributable to such Guarantor if each Guarantor had paid the aggregate Liabilities satisfied by such Guarantor Payment in the
same proportion as such Guarantor’s “Allocable Amount” (as defined below) (as determined immediately prior to
such Guarantor Payment) bore to the aggregate Allocable Amounts of each of the Guarantors as determined immediately prior to the
making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Guarantor Payment and the
Liabilities (other than unliquidated obligations that have not yet arisen), and the Term Loan Agreement has terminated, such Guarantor
shall be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Guarantor for the
amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to such
Guarantor Payment.    As of any date of determination, the “Allocable Amount” of any Guarantor
shall be equal to the excess of the fair saleable value of the property of such Guarantor over the total liabilities of such Guarantor
(including the maximum amount reasonably expected to become due in respect of contingent liabilities, calculated, without duplication,
assuming each other Guarantor that is also liable for such contingent liability pays its ratable share thereof), giving effect
to all payments made by other Guarantors as of such date in a manner to maximize the amount of such contributions.

 

The preceding paragraph
is intended only to define the relative rights of the Guarantors, and nothing set forth in such paragraph is intended to or shall
impair the obligations of the Guarantors, jointly and severally, to pay any amounts as and when the same shall become due and payable
in accordance with the terms of this guaranty.    The rights of the indemnifying Guarantors against other Guarantors
under the preceding paragraph shall be exercisable upon the full and indefeasible payment of the Liabilities in cash and the termination
of the Term Loan Agreement.

 

The parties hereto acknowledge
that the rights of contribution and indemnification hereunder shall constitute assets of the Guarantor or Guarantors to which such
contribution and indemnification is owing.

 

THE VALIDITY, CONSTRUCTION
AND ENFORCEABILITY OF THIS GUARANTY SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO
CONFLICT OF LAWS PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS.

 

    	 	68	 

     

    

 

THE AGENT AND THE BANKS
(BY ACCEPTING THIS GUARANTY) AND THE GUARANTORS HEREBY EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT
AND NOT BEFORE A JURY.

 

AT THE OPTION OF THE AGENT,
THIS GUARANTY MAY BE ENFORCED IN ANY FEDERAL COURT SITTING IN MINNESOTA; AND THE GUARANTORS CONSENT TO THE JURISDICTION AND VENUE
OF ANY SUCH COURT AND WAIVE ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT.    IN THE EVENT ANY GUARANTOR
COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE
RELATIONSHIP CREATED BY THIS GUARANTY, THE AGENT, AT ITS OPTION, SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS
AND VENUES ABOVE DESCRIBED, OR IF SUCH TRANSFER CANNOT BE    ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH
CASE DISMISSED WITHOUT PREJUDICE.

 

(signature page follows)

 

    	 	69	 

     

    

 

SIGNED AND DELIVERED as
of February 5, 2016.

 

	 	Varistar Corporation
	 	BTD Manufacturing, Inc.
	 	Northern Pipe Products, Inc.
	 	Vinyltech Corporation
	 	 	 
	 	By:	 
	 	 	 
	 	Title:	 

 

    	 	70	 

     

    

 

EXHIBIT C

 

Opinion of Counsel

 

[Attached]

 

    	 	71	 

     

    

 

EXHIBIT D

 

Assignment and Assumption

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This Agreement, dated as
of the date set forth in Item I (each reference to an “Item” herein shall be deemed to refer to such
Item on Schedule I hereto), is made by the party named in Item II, (the “Assignor”) to the
entity named in Item III (the “Assignee”).

 

WITNESSETH

 

The Assignor has entered
into a Term Loan Agreement dated as of February 5, 2016, as amended thereafter (the “Term Loan Agreement”) among OTTER
TAIL CORPORATION (the “Borrower”), certain lenders including the Assignor (collectively, the “Bank Group”)
and JPMORGAN CHASE BANK, N.A., as Agent, under which the Assignor has agreed to make a Loan in an amount of up to the amount as
set forth in Item IV (such amount equals the original commitment of the Assignor and may have been, or may be, increased
by other assignments by, or to, the Assignor, and will be reduced by the assignment under this Agreement) and the Bank Group has
agreed to make the Loan, in the amount as set forth in Item V.    Such Loan is sometimes called the
“Loans” hereinafter.    Unless the context clearly indicates otherwise, all other terms used in
this Agreement shall have the meanings given them by, and shall be construed as set forth in the Term Loan Agreement. In consideration
of the premises and the mutual covenants contained herein, the Assignor and the Assignee hereby covenant and agree as follows:

 

1.           Assignment and
Assumption.    Subject to the terms and conditions of this Agreement, the Assignor and the Assignee agree
that:

 

(a)         the Assignor hereby sells,
transfers, assigns and delegates to the Assignee, in consideration of entry by the Assignee into this Agreement [and of
payment by the Assignee to the Assignor of the amount set forth in Item VI]; and

 

(b)         the Assignee hereby purchases,
assumes and undertakes from the Assignor, without recourse and without representation or warranty (except as expressly provided
in this Agreement)

 

a share equal to the percentage set forth in
Item VII (expressed as a percentage of the aggregate Commitment of the Bank Group) of the Assignor’s commitment, loan,
participations, rights, benefits, obligations, liabilities and indemnities under and in connection with the Term Loan Agreement,
and to indemnify the Agent or any other party under the Term Loan Agreement and to pay all other amounts payable by a Bank (in
such percentage of the aggregate obligations of the Bank Group) under or in connection with the Term Loan Agreement.

 

The interest of the Assignor
under the Term Loan Agreement (including all such commitment, loan, participations, rights, benefits, obligations, liabilities
and indemnities) which the Assignee purchases and assumes hereunder is hereinafter referred to as its “Assigned Share”.    The
day upon which the Assignee shall make the payment described in the prior paragraph is hereinafter referred to as the “Funding
Date”.    Upon completion of the assignment hereunder, the Assignor will have the revised share of the
total Loans and Commitments of the Bank Group set forth in Item VIII.

 

    	 	72	 

     

    

 

2.           Future Payments.    The
Assignor shall notify the Agent to make all payments with respect to the Assigned Share after the Funding Date directly to the
Assignee.    The Assignor and Assignee agree and acknowledge that all payment of interest, commitment fees,
and other fees accrued up to, but not including, the Funding Date are the property of the Assignor, and not the Assignee.    The
Assignee shall, upon payment of any interest, commitment fees, or other fees, remit to the Assignor all of such interest, commitment
fees, and other fees accrued up to, but not including, the Funding Date.

 

3.           No Warranty or
Recourse.    The sale, transfer, assignment and delegation of the Assigned Share is made without warranty
or recourse against the Assignor of any kind, except that the Assignor warrants that it has not sold or otherwise transferred
any other interest in the Assigned Share to any other party.    The Assignor may, however, have sold and may
hereafter sell Participations in, or may have assigned or may hereafter assign, portions of its interest in the Term Loan Agreement
that in the aggregate (together with the portion assigned hereby), do not exceed 100% of the Assignor’s interest in the Term
Loan Agreement.

 

4.           Covenants and
Warranties.    To induce the other to enter into this Agreement, each of the Assignee and the Assignor
warrants and covenants with respect to itself that:

 

(a)         Existence.    It
is, in the case of the Assignee, a ________________ organized under the laws of _________________ and it is, in the case of the
Assignor, a ___________ duly existing under the laws of _____________;

 

(b)         Authority.    It
is duly authorized to execute, deliver and perform this Agreement;

 

(c)         No Conflict.    The
execution, delivery and performance of this Agreement do not conflict with any provision of law or of the charter or by-laws (or
equivalent constituent documents) of such party, or of any agreement binding upon it; and

 

(d)         Valid and Binding.    All
acts, conditions and things required to be done and performed and to have occurred prior to the execution, delivery and performance
of this Agreement, and to constitute the same the legal, valid and binding obligation of such party enforceable against such party
in accordance with its terms, have been done and performed and have occurred in due and strict compliance with all applicable laws.

 

5.           Covenants and
Warranties by the Assignee.    To induce the Assignor to enter into this Agreement, the Assignee warrants
and covenants that (a) it is purchasing and assuming the Assigned Share in the course of making loans in the ordinary course
of its commercial lending business, and (b) it has, independently and without reliance upon the Assignor, and based upon such
financial statements and other documents and information as it has deemed appropriate, made its own credit analysis an decision
to engage in this purchase and transfer of the Assigned Share.    The Assignee acknowledges that the Assignor
has not made and does not make any representations or warranties or assume any responsibility with respect to the validity, genuineness,
enforceability or collectability of the Term Loan, The Term Loan Agreement or any related instrument, document or agreement.

 

    	 	73	 

     

    

 

6.           Promissory Note.    The
Notes of the Assignor shall be delivered to the Agent or Borrower at such time and by such means as the Assignor and the Agent
or Borrower shall agree, with the request by the Assignor that the Borrower issue new notes payable to the Assignor and to the
Assignee to reflect the assignment of the Assigned Share hereunder.

 

7.           Payments to the
Assignor.    All amounts payable to the Assignor in U.S. Dollars shall be paid by transfer of federal funds
to the Assignor, ABA No.                                   ,
Account No.                       Attention:              Reference:    [Borrower].

 

8.           Other Transactions.    The
Assignee shall have no interest in any property in the Assignor’s possession or control, or in any deposit held or other
indebtedness owing by the Assignor, which may be or become collateral for or otherwise available for payment of the Loan by reason
of the general description of secured obligations contained in any security agreement or other agreement or instrument held by
the Assignor or by reason of the right of set-off, counterclaim or otherwise, except that if such interest is provided for in provisions
of the Term Loan Agreement regarding sharing of set-off, the Assignee shall have the same rights as any other lender that is a
party to the Term Loan Agreement.    The Assignor and its affiliates may accept deposits from, lend money to,
act as trustee under indentures for an generally engage in any kind of business with the Borrower, and any person who may do business
with or own securities of the Borrower, or any of the Borrower’s subsidiaries.    The Assignee shall
have no interest in any property taken as security for any other loans or any other credits extended to the Borrower or any of
its subsidiaries by the Assignor to the Borrower.

 

9.           Successors and
Assigns.    This Agreement shall inure to the benefit of and be binding upon the successors and assigns
of the Assignor and the Assignee.

 

10.         Expenses.    In
the event of any action to enforce the provisions of this Agreement against a party hereto, the prevailing party shall be entitled
to recover all costs and expenses incurred in connection therewith including, without limitation, attorneys’ fees and expenses,
including allocable cost of in-house legal counsel and staff.

 

11.         Applicable Law.    THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF MINNESOTA.

 

12.         Amendments, Changes
and Modifications.    This Agreement may not be amended, changed, modified, altered, or terminated except
by an agreement in writing signed by the Assignor and the Assignee or their permitted successors or assigns).

 

13.         Withholding Taxes.    The
Assignee (a) represents and warrants to the Assignor, the Agent and the Borrower that under applicable law and treaties no
tax will be required to be withheld by the Assignor with respect to any payments to be made to the Assignee hereunder, (b) agrees
to furnish (if it is organized under the laws of any jurisdiction other than the United States or any State thereof) to the Assignor,
the Agent and the Borrower prior to the time that the Agent or Borrower is required to make any payment of principal, interest
or fees hereunder either U.S. Internal Revenue Service Form W8ECI or W8BEN and agrees to provide new Forms upon
the expiration of any previously delivered form or comparable statements in accordance with applicable U.S. law and regulations
and amendments thereto, duly executed and completed by the Assignee, and (c) agrees to comply with all applicable U.S. laws
and regulations with regard to such withholding tax exemption.

 

    	 	74	 

     

    

 

14.         Entire Agreement.    This
Agreement sets forth the entire understanding of the parties except for the consents contemplated hereby, and supersedes any and
all prior agreements, arrangements, and understandings relating to the subject matter hereof.    No representation,
promise, inducement or statement of intent has been made by any party which is not embodied in this Agreement, and no party shall
be bound by or liable for any alleged representation, promise, inducement or statement of intention not expressly set forth herein.

 

15.         Counterparts.    This
Agreement may be executed by the Assignor and the Assignee in separate counterparts, each of which when so executed and delivered
shall be deemed to be an original and all of which taken together shall constitute one and the same Agreement.

 

    	 	75	 

     

    

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be executed on their behalf by their duly authorized officers as of the date and year first
above written.

 

	Address:	[Assignor]
	 	 
	 	By:________________________________
	 	_________________________(print name)
	 	Title:______________________________
	 	 
	Address:	[Assignee]
	 	 
	 	By:________________________________
	 	_________________________(print name)
	 	Title:______________________________

 

[Consents required to become
effective as provided in Section 12.3 of the Term Loan Agreement:

 

	Consented to this ____ day	 
	of _____________, 20___.	 
	 	 
	JPMORGAN CHASE BANK, N.A., as Agent	 
	 	 
	By:__________________________________	 
	__________________________(print name)	 
	Title:________________________________	 
	 	 
	Consented to this ____ day	 
	of _________________, 20____.	 
	 	 
	OTTER TAIL CORPORATION, as Borrower	 
	 	 
	By:_________________________________	 
	__________________________(print name)	 
	Title:_______________________________]	 

 

    	 	76	 

     

    

 

Schedule I

to

Assignment and Assumption

 

	Item I:	Date of Assignment:
	 	 
	Item II:	Assigning Bank (the “Assignor”):
	 	 
	Item III:	Assignee (the “Assignee”):
	 	 
	Item IV:	Initial Total Commitment of the Assignor:
	 	Loan:
	 	 
	Item V:	Bank Group’s Initial Total Commitment:
	 	Loan:
	 	 
	Item VI:	Payment to the Assignor on Funding Date:
	 	 
	Item VII:	Percentage Assigned:    ________%
	 	(Expressed as a percentage of the total aggregate Commitments of the Bank Group, carry out to 10 decimal places; upon effectiveness of the Assignment as provided in the Term Loan Agreement, this will constitute the Assignee’s “Pro Rata Share”
	 	 
	Item VIII:	Revised Percentage of the Assignor:    _____________%
	 	 
	 	(carry out to 10 decimal places; upon effectiveness of the Assignment as provided in the Term Loan Agreement, this will constitute the Assignor’s “Pro Rata Share”)

 

    	 	77	 

     

    

 

Schedule 1.1(a)

 

Commitments and Percentages

 

	Bank:	 	Initial Commitment:	 	 	Percentage:	 
	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.	 	$	25,000,000	 	 	 	50	%
	 	 	 	 	 	 	 	 	 
	U.S. Bank National Association	 	$	12,500,000	 	 	 	25	%
	 	 	 	 	 	 	 	 	 
	Bank of America, N.A.	 	$	12,500,000	 	 	 	25	%
	 	 	 	 	 	 	 	 	 
	Total:	 	$	50,000,000	 	 	 	100.000000000	%

 

    	 	78modn-ex101_704.htm

Exhibit 10.1

 

February 4, 2016

 

 

Mr. Edward Sander, Jr.

Re:  Employment Agreement

Dear Ed,

I am very pleased to confirm our offer to you of employment with Model N, Inc. (the “Company”).  Subject to your acceptance of this offer and the conditions set forth below, your employment with the Company shall be governed by the following terms and conditions (this “Agreement”). 

Duties and Scope of Employment

.

(a)Position.  For the term of your employment (your “Employment”), the Company agrees to employ you as its most senior executive officer in the position of the sole Chief Executive Officer (“CEO”). You will report solely to the Company’s Board of Directors (the “Board”) and you will be working out of the Company’s office in Redwood City, CA.  You shall be appointed or elected by the Board (consistent with the Company’s bylaws) to serve as a member of the Board and this service on the Board shall commence as of your Start Date.  Subject to your subsequent re-election by the stockholders of the Company, you will thereafter also serve on the Board during your Employment. You will be responsible for developing and executing the Company’s strategies, achieving business objectives, increasing the Company’s stockholder value, presiding over the entire workforce, and other duties commensurate with your position. Your duties and responsibilities always will be at least commensurate with those duties and responsibilities normally associated with and appropriate for someone in the position of CEO. 

(b)Obligations to the Company.  While you render services to the Company, (1) you may deliver lectures, fulfill speaking engagements, and teach at educational institutions provided that such activities do not materially interfere with the performance of your duties to the Company, and (2) you agree that you will not engage in any other employment, consulting, or other business activity except as authorized in writing by the Board. In addition, while you render services to the Company, you may serve as a member of the board of directors of one or more companies with the express consent of the Board. In addition, while you render services to the Company, you will not assist any person or entity in competing with the Company, in preparing to compete with the Company or in hiring any employees or consultants of the Company. As an employee, you will also be expected to comply with the Company’s policies and procedures.

(c)No Conflicting Obligations.  You represent and warrant to the Company that you are under no obligations or commitments, whether contractual or otherwise, that are materially inconsistent with your obligations under this Agreement. In connection with your Employment, you shall not use or disclose any trade secrets or other proprietary information or intellectual property in which you or any other person has any right, title or interest and your Employment will not infringe or violate the rights of any other person. You represent and warrant to the Company that you have returned (or will return) all property and confidential information belonging to any prior employer, other than confidential information that has become generally known to the public or within the relevant trade industry. 

Cash and Incentive Compensation

.  Your current cash and incentive compensation are as follows. Cash and incentive compensation will be reviewed annually by the Compensation Committee of the Board (“Compensation Committee”) and is subject to change.

(a)Salary.  Your starting base salary will be $400,000 annually, paid semi-monthly.  Your base salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time but cannot be reduced unless you have voluntarily provided your prior approval.

Model N, Inc. | 1600 Seaport Boulevard, Suite 400, Redwood City, CA 94063 | P: 650.610.4600 | F: 650-610-4699 | www.modeln.com

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(b)Bonus.  Each fiscal year, you will be eligible to receive an annual performance-based bonus with a target of at least 100% of your annual base salary, based on the achievement of individual and Company objectives established in writing and approved by the Compensation Committee in its sole discretion. Subject to the terms of this Agreement, each bonus payment is subject to your continued Employment through the last day of the fiscal year. Each annual bonus will be paid no later than two and one-half months following the fiscal year in which such bonus was earned.  For the fiscal year that began October 1, 2015, you will be eligible for a pro rata target bonus (i.e., 100% multiplied by the pre-tax base salary paid to you for fiscal year 2016).  

(c)Business Expenses.  The Company will reimburse you for your necessary and reasonable business expenses incurred in connection with your duties hereunder upon presentation of an itemized account and appropriate supporting documentation, all in accordance with the Company’s generally applicable policies. 

Moving Allowance

.  As part of your Employment, you will receive reimbursement for relocation costs incurred, using the Company’s preferred providers where applicable, including reimbursement of costs you incur to move your family and household goods from New York to the San Francisco Bay area.  The Company will also reimburse your temporary housing and temporary car rental expenses within the San Francisco Bay Area which are incurred on or before June 30, 2016. In addition, the Company will reimburse the reasonable closing costs (not to exceed $25,000) for your purchase of a primary residence in the San Francisco Bay area. The benefits in this Section 3 will be subject to all applicable federal, state and local taxes and will be paid upon presentation of receipts. If your Employment with the Company terminates through your voluntary resignation without Good Reason within the first six (6) months of your Employment, you will be required to repay the Company the gross amount paid to you under this Section 3, pro-rated daily for the period of your Employment. 

Vacation/PTO, Employee Benefits

.  During your Employment, you shall be eligible for paid time off in accordance with the Company’s Flexible Paid Time Off Policy, as it may be amended from time to time, and on general terms no less favorable than provided to any other employee or officer of the Company. During your Employment, you shall be entitled to participate in the employee benefit plans maintained by the Company (including without limitation medical, dental, vision and 401(k) plans) and generally available to employees and/or officers of the Company, subject in each case to the generally applicable terms and conditions of the plan in question and to the determinations of any person or committee administering such plan. The Company reserves the right to prospectively change or otherwise modify, in its sole discretion, the Company’s employee benefits plans.  You will also be entitled to indemnification by the Company and coverage under any Company directors and officers liability insurance policy on no less favorable terms than are provided to other covered persons.  Additionally, the Company shall indemnify and hold you harmless from any claims, actions, disputes, litigation or proceedings (including without limitation any breach of contract claims) initiated by your former employer (or an affiliate thereof) arising solely from any requirement with your former employer (or affiliate thereof) that you provide a period of notice (and remained employed with such former employer through the notice period) prior to ceasing service with that former employer (or applicable affiliate). The Company shall advance you full payment for any costs that you may incur in connection with such matters.  

Confidentiality

.  As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your Employment, develop certain information or inventions that will be the property of the Company.  To protect the interests of the Company, you will need to sign the Company’s standard Employee Proprietary Information and Inventions Agreement as a condition of your Employment, a copy of which is attached hereto as Exhibit A (the “EPIIA”).  We wish to impress upon you that we do not want you to, and we hereby direct you not to, bring with you any confidential or proprietary material of any former employer or to violate any other obligations you may have to any former employer.  

Equity

.  Within 90 days of the Start Date, the Company shall grant you an initial equity compensation award comprised of (i) $300,000 worth of restricted stock units (“RSUs”) to vest over three years with 33.33% vesting on each annual anniversary of the vesting commencement date; (ii) $2.0 million worth of RSUs to vest over four years with 25% vesting on each annual anniversary of the vesting commencement date; and (iii) $2.0 million worth of performance-based RSUs (“PB-RSUs”) to vest over three years with 50% vesting on each of the second and third annual anniversary of the vesting commencement date (collectively, “Equity Awards”) under and subject 

 

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to the terms and conditions of the Company’s 2013 Equity Incentive Plan (the “Plan”) and applicable form of RSU Agreement (the Company’s current standard forms of agreement are attached hereto as Exhibit C).  The number of shares of Company common stock underlying the Equity Awards shall be calculated applying the closing Company common stock price on the Start Date (as defined below).  The performance criteria applicable to PB-RSUs are based on the Company’s total shareholder return (“TSR”) relative to the TSR of a stock index, currently the Russell 3000 Index, as set forth in greater detail in the Company’s form of Restricted Stock Unit Agreement applicable to PB-RSUs. The vesting commencement date shall be the 15th day of the second month of the quarter of the Start Date. Subsequent equity compensation awards, if any, will be as determined by the Compensation Committee or Board. The Company intends that the Equity Awards and all equity compensation awards issued to you will be structured to be exempt from or in compliance with the requirements of Code Section 409A to the extent applicable.  Additionally, if in connection with a change in control of the Company, your Equity Awards or other equity compensation awards are not assumed by or replaced by the Company’s acquirer, then the unvested portions of such awards shall fully accelerate and become vested (and exercisable) as of immediately before such change in control, provided that, for clarity, and without limitation, the conversion of performance-based equity awards into time-based equity awards shall be deemed a “replacement” for purposes of this sentence (provided that such replacement awards reflect that any performance goals were achieved at 100% of achievement).

Severance

.  

(a)Accrued Compensation.  Upon the termination of your Employment with the Company at any time for any reason, you will be paid your (i) salary through your termination date and (ii) any earned but unpaid portion of your bonus for the fiscal year preceding your termination date (but, for the avoidance of doubt, not any portion of the bonus for the fiscal year in which your termination occurs) and (iii) any unreimbursed expenses incurred on or before your termination date. You will also be allowed to continue your health coverage at your own expense under the applicable provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”). Your unvested restricted stock units, if any, will be forfeited without consideration upon your termination date except as provided in Section 7(c). The foregoing accrued payments and benefits will be collectively referred to herein as the “Accrued Compensation.”  After your termination date, you will also be entitled to any vested compensation and benefits and indemnification and coverage under any directors and officers liability insurance policy.

(b)Involuntary Termination Outside of a Change in Control.  If you Separate due to a termination of your Employment by the Company other than for Cause, or by your resignation for Good Reason, in either case, prior to a Change in Control or more than twelve (12) months following a Change in Control, you will be entitled to receive the following: (i) your Accrued Compensation, (ii) continued payment of your then current base salary for twelve (12) months, (iii) reimbursement for your relocation costs back to New York in the same manner and magnitude provided under Section 3 for your relocation to the San Francisco Bay Area (except for the housing closing costs element) provided that your Separation date occurs before the second anniversary of the Start Date, and (iv) (x) subject to your timely and proper election of COBRA coverage, the continuation of your then-effective group health benefits paid by the Company, including medical, dental, and vision coverage for you and your eligible dependents for eighteen (18) months under COBRA, and then a series of taxable cash payments for a period of six (6) months thereafter, which series of payments will, on the aggregate, equal the full premium cost of your COBRA benefits during the immediately preceding six (6) month period, (y) provided that, if the Company determines that it cannot provide such continued health benefits without potentially violating or incurring additional taxation under applicable law (including, without limitation, Section 2716 of the Public Health Service Act) or in a manner consistent with its group health plans, the Company shall in lieu thereof provide to you taxable continued installment payments, which will be, in the aggregate, equivalent to twenty-four (24) months of such continued benefits less any amounts of prior coverage or prior payments post termination previously credited or paid under this subsection (iv)(x), which payments shall be made regardless of whether you elect COBRA continuation coverage (items (ii) through (iv) hereinafter referred to as the “Severance”).  

(c)Involuntary Termination Within 12 Months Following a Change in Control.  If, however, you Separate due to a termination of your Employment by the Company other than for Cause or by your resignation for Good Reason, in either case, within twelve (12) months following a Change in Control, in addition to the Accrued 

 

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Compensation and Severance provided in Section 7(b), you shall be entitled to receive the following additional severance payments and benefits: (i)  payment of your then current annual target bonus, which will be paid to you in equal installments at the same times as the payments provided to you under Section 7(b)(ii), and (ii) fully accelerated vesting (and exercisability) of any then-outstanding Equity Awards and other outstanding equity compensation awards with such acceleration effective upon your termination date (items (i) through (ii) of this Section 7(c) plus the Severance collectively hereinafter referred to as the “CIC Severance”).  

(d)Timing and Conditions.  Subject to Section 9(d), the receipt of any benefits pursuant to Section 7(b) or 7(c), as applicable, (other than the Accrued Obligations) will be subject to (i) your signing and not revoking a release of claims agreement in the form attached hereto as Exhibit B, (ii) such release becoming effective and irrevocable within sixty (60) days of your termination of Employment (the expiration of such sixty-day period, the “Release Deadline”), and (iii) your resignation from the Board, which resignation shall be effective simultaneously with your termination of Employment, unless otherwise requested in writing by the Company. The first payment of any portion of the Severance in Section 7(b)(ii) or Section 7(b)(iii)(y) or the CIC Severance in Section 7(c)(i) shall begin on the first payroll date immediately following the Release Deadline and such first payment shall include any installments that otherwise would have been paid during the period commencing on the termination of Employment and ending on the Release Deadline. Furthermore, payments under Section 7(b)(iii) shall cease immediately upon your coverage under a new health plan by a subsequent employer or your reimbursement of premiums by another employer, and you shall immediately inform of the Company of such coverage immediately following your commencement of employment elsewhere. 

(e)Definitions.  The following definitions apply:

(i)“Cause” shall mean a good faith determination by the Board that any of the following have occurred: (A) you  committed and act of dishonesty in connection with your responsibilities as an employee, (B) you failed to comply with the material terms of any written Company policy or rule as they may be in effect from time to time during your Employment and such failure is materially injurious to the Company; (C) you breached any material term of this Agreement, the EPIIA, or any other written agreement between you and the Company and such breach is materially and demonstrably injurious to the Company; (D) you were convicted of, or entered a plea of guilty or nolo contendere to, a felony crime; (E) you engaged in gross misconduct or gross neglect of your duties and such gross misconduct or gross neglect is materially injurious to the Company; or (F) materially misrepresented your qualifications or education in the application process. The cessation of your Employment shall not be deemed to be for “Cause” unless and until (i) you are sent a written notice by the Company describing in sufficient detail of the underlying facts and the ground for the termination for “Cause” by the Board finding that, in the good faith opinion of the Board, you are guilty of the conduct described above, and (ii) you have failed to cure or remedy that conduct or condition within fifteen (15) days from the date the notice is received by you.  

(ii)“Change in Control” shall mean a “Corporate Transaction” within the meaning of the Plan, as may be amended from time to time, provided that, to the extent necessary to not violate Internal Revenue Code Section 409A, a transaction that does not constitute a “change in control event” under Sections 1.409A-3(i)(5)(v) or 1.409A-3(i)(5)(vii) of the Treasury Regulations under Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) will not constitute a Change in Control. 

(iii) “Good Reason” shall mean your resignation of your Employment after the occurrence of one of the following conditions without your prior written consent: (A) a material diminution in your base salary (except where there is a general reduction applicable to the management team generally); (B) a material change in geographic location at which you must perform services (a change in location of your office will be considered material only if it increases your current one-way commute by more than thirty (30) miles)); (C) any material failure of the successors to the Company after a Change in Control to perform or cause the Company to perform the obligations of the Company under this Agreement; (D) any action or inaction of the Company that constitutes a material breach of the terms of this Agreement (including without limitation the Company preventing you from commencing your Employment hereunder) or any other agreement with you or any other agreement with you; or (E) any other material adverse change in your duties, authorities or responsibilities as a CEO (it being understood that a reduction in your responsibilities or authority following a Change in Control shall not constitute Good Reason if 

 

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(I) there is no demotion in your title or position or reduction of the scope of your duties within the Company or (II) you are given a position of materially similar or greater overall scope and responsibility within the acquiring company, taking into appropriate consideration that a nominally lower hierarchical role in a larger company may involve similar or greater scope and responsibility than a nominally higher role in the hierarchy of a smaller company, or (III) you are not elected or re-elected to the Board or otherwise do not serve on the Board or similar governing body (including of any successor entity), provided that, in all cases (A) through (E), only if you provide notice to the Company of the existence of the applicable condition described within ninety (90) days of the initial existence of the condition, the Company fails to remedy that condition within thirty (30) days thereafter, and within the ten (10) day period immediately following such failure to remedy or the Company’s notice to you that it will decline to remedy that condition, your Separation occurs. The parties intend that this trigger qualify as an involuntary separation from service trigger under Treasury Regulation Section 1.409A-l(n)(2).  

(iv)“Separate” or “Separation” means that a “separation from service” has occurred, as defined under Section 1.409A-1(h) of the Treasury Regulations under Section 409A of the Code. 

(f)Other Terminations.  Upon any termination of your Employment other than as described in Section 7(b) or Section 7(c) above, including any termination of Employment that is not a Separation, you will be entitled only to the Accrued Compensation.

At Will Employment

.  Employment with the Company is for no specific period of time.  Your Employment with the Company will be “at will,” meaning that either you or the Company may terminate your Employment at any time and for any reason, with or without cause.  Any contrary representations that may have been made to you are superseded by this Agreement.  This is the full and complete agreement between you and the Company on this term.  Although your compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your Employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company (other than you).  

Tax Matters

.  

(a)Withholding.  All forms of compensation referred to in this Agreement are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.  

(b)Tax Advice.  You are encouraged to obtain your own tax advice regarding your compensation from the Company.  You agree that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or the Board related to tax liabilities arising from your compensation.  

(c)Section 280G.  If any payments and other benefits provided for in this Agreement or otherwise constitute “parachute payments” within the meaning of Section 280G of the Code and, but for this Section 9, would be subject to the excise tax imposed by Section 4999 of the Code, then payments and other benefits will be payable to you either in full or in such lesser amounts as would result, after taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, on your receipt on an after-tax basis of the greatest amount of payments and other benefits, by reducing payments in the manner that maximizes the after-tax value of your retained compensation and in the following order to the extent needed to not violate Code Section 409A: (i) reduction in cash payments; (ii) cancellation of accelerated vesting of all equity awards with value; and (iii) other employee benefits and in the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant.  All mathematical determinations that are required to be made under this section, shall be made by a nationally recognized independent audit firm selected by the Company (the "Accountants") provided however that the Accountants shall not be any firm that renders services to the entity that is acquiring the Company (or Company assets) in the underlying change in control.  The Accountants shall provide their determinations, together with detailed supporting calculations regarding the amount of any relevant matters, both to the Company and to you. Such determinations shall be made by the Accountants using reasonable good faith interpretations of the Code. To the extent permitted by Q/A #32 of the Code Section 280G regulations, with respect to performing any present value calculations that are required in 

 

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connection with this section, you and Company each affirmatively elect to utilize the Applicable Federal Rates ("AFR") that are in effect as of the execution of this Agreement and the Accountants shall therefore use such AFRs in their determinations and calculations. The Company shall pay the fees and costs of the Accountants which are reasonably incurred in connection with this section. 

(d)Section 409A.  

(i)To the extent (i) any payments to which you become entitled under this Agreement, or any agreement or plan referenced herein, on account of your termination of Employment with the Company constitute nonqualified deferred compensation subject to Section 409A of the Code and (ii) you are deemed at the time of such termination of Employment to be a “specified employee” under Section 409A of the Code, then such payment or payments shall not be made or commence until the earlier of (i) the expiration of the six (6)-month period measured from the date of your “separation from service” (as such term is at the time defined in regulations under Section 409A of the Code) with the Company; or (ii) the date of your death following such separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you, including (without limitation) the additional twenty percent (20%) tax for which you would otherwise be liable under Section 409A(a)(1)(B) of the Code in the absence of such deferral.  The first payment thereof will include a catch-up payment covering the amount that would have otherwise been paid during the period between your termination of Employment and the first payment date but for the application of this provision, and the balance of the installments (if any) will be payable in accordance with their original schedule.  To the extent any nonqualified deferred compensation payment to you could be paid in one or more of your taxable years depending upon you completing certain employment-related actions, then any such payments will commence or occur in the later taxable year to the extent required by Code Section 409A.

(ii)Except as otherwise expressly provided herein, to the extent any expense reimbursement or the provision of any in-kind benefit under this Agreement (or otherwise referenced herein) is determined to be subject to (and not exempt from) Section 409A of the Code, the amount of any such expenses eligible for reimbursement, or the provision of any in-kind benefit, in one calendar year shall not affect the expenses eligible for reimbursement or in kind benefits to be provided in any other calendar year, in no event shall any expenses be reimbursed after the last day of the calendar year following the calendar year in which you incurred such expenses, and in no event shall any right to reimbursement or the provision of any in-kind benefit be subject to liquidation or exchange for another benefit.

(iii)To the extent that any provision of this Agreement is ambiguous as to its exemption or compliance with Section 409A, the provision will be read in such a manner so that all payments hereunder are exempt from Section 409A to the maximum permissible extent, and for any payments where such construction is not tenable, that those payments comply with Section 409A to the maximum permissible extent.  To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  

(iv)Payments pursuant to this Agreement (or referenced in this Agreement) are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the regulations under Section 409A. 

Non-Solicitation

. You acknowledge that because of your position with the Company, you will have access to material intellectual property and confidential information.  During your Employment and for twelve (12) months thereafter, in addition to your other obligations hereunder or under the EPIIA, you shall not, in any capacity, whether for his own account or on behalf of any other person or organization, directly or indirectly, with or without compensation, (a) solicit, divert or encourage any officers, directors, employees, agents, consultants or representatives of the Company (including any affiliate), to terminate his, her or its relationship with the Company (including any affiliate) or (b) solicit, divert or encourage any officers, directors, employees, agents, consultants or representatives of the Company (including any affiliate) to become officers, directors, employees, agents, consultants or representatives of another business, enterprise or entity. Your obligations under this Section 10 shall be additional to your obligations under the EPIIA. 

 

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Authorization to Work

.  Please note that because of employer regulations adopted in the Immigration Reform and Control Act of 1986, within three (3) business days of starting your new position you will need to present documentation demonstrating that you have authorization to work in the United States.  If you have questions about this requirement, which applies to U.S. citizens and non-U.S. citizens alike, you may contact our personnel office.

Arbitration

.  You and the Company agree to submit to mandatory binding arbitration any and all claims arising out of or related to your Employment with the Company and the termination thereof, including, but not limited to, claims for unpaid wages, wrongful termination, torts, stock or stock options or other ownership interest in the Company, and/or discrimination (including harassment) based upon any federal, state or local ordinance, statute, regulation or constitutional provision, except that each party may, at its, his or her option, seek injunctive relief in court related to the improper use, disclosure or misappropriation of a party’s private, proprietary, confidential or trade secret information.  All arbitration hearings shall be conducted in San Mateo County, California.  THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN REGARD TO SUCH CLAIMS.  This Agreement does not restrict your right to file administrative claims you may bring before any government agency where, as a matter of law, the parties may not restrict the employee’s ability to file such claims (including, but not limited to, the National Labor Relations Board, the Equal Employment Opportunity Commission and the Department of Labor).  However, the parties agree that, to the fullest extent permitted by law, arbitration shall be the exclusive remedy for the subject matter of such administrative claims.  The arbitration shall be conducted through JAMS before a single neutral arbitrator, in accordance with the JAMS employment arbitration rules then in effect. The JAMS rules may be found and reviewed at http://www.jamsadr.com/rules-employment-arbitration. If you are unable to access these rules, then the Company shall promptly provide you with a hardcopy.  The arbitrator shall issue a written decision that contains the essential findings and conclusions on which the decision is based.  The Company will pay 100% of the first $25,000 of all arbitration specific costs and expenses (“Arbitration Costs”) and 50% of all Arbitration Costs after the first $25,000, but shall not pay or reimburse you for your own legal fees. 

Background Check

.  This offer is contingent upon a satisfactory verification of, but not limited to, criminal, education, driving, employment and credit background checks and reference checks based upon the role within the Company. 

Interpretation; Entire Agreement; No mitigation or offset

.  The terms of this Agreement and the resolution of any disputes as to the meaning, effect, performance or validity of this Agreement or arising out of, related to, or in any way connected with, this Agreement, your Employment with the Company or any other relationship between you and the Company will be governed by California law, excluding laws relating to conflicts or choice of law.  This offer and its exhibits, once accepted, constitute the entire agreement between you and the Company with respect to the subject matter hereof and supersede all prior offers, negotiations and agreements, if any, whether written or oral, relating to such subject matter.  You acknowledge that neither the Company nor its agents have made any promise, representation or warranty whatsoever, either express or implied, written or oral, which is not contained in this agreement for the purpose of inducing you to execute the agreement, and you acknowledge that you have executed this agreement in reliance only upon such promises, representations and warranties as are contained herein.  You shall not be required to mitigate the amount of any payment or benefit contemplated by this Agreement, nor shall any payment or benefit be reduced by any earnings or benefits that you may receive from any other source.  No payments or benefits made to you (or to be made to you) under this Agreement may be reduced or offset by the Company or any affiliate or other person or entity.

Successors

.  This Agreement shall inure to the benefit of and be binding upon (a) the Company and any of its successors, and (b) you and your heirs, executors and representatives in the event of your death.  Any successor to the Company shall be deemed substituted for the Company under the terms of this agreement for all purposes.  

Legal Fees

.  The Company shall pay the reasonable legal fees (not to exceed $15,000) incurred by you related to the preparation, negotiation and execution of this Agreement and all other documents related to your hire.  The Company shall pay such reimbursement to you or to your counsel within 30 days of receipt of applicable invoices which will be provided to the Company within 45 days of your Start Date.

 

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Acceptance

.  This offer will remain open until 11:59 p.m. PT on February 4, 2016.  If you decide to accept our offer, and I hope you will, please sign the enclosed copy of this Agreement in the space indicated and return it to me.  Your signature will acknowledge that you have read and understood and agreed to the terms and conditions of this Agreement and the attached documents, if any.  Should you have anything else that you wish to discuss, please do not hesitate to call me.  Your official start date will be mutually determined but no later than February 21, 2016 (the date of commencement of your Employment with the Company is the “Start Date”).  We look forward to the opportunity to welcome you to the Company. 

Sincerely,

Model N, Inc.

/s/ Zack Rinat
By Zack Rinat
Founder, Chairman and Chief Executive Officer

 

 

 

I have read and understood this Agreement and hereby acknowledge, accept and agree to the terms as set forth above and further acknowledge that no other commitments were made to me as part of my employment offer except as specifically set forth herein. 

 

		
	
Date signed: February 4, 2016
	
/s/ Edward F. Sander, Jr.
Edward Sander, Jr.

 

 

Exhibit A: Employee Proprietary Information and Inventions Agreement

Exhibit B: Form of Release

Exhibit C: Form of RSU Agreement

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