Document:

WELLS FARGO & COMPANY 8-K

 

 Exhibit
4.1

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede
& Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP
NO. 95001B6C3	FACE AMOUNT: $____________
	REGISTERED
NO. __

	 

   

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the S&P 500® Index,

the
Russell 2000® Index and the iShares® MSCI EAFE ETF due May 13, 2020

 

 

WELLS
FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & Co., or registered assigns, an amount equal to the Maturity Payment
Amount (as defined below) on the Stated Maturity Date (as defined below), unless this Security is redeemed prior to the Stated
Maturity Date as provided below under “Optional Redemption,” and to pay Contingent Coupon Payments (as defined below)
on the Face Amount of this Security to the extent provided herein on the Contingent Coupon Payment Dates specified herein at the
Contingent Coupon Rate (as defined below) until the earlier of the Stated Maturity Date and the Optional Redemption Date (as defined
below), if any. The “Initial Stated Maturity Date” shall be May 13, 2020. If the Final Calculation Day
(as defined below) is not postponed, the Initial Stated Maturity Date will be the “Stated Maturity Date.” If
the Final Calculation Day is postponed, the “Stated Maturity Date” shall be the later of (i) the Initial
Stated Maturity Date and (ii) three Business Days (as defined below) after the last Final Calculation Day as postponed.

“Face
Amount” shall mean, when used with respect to this Security, the amount
set forth on the face of this Security as its “Face Amount.”

Optional
Redemption

The
Company may, at its option, redeem this Security, in whole but not in part, on any Optional Redemption Date (as defined below)
by giving notice to the Holder hereof on or before the Calculation Day (as defined below) immediately preceding that Optional
Redemption Date. If this Security is redeemed, the Holder hereof will receive the Optional Redemption Price (as defined below)
plus a final Contingent Coupon Payment (as defined below), if any, on the applicable Optional Redemption Date. Unless the Company
defaults in the payment of the Optional Redemption Price plus the final Contingent Coupon Payment, if any, this Security will
cease to be outstanding on such Optional Redemption Date, no additional Contingent Coupon Payments will be payable on this Security
and the Holder hereof will have no further rights under this Security after such Optional Redemption Date. The “Optional
Redemption Price” is equal to the Face Amount of this Security. The “Optional Redemption Dates” shall
be the Contingent Coupon Payment Dates (as defined below) following each Calculation Day scheduled to occur from February 2019
to April 2020, inclusive.

 

     1

     

    

Payment
of Contingent Coupon Payments, the Maturity Payment Amount and the Optional Redemption Price

On
each monthly Contingent Coupon Payment Date, the Company shall pay a Contingent Coupon Payment if, and only if, the Closing
Value (as defined below) of the Lowest Performing Market Measure (as defined below) on the related Calculation Day is
greater than or equal to its Threshold Value (as defined below). A “Contingent Coupon Payment,” if payable
as provided herein, shall be equal to the product of (i) the Face Amount of this Security, (ii) the Contingent Coupon
Rate, and (iii) 30/360. The “Contingent Coupon Payment Dates” shall be the third Business Day
following each Calculation Day, as each such Calculation Day may be postponed as herein provided, provided that the
Contingent Coupon Payment Date with respect to the Final Calculation Day will be the Stated Maturity Date. If a Calculation
Day is postponed with respect to one or more Market Measures, the related Contingent Coupon Payment Date will be three
Business Days after the last Calculation Day as postponed. The “Contingent Coupon Rate” is 7.60% per
annum. Any Contingent Coupon Payments will be rounded to the nearest cent, with one-half cent rounded upward.

Any
Contingent Coupon Payment so payable, and punctually paid or duly provided for, on any Contingent Coupon Payment Date will, as
provided in the Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such Contingent Coupon Payment next preceding such Contingent Coupon Payment
Date. The Regular Record Date for a Contingent Coupon Payment Date shall be the date one Business Day prior to such Contingent
Coupon Payment Date. 

Any
Contingent Coupon Payment not punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular
Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered
at the close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or
be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the
Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in the Indenture.

Payment
of any Contingent Coupon Payment on this Security will be made in immediately available funds at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota; provided, however, that, at the option of the Company, payment
of any Contingent Coupon Payment may be paid by check mailed to the Person entitled thereto at such Person’s last address
as it appears in the Security Register or by wire transfer to such account as may have been designated by such Person. Payments
of any Contingent Coupon Payment and the Maturity Payment Amount or the Optional Redemption Price, as applicable, on this Security
at Maturity will be made against presentation of this Security at the office or agency of the Company maintained for that purpose
in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company for such purpose. Notwithstanding
the foregoing, for so long as this Security is a Global Security registered in the name of the Depositary, any payments on this
Security will be made to the Depositary by wire transfer of immediately available funds.

 

    	 	2	 

     

    

Payment
of the Maturity Payment Amount or the Optional Redemption Price, as applicable, and any Contingent Coupon Payments on this Security
will be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts.

Definitions
Relating to Maturity Payment Amount, the Optional
Redemption Price and Contingent Coupon Payments

If
this Security is not redeemed prior to the Stated Maturity Date as provided above under “Optional Redemption,” the
“Maturity Payment Amount” of this Security will equal:

		●	if
                                         the Ending Value of the Lowest Performing Market Measure on the Final Calculation Day
                                         (as defined below) is greater than or equal to its Threshold Value: the Face Amount;
                                         or

 

		●	if
                                         the Ending Value of the Lowest Performing Market Measure on the Final Calculation Day
                                         is less than its Threshold Value:

 

 

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest
one hundred-thousandth, with five one-millionths rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity
Payment Amount will be rounded to the nearest cent, with one-half cent rounded upward.

“Index”
shall mean each of the S&P 500 Index and the Russell 2000 Index.

“Fund”
shall mean the iShares MSCI EAFE ETF.

“Market
Measure” shall mean each Index and the Fund.

The
“Pricing Date” shall mean August 8, 2018.

 

    	 	3	 

     

    

The
“Lowest Performing Market Measure” for any Calculation Day will be the Market Measure with the lowest Performance
Factor on that Calculation Day (as such Calculation Day may be postponed for one or more Market Measures).

The
“Performance Factor” with respect to a Market Measure on any Calculation Day is its Closing Value on such Calculation
Day divided by its Starting Value (expressed as a percentage).

The
“Closing Value” with respect to either Index on any Trading Day is its Closing Level on that Trading Day; and
with respect to the Fund on any Trading Day is its Fund Closing Price on that Trading Day.

The
“Starting Value” with respect to the S&P 500 Index is 2855.35, with respect to the Russell 2000 Index is
1679.600 and with respect to the iShares MSCI EAFE ETF is $68.20.

The
“Ending Value” of a Market Measure will be its Closing Value on the Final Calculation Day.

The
“Threshold Value” with respect to the S&P 500 Index is 1998.745, which is equal to 70% of its Starting
Value, with respect to the Russell 2000 Index is 1175.720, which is equal to 70% of its Starting Value, and with respect to the
iShares MSCI EAFE ETF, is $47.74, which is equal to 70% of its Starting Value.

The
“Closing Level” with respect to each Index on any Trading Day means the official closing level of that Index
reported by the relevant Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the
licensed third-party market data vendor contracted by the Calculation Agent at such time; in particular, taking into account the
decimal precision and/or rounding convention employed by such licensed third-party market data vendor on such date, subject to
the provisions set forth below under “—Market Disruption Events,” “—Adjustments to an Index”
and “—Discontinuance of an Index.”

The
“Fund Closing Price” with respect to the Fund on any Trading Day means the product of (i) the Closing
Price of one share of the Fund (or one unit of any other security for which a Fund Closing Price must be determined) on such Trading
Day and (ii) the Adjustment Factor on such Trading Day.

The
“Closing Price” for one share of the Fund (or one unit of any other security for which a Closing Price must
be determined) on any Trading Day means the official closing price on such day published by the principal United States securities
exchange registered under the Securities Exchange Act of 1934, as amended, on which the Fund (or any such other security) is listed
or admitted to trading.

The
“Adjustment Factor” means, with respect to a share of the Fund (or one unit of any other security for which
a Fund Closing Price must be determined), 1.0, subject to adjustment in the event of certain events affecting the shares of the
Fund. See “Anti-dilution Adjustments Relating to the Fund; Alternate Calculation” below.

“Index
Sponsor” shall mean the sponsor or publisher of an Index.

 

    	 	4	 

     

    

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

The
“Calculation Days” shall be the 8th day of each month, commencing September 2018 and ending April
2020, and the Final Calculation Day. If any such day is not a Trading Day with respect to any Market Measure, that Calculation
Day for each Market Measure will be postponed to the next succeeding day that is a Trading Day with respect to each Market Measure.
A Calculation Day for a Market Measure is also subject to postponement due to the occurrence of a Market Disruption Event (as
defined below) with respect to such Market Measure on such Calculation Day. The “Final Calculation Day” is
May 8, 2020. If a Market Disruption Event occurs or is continuing with respect to any Market Measure on any Calculation Day,
then such Calculation Day for such Market Measure will be postponed to the first succeeding Trading Day for such Market Measure
on which a Market Disruption Event for such Market Measure has not occurred and is not continuing; however, if such first succeeding
Trading Day has not occurred as of the eighth Trading Day for such Market Measure after the originally scheduled Calculation Day,
that eighth Trading Day shall be deemed to be the Calculation Day for such Market Measure. If a Calculation Day has been postponed
eight Trading Days for a Market Measure after the originally scheduled Calculation Day and a Market Disruption Event occurs or
is continuing with respect to such Market Measure on such eighth Trading Day, the Calculation Agent will determine the Closing
Value of such Market Measure on such eighth Trading Day (i) in the case of an Index, in accordance with the formula for and
method of calculating the Closing Level of such Index last in effect prior to commencement of the Market Disruption Event, using
the closing price (or, with respect to any relevant security, if a Market Disruption Event has occurred with respect to such security,
its good faith estimate of the value of such security at the Scheduled Closing Time of the Relevant Stock Exchange for such security
or, if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange) on such date of each security
included in such Index and (ii) in the case of the Fund, based on its good faith estimate of the value of the shares (or
other applicable securities) of the Fund as of the close of trading on such date. As used in clause (i) of the immediately
preceding sentence, “closing price” means, with respect to any security on any date, the Relevant Stock Exchange
traded or quoted price of such security as of the Scheduled Closing Time of the Relevant Stock Exchange for such security or,
if earlier, the actual closing time of the regular trading session of such Relevant Stock Exchange. Notwithstanding the postponement
of a Calculation Day for a Market Measure due to a Market Disruption Event with respect to such Market Measure on such Calculation
Day, the originally scheduled Calculation Day will remain the Calculation Day for any Market Measure not affected by a Market
Disruption Event on such day.

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and
the Calculation Agent, as amended from time to time.

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any, and the Maturity Payment
Amount, if any, which term shall, unless the context otherwise requires, include its successors under such Calculation Agent Agreement.
The initial Calculation Agent shall be Wells Fargo Securities, LLC. Pursuant to the Calculation Agent Agreement, the Company may
appoint a different Calculation Agent from time to time after the initial issuance of this Security without the consent of the
Holder of this Security and without notifying the Holder of this Security.

 

    	 	5	 

     

    

Certain
Definitions 

A
“Trading Day” with respect to an Index means a day, as determined by the Calculation Agent, on which (i) the
Relevant Stock Exchanges with respect to each security underlying such Index are scheduled to be open for trading for their respective
regular trading sessions and (ii) each Related Futures or Options Exchange with respect to such Index is scheduled to be
open for trading for its regular trading session. The “Relevant Stock Exchange” for any security underlying
an Index means the primary exchange or quotation system on which such security is traded, as determined by the Calculation Agent.
The “Related Futures or Options Exchange” for an Index means an exchange or quotation system where trading
has a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating
to such Index.

A
“Trading Day” with respect to the Fund means a day, as determined by the Calculation Agent, on which the
Relevant Stock Exchange and each Related Futures or Options Exchange with respect to the Fund or any successor thereto, if
applicable, are scheduled to be open for trading for their respective regular trading sessions. The “Relevant Stock
Exchange” for the Fund means the primary exchange or quotation system on which shares (or other applicable
securities) of the Fund are traded, as determined by the Calculation Agent. The “Related Futures or Options
Exchange” for the Fund means each exchange or quotation system where trading has a material effect (as
determined by the Calculation Agent) on the overall market for futures or options contracts relating to the Fund.

Adjustments
to an Index

If
at any time the method of calculating an Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if an Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion of
the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the Calculation
Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to be calculated,
make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive
at a level of an index comparable to such Index or Successor Equity Index as if those changes or modifications had not been made,
and the Calculation Agent will calculate the closing level of such Index or Successor Equity Index with reference to such index,
as so adjusted. Accordingly, if the method of calculating an Index or Successor Equity Index is modified so that the level of
such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to a split or
reverse split in such equity index), then the Calculation Agent will adjust such Index or Successor Equity Index in order to arrive
at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not occurred).

 

    	 	6	 

     

    

Discontinuance
of an Index

If
an Index Sponsor discontinues publication of an Index, and such Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to such Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the relevant Index Sponsor or any other entity
for purposes of calculating the Closing Level of such Index on any date of determination. Upon any selection by the Calculation
Agent of a Successor Equity Index, the Company will cause notice to be given to the Holder of this Security.

In
the event that an Index Sponsor discontinues publication of an Index prior to, and the discontinuance is continuing on, a Calculation
Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation Agent will
calculate a substitute Closing Level for such Index in accordance with the formula for and method of calculating such Index last
in effect prior to the discontinuance, but using only those securities that comprised such Index immediately prior to that discontinuance.
If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for such Index, the Successor
Equity Index or level will be used as a substitute for such Index for all purposes, including the purpose of determining whether
a Market Disruption Event exists.

If
on a Calculation Day an Index Sponsor fails to calculate and announce the level of an Index, the Calculation Agent will calculate
a substitute Closing Level of such Index in accordance with the formula for and method of calculating such Index last in effect
prior to the failure, but using only those securities that comprised such Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day with respect to such Index, then the provisions set
forth above under the definition of “Calculation Days” shall apply in lieu of the foregoing.

Anti-dilution
Adjustments Relating to the Fund; Alternate Calculation 

Anti-dilution
Adjustments 

The
Calculation Agent will adjust the Adjustment Factor with respect to the Fund as specified below if any of the events specified
below occurs with respect to the Fund and the effective date or ex-dividend date, as applicable, for such event is after the Pricing
Date and on or prior to the Final Calculation Day.

The
adjustments specified below do not cover all events that could affect the Fund. The Calculation Agent may, in its sole discretion,
make additional adjustments to any terms of this Security upon the occurrence of other events that affect or could potentially
affect the market price of, or shareholder rights in, the Fund, with a view to offsetting, to the extent practical, any such change,
and preserving the relative investment risks of this Security. In addition, the Calculation Agent may, in its sole discretion,
make adjustments or a series of adjustments that differ from those described herein if the Calculation Agent determines that such
adjustments do not properly reflect the economic consequences of the events specified herein or would not preserve the relative
investment risks of this Security. All determinations made by the Calculation Agent in making any adjustments to the terms of
this Security, including adjustments that are in addition to, or that differ from, those described herein, will be made in good
faith and a commercially reasonable manner, with the aim of ensuring an equitable result. In determining whether to make any adjustment
to the terms of this Security, the Calculation Agent may consider any adjustment made by the Options Clearing Corporation or any
other equity derivatives clearing organization on options contracts on the Fund.

 

    	 	7	 

     

    

For
any event described below, the Calculation Agent will not be required to adjust the Adjustment Factor unless the adjustment would
result in a change to the Adjustment Factor then in effect of at least 0.10%. The Adjustment Factor resulting from any adjustment
will be rounded up or down, as appropriate, to the nearest one-hundred thousandth.

		(A)	Stock
                                         Splits and Reverse Stock Splits

If
a stock split or reverse stock split has occurred, then once such split has become effective, the Adjustment Factor will be adjusted
to equal the product of the prior Adjustment Factor and the number of securities which a holder of one share (or other applicable
security) of the Fund before the effective date of such stock split or reverse stock split would have owned or been entitled to
receive immediately following the applicable effective date.

		(B)	Stock
                                         Dividends

If
a dividend or distribution of shares (or other applicable securities) to which this Security is linked has been made by the Fund
ratably to all holders of record of such shares (or other applicable security), then the Adjustment Factor will be adjusted on
the ex-dividend date to equal the prior Adjustment Factor plus the product of the prior Adjustment Factor and the number of shares
(or other applicable security) of the Fund which a holder of one share (or other applicable security) of the Fund before the ex-dividend
date would have owned or been entitled to receive immediately following that date; provided, however, that no adjustment will
be made for a distribution for which the number of securities of the Fund paid or distributed is based on a fixed cash equivalent
value.

		(C)	Extraordinary
                                         Dividends

If
an Extraordinary Dividend (as defined below) has occurred, then the Adjustment Factor will be adjusted on the ex-dividend date
to equal the product of the prior Adjustment Factor and a fraction, the numerator of which is the Closing Price per share (or
other applicable security) of the Fund on the Trading Day preceding the ex-dividend date, and the denominator of which is the
amount by which the Closing Price per share (or other applicable security) of the Fund on the Trading Day preceding the ex-dividend
date exceeds the Extraordinary Dividend Amount (as defined below).

 

    	 	8	 

     

    

For
purposes of determining whether an Extraordinary Dividend has occurred:

		(1)	“Extraordinary
                                         Dividend” means any cash dividend or distribution (or portion thereof) that
                                         the Calculation Agent determines, in its sole discretion, is extraordinary or special;
                                         and

		(2)	“Extraordinary
                                         Dividend Amount” with respect to an Extraordinary Dividend for the securities
                                         of the Fund will equal the amount per share (or other applicable security) of the Fund
                                         of the applicable cash dividend or distribution that is attributable to the Extraordinary
                                         Dividend, as determined by the Calculation Agent in its sole discretion.

A
distribution on the securities of the Fund described below under the section entitled “—Reorganization Events”
below that also constitutes an Extraordinary Dividend will only cause an adjustment pursuant to that “—Reorganization
Events” section.

		(D)	Other
                                         Distributions

If
the Fund declares or makes a distribution to all holders of the shares (or other applicable security) of the Fund of any non-cash
assets, excluding dividends or distributions described under the section entitled “—Stock Dividends” above,
then the Calculation Agent may, in its sole discretion, make such adjustment (if any) to the Adjustment Factor as it deems appropriate
in the circumstances. If the Calculation Agent determines to make an adjustment pursuant to this paragraph, it will do so with
a view to offsetting, to the extent practical, any change in the economic position of a holder of this Security that results solely
from the applicable event.

		(E)	Reorganization
                                         Events

If
the Fund, or any Successor Fund, is subject to a merger, combination, consolidation or statutory exchange of securities with another
exchange traded fund, and the Fund to which this Security is linked is not the surviving entity (a “Reorganization Event”),
then, on or after the date of such event, the Calculation Agent shall, in its sole discretion, make an adjustment to the Adjustment
Factor or the method of determining the Maturity Payment Amount or any other terms of this Security as the Calculation Agent determines
appropriate to account for the economic effect on this Security of such event, and determine the effective date of that adjustment.
If the Calculation Agent determines that no adjustment that it could make will produce a commercially reasonable result, then
the Calculation Agent may deem such event a Liquidation Event (as defined below).

Liquidation
Events 

If
the Fund is de-listed, liquidated or otherwise terminated (a “Liquidation Event”), and a successor or substitute
exchange traded fund exists that the Calculation Agent determines, in its sole discretion, to be comparable to the Fund, then,
upon the Calculation Agent’s notification of that determination to the Trustee and the Company, any subsequent Fund Closing
Price for the Fund will be determined by reference to the Fund Closing Price of such successor or substitute exchange traded fund
(such exchange traded fund being referred to herein as a “Successor Fund”), with such adjustments as the Calculation
Agent determines are appropriate to account for the economic effect of such substitution on the holder of this Security.

 

    	 	9	 

     

    

If
the Fund undergoes a Liquidation Event prior to, and such Liquidation Event is continuing on, the date that any Fund Closing Price
of the Fund is to be determined and the Calculation Agent determines that no Successor Fund is available at such time, then the
Calculation Agent will, in its discretion, calculate the Fund Closing Price for the Fund on such date by a computation methodology
that the Calculation Agent determines will as closely as reasonably possible replicate the Fund, provided that if the Calculation
Agent determines in its discretion that it is not practicable to replicate the Fund (including but not limited to the instance
in which the sponsor of the index underlying the Fund discontinues publication of that index), then the Calculation Agent will
calculate the Fund Closing Price for the Fund in accordance with the formula last used to calculate such Fund Closing Price before
such Liquidation Event, but using only those securities that were held by the Fund immediately prior to such Liquidation Event
without any rebalancing or substitution of such securities following such Liquidation Event.

If
a Successor Fund is selected or the Calculation Agent calculates the Fund Closing Price as a substitute for the Fund, such Successor
Fund or Fund Closing Price will be used as a substitute for the Fund for all purposes, including for purposes of determining whether
a Market Disruption Event exists.

If
any event is both a Reorganization Event and a Liquidation Event, such event will be treated as a Reorganization Event for purposes
of this Security unless the Calculation Agent makes the determination referenced in the last sentence of the section entitled
“—Anti-dilution Adjustments—Reorganization Events” above.

Alternate
Calculation

If
at any time the method of calculating the Fund or a Successor Fund, or the related index underlying the Fund or Successor Fund,
is changed in a material respect, or if the Fund or a Successor Fund is in any other way modified so that the Fund does not, in
the opinion of the Calculation Agent, fairly represent the price of the securities of the Fund or a Successor Fund had such changes
or modifications not been made, then the Calculation Agent may, at the close of business in New York City on the date that any
Fund Closing Price is to be determined, make such calculations and adjustments as, in the good faith judgment of the Calculation
Agent, may be necessary in order to arrive at a Closing Price of the Fund comparable to the Fund or such Successor Fund, as the
case may be, as if such changes or modifications had not been made, and calculate the Fund Closing Price and the Maturity Payment
Amount with reference to such adjusted Closing Price of the Fund or a Successor Fund, as applicable.

 

    	 	10	 

     

    

Market
Disruption Events 

A
“Market Disruption Event” with respect to an Index means any of the following events as determined by the Calculation
Agent in its sole discretion:

		(A)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by the Relevant Stock Exchanges or otherwise relating to securities which then comprise
                                         20% or more of the level of such Index or any Successor Equity Index at any time during
                                         the one-hour period that ends at the Close of Trading on that day, whether by reason
                                         of movements in price exceeding limits permitted by those Relevant Stock Exchanges or
                                         otherwise.

 

		(B)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by any Related Futures or Options Exchange or otherwise in futures or options contracts
                                         relating to such Index or any Successor Equity Index on any Related Futures or Options
                                         Exchange at any time during the one-hour period that ends at the Close of Trading on
                                         that day, whether by reason of movements in price exceeding limits permitted by the Related
                                         Futures or Options Exchange or otherwise.

 

		(C)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, securities that then comprise 20% or more of the level of such
                                         Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(D)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, futures or options contracts relating to such Index or any
                                         Successor Equity Index on any Related Futures or Options Exchange at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

 

		(E)	The
                                         closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities
                                         that then comprise 20% or more of the level of such Index or any Successor Equity Index
                                         are traded or any Related Futures or Options Exchange with respect to such Index or any
                                         Successor Equity Index prior to its Scheduled Closing Time unless the earlier closing
                                         time is announced by the Relevant Stock Exchange or Related Futures or Options Exchange,
                                         as applicable, at least one hour prior to the earlier of (1) the actual closing time
                                         for the regular trading session on such Relevant Stock Exchange or Related Futures or
                                         Options Exchange, as applicable, and (2) the submission deadline for orders to be entered
                                         into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable,
                                         system for execution at such actual closing time on that day.

 

		(F)	The
                                         Relevant Stock Exchange for any security underlying such Index or Successor Equity Index
                                         or any Related Futures or Options Exchange with respect to such Index or Successor Equity
                                         Index fails to open for trading during its regular trading session.

 

    	 	11	 

     

    

For
purposes of determining whether a Market Disruption Event has occurred with respect to an Index:

 

		(1)	the
                                         relevant percentage contribution of a security to the level of such Index or any Successor
                                         Equity Index will be based on a comparison of (x) the portion of the level of such
                                         Index attributable to that security and (y) the overall level of such Index or Successor
                                         Equity Index, in each case immediately before the occurrence of the Market Disruption
                                         Event;

 

		(2)	the
                                         “Close of Trading” on any Trading Day for such Index or any Successor
                                         Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect
                                         to the securities underlying such Index or Successor Equity Index on such Trading Day;
                                         provided that, if the actual closing time of the regular trading session of any such
                                         Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading Day,
                                         then (x) for purposes of clauses (A) and (C) of the definition of “Market
                                         Disruption Event” above, with respect to any security underlying such Index or
                                         Successor Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange,
                                         the “Close of Trading” means such actual closing time and (y) for purposes
                                         of clauses (B) and (D) of the definition of “Market Disruption Event”
                                         above, with respect to any futures or options contract relating to such Index or Successor
                                         Equity Index, the “Close of Trading” means the latest actual closing time
                                         of the regular trading session of any of the Relevant Stock Exchanges, but in no event
                                         later than the Scheduled Closing Time of the Relevant Stock Exchanges;

 

		(3)	the
                                         “Scheduled Closing Time” of any Relevant Stock Exchange or Related
                                         Futures or Options Exchange on any Trading Day for such Index or any Successor Equity
                                         Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
                                         Futures or Options Exchange on such Trading Day, without regard to after hours or any
                                         other trading outside the regular trading session hours; and

 

		(4)	an
                                         “Exchange Business Day” means any Trading Day for such Index or any
                                         Successor Equity Index on which each Relevant Stock Exchange for the securities underlying
                                         such Index or any Successor Equity Index and each Related Futures or Options Exchange
                                         with respect to such Index or any Successor Equity Index are open for trading during
                                         their respective regular trading sessions, notwithstanding any such Relevant Stock Exchange
                                         or Related Futures or Options Exchange closing prior to its Scheduled Closing Time.

 

 

    	 	12	 

     

    

A
“Market Disruption Event” with respect to the Fund means any of the following events as determined by the Calculation
Agent in its sole discretion:

 

		(A)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by the Relevant Stock Exchange or otherwise relating to the shares (or other applicable
                                         securities) of the Fund or any Successor Fund on the Relevant Stock Exchange at any time
                                         during the one-hour period that ends at the Close of Trading on such day, whether by
                                         reason of movements in price exceeding limits permitted by such Relevant Stock Exchange
                                         or otherwise.

 

		(B)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by any Related Futures or Options Exchange or otherwise in futures or options contracts
                                         relating to the shares (or other applicable securities) of the Fund or any Successor
                                         Fund on any Related Futures or Options Exchange at any time during the one-hour period
                                         that ends at the Close of Trading on that day, whether by reason of movements in price
                                         exceeding limits permitted by the Related Futures or Options Exchange or otherwise.

 

		(C)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, shares (or other applicable securities) of the Fund or any
                                         Successor Fund on the Relevant Stock Exchange at any time during the one-hour period
                                         that ends at the Close of Trading on that day.

 

		(D)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, futures or options contracts relating to shares (or other applicable
                                         securities) of the Fund or any Successor
Fund on any Related Futures or Options Exchange at any time during the one-hour period that ends at the Close of Trading on that
day.

 

		(E)	The
                                         closure of the Relevant Stock Exchange or any Related Futures or Options Exchange with
                                         respect to the Fund or any Successor Fund prior to its Scheduled Closing Time unless
                                         the earlier closing time is announced by the Relevant Stock Exchange or Related Futures
                                         or Options Exchange, as applicable, at least one hour prior to the earlier of (1) the
                                         actual closing time for the regular trading session on such Relevant Stock Exchange or
                                         Related Futures or Options Exchange, as applicable, and (2) the submission deadline
                                         for orders to be entered into the Relevant Stock Exchange or Related Futures or Options
                                         Exchange, as applicable, system for execution at the Close of Trading on that day.

 

		(F)	The
                                         Relevant Stock Exchange or any Related Futures or Options Exchange with respect to the
                                         Fund or any Successor Fund fails to open for trading during its regular trading session.

 

 

    	 	13	 

     

    

For
purposes of determining whether a market disruption event has occurred with respect to the Fund:

		(1)	“Close
                                         of Trading” means the Scheduled Closing Time of the Relevant Stock Exchange
                                         with respect to the Fund or any Successor Fund; and

		(2)	the
                                         “Scheduled Closing Time” of the Relevant Stock Exchange or any Related
                                         Futures or Options Exchange on any Trading Day for the Fund or any Successor Fund means
                                         the scheduled weekday closing time of such Relevant Stock Exchange or Related Futures
                                         or Options Exchange on such Trading Day, without regard to after hours or any other trading
                                         outside the regular trading session hours.

Calculation
Agent

The
Calculation Agent will determine whether a Contingent Coupon Payment will be made, the Optional Redemption Price, if any, and
the Maturity Payment Amount, if any. In addition, the Calculation Agent will (i) determine if adjustments are required to
the Closing Value of a Market Measure under the circumstances described in this Security, (ii) if publication of an Index
is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine the Closing Value of
such Index under the circumstances described in this Security, (iii) if the Fund undergoes a Liquidation Event, select a
Successor Fund or, if no Successor Fund is available, determine the Closing Value of the Fund, and (iv) determine whether
a Market Disruption Event has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Redemption
and Repayment

This
Security is not subject to repayment at the option of the Holder hereof prior to May 13, 2020. This Security is subject to
redemption prior to May 13, 2020 as set forth under “Optional Redemption” above. This Security is not entitled
to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity
Payment Amount (calculated as set forth in the next two sentences) of this Security may
be declared due and payable in the manner and with the effect provided in the Indenture. The amount payable to the Holder
hereof upon any acceleration permitted under the Indenture will be equal to the Maturity Payment Amount hereof calculated as provided
herein, plus a portion of a final Contingent Coupon Payment, if any. The Maturity Payment Amount and any final Contingent
Coupon Payment will be calculated as though the date of acceleration were the Final Calculation Day. The final Contingent Coupon
Payment, if any, will be prorated from and including the immediately preceding Contingent Coupon Payment Date to but excluding
the date of acceleration.

 

 

    	 	14	 

     

    

__________________

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

 

[The
remainder of this page has been left intentionally blank]

 

 

 

    	 	15	 

     

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED:

 

 

	 	WELLS
    FARGO & COMPANY
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:	 
	 	 	 
	 	Attest:	 
	 	 	 
	 	 	Its:	 

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This
is one of the Securities of the 

series
designated therein described

in
the within-mentioned Indenture.

 

	CITIBANK, N.A., 
 as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	 	OR	 
	 	 	 
	WELLS FARGO BANK, N.A., 

as Authenticating Agent for the Trustee	 
	 	 	 
	 	 	 
	By:		 
	 	Authorized Signature	 

 

 

    	 	16	 

     

    

[Reverse
of Note]

 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the Lowest Performing of the S&P 500® Index,

the
Russell 2000® Index and the iShares® MSCI EAFE ETF due May 13, 2020

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from
time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series of the Securities
designated as Medium-Term Notes, Series S, of the Company. The amount payable on the Securities of this series may
be determined by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds,
securities, commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or
more of the foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of
this series may mature at different times, be redeemable at different times or not at all,
be repayable at the option of the Holder at different times or not at all and be denominated in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting
together as a class, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with those
provisions of the Indenture. Certain past defaults under the Indenture and their consequences may be waived under the Indenture
by the Holders of a majority in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders
of all Securities of such series. Solely for
the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders of Securities
pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate principal
amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof as the “Face
Amount” hereof. Any such consent or waiver by the Holder of this Security shall be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration
of transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

 

    	 	17	 

     

    

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, bearing interest at
the same rate, having the same date of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating
a like amount.

 

    	 	18	 

     

    

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Contingent Coupon Payments, if any, and the Maturity
Payment Amount or the Optional Redemption Price, as applicable, on this Security at the
times, place and rate, and in the coin or currency, herein prescribed, except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of any Contingent Coupon Payments or the Maturity Payment Amount or the Optional
Redemption Price, as applicable, on this Security or for any claim based hereon, or otherwise in respect hereof, or based on
or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer or
director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability
being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released.

Defined
Terms

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

 

    	 	19	 

     

    

ABBREVIATIONS

 

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

 

TEN
COM--as tenants in common

 

TEN
ENT--as tenants by the entireties

 

JT
TEN--as joint tenants with right

of
survivorship and not

as
tenants in common

 

	UNIF GIFT MIN ACT --	 	Custodian	 	 
	 	(Cust)	 	(Minor)	 

 

Under
Uniform Gifts to Minors Act

 

	 	 	 
	(State)	 	 

 

Additional
abbreviations may also be used though not in the above list.

 

 

FOR
VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto

 

Please
Insert Social Security or

Other
Identifying Number of Assignee

 

	 	 	 

 

  

	 
	 
	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

 

    	 	20	 

     

    

the
within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

 

	Dated:	 	 	 

 

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

 

    	 	21Exhibit

EXHIBIT 10.1

AMENDMENT NO. 8 TO CREDIT AGREEMENT 
This AMENDMENT NO. 8 TO CREDIT AGREEMENT (this “Amendment”), dated as of August 9, 2018, is among BABCOCK & WILCOX ENTERPRISES, INC., a Delaware corporation (the “Borrower”), BANK OF AMERICA, N.A., in its capacity as administrative agent for the Lenders (as defined in the Credit Agreement described below) (in such capacity, the “Administrative Agent”), and each of the Lenders party hereto, and, for purposes of  Sections 1, 2, 5, 6 and 8 hereof, acknowledged and agreed by certain Subsidiaries of the Borrower, as Guarantors.
W I T N E S E T H:
WHEREAS, the Borrower, the Administrative Agent and the Lenders have entered into that certain Credit Agreement, dated as of May 11, 2015 (as amended by Amendment No. 1 to Credit Agreement, dated as of June 10, 2016, Amendment No. 2 to Credit Agreement, dated as of February 24, 2017, Amendment No. 3 to Credit Agreement, dated as of August 9, 2017, Amendment No. 4 to Credit Agreement, dated as of September 20, 2017, Amendment No. 5 to Credit Agreement, dated as of March 1, 2018, Amendment No. 6 to Credit Agreement, dated as of April 10, 2018, Consent and Amendment No. 7 to Credit Agreement, dated as of June 1, 2018 (“Amendment No. 7”), and from time to time further amended, supplemented, restated, amended and restated or otherwise modified, the “Credit Agreement”; capitalized terms used in this Amendment not otherwise defined herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which the Lenders have provided a revolving credit facility to the Borrower; 

WHEREAS, the Borrower has requested that the Administrative Agent and the Required Lenders agree to, among other items, (i) adjust the financial covenants set forth in Section 7.16 of the Credit Agreement, and (ii) decrease the required minimum liquidity threshold as set forth in Section 7.18 of the Credit Agreement, and the Administrative Agent and the Lenders signatory hereto are willing to effect such amendments on the terms and conditions contained in this Amendment.

 
NOW, THEREFORE, in consideration of the premises and further valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

		
	1.
	Amendments to the Credit Agreement. 

The Credit Agreement is, effective as of the Amendment No. 8 Effective Date, hereby amended as follows: 

    
    

		
	(a)
	Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the following new definitions in the appropriate alphabetical order in Section 1.01:

“Amendment No. 8” means that certain Amendment No. 8, dated as of the Amendment No. 8 Effective Date, by and among the Borrower, the Administrative Agent and the Lenders party thereto, and acknowledged and agreed by the Guarantors.
“Amendment No. 8 Effective Date” means August 9, 2018, the date on which the conditions precedent to the effectiveness of Amendment No. 8 were satisfied.
“Customer Concessions” has the meaning specified in Section 6.38.

“Incremental Tranche A Term Loan Funding” means the Borrower’s receipt of net cash proceeds of at least $20,000,000 (which may be made in multiple fundings) in accordance with the terms and conditions of the Tranche A Last Out Facility Commitment Letter and the debt issuance described therein. 
 
“Initial Tranche A Term Loan Funding” means the Borrower’s receipt of net cash proceeds of $10,000,000 in accordance with the terms and conditions of the Tranche A Last Out Facility Commitment Letter and the debt issuance described therein. For the avoidance of doubt, to the extent the extension of credit with respect thereto results in a Trigger Event or if on the date of funding thereof a Repayment Deadline exists, the proceeds thereof shall be applied to the Revolving Credit Loans in an amount equal to 100% of the excess above the thresholds set forth in the definition of “Trigger Event.”

“Minimum Customer Concessions Amount” has the meaning specified in Section 6.38.

“Project Burn” means the Asset Sale consummated pursuant to the Stock Purchase Agreement, in substantially the form provided to the Administrative Agent on 
 
August 7, 2018, between Covanta Pasco, Inc. and Power Systems Operations, Inc.

“Tranche A Last Out Facility Commitment Letter” means each of (a) that certain letter regarding the last out term loan financing commitment, dated as of the Amendment No. 8 Effective Date, between Vintage Capital Management, LLC and B. Riley Financial, Inc. and (b) that certain letter regarding the last out term loan financing commitment, dated as of the Amendment No. 8 Effective Date, between the Borrower and Vintage Capital Management, LLC.

		
	(b)
	The definition of “Cash Interest Expense” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

2

    
    

“Cash Interest Expense” means, with respect to any Person for any period, the Interest Expense of such Person for such period less, to the extent included in the calculation of Interest Expense of such Person for such period, (a) the amount of debt discount and debt issuance costs amortized, (b) charges relating to write-ups or write-downs in the book or carrying value of existing Financial Covenant Debt, and (c) interest payable in evidences of Indebtedness or by addition to the principal of the related Indebtedness and (d) interest paid pursuant to the Second Lien Credit Agreement.

		
	(c)
	The definition of “Commitment Reduction Amount” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

“Commitment Reduction Amount” means (a) with respect to any reduction of the Revolving Credit Facility required by Section 2.06(b) related to a Prepayment Event under clause (a)  of the definition thereof, the Net Cash Proceeds of such event required to be utilized pursuant to Section 2.05(b) to make such a prepayment (including any amount that may be retained by the Borrower pursuant to Section 2.05(b)(iv)), provided that (i) the Net Cash Proceeds received from the China JV sale shall not be deemed to be included in this definition of “Commitment Reduction Amount,” (ii) the Net Cash Proceeds received after the Amendment No. 6 Effective Date in connection with Prepayment Events on account of Recovery Events shall be excluded from “Commitment Reduction Amount,” and (iii) only 65% of the first $100,000,000 of the Net Cash Proceeds received after the Amendment No. 6 Effective Date in connection with Prepayment Events on account of Asset Sales (other than an Asset Sale pursuant to Section 7.04 (p)) shall be deemed to be included in this definition of “Commitment Reduction Amount,” and, (iv) provided that the Initial Tranche A Term Loan Funding has occurred, the first $25,000,000 of the Net Cash Proceeds received in connection with an Asset Sale permitted pursuant to Section 7.04(p) shall be excluded from this definition of “Commitment Reduction Amount” and (b) with respect to each Commitment Reduction Event, an amount equal to 50% of the aggregate principal amount of the incurrence of Indebtedness giving rise to such Commitment Reduction Event.

		
	(d)
	The definition of “Commitment Reduction Event” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below to read in its entirety as follows:

“Commitment Reduction Event” means (i) the issuance or other incurrence by the Borrower or any of its Subsidiaries during the Relief Period of any unsecured Indebtedness pursuant to either (a) Section 7.01(i) in an aggregate principal amount outstanding in excess of $25,000,000 or (b) Section 7.01(o), in each case other than any such Indebtedness that 

3

    
    

constitutes Subordinated Debt, or (ii)  any event described in clause (a) of Commitment Reduction Amount.

		
	(e)
	Clause (b)(vii) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended and restated in its entirety as follows:

(vii) (A) for any period that includes the fiscal quarter ended December 31, 2016, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Volund Projects in an aggregate amount not to exceed $98,100,000 and, (B) for any period that includes the fiscal quarter ended June 30, 2017, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Volund Projects in an aggregate amount not to exceed $115,200,000, (C) for any period that includes the fiscal quarter ended September 30, 2017, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Vølund Projects in an aggregate amount not to exceed $30,100,000, (D) for any period that includes the fiscal quarter ended December 31, 2017, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Vølund Projects in an aggregate amount not to exceed $38,700,000, (E) for any period that includes the fiscal quarter ended March 31, 2018, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Vølund Projects in an aggregate amount not to exceed $51,100,000 and (F) for any period that includes the fiscal quarter ended June 30, 2018, the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced by the Borrower and its Subsidiaries in such quarter in connection with the Vølund Projects in an aggregate amount not to exceed $72,800,000;

		
	(f)
	Clause (b)(x) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

(x) (x) with respect to the period commencing on July 1, 2017 through December 31, 2017, non-recurring charges incurred by the Borrower or its Subsidiaries in respect of business restructurings, provided that the aggregate amount added back to Consolidated Net Income pursuant to this clause (x) for any four consecutive Fiscal Quarter period shall not exceed $4,000,000, and (y) with respect to the period commencing on January 1, 2018 through December 31, 2018 2019, non-recurring charges incurred by the Borrower or its Subsidiaries in respect of business restructurings to the extent disclosed in writing to the 

4

    
    

Administrative Agent and in an amount not to exceed $26,300,000, provided that the aggregate amount added back to Consolidated Net Income pursuant to this clause (y) for any four consecutive Fiscal Quarter period shall not exceed $20,000,000.

		
	(g)
	Clause (b)(xi) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

(xi) (x) fees and expenses paid in connection with or pursuant to Amendment No. 5, and Amendment No. 6 and Amendment No. 8 to the extent disclosed in writing to the Administrative Agent and in an amount not to exceed $11,000,000 24,600,000, (y) fees and expenses of the Administrative Agent’s advisors, including FTI and Freshfields Bruckhaus Deringer US LLP and (z) any loss, charge, expense or other items that are payments of Obligations under the Second Lien Credit Agreement (as defined in the Second Lien Credit Agreement),

		
	(h)
	Clause (b)(xii) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

(xii)  for any period that includes the Fiscal Quarter ended September 30 March 31, 2018, any amounts, to the extent not already included in Consolidated Net Income for such Fiscal Quarter and disclosed to the Administrative Agent and or its advisors prior to April 5, 2018, committed anticipated to be received on account of Customer Concessions contractual bonuses and liquidated damages relief in an amount not to exceed $20,000,000 for such Fiscal Quarter;

		
	(i)
	Clause (c) of the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended as follows: 

		
	(i)
	deleting “, and” and inserting “,” after the current clause (vii); 

		
	(ii)
	deleting “.” and inserting “, and” after the current clause (viii); and 

		
	(iii)
	 inserting the new clause (ix) to read in its entirety as follows: 

(ix) commencing with the Fiscal Quarter ending September 30, 2018, any income on account of any settlement of or payment in respect of any property or casualty insurance claim or professional liability insurance claims or any taking or condemnation proceeding relating to any asset of the Borrower or any Subsidiary.

5

    
    

		
	(j)
	The final paragraph in the definition of “EBITDA” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

For any period of measurement that includes any Permitted Acquisition or any sale, exchange or disposition of any Subsidiary or business unit of the Borrower or any Subsidiary, EBITDA (and the relevant elements thereof) shall be computed on a pro forma basis for each such transaction as if it occurred on the first day of the period of measurement thereof, so long as the Borrower provides to the Administrative Agent reconciliations and other detailed information relating to adjustments to the relevant financial statements (including copies of financial statements of the acquired Person or assets in any Permitted Acquisition) used in computing EBITDA (and the relevant elements thereof) sufficient to demonstrate such pro forma calculations in reasonable detail. Notwithstanding the foregoing, no such pro forma adjustment will be required on account of income (i)  in an amount not to exceed $3,000,000 in connection with the Borrower’s disposition of its indirect interest in the Stock or Stock Equivalents of Babcock & Wilcox Beijing Co., Ltd., or (ii) in connection with (x) the Orion Sale (as defined in that certain Consent and Amendment No. 7, dated as of June 1, 2018) or (y) any Asset Sale of Project Burn. 

		
	(k)
	The definition of “Swing Line Sublimit” in Section 1.01 (Defined Terms) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

“Swing Line Sublimit” means an amount equal to the lesser of (a) $25,000,000 or $0.00 and (b) the Revolving Credit Facility.  The Swing Line Sublimit is part of, and not in addition to, the Revolving Credit Facility.

		
	(l)
	Clause (b)(vi) of Section 2.05 (Prepayments) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

“In the event, and on each occasion, at the close of any Business Day (the “Test Date”), the aggregate unrestricted cash and Cash Equivalents (a) of the Borrower and its Subsidiaries exceeds $50,000,000  $60,000,000 or (b) of the Non-Loan Parties exceeds $45,000,000 (a “Trigger Event”), in either case for each of the preceding three Business Days, the Borrower shall prepay the Revolving Credit Loans in an aggregate amount equal to 100% of the amount of such excess such that after giving effect to such repayment, the Borrower and its Subsidiaries and/or the Non-Loan Parties, as applicable, do not hold 

6

    
    

unrestricted cash and Cash Equivalents in amounts in excess of the above (such mandatory prepayments to be applied as set forth in clause (ii) above) on or prior to (A) the first Business Day after the Test Date or (B) the third Business Day after the Test Date solely with respect to any cash held in a deposit account owned by a Foreign Subsidiary of the Borrower required to be used for such  prepayment (each of such dates, a “Repayment Deadline”).”

		
	(m)
	Clause (e) of Section 4.03 (Conditions to All Credit Extensions) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

(e)    (i) The Borrower shall be in pro forma compliance with the Senior Leverage Ratio level in effect for the Fiscal Quarter most recently tested calculated as if such Credit Extension had occurred on the first day of the four full Fiscal Quarters ending on or prior to such day for which the financial statements and certificates required by Section 6.01(a) or 6.01(b) have been delivered (including pro forma application of the proceeds of such Credit Extension) as of the date of such Request for Credit Extension, and (ii) no Trigger Event would result from such Credit Extension (including pro forma application of the proceeds of such Credit Extension) and no Repayment Deadline exists and (iii) Liquidity, as of the Business Day immediately prior to each of (x) the date of the applicable Committed Loan Notice and (y) the proposed date of the Credit Extension (which may be confirmed by electronic mail notice), shall not be less than (a) $50,000,000 or (b) after consummation of an Asset Sale permitted pursuant to Section 7.04(p) and the completion of the Initial Tranche A Term Loan Funding, $40,000,000, after giving pro forma effect to the application of proceeds of the good faith intended use of such Credit Extension.

		
	(n)
	Section 4.03 (Conditions to All Credit Extensions) shall be further amended by inserting the text “4.03(a), (b) and (e)” in replacement of the text “4.03(a) and (b).”  

		
	(o)
	Section 6.32 (Teesside Project Update) of the Credit Agreement shall be amended and restated in its entirety as follows: “[Reserved].”

		
	(p)
	Section 6.34 (Completion of Vølund Project Milestones) of the Credit Agreement shall be amended and restated in its entirety as follows: 

6.34    Completion of Vølund Project Milestones. The Borrower shall complete the specified milestones for each of the Vølund Projects in accordance  with the schedule set forth on Exhibit A to Amendment No. 8.

7

    
    

		
	(q)
	Section 6.35 (Net Cash Proceeds from Asset Sales) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

6.35    Net Cash Proceeds from Asset Sales. The Borrower and its Subsidiaries shall have achieved the Sale Milestone prior to October 31, 2018 March 31, 2019, provided that this covenant shall be deemed satisfied if the Borrower presents the Administrative Agent and the Required Lenders with signed bona fide offers for certain of the Selected Assets which would have produced Net Cash Proceeds in excess of $100,000,000 prior to March 31, 2019 and the Administrative Agent and the Required Lenders object to the terms and conditions of such documentation,

		
	(r)
	Article VI (Affirmative Covenants) shall be amended to insert the following as new affirmative covenants: 

6.37    Delivery of Additional Materials.  Prior to August 31, 2018, the Borrower shall deliver to the Administrative Agent and the Lenders any materials requested by the Administrative Agent in connection with the relief provided pursuant to Amendment No. 8, in form and substance reasonably satisfactory to the Administrative Agent. 

6.38    Project Concessions.  Prior to September 30, 2018, the Borrower shall enter into binding written agreements with certain of the Vølund Project counterparties and other stakeholders that provide a commitment or commitments the results of which will produce, subject to the satisfaction of the conditions and/or performance criteria if and as applicable to such commitments, an increase in the liquidity of the Borrower and its Subsidiaries during the term of such written agreements through cash contributions, cash loans to non-Loan Parties and/or forgiveness of indebtedness and performance obligations by such counterparties and stakeholders (i) in an aggregate amount of not less than $25,000,000 (the “Minimum Customer Concession Amount”), provided that, with respect to any forgiveness of obligations, the designated value thereof shall be acceptable to the Administrative Agent, (ii) to the extent such liquidity increase is in the form of cash contributions or cash loans, receipt of such executed loan commitment documents from the providers of such funding no later than September 30, 2018 and (iii) in form and on terms and conditions reasonably acceptable to the Administrative Agent (such increases in liquidity, the “Customer Concessions”).

		
	(s)
	Section 7.01 (Indebtedness) of the Credit Agreement shall be amended by: 

		
	(i)
	deleting “; and” after current clause (o) thereof; 

8

    
    

		
	(ii)
	inserting “and” after current clause (p) thereof; 

		
	(iii)
	 inserting new clause (q) to read in its entirety as follows: 

(q)     Indebtedness arising from agreements of the Borrower or its Subsidiaries providing for the commitments or implementation of Customer Concessions; 

		
	(t)
	Section 7.04 (Asset Sales) of the Credit Agreement shall be amended by:  

		
	(i)
	deleting the word “and” after current clause (n) thereof;

		
	(ii)
	deleting the period and inserting “; and” after current clause (o) thereof; 

		
	(iii)
	 inserting new clause (p) to read in its entirety as follows:

(p)    any Asset Sale of Project Burn,  provided that the Initial Tranche A Term Loan Funding shall have been made available to the Administrative Agent in Same Day Funds at the Administrative Agent’s Office not later than 3:00 p.m. on the Business Day prior to the consummation thereof.

		
	(u)
	Section 7.16 (Financial Covenants) of the Credit Agreement shall be amended and restated in its entirety as follows: 

7.16    Financial Covenants.  

		
	(a)
	Interest Coverage Ratio.  The Borrower shall not permit the Interest Coverage Ratio as of the last day of any Fiscal Quarter of the Borrower set forth below to be less than the ratio set forth below opposite such period (provided that, notwithstanding any Fiscal Quarter not being included in the below, the Borrower shall include a reasonably detailed calculation of the Interest Coverage Ratio in the Compliance Certificate delivered pursuant to Section 6.01(c) with respect to such Fiscal Quarter):

9

    
    

	
		
	Fiscal Quarters Ending
	Minimum Interest Coverage Ratio

	June 30, 2018
	1.00:1:00

	September 30, 2018
	1.25:1:00

	December 31, 2018
	2.00:1:00

	March 31, 2019
	2.50:1:00

	June 30, 2019
	3.50:1:00

	September 30, 2019
	3.50:1:00

	December 31, 2019 and the last day of each Fiscal Quarter ending thereafter
	3.50:1:00

		
	(b)
	Senior Leverage Ratio. The Borrower shall not permit the Senior Leverage Ratio as of the last day of any Fiscal Quarter of the Borrower set forth below to be greater than the ratio set forth below opposite such period (provided that, notwithstanding any Fiscal Quarter not being included in the below, the Borrower shall include a reasonably detailed calculation of the Senior Leverage Ratio in the Compliance Certificate delivered pursuant to Section 6.01(c) with respect to such Fiscal Quarter):

	
		
	Fiscal Quarters Ending
	Maximum Senior Leverage Ratio

	June 30, 2018
	9.75:1:00

	September 30, 2018
	9.75:1:00

	December 31, 2018
	4.00:1:00

	March 31, 2019
	3.50:1:00

	June 30, 2019
	2.25:1:00

	September 30, 2019
	2.25:1:00

	December 31, 2019 and the last day of each Fiscal Quarter ending thereafter
	2.25:1:00

10

    
    

		
	(v)
	Section 7.18 (Minimum Liquidity) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows: 

7.18    Minimum Liquidity. The Borrower shall not permit Liquidity as of the last Business Day of any calendar month, commencing on the calendar month ending August 31, 2017, to be less than (a) $50,000,000 $65,000,000 or (b) after the consummation of an Asset Sale permitted pursuant to Section 7.04(p) and the completion of the Initial Tranche A Term Loan Funding, $40,000,000 satisfaction of the Sale Milestone, $75,000,000  as demonstrated by a certificate of a Responsible Officer delivered within 15 days of the end of the relevant calendar month certifying as to the foregoing and containing reasonably detailed calculations in support thereof, in form and substance reasonably satisfactory to the Administrative Agent.

		
	(w)
	Section 7.19 (Additional Charges) of the Credit Agreement shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

7.19    Additional Charges. Commencing with the quarter ending September 30, 2018 June 30, 2018, the Borrower shall not permit the actual costs, expenses, losses and/or reductions in Consolidated Net Income experienced in connection with the Vølund Projects contracts with the counterparties listed on Exhibit B to Amendment No. 5 to exceed $15,000,000, net of, to the extent such amounts are included in Consolidated Net Income, the dollar amounts of any Customer Concessions,  contractual bonuses, liquidated damages relief, insurance recoveries, legal settlements, any other customer or vendor recoveries and other similar items in connection with the Vølund Projects, provided that any amounts that are permitted to be included in calculating EBITDA pursuant to clause (b)(xii) of the definition thereof  shall not be netted against such costs, expenses, losses and/or reductions may not be used to satisfy the requirement set forth in Section 6.38.

		
	(x)
	Clause (d) of Section 8.01 (Events of Default) of the Credit Agreement shall be amended to read in its entirety as follows:

(d)     Failure to Perform Covenants.  any Loan Party shall fail to perform or observe (i) any term, covenant or agreement contained in Sections 6.03(a), 6.08, 6.12 (with respect to the existence of the Borrower), 6.17, 6.25, 6.26, 6.34, 6.35, 6.37, 6.38 or Article VII or (ii) any other term, covenant or agreement contained in this Agreement or in any other Loan Document if such failure under this clause (ii) shall remain unremedied for 30 days after the earlier of (A) the date on which a Responsible Officer of the Borrower obtains actual 

11

    
    

knowledge of such failure and (B) the date on which written notice thereof shall have been given to the Borrower by the Administrative Agent, any Lender or any L/C Issuer.

		
	(y)
	Section 8.01 (Events of Default) of the Credit Agreement shall be further amended by:

		
	(i)
	 inserting the text “; or” in replacement of the text “.” at the end of clause (j);

		
	(ii)
	inserting new clause (k) and (l) to read in their respective entirety as follows:

(k) (x) the exercise of any rejection or termination right under any contract with respect to the Vølund Projects in accordance with the terms thereof pursuant to any written communication or notice or pursuant to any judicial, regulatory or administrative procedure and such rejection or termination is not cured or waived within 10 Business Days, (y) the rejection by OFGEM of any ROC accreditation application, or the delivery by a representative of OFGEM to any Loan Party or Subsidiary of the Borrower of any communication (written or oral) that OFGEM plans to reject any ROC accreditation application, in each case, with respect to any Vølund Project, or (z) (A) any Vølund Project counterparty or other Vølund Project stakeholder takes any material step to enforce any rights or remedies it may have with respect to Performance Guarantees it may have against any Loan Party as determined by the Administrative Agent based upon advice of counsel or the Engineering Consultant (as defined in Amendment No. 6), (B) the aggregate potential liability thereof exceeds $10,000,000 and (C) the relevant counterparties and/or stakeholders have not agreed to waive or postpone the exercise of such rights or remedies within 10 Business Days; or

(l)  (x) a failure to fund the Initial Tranche A Term Loan Funding or the Incremental Tranche A Term Loan Funding in accordance with the terms under the Tranche A Last Out Facility Commitment Letter or hereunder, (y) the Borrower amends, supplements, waives or otherwise modifies (or permits the amendment, supplement or other modification of) the Tranche A Last Out Facility Commitment Letter or consents to the assignment of any obligations of Vintage Capital Management, LLC or B. Riley Financial, Inc. set forth therein without the prior written consent of the Administrative Agent, or (z) Vintage Capital Management, LLC or B. Riley Financial, Inc. (as applicable) amends, supplements, modifies, terminates, breaches, defaults under, or fails to perform the Tranche A Last Out Facility Commitment Letter or seeks to assign to any other party any obligations set forth therein without the prior written consent of the Administrative Agent; provided further that time is of the essence with respect to Vintage Capital Management, LLC’s and B. Riley 

12

    
    

Financial Inc.’s obligations under the Tranche A Last Out Facility Commitment Letter.  

		
	2.
	Additional Agreements and Acknowledgements.

(a)The Borrower agrees to pay, or cause to be paid, to the Administrative Agent, for the account of each Lender who consented to this Agreement by executing and delivering to the Administrative Agent a signature page hereto prior to the Amendment No. 8 Effective Date, an amendment fee equal to 30 basis points (0.30%) of the portion of the Revolving Credit Facility held by such Lender as of the Amendment No. 8 Effective Date of payable in immediately available funds upon the Amendment No. 8 Effective Date (the “Amendment Fees”).

(b)    Pursuant to Section 10.01 of the Credit Agreement, the Required Lenders approve and consent to the Borrower and the Administrative Agent entering into a mechanical amendment to the Credit Agreement for the purpose of (i) permitting an additional term loan facility under the Credit Agreement and the extension of credit and related obligations and liabilities arising from time to time thereunder on a subordinated basis to the Revolving Credit Facility and (ii) setting forth the lenders with respect to such term loan facility to participate in required votes or actions, which rights shall not adversely impact any other Lender’s ability to participate in any vote or action, in each case, with respect to the Tranche A Last Out Facility Commitment Letter and in accordance with the terms and conditions set forth in Exhibit B hereto. The Borrower and the Administrative Agent agree to negotiate in good faith such an amendment.

(c)    The Borrower, the Agent, and the Required Lenders reaffirm their agreement to negotiate in good faith modifications to (i) clause (e) of Section 7.03 (Investments) to limit the amount of Investments made by any Loan Party in any Foreign Subsidiary and (ii) clause (h) of Section 7.04 (Asset Sales), clause (b) of Section 7.05 (Restricted Payments), and clauses (a) and (b) of Section 7.06 (Fundamental Changes) to limit certain transactions with Foreign Security Providers. The Borrower reaffirms that the Borrower shall not, and shall cause its Subsidiaries not to, engage in any transactions with respect to its Foreign Subsidiaries outside of the ordinary course of business or outside of past practice prior to the effectiveness of such modifications, except as may be explicitly required by the Credit Agreement (as amended hereby).
 
(d)    The Borrower and the other Loan Parties each acknowledge and agree that the breach or failure to comply in any respect with the terms and conditions of this Section 2 shall constitute an immediate Event of Default under Section 8.01 of the Credit Agreement.

13

    
    

		
	3.
	Effectiveness; Conditions Precedent. 

The amendments contained herein shall only be effective upon the satisfaction or waiver of each of the following conditions precedent (the date of satisfaction or waiver, the “Amendment No. 8 Effective Date”): 
		
	(a)
	the Administrative Agent shall have received each of the following documents or instruments in form and substance acceptable to the Administrative Agent:

		
	(i)
	counterparts of this Amendment executed by the Loan Parties and the Required Lenders; 

		
	(ii)
	a copy of a duly executed Tranche A Last Out Facility Commitment Letter, in form and substance satisfactory to the Administrative Agent, pursuant to which Tranche A Last Out Facility Commitment Letter (A) the lenders thereunder shall be committed to extend $30,000,000 in immediately available funds, net of any fees, interests, expenses and other amounts to be paid by the Borrower or its Subsidiaries in connection therewith, (B) the obligations in connection thereto shall be subordinated on terms satisfactory to the Administrative Agent, (C) the conditions to fund shall be on terms satisfactory to the Administrative Agent, (D) the lender with respect thereto shall waive voting and information rights in a manner satisfactory to the Administrative Agent and (E) the lender with respect thereto shall waive certain rights in connection with proceedings related to any Loan Party under any Debtor Relief Law in a manner satisfactory to the Administrative Agent. 

		
	(iii)
	a certificate of the chief financial officer or treasurer of the Borrower certifying that as of the Amendment No. 8 Effective Date (A) all of the representations and warranties in this Amendment are true and correct in all material respects (or, to the extent any such representation and warranty is modified by a materiality or Material Adverse Effect standard, in all respects) as of such date (except to the extent that such representations and warranties expressly relate to an earlier date, in which case they shall be true and correct in all material respects (or, to the extent any such representation and warranty is modified by a materiality or Material Adverse Effect standard, in all respects) as of such earlier date), (B) no Default shall exist, or would result from the occurrence of the Amendment No. 8 Effective Date and (C) that since December 31, 2017, there have not occurred any facts, circumstances, changes, developments or events which, individually or in the aggregate, have constituted or would reasonably be expected to result in, a Material Adverse Effect; 

		
	(iv)
	satisfactory opinions of each of Loan Parties’ counsels regarding due execution, enforceability and non-contravention of law, in form and substance satisfactory to 

14

    
    

the Administrative Agent (and consistent in scope with the prior opinion delivered by the Loan Parties’ counsel to the Administrative Agent in connection with Amendment No. 6, which opinions shall also retroactively cover the above described scope with respect to Amendment No. 7); and
		
	(v)
	a solvency certificate, executed by a Responsible Officer of the Borrower in form and substance reasonably acceptable to the Administrative Agent, which, among other things, shall certify that the Borrower will be Solvent as of the date hereof and after giving effect to each of the consummation of the Orion Sale and the Project Burn Sale, individually and in the aggregate, on a pro forma basis.

		
	(b)
	the Administrative Agent shall have received on account of each Lender that consents to this Amendment, the Amendment Fees.

		
	(c)
	without prejudice to, or limiting the Borrower’s obligations under, Section 10.04 (Expenses; Indemnity; Damage Waiver) of the Credit Agreement, all outstanding fees, costs and expenses due to the Administrative Agent and the Lenders, including on account of Agent’s Legal Advisor and FTI, shall have been paid in full to the extent that the Borrower has received an invoice therefor (with reasonable and customary supporting documentation) at least two Business Days prior to the Amendment No. 8 Effective Date (without prejudice to any post-closing settlement of such fees, costs and expenses to the extent not so invoiced); 

		
	(d)
	each of the representations and warranties made by the Borrower in Section 4 hereof shall be true and correct. 

The Administrative Agent agrees that it will, upon the satisfaction or waiver of the conditions contained in this Section 3, promptly provide written notice to the Borrower and the Lenders of the effectiveness of this Amendment.

		
	4.
	Representations and Warranties. 

In order to induce the Administrative Agent and the Lenders to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the Lenders, for itself and for each other Loan Party, as follows:
		
	(a)
	that both immediately prior to and immediately after giving effect to this Amendment, 
no Default exists;

		
	(b)
	the representations and warranties contained in the Credit Agreement (as amended 
hereby) are true and correct in all material respects on and as of the date hereof (except to 

15

    
    

the extent that such representations and warranties (i) specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date and (ii) contain a materiality or Material Adverse Effect qualifier, in which case such representations and warranties shall be true and correct in all respects);
		
	(c)
	the execution, delivery and performance by the Borrower and the other Loan Parties 
of this Amendment and the consummation of the transactions contemplated hereby have been duly authorized by all necessary corporate, limited liability company or partnership action, including the consent of shareholders, partners and members where required, do not contravene any Loan Party or any of its Subsidiaries’ respective Constituent Documents, do not violate any Requirement of Law applicable to any Loan Party or any order or decree of any Governmental Authority or arbiter applicable to any Loan Party and do not require the consent of, authorization by, approval of, notice to, or filing or registration with, any Governmental Authority or any other Person in order to be effective and enforceable; 

		
	(d)
	this Amendment has been duly executed and delivered on behalf of the Borrower and 
the other Loan Parties; 

		
	(e)
	this Amendment constitutes a legal, valid and binding obligation of the Borrower and 
the other Loan Parties enforceable against the Borrower and the other Loan Parties in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, Debtor Relief Laws or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity; and

		
	(f)
	as of the date hereof, all Liens, security interests, assignments and pledges encumbering the Collateral, created pursuant to and/or referred to in the Credit Agreement or the other Loan Documents, are valid, enforceable, duly perfected to the extent required by the Loan Documents, non-avoidable, first priority liens, security interests, assignments and pledges (subject to Liens permitted by Section 7.02 of the Credit Agreement), continue unimpaired, are in full force and effect and secure and shall continue to secure all of the obligations purported to be secured in the respective Security Instruments pursuant to which such Liens were granted. 

		
	5.
	Consent, Acknowledgement and Reaffirmation of Indebtedness and Liens. 

By its execution hereof, each Loan Party, in its capacity under each of the Loan Documents to which it is a party (including the capacities of debtor, guarantor, grantor and pledgor, as applicable, and each other similar capacity, if any, in which such party has granted Liens on all or any part of its properties or assets, or otherwise acts as an accommodation party, guarantor, indemnitor or surety with respect to all or any part of the Obligations), hereby:

16

    
    

		
	(a)
	expressly consents to the amendments and modifications to the Credit Agreement effected hereby; 

		
	(b)
	expressly confirms and agrees that, notwithstanding the effectiveness of this Amendment, each Loan Document to which it is a party is, and all of the obligations and liabilities of such Loan Party to the Administrative Agent, the Lenders and each other Secured Party contained in the Loan Documents to which it is a party (in each case, as amended and modified by this Amendment), are and shall continue to be, in full force and effect and are hereby reaffirmed, ratified and confirmed in all respects and, without limiting the foregoing, agrees to be bound by and abide by and operate and perform under and pursuant to and comply fully with all of the terms, conditions, provisions, agreements, representations, undertakings, warranties, indemnities, guaranties, grants of security interests and covenants contained in the Loan Documents; 

		
	(c)
	to the extent such party has granted Liens or security interests on any of its properties or assets pursuant to any of the Loan Documents to secure the prompt and complete payment, performance and/or observance of all or any part of its Obligations to the Administrative Agent, the Lenders, and/or any other Secured Party, acknowledges, ratifies, remakes, regrants, confirms and reaffirms without condition, all Liens and security interests granted by such Loan Party to the Administrative Agent for their benefit and the benefit of the Lenders, pursuant to the Credit Agreement and the other Loan Documents, and acknowledges and agrees that all of such Liens and security interests are intended and shall be deemed and construed to continue to secure the Obligations under the Loan Documents, as amended, restated, supplemented or otherwise modified and in effect from time to time, including but not limited to, the Loans made by, and Letters of Credit provided by, the Administrative Agent and the Lenders to the Borrower and/or the other Loan Parties under the Credit Agreement, and all extensions renewals, refinancings, amendments or modifications of any of the foregoing; 

		
	(d)
	agrees that this Amendment shall in no manner impair or otherwise adversely affect any of the Liens and security interests granted in or pursuant to the Loan Documents; and

		
	(e)
	acknowledges and agrees that: (i) the Guaranty and any obligations incurred thereunder, have been provided in exchange for “reasonably equivalent value” (as such term is used under the Bankruptcy Code and applicable state fraudulent transfer laws) and “fair consideration” (as such term is used under applicable state fraudulent conveyance laws) and (ii) each grant or perfection of a Lien or security interest on any Collateral provided in connection with Loan Documents, this Amendment and/or any negotiations with the Administrative Agent and/or the Lenders in connection with a “workout” of the Obligations 

17

    
    

is intended to constitute, and does constitute, a “contemporaneous exchange for new value” (as such term is used in section 547 of the Bankruptcy Code). 
		
	6.
	Releases; Waivers.

(a)By its execution hereof, each Loan Party (on behalf of itself and its Affiliates) and its successors-in-title, legal representatives and assignees and, to the extent the same is claimed by right of, through or under any Loan Party, for its past, present and future employees, agents, representatives, officers, directors, shareholders, and trustees (each, a “Releasing Party” and collectively, the “Releasing Parties”), does hereby remise, release and discharge, and shall be deemed to have forever remised, released and discharged, the Administrative Agent, the Lenders and each of the other Secured Parties, and the Administrative Agent’s, each Lenders’ and each other Secured Party’s respective successors-in-title, legal representatives and assignees, past, present and future officers, directors, affiliates, shareholders, trustees, agents, employees, consultants, experts, advisors, attorneys and other professionals and all other persons and entities to whom any of the foregoing would be liable if such persons or entities were found to be liable to any Releasing Party, or any of them (collectively hereinafter the “Lender Parties”), from any and all manner of action and actions, cause and causes of action, claims, charges, demands, counterclaims, suits, covenants, controversies, damages, judgments, expenses, liens, claims of liens, claims of costs, penalties, attorneys’ fees, or any other compensation, recovery or relief on account of any liability, obligation, demand or cause of action of whatever nature, whether in law, equity or otherwise (including, without limitation, any so called “lender liability” claims, claims for subordination (whether equitable or otherwise), interest or other carrying costs, penalties, legal, accounting and other professional fees and expenses and incidental, consequential and punitive damages payable to third parties, or any claims arising under 11 U.S.C. §§ 541-550 or any claims for avoidance or recovery under any other federal, state or foreign law equivalent), whether known or unknown, fixed or contingent, joint and/or several, secured or unsecured, due or not due, primary or secondary, liquidated or unliquidated, contractual or tortious, direct, indirect, or derivative, asserted or unasserted, foreseen or unforeseen, suspected or unsuspected, now existing, heretofore existing or which may heretofore have accrued against any of the Lender Parties under the Credit Agreement or any of the other Loan Documents, whether held in a personal or representative capacity, and which are based on any act, fact, event or omission or other matter, cause or thing occurring at or from any time prior to and including the date hereof, in all cases of the foregoing in any way, directly or indirectly arising out of, connected with or relating to the Credit Agreement or any other Loan Document and the transactions contemplated thereby, and all other agreements, certificates, instruments and other documents and statements (whether written or oral) related to any of the foregoing (each, a “Claim” and collectively, the “Claims”), in each case, other than Claims arising from Lender Parties’ gross negligence, fraud, or willful misconduct. Each Releasing Party further stipulates and agrees with respect to all Claims, that it hereby waives, to the fullest extent permitted by applicable law, any and all provisions, rights, and benefits 

18

    
    

conferred by any applicable U.S. federal or state law, or any principle of common law, that would otherwise limit a release or discharge of any unknown Claims pursuant to this Section 6.
(b)By its execution hereof, each Loan Party hereby (i) acknowledges and confirms that there are no existing defenses, claims, subordinations (whether equitable or otherwise), counterclaims or rights of recoupment or setoff against the Administrative Agent, the Lenders or any other Secured Parties in connection with the Obligations or in connection with the negotiation, preparation, execution, performance or any other matters relating to the Credit Agreement, the other Loan Documents or this Amendment and (ii) expressly waives any setoff, counterclaim, recoupment, defense or other right that such Loan Party now has against the Administrative Agent, any Lender or any of their respective affiliates, whether in connection with this Amendment, the Credit Agreement and the other Loan Documents, the transactions contemplated by this Amendment or the Credit Agreement and the Loan Documents, or any agreement or instrument relating thereto. 
		
	7.
	Entire Agreement. 

This Amendment, the Credit Agreement (including giving effect to the amendments set forth in Sections 1), and the other Loan Documents (collectively, the “Relevant Documents”), set forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to any other party in relation to the subject matter hereof or thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 10.01 of the Credit Agreement.
		
	8.
	Full Force and Effect of Credit Agreement.

This Amendment is a Loan Document (and the Borrower and the other Loan Parties agree that the “Obligations” secured by the Collateral shall include any and all obligations of the Loan Parties under this Amendment). Except as expressly modified hereby, all terms and provisions of the Credit Agreement and all other Loan Documents remain in full force and effect and nothing contained in this Amendment shall in any way impair the validity or enforceability of the Credit Agreement or the Loan Documents, or alter, waive, annul, vary, affect, or impair any provisions, conditions, or covenants contained therein or any rights, powers, or remedies granted therein. This Amendment shall not constitute a modification of the Credit Agreement or any of the other Loan Documents 

19

    
    

or a course of dealing with Administrative Agent or the Lenders at variance with the Credit Agreement or the other Loan Documents such as to require further notice by Administrative Agent or any Lender to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future, except in each case as expressly set forth herein. The Borrower acknowledges and expressly agrees that Administrative Agent and the Lenders reserve the right to, and do in fact, require strict compliance with all terms and provisions of the Credit Agreement and the other Loan Documents (subject to any qualifications set forth therein), as amended herein.
		
	9.
	Counterparts; Effectiveness. 

This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Except as provided in Section 5 above, this Amendment shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this Amendment by facsimile, electronic email or other electronic imaging means (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Amendment.
		
	10.
	Governing Law; Jurisdiction; Waiver of Jury Trial. 

THIS AMENDMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AMENDMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. Sections 10.04, 10.14 and 10.15 of the Credit Agreement are hereby incorporated by herein by this reference.
		
	11.
	Severability. 

If any provision of this Amendment is held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
		
	12.
	References. 

20

    
    

All references in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement and each reference to the “Credit Agreement”, (or the defined term “Agreement”, “thereunder”, “thereof” of words of like import referring to the Credit Agreement) in the other Loan Documents shall mean and be a reference to the Credit Agreement as amended hereby and giving effect to the amendments contained in this Amendment.
		
	13.
	Successors and Assigns. 

This Amendment shall be binding upon the Borrower, the Lenders and the Administrative Agent and their respective successors and assigns, and shall inure to the benefit of the Borrower, the Lenders and the Administrative Agent and the respective successors and assigns of the Borrower, the Lenders and the Administrative Agent.
		
	14.
	Lender Acknowledgment. 

Each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender, unless the Administrative Agent shall have received notice from such Lender prior to the proposed Amendment No. 8 Effective Date specifying its objection thereto.
		
	15.
	Amendments.  

 
This Amendment may be amended, supplemented or otherwise modified only by a written agreement signed by the Borrower, the other Loan Parties, the Administrative Agent and the Required Lenders and none of the provisions hereof may be waived without the prior written consent of the Administrative Agent and the Required Lenders.
[Signature pages follow]

21

    
    

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made, executed and delivered by their duly authorized officers as of the day and year first above written.

BABCOCK & WILCOX ENTERPRISES, INC.

By:  /s/ Orville Lunking_________________________
Name:  Orville Lunking
Title:    Vice President & Treasurer

Acknowledged and Agreed for purposes of Sections 1, 2, 5, 6 and 8 of the Amendment:

AMERICON EQUIPMENT SERVICES, INC.
AMERICON, LLC
BABCOCK & WILCOX CONSTRUCTION CO., LLC
BABCOCK & WILCOX EBENSBURG POWER, LLC  
BABCOCK & WILCOX EQUITY INVESTMENTS, LLC
BABCOCK & WILCOX HOLDINGS, LLC
BABCOCK & WILCOX INDIA HOLDINGS, INC.
BABCOCK & WILCOX INTERNATIONAL SALES AND SERVICE CORPORATION
BABCOCK & WILCOX INTERNATIONAL, INC.
BABCOCK & WILCOX MEGTEC HOLDINGS, INC.
BABCOCK & WILCOX MEGTEC, LLC
BABCOCK & WILCOX POWER GENERATION GROUP CANADA CORP.
BABCOCK & WILCOX SPIG, INC.
BABCOCK & WILCOX TECHNOLOGY, LLC
BABCOCK & WILCOX UNIVERSAL, INC.
BABCOCK & WILCOX DE MONTERREY, S.A. DE C.V.
DELTA POWER SERVICES, LLC
DIAMOND OPERATING CO., INC.
DIAMOND POWER AUSTRALIA HOLDINGS, INC.

By:  /s/ Robert P. McKinney_____________________
Name:  Robert P. McKinney

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

Title:    Assistant Secretary
DIAMOND POWER CHINA HOLDINGS, INC.  
DIAMOND POWER EQUITY INVESTMENTS, INC.
DIAMOND POWER INTERNATIONAL, LLC
DPS ANSON, LLC
DPS BERLIN, LLC
DPS CADILLAC, LLC
DPS FLORIDA, LLC
DPS GREGORY, LLC
DPS MECKLENBURG, LLC
DPS PIEDMONT, LLC 
EBENSBURG ENERGY, LLC
MEGTEC ENERGY & ENVIRONMENTAL LLC 
MEGTEC INDIA HOLDINGS, LLC
MEGTEC SYSTEMS AUSTRALIA INC.
MEGTEC TURBOSONIC INC.
MEGTEC TURBOSONIC TECHNOLOGIES, INC. 
MTS ASIA, INC.
O&M HOLDING COMPANY
PALM BEACH RESOURCE RECOVERY CORPORATION
POWER SYSTEMS OPERATIONS, INC.
SOFCO EFS HOLDINGS LLC
THE BABCOCK & WILCOX COMPANY
UNIVERSAL AET HOLDINGS, LLC
UNIVERSAL SILENCER MEXICO II, LLC
UNIVERSAL SILENCER MEXICO, LLC

By:  /s/ Robert P. McKinney_____________________
Name:  Robert P. McKinney
Title:    Assistant Secretary

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

EBENSBURG INVESTORS LIMITED PARTNERSHIP

By: BABCOCK & WILCOX EBENSBURG POWER,             LLC, as General Partner

By:  /s/ Robert P. McKinney_____________________
Name:  Robert P. McKinney
Title:    Assistant Secretary

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

Administrative Agent: 

BANK OF AMERICA, N.A., as Administrative Agent

By:  /s/ Bridgett J. Manduk Mowry__________ 
Name: Bridgett J. Manduk Mowry 
Title:   Vice President

[Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

Lenders: 

BANK OF AMERICA, N.A., As Lender and Swing Line Lender
By:  /s/ Tyler D. Levings___________________ 
Name: Tyler D. Levings 
Title:    Director
THE NORTHERN TRUST CO., as Lender 
By:  /s/ Robert P. Veltman_______________ 
Name: Robert P. Veltman 
Title:   Vice President

TD BANK, N.A., as Lender 
By:  /s/ Bethany H. Buitenhuys_____________ 
Name: Bethany H. Buitenhuys 
Title:   Vice President

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

UNICREDIT BANK AG, New York Branch, as Lender 
By:  /s/ Michael D. Novellino___ 
Name: Michael D. Novellino 
Title:   Director
By:  /s/ Scott Obeck____________ 
Name: Scott Obeck 
Title:   Director

U.S. BANK, N.A., as Lender 
By:  /s/ David C. Heyson ____ 
Name: David C. Heyson 
Title:   Senior Vice President

WELLS FARGO BANK, N.A., as Lender 
By:  /s/ Reginald T. Dawson_______ 
Name: Reginald T. Dawson 
Title:   Senior Vice President

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as Lender 
By:  /s/ Yurly A. Tsyganov____ 
Name: Yurly A. Tsyganov 
Title:   Director
By:  /s/ Kathleen Sweeney_____ 
Name: Kathleen Sweeney 
Title:   Managing Director

PNC BANK, NATIONAL ASSOCIATION, as Lender 
By:  /s/ Mark Starnes__________ 
Name: Mark Starnes 
Title:   Vice President

THE BANK OF NOVA SCOTIA, as Lender 
By:  /s/ Justin Mitges_____________ 
Name: Justin Mitges 
Title:   Senior Manager
By:  /s/ Rocco Fabiano_____________ 
Name: Rocco Fabiano 
Title:   Vice President

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

    
    

BNP PARIBAS, as Lender 
By:  /s/ Todd Rodgers______________ 
Name: Todd Rodgers 
Title:   Director
By:  /s/ Joseph Mack______________ 
Name: Joseph Mack 
Title:   Vice President

CITIZENS BANK OF PENNSYLVANIA, as Lender 
By:  /s/ David W. Stack________ 
Name: David W. Stack 
Title:   Senior Vice President

HANCOCK WHITNEY BANK, as Lender 
By:  /s/ Eric K. Sander_________ 
Name: Eric K. Sander 
Title:   Vice President

JPMORGAN CHASE BANK, N.A., as Lender 
By:  /s/ Patricia S Carpen________ 
Name: Patricia S Carpen 
Title:   Executive Director

 [Babcock & Wilcox Enterprises, Inc. 
Amendment No. 8 to Credit Agreement 
Signature Page]

Exhibit A – Vølund Project Milestones

	
		
	Project
	Milestone(s)/Date

	ARC
	Preliminary Takeover / January 31, 2019

	SKV40
	Takeover / October 31, 2018

	Templeborough
	Takeover  / October 31, 2018

	Margam
	Takeover  / November 30, 2018

	Teesside
	Successful completion of G59 Test / September 30, 2018
Takeover / October 31, 2019

	Dunbar
	Takeover / October 31, 2018

Exhibit B – Terms and Conditions of Tranche A Last Out Facility

[Please see Attached]

    
    

BABCOCK & WILCOX ENTERPRISES, INC. 
$35,000,000 TRANCHE A FACILITY

Capitalized terms used in this summary of terms and conditions (this “Term Sheet”) and not otherwise defined herein shall have the respective meanings given thereto in the Existing Facility.
	
		
	TRANCHE A FACILITY:
	$35,000,000, plus other amounts required to be funded on the Initial Funding Date (the “Tranche A Facility Commitment Amount”) last out term loan (“Tranche A Facility”) under the existing credit agreement, dated as of May 11, 2015 (as amended through the eighth amendment thereto, dated as of August 9, 2018, the “Existing Facility”), among Borrower, the Administrative Agent and each of the Lenders party thereto, that will yield at least $30 million-net cash proceeds to the Borrower. The Existing Facility will be further amended to incorporate the provisions of this Term Sheet (as amended, the “Amended Facility”). 

    
    

	
		
	AVAILABILITY:
	The Tranche A Facility will be available on and after the Closing Date in multiple advances (each a “Tranche A Advance”), subject to minimum borrowing amounts as agreed upon with the Administrative Agent, as follows:
•    On the Initial Funding Date, a Tranche A Advance (the “Initial Tranche  A Advance”) in an aggregate necessary to pay the Closing Fee and out-of-pocket fees and expenses described below, provided that the aggregate principal amount of such Tranche A Advance shall be sufficient to provide the Borrower with a minimum of $10,000,000 in net cash proceeds (such net cash proceeds, the “Initial Tranche A Advance Proceeds”). The only conditions precedent relevant to the such Tranche A Advance shall be the delivery of a borrowing notice in accordance with the terms of the Amended Facility and the consummation of Project Burn (the date thereof, the “Initial Funding Date”). Such Tranche A Advance will be received by the Administrative Agent no later than the Business Day prior to the consummation of Project Burn. If the consummation of Project Burn does not occur, such funds will be returned to the Tranche A  Lenders  without interest as if the conditions precedent for such borrowing were not satisfied.  
•    On any Business Day thereafter prior to the Tranche A Facility Maturity Date, Tranche A Advances as requested by the Borrower in aggregate principal amount not in excess of the remaining amount of the Tranche A Facility Commitment but in an amount such that the aggregate principal amount of each such Tranche A Advance is equal to (a) 100% of the Revolving Credit Loans to be made by the Revolving Credit Lenders as part of the same borrowing request (such amount, the “Tranche A Advance Proceeds”), plus (b) the OID on such Tranche A Advance Proceeds Amount. The only conditions precedent relevant to the such Tranche A Advance being made to the Borrower shall be the delivery of a borrowing notice in accordance with the terms of the Amended Facility and the funding of the Revolving Credit Loans simultaneously therewith; provided that there shall be no obligation to fund Revolving Credit Loans, if such Tranche A Advance shall not have been made available to the Administrative Agent earlier than the Business Day prior to the requested date of such funding in an amount equal to the principal amount of the Tranche A Advance Proceeds.

On the date of each Tranche A Advance, the Borrower shall pay original issue discount (“OID”) in an amount equal to 10% of the Initial Tranche A Advance Proceeds or the applicable Tranche A Advance Proceeds Amount, the payment of which shall be netted against the applicable Tranche A Advance.
Prepayments of the Tranche A Facility without premium or penalty will be permitted only following the Revolving Credit Termination Date, but once pre-paid no portion of the Tranche A Facility may be re-borrowed. 

	BORROWER:
	Babcock and Wilcox Enterprises, Inc. (the “Borrower”).

	GUARANTORS:
	Each of the Guarantors under the Existing Facility.

	ADMINISTRATIVE AGENT:
	Bank of America, N.A. (the “Administrative Agent”). 

    
    

	
		
	REVOLVING CREDIT LENDERS:
	Each of the Lenders under the Existing Facility (the “Revolving Credit Lenders”).

	TRANCHE A LENDERS:
	Vintage Capital Management LLC and other lenders reasonably acceptable to Borrower and the Administrative Agent (the “Tranche A Lenders”).

	MATURITY DATE:
	The Tranche A Facility shall mature on the date that is one Business Day after the  earlier of the (i) Revolving Credit Termination Date or (ii) the maturity date of the Existing Facility (“Tranche A Facility Maturity Date”).

	CLOSING DATE:
	The closing date shall occur on the date of execution of the Amended Facility and satisfaction of conditions precedent referred to therein (the “Closing Date”).

	INTEREST RATE:
	Amounts outstanding under the Tranche A Facility shall bear interest at a rate per annum equal to (x) the Eurocurrency Rate, plus 1400 bps or (y) the Base Rate, plus 1300 bps  (the “Applicable Margin”).
Subject to the subordination provisions set forth below, interest for each Interest Period shall be paid as follows: 550 bps per annum of the Applicable Margin with respect to Eurocurrency Rate Loans (or 440 bps per annum with respect to Base Rate Loans) shall be payable in cash and the remainder of interest shall be paid-in-kind by adding such interest to the principal amount outstanding under the Tranche A Facility. During an Event of Default, all interest, including interest at the Default Rate, shall accrue without payment in accordance with the subordination provisions as set out below.
The Eurocurrency Rate with respect to the Tranche A Facility shall have no floor.
All calculations of interest and fees shall be made on the basis of actual number of days elapsed and a 360 day year.

	INTEREST PAYMENT DATES:
	In the case of Base Rate Loans, quarterly in arrears.
In the case of Eurocurrency Rate Loans, on the last day of each relevant interest period and, in the case of any interest period longer than three months, on each successive date three months after the first day of such interest period.

	FEES:
	Borrower shall pay the following fees on the Initial Funding Date: (a) $2,000,000 (the “Closing Fee”) and (b) customary and reasonable reimbursement of expenses incurred by the Tranche A Lender solely in connection with closing the Tranche A Facility, the payment of all such amounts described in clauses (a) through (b) to be netted against the Initial Tranche A Advance.  

	COLLATERAL:
	The obligations of the Borrower to the Tranche A Lenders in respect of the Tranche A Facility will be secured by a perfected first priority security interest in all of the Collateral, which security interest will be pari passu with the first priority security interest held for the benefit of the Revolving Credit Lenders, subject to the Subordination provisions as set forth below.

	 
	* * *

SUBORDINATION PROVISIONS

    
    

	
		
	PAYMENT SUBORDINATION:
	

All obligations under the Tranche A Facility (“Tranche A Obligations”)  will be subordinated and junior in right of payment to all Obligations (“Revolving Credit Obligations”) and, except as otherwise expressly permitted by the Revolving Credit Lenders, will only be entitled to repayment after all Revolving Credit Obligations have been indefeasibly paid in full, in cash (other than contingent indemnification claims as to which no claim has been asserted) or, with respect to Letters of Credit constituting Revolving Credit Obligations, such Letters of Credit have been cash collateralized at 105% of face value, and all Commitments have been terminated or expired other than pursuant to cash management agreements or swap agreements, in each case, as to which satisfactory arrangements have been made with the applicable Revolving Credit Lender and/or its affiliate (the “Revolving Credit Termination Date”).  For the avoidance of doubt, this payment subordination provision includes subordination of the Tranche A Obligations to interest on the Revolving Credit Obligations accruing after the commencement of a bankruptcy proceeding, whether or not such interest is an allowed claim against the Loan Parties.  The Revolving Credit Lenders will consent to the Tranche A Lenders receiving the following payments prior to the Revolving Credit Termination Date: (i) regularly scheduled cash interest payments, (ii) the closing fee and reimbursement of reasonable and documented closing expenses payable on account of the Tranche A Facility, and (iii) a payment on account of OID, provided that (x) with respect to (ii) and (iii), such amounts are funded by the proceeds of the Tranche A Facility and (y) at the time of a payment with respect to regularly scheduled cash interest has become due, no Event of Default has occurred and is continuing.  The Revolving Credit Lenders will not consent to the payment of any fees or expenses (other than the fees and expenses described in (ii) and (iii) of the preceding sentence) to the Tranche A Lenders.

	TURNOVER:
	Until the Revolving Credit Termination Date, any payments in cash or securities or otherwise, on account of interest, principles, fees or otherwise, received by the Tranche A Lenders in violation of the above subordination provision (including any distribution received in connection with a bankruptcy proceeding for any of the Loan Parties), shall be held in trust for the Revolving Credit Lenders and shall be paid over to the Administrative Agent for the benefit of such Revolving Credit Lenders.

	ENFORCEMENT RIGHTS:
	Until the Revolving Credit Termination Date, the Tranche A Lenders shall not have (x) any enforcement rights in any respect either as a secured or unsecured lender and (y) any unilateral ability to act against Collateral or any Loan Party or affiliate thereof.  Notwithstanding the foregoing, the Tranche A Lenders shall be permitted to file a proof of claim or statement of interest and vote on a plan of reorganization to the extent set forth in the loan documents and the Tranche A Lenders may defend against any actions that seek to disallow all or any portion of the claims and liens of the Tranche A Lenders in respect of the Tranche A Obligations.

    
    

	
		
	INFORMATION AND OTHER RIGHTS:
	The Tranche A Lenders shall have no right to (i) attend any meeting or discussions (whether in person, via telephone or otherwise) among the Administrative Agent, any advisors retained by the Administrative Agent (including, without limitation, counsel and financial advisors) or any Revolving Credit Lender to which representatives of the Loan Parties are not invited, (ii) receive any information or material prepared by the Administrative Agent, any advisors retained by the Administrative Agent (including, without limitation, counsel and financial advisors) or any Revolving Credit Lender or any communication by or among the Administrative Agent and/or one or more Lenders, except to the extent such information or materials have been made available to any Loan Party or its representatives, or (iii) make or bring any claim, in its capacity as a Tranche A Lender, against the Administrative Agent, or any other Revolving Credit Lender with respect to any action taken or not taken by it in its capacity as the Administrative Agent or a Revolving Credit Lender (except to the extent such action or inaction is found by a final and non-appealable decision of a court of competent jurisdiction to have resulted from its own gross negligence or willful misconduct.  The Tranche A Lenders may receive from the Borrower all information that the Borrower has provided to the Administrative Agent.

    
    

	
		
	RIGHTS UPON BANKRUPTCY OF A LOAN PARTY:
	In the event that a case under the US Bankruptcy Code is commenced by or against any Loan Party prior to the Revolving Credit Termination Date:
•    Post-Petition Financing:  No Tranche A Lender may (i) offer to provide post-petition financing to the Loan Parties, (ii) support any other party that offers post-petition financing to the Loan Parties to the extent that one or more of the Revolving Credit Lenders are offering post-petition financing and (iii) object to any post-petition financing offered to the Loan Parties, including financing offered on a priming basis, by one or more of the Revolving Credit Lenders or to any use of cash collateral that is consented to by the Revolving Credit Lenders (so long as the adequate protection provisions set forth below are complied with).

•    Adequate Protection:  The Tranche A Lenders shall not be entitled to request or receive adequate protection except to the extent that the Revolving Credit Lenders receive adequate protection in the form of replacement liens and/or administrative claims, in which case, the Tranche A Lenders may request and receive the same such adequate protection; provided that (i) any replacement liens and administrative claim granted to or for the benefit of the Tranche A Lenders shall be subordinated to any replacement liens and administrative claim granted to the Revolving Credit Lenders in the same manner and to the same extent as their prepetition claims and (ii) the Tranche A Lenders agree that any plan of reorganization or liquidation for one or more of the Loan Parties may provide that any administrative claim received by or for the benefit of the Tranche A Lenders may be satisfied in a manner other than cash.

•    Appearance:  Each of the Tranche A Lenders may appear in any such bankruptcy proceeding in its capacity as a Tranche A Lender; provided, however, that any Tranche A Lender may not oppose any action or position taken or relief sought by the Administrative Agent. 

•    Voting on a Plan of Reorganization:  The Tranche A Lenders shall not be permitted to vote in favor of any plan that that the Revolving Credit Lenders, as a class, votes against.

    
    

	
		
	REQUIRED LENDERS:
	Until the Revolving Credit Termination Date, for purposes of determining whether the “Required Lenders” or any other amount of requisite lenders (including all Lender votes) have (i) consented to any amendment, modification, waiver, consent or other action with respect to any terms of the Loan Documents or (ii) directed or required the Administrative Agent, the Collateral Agent or any Revolving Credit Lender to undertake any action with respect to the loan documents, the Tranche A Lenders shall be deemed to have voted in the same proportion as the allocation of voting with respect to such matter by the Revolving Credit Lenders; provided, however, that without the consent of the Tranche A Lenders, the Existing Facility cannot be amended or modified to (a) reduce the interest rate or fees on the Tranche A Obligations, (b) increase the commitments with respect to the Tranche A Obligations, (c) waive any conditions to funding the Tranche A Advances, (d) reduce the principal amount of the Tranche A Obligations, (e) modify the expense reimbursement or indemnification provisions set forth herein, (f) extend the maturity date of the Tranche A Obligations to a date more than one Business Day following the maturity (as may be amended) of the Revolving Credit Obligations, or (g) modify the consent rights of the Tranche A Lenders set for the in (a) through (f) above.

	INDEMNIFICATION BY TRANCHE A LENDERS:
	The Tranche A Lenders agree to indemnify, defend and hold harmless the Administrative Agent and/or the Revolving Credit Lenders from and against any and all reasonable and documented expenses, losses, claims, damages, suits, proceedings and liabilities that are incurred by or threatened against the Administrative Agent and/or the Revolving Credit Lenders, including, but not limited to reasonable attorneys’ fees and expenses caused by or resulting from the breach of any representation, warranty, agreement or covenant of the Tranche A Lenders contained in the Existing Facility; provided that no Tranche A Lender shall be liable for the payment of any portion of the foregoing that are found by a final and non-appealable decision of a court of competent jurisdiction to have resulted from the Administrative Agent’s and/or any Revolving Credit Lender’s own gross negligence, willful misconduct or breach in bad faith of the loan documents.

	 
	* * *

	EXPENSES AND INDEMNIFICATION OF TRANCHE A LENDERS
	Subject to the subordination provisions set forth herein, same as the Revolving Credit Lenders benefit from in the Existing Facility.

	REPRESENTATIONS, WARRANTIES & COVENANTS:
	The documentation for the Tranche A Facility will contain representations, warranties and covenants substantially the same as in the Existing Facility but will not become operative until the Revolving Credit Obligations have been paid in full in cash.

	EVENTS OF DEFAULT:
	The documentation of the Facility will contain customary default provisions appropriate in the context of the proposed transaction. The failure of the Tranche A Lenders to make available any Tranche A Advance in accordance with the terms shall be an Event of Default

	ASSIGNMENT:
	No Tranche A Lender may assign all or any portion of its claims, except (x) to any other Tranche A Lender or any Affiliate of any Tranche A Lender and (y) with the prior written consent of the Borrower and the Administrative Agent (not to be unreasonably withheld) to an assignee that agrees to be bound by the terms of the Credit Agreement; provided, however, that B. Riley FBR, Inc. shall be deemed a reasonable assignee of such claims (but not, for the avoidance of doubt, the Tranche A Facility Commitment which determination of reasonableness may be made at a later date).

	GOVERNING LAW:
	State of New York.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]