Document:

ex1014notepurchaseagreem

EXECUTION VERSION 25598028 Conifer Holdings, Inc. $30,000,000 8% Subordinated Notes due September 29, 2032 ______________ NOTE PURCHASE AGREEMENT ______________ Dated September 29, 2017 

 

25598028 TABLE OF CONTENTS Section Page 1.AUTHORIZATION OF THE NOTES ................................................................................. 1 2.SALE AND PURCHASE OF THE NOTES ........................................................................ 1 3.CLOSING ............................................................................................................................... 1 4.CONDITIONS TO CLOSING .............................................................................................. 2 4.1. Representations and Warranties ....................................................................... 2 4.2. Performance; No Default ................................................................................. 2 4.3. Adverse Development Cover ........................................................................... 2 4.4. Compliance Certificates ................................................................................... 2 4.5. Purchase Permitted By Applicable Law, etc. .................................................. 3 4.6. Opinion of Counsel .......................................................................................... 3 4.7. Repayment of Existing Indebtedness ............................................................... 3 4.8. Payment of Fees ............................................................................................... 3 4.9. Proceedings and Documents ............................................................................ 3 5.REPRESENTATIONS AND WARRANTIES OF THE COMPANY ................................ 3 5.1. Organization; Power and Authority ................................................................. 3 5.2. Authorization, etc. ............................................................................................ 4 5.3. Disclosure ......................................................................................................... 4 5.4. No Conflict ....................................................................................................... 4 5.5. Organization and Ownership of Shares of Subsidiaries; Affiliates ................ 5 5.6. Financial Statements; Material Liabilities ....................................................... 5 5.7. Governmental Authorizations, etc. .................................................................. 6 5.8. Litigation; Observance of Agreements, Statutes and Orders .......................... 6 5.9. Taxes................................................................................................................. 6 5.10. Title to Property; Leases .................................................................................. 7 5.11. Intellectual Property ......................................................................................... 7 5.12. Private Offering by the Company .................................................................... 7 5.13. ERISA............................................................................................................... 7 5.14. Use of Proceeds; Margin Regulations ............................................................. 8 5.15. Existing Indebtedness; Future Liens ................................................................ 8 5.16. Investment Company Act ................................................................................. 9 5.17. Solvency ........................................................................................................... 9 5.18. Foreign Assets Control Regulations, Etc. ........................................................ 9

 

ii 25598028 6.REPRESENTATIONS OF THE PURCHASER ................................................................ 10 6.1. Purchase for Investment ................................................................................. 10 6.2. Tax Matters .................................................................................................... 10 7.INFORMATION AS TO COMPANY................................................................................ 10 7.1. Financial and Business Information............................................................... 10 7.2. Officer’s Certificate ........................................................................................ 12 7.3. Inspection ....................................................................................................... 12 8.PREPAYMENT OF THE NOTES ..................................................................................... 13 8.1. Optional Prepayments with Premium ............................................................ 13 8.2. Maturity; Surrender, etc. ................................................................................ 14 9.AFFIRMATIVE COVENANTS ......................................................................................... 14 9.1. Compliance with Law .................................................................................... 14 9.2. Insurance ......................................................................................................... 14 9.3. Payment of Taxes and Claims........................................................................ 14 9.4. Corporate Existence, etc. ............................................................................... 15 9.5. Post-Closing Matters ...................................................................................... 15 9.6. ERISA............................................................................................................. 15 10.NEGATIVE COVENANTS .............................................................................................. 15 10.1. Merger, Consolidation, etc ............................................................................. 15 10.2. Indebtedness ................................................................................................... 16 10.3. Acquisitions .................................................................................................... 17 10.4. Restricted Payments ....................................................................................... 17 10.5. Sale-Leaseback Transactions ......................................................................... 17 10.6. Change in Existing Investment Policies ........................................................ 17 10.7. Restriction on Guarantees .............................................................................. 17 10.8. Economic Sanctions, etc. ............................................................................... 18 11.FINANCIAL COVENANTS ............................................................................................. 18 11.1. Tangible Effective Net Worth ........................................................................ 18 11.2. Fixed Charge Coverage Ratio ........................................................................ 18 11.3. Dividend Paying Capacity .............................................................................. 18 11.4. Net Uncollateralized Reinsurance Recoverables ........................................... 18 11.5. Risk-Based Capital ......................................................................................... 18 11.6. Consolidated Debt to Tangible Capital.......................................................... 19 12.EVENTS OF DEFAULT ................................................................................................... 19

 

iii 25598028 13.REMEDIES ON DEFAULT. ............................................................................................ 21 13.1. Acceleration .................................................................................................... 21 13.2. Other Remedies .............................................................................................. 21 13.3. Rescission ....................................................................................................... 21 13.4. No Waivers or Election of Remedies, Expenses, etc. ................................... 22 14.REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES .................................. 22 14.1. Registration of Notes ...................................................................................... 22 14.2. Transfer and Exchange of Notes .................................................................... 22 14.3. Replacement of Notes .................................................................................... 23 15.SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT 23 16.PAYMENTS ON THE NOTES ........................................................................................ 23 16.1. Place of Payment ............................................................................................ 23 16.2. Interest ............................................................................................................ 23 16.3. Deferral of Interest ......................................................................................... 24 17.SUBORDINATION OF THE NOTES ............................................................................. 25 17.1. Note Subordinate to Senior Debt ................................................................... 25 17.2. No Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution, Etc. ................................................................... 25 17.3. Payment Permitted If No Default................................................................... 27 17.4. Subrogation to Rights of Holders of Senior Debt ......................................... 27 17.5. Provisions Solely to Define Relative Rights ................................................. 27 17.6. No Waiver of Subordination Provisions ........................................................ 28 17.7. Notice to Holders ........................................................................................... 28 17.8. Reliance on Judicial Order or Certificate of Liquidating Agent ................... 28 18.EXPENSES, ETC .............................................................................................................. 29 18.1. Transaction Expenses ..................................................................................... 29 18.2. Certain Taxes .................................................................................................. 29 18.3. Other Taxes .................................................................................................... 30 18.4. Tax Treatment ................................................................................................ 30 18.5. Survival .......................................................................................................... 30 19.AMENDMENT AND WAIVER ...................................................................................... 30 19.1. Requirements .................................................................................................. 30 19.2. Binding Effect, etc. ......................................................................................... 31 20.NOTICES ........................................................................................................................... 31

 

iv 25598028 21.CONFIDENTIAL INFORMATION ................................................................................. 31 22.MISCELLANEOUS .......................................................................................................... 32 22.1. Successors and Assigns .................................................................................. 32 22.2. Accounting Terms .......................................................................................... 33 22.3. Payments Due on Non-Business Days ........................................................... 33 22.4. Severability ..................................................................................................... 33 22.5. Construction ................................................................................................... 33 22.6. Counterparts ................................................................................................... 34 22.7. Governing Law ............................................................................................... 34 22.8. Jurisdiction and Process; Waiver of Jury Trial .............................................. 34 22.9. No Recourse Against Others .......................................................................... 35 SCHEDULE A -- INFORMATION RELATING TO PURCHASERS SCHEDULE B -- DEFINED TERMS SCHEDULE 5.3(a) -- Other Documents SCHEDULE 5.3(b) -- Other Disclosures SCHEDULE 5.5  -- Subsidiaries of the Company and    Ownership of Subsidiary Stock SCHEDULE 5.6  -- Financial Statements       SCHEDULE 5.15 -- Permitted Liens SCHEDULE 10.2 -- Existing Indebtedness EXHIBIT 1   -- Form of 8% Subordinated Note due September 29, 2032 

 

Conifer Holdings, Inc. 550 West Merrill Street, Suite 200 Birmingham, MI 48009 25598028 8% Subordinated Notes due September 20, 2032 September 29, 2017 TO EACH OF THE PURCHASERS LISTED IN THE ATTACHED SCHEDULE A: Ladies and Gentlemen: Conifer Holdings, Inc., a Michigan corporation (the “Company”), agrees with each of the Purchasers as follows: 1. AUTHORIZATION OF THE NOTES. The Company will authorize the issue and sale of $30,000,000 aggregate principal amount of its 8% Subordinated Notes due September 29, 2032 (the “Notes").  Each Note shall be substantially in the form set out in Exhibit 1, with such changes therefrom, if any, as may be approved by each Purchaser and the Company.  Certain capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement. 2. SALE AND PURCHASE OF THE NOTES. Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, each Note in the principal amount specified opposite each Purchaser's name in Schedule A at the purchase price of 100% of the principal amount thereof.   3. CLOSING. The sale and purchase of each Note to be purchased by each Purchaser shall occur at the offices of the Company, 550 W. Merrill Street, Suite 200, Birmingham, Michigan 48009, at 2:00 p.m., Eastern Standard Time, at a closing (the “Closing”) on September 29, 2017 (the “Closing Date”), or on such other Business Day thereafter on or prior to September 29, 2017 as may be agreed upon by the Company and each Purchaser.  At the Closing the Company will deliver to each Purchaser a Note to be purchased by each such Purchaser dated the date of the Closing and registered in such Purchaser's name (or in the name of its nominee), against delivery by each Purchaser to the Company in the amount of 

 

2 the purchase price by wire transfer of immediately available funds for the account of the Company to account number 1852580065 at Comerica Bank, Detroit Michigan, (Wire Instructions: ABA 072000096, Account 1852580065, For the benefit of: Conifer Holdings, Inc., 550 W. Merrill Street, Suite 200, PO BOX 3003, Birmingham, MI 48009).  If at the Closing the Company shall fail to tender a Note to a Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to each Purchaser's satisfaction, each Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights it may have by reason of such failure by the Company to tender such Note or any of the conditions specified in Section 4 not having been fulfilled to its satisfaction. 4. CONDITIONS TO CLOSING. Each Purchaser's obligation to purchase and pay for a Note to be sold to such Purchaser at the Closing is subject to the fulfillment to its satisfaction, prior to or at the Closing, of the following conditions: 4.1. Representations and Warranties. The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the Closing. 4.2. Performance; No Default. The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Closing and after giving effect to the issue and sale of each Note (and the application of the proceeds thereof) no Default or Event of Default shall have occurred and be continuing.   4.3. Adverse Development Cover. The Company acquiring the SwissRe Adverse Development Cover as described in the document “ADC Binding Quote Conifer 2017 08 31.” 4.4. Compliance Certificates. (a) Officer’s Certificate.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated on the date of the Closing, certifying that the conditions specified in Sections 4.1 and 4.2 have been fulfilled. (b) Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of each Note and the Agreements and the Company's organizational documents as then in effect. 

 

3 4.5. Purchase Permitted By Applicable Law, etc. On the date of the Closing such Purchaser's purchase of a Note shall (i) be permitted by the laws and regulations of each jurisdiction to which such Purchaser subject, (ii) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (iii) not subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.   4.6. Opinion of Counsel. Such Purchaser shall have received an opinion in form and substance satisfactory to such Purchaser, dated the date of the Closing from Honigman Miller Schwartz and Cohn LLP, counsel for the Company, covering the matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to such Purchaser).   4.7. Repayment of Existing Indebtedness. Such Purchaser shall have received evidence of the repayment, discharge and termination of all indebtedness, obligations and Liens under and with respect to that certain Existing Credit Facility.   4.8. Payment of Fees. The Company shall have paid on the Closing the agreed out of pocket and documented fees, charges and disbursements of such Purchaser and its counsel in an amount not to exceed $50,000. 4.9. Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and its counsel, and such Purchaser and its counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or its counsel may reasonably request. 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each Purchaser that: 5.1. Organization; Power and Authority. The Company is a corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in 

 

4 good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and each Note and to perform the provisions hereof and thereof. 5.2. Authorization, etc. This Agreement and each Note have been duly authorized by all necessary corporate action on the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof each Note will constitute a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 5.3. Disclosure. This Agreement, the financial statements listed in Schedule 5.6 and the documents, certificates or other writings delivered to such Purchaser by or on behalf of the Company prior to the Closing Date in connection with the transactions contemplated hereby and identified in Schedule 5.3(a) (this Agreement and such documents, certificates or other writings and such financial statements delivered to such Purchaser being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, since December 31, 2016 there has been no change in the financial condition, operations, business, properties or prospects of the Company or any Subsidiary except changes that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company except as Schedule 5.3(b) that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents. 5.4. No Conflict. The execution, delivery and performance by the Company of this Agreement and each Note will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which the Company or any Subsidiary is bound or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any 

 

5 Governmental Authority applicable to the Company or any Subsidiary. 5.5. Organization and Ownership of Shares of Subsidiaries; Affiliates. (a)  Schedule 5.5 contains complete and correct lists (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Company and each other Subsidiary, (ii) of the Company’s Affiliates, other than Subsidiaries, and (iii) of the Company’s directors and senior officers. (b)  All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.5 as being owned by the Company and its Subsid- iaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.5). (c)  Each Subsidiary identified in Schedule 5.5 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. (d)  No Subsidiary is a party to, or otherwise subject to any legal restriction or any agreement (other than this Agreement, the agreements listed on Schedule 5.5 and customary limitations imposed by corporate law statutes) restricting the ability of such Subsidiary to pay dividends out of profits (subject to standard insurance regulations) or make any other similar distributions of profits to the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary. 5.6. Financial Statements; Material Liabilities. The Company has delivered to the holder of each Note copies of the financial state- ments of the Company and its Subsidiaries listed on Schedule 5.6.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).  The Company and its Subsidiaries do not have any Material liabilities that are not disclosed in the Disclosure Documents (including Schedule 5.3(b) hereto). 

 

6 5.7. Governmental Authorizations, etc. Each of the Company and its Subsidiaries holds all necessary permits, approvals, authorizations, orders, licenses, consents, registrations, qualifications, certificates and permits including, without limitation, insurance licenses from the insurance departments of the various states and jurisdictions where the Insurance Subsidiaries write insurance business or otherwise conduct insurance or reinsurance business, (collectively, the “Insurance Licenses”) as the case may be, or as may be required by any applicable insurance statutes of such states or other jurisdictions of and from Governmental Authorities necessary to conduct their respective businesses as now being conducted, (collectively, including the Insurance Licenses, the “Governmental Licenses”) and neither the Company nor any of its Subsidiaries has received any notice of proceedings relating to the revocation or modification of any such Governmental License, except where the failure to hold such Governmental Licenses or the receipt of an unfavorable decision, ruling or finding in respect of any such proceeding, would not, singly or in the aggregate, have a Material Adverse Effect; all of the Governmental Licenses are valid and in full force and effect, except where the invalidity or the failure of such Governmental Licenses to be in full force and effect would not, singly or in the aggregate, have a Material Adverse Effect; and the Company and its Subsidiaries are in compliance with all applicable laws, rules, regulations, judgments, orders, decrees and consents, except where the failure to be in such compliance would not, singly or in the aggregate, have a Material Adverse Effect. 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There are no actions, suits or proceedings pending or, to the knowledge of the Company, threatened against or affecting the Company or any Subsidiary or any property of the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. (b)  Neither the Company nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in viola- tion of any applicable law, ordinance, rule or regulation of any Governmental Authority, which default or violation, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 5.9. Taxes. The Company and its Subsidiaries have filed all income and other material tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which is not individually or in the aggregate Material or (ii) the amount, applicability or validity of which is currently being contested in good faith 

 

7 by appropriate proceedings and with respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP on the financial statements of the Company and its Subsidiaries listed on Schedule 5.6.  The Company knows of no basis for any other tax or assessment that could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all fiscal periods are adequate.  The Federal income tax liabilities of the Company and its Subsidiaries have been paid for all fiscal years up to and including the fiscal year ended December 31, 2016. 5.10. Title to Property; Leases. The Company and its Subsidiaries have good and sufficient title to their respective properties that individually or in the aggregate are Material, in each case free and clear of any Lien other than Permitted Liens.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.  5.11. Intellectual Property. (a) the Company and its Subsidiaries own or possess all licenses, patents, copyrights, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the rights of others; (b)  to the knowledge of the Company, no product of the Company or any of its Subsidiaries infringes in any material respect any license, patent, copyright, service mark, trademark, trade name or other right owned by any other Person; and (c)  to the knowledge of the Company, there is no Material violation by any Person of any right of the Company or any of its Subsidiaries with respect to any license, patent, copyright, service mark, trademark, trade name or other right owned or used by the Company or any of its Subsidiaries. 5.12. Private Offering by the Company. Neither the Company nor anyone acting on its behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers.  Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction. 5.13. ERISA. Neither Company nor any ERISA Affiliate maintains or contributes or has any direct or indirect, actual or contingent liability, or has, at any time within the past six years, 

 

8 maintained, contributed to or had any direct or indirect, actual or contingent liability, with respect to any Plan.  There was no unfunded past service liability of any pension plan maintained by the Company or an ERISA Affiliate as of the Closing Date, and there is no failure to satisfy the minimum funding standards of Section 412 of the Code or Section 302 of ERISA, or any existing material liability with respect to any Plan owed to the PBGC or any successor thereto. 5.14. Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the sale of the Notes hereunder for the acquisition by one or more of its Subsidiaries of the SwissRe Adverse Development Cover as described in the document “ADC Binding Quote Conifer 2017 08 31”, the repayment of the Existing Credit Facility and working capital purposes.  The Company is not engaged principally, or as one of its important activities, directly or indirectly, in the business of extending credit for the purpose of purchasing or carrying margin stock, and none of the proceeds of the Notes will be used, directly or indirectly, for the purpose of buying or carrying any "margin stock" within the meaning of, or otherwise for any purpose which would violate the provisions of, Regulation T, U or X of the Board of Governors of the Federal Reserve System.  Terms for which meanings are provided in Regulation U of the Board of Governors of the Federal Reserve System or any regulations substituted therefor, as from time to time in effect, are used in this paragraph with such meanings. 5.15. Existing Indebtedness; Future Liens. (a)  Schedule 10.2 sets forth a complete and correct list of all outstanding Indebtedness of the Company and its Subsidiaries as of the Closing Date.  Neither the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment. (b)  Except as disclosed in Schedule 5.15 and for Permitted Liens, neither the Company nor any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien. (c)  Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including its charter or any other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company. 

 

9 5.16. Investment Company Act. Neither the Company nor any Subsidiary is an "investment company" within the meaning of the Investment Company Act of 1940. 5.17. Solvency. On the Closing Date and immediately after the consummation of the transactions to occur pursuant to this Agreement, the Company and its Subsidiaries will be, taken as a whole, Solvent. 5.18. Foreign Assets Control Regulations, Etc. (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union. (b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company’s knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws. (c) No part of the proceeds from the sale of the Notes hereunder: (i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise in violation of any U.S. Economic Sanctions Laws; (ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or (iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws. (d) The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all 

 

10 applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti- Corruption Laws.   6. REPRESENTATIONS OF THE PURCHASER. 6.1. Purchase for Investment. Each Purchaser represents that it is purchasing each Note for its own account or for one or more separate accounts maintained by it or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of its or their property shall at all times be within its or their control.  Each Purchaser understands that each Note has not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register any Note. 6.2. Tax Matters. Each Purchaser represents that it and each of its beneficial owners is either: (1) a United States person (within the meaning of Section 7701(a)(30) of the Code), or (2) not a “bank” described in Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Company within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code.  Each Purchaser shall deliver to the Company on or prior to the date it acquires a Note and from time to time thereafter upon the reasonable request of the Company (or the expiration, obsolescence or material inaccuracy of any form previously delivered) an executed original of, as applicable, (a) Internal Revenue Service Form W-8BEN, W-8BEN-E, or other appropriate W-8, or (b) Internal Revenue Service Form W-9. 7. INFORMATION AS TO COMPANY. 7.1. Financial and Business Information. The Company shall deliver to the holder of each Note: (a) Quarterly Statements – as soon as available, but in any event not later than 60 days after the end of each fiscal quarter (excluding the fourth fiscal quarter of each fiscal year) commencing with the fiscal quarter ending September 30, 2017), (i) copies of the Company’s quarterly report filed on Form 10-Q promulgated under the Securities Exchange Act of 1934 prepared in compliance with the requirements therefor and filed or required to be filed with the Securities and Exchange Commission and (ii) a copy of each Insurance Subsidiary’s financial statements for such fiscal quarter, including a balance sheet as of the end of such fiscal quarter and the related statements of income and retained earnings for such fiscal quarter, each prepared in accordance with SAP and certified by an officer of 

 

11 the applicable Insurance Subsidiary; (b) Annual Statements –  as soon as available, but in any event not later than 100 days after and as of the end of each fiscal year of the Company (i) a copy of the Company’s annual report on Form 10-K promulgated under the Securities Exchange Act of 1934 for such fiscal year prepared in accordance with the requirements therefor and filed or required to be filed with the Securities and Exchange Commission and (ii) a copy of each Insurance Subsidiary’s financial statements for such fiscal year, including a balance sheet as of the end of such fiscal year and the related statements of income and retained earnings for such fiscal year, each prepared in accordance with SAP (commonly referred to as the “Yellow Book” statements) and certified by an officer of the applicable Insurance Subsidiary;  (c) SEC and Other Reports -- promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary (x) to any holders of Senior Debt or any Indebtedness incurred pursuant to Section 10.2(d) hereunder or (y) to its public securities holders generally, (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the Securities and Exchange Commission and of all press releases and other statements made available generally by the Company or any Subsidiary to the public concerning developments that are Material and (iii) all significant reports and financial statements related to Company and/or any of its Subsidiaries filed with any Regulatory Agency;  (d) Notice of Default or Event of Default -- promptly, and in any event within five (5) Business Days after a Responsible Officer becoming aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 12(g), a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto; (e) Proceedings – promptly, and in any event within five (5) Business Days of receipt thereof, copies of any notice of the commencement of (i) any action, suit or proceeding against or affecting the Company or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority relating to any license or licenses of any Insurance Subsidiaries (representing singularly or in the aggregate 10% or more of gross written premiums of the Company and its Subsidiaries) that may be revoked, not renewed or otherwise impaired, or (ii) any other action, suit or proceeding that would reasonably be expected to have a Material Adverse Effect. (f)  Notices from Governmental Authority -- promptly, and in any event within five (5) Business  Days of receipt thereof, copies of (i) any notice to the Company or any Subsidiary from an Insurance Regulatory Authority to the effect 

 

12 that any license or licenses of any Insurance Subsidiaries (representing singularly or in the aggregate 10% or more of gross written premiums of the Company and its Subsidiaries) will be revoked, not renewed or otherwise impaired, or (ii) any other notice from any Federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that would reasonably be expected to have a Material Adverse Effect; and (g)  Requested Information -- with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under each Note as from time to time may be reasonably requested by any such holder of a Note. 7.2. Officer’s Certificate. Each set of financial statements delivered to the holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of a Senior Financial Officer setting forth: (a) Covenant Compliance -- the information (including detailed calculations) required in order to establish whether the Company was in compliance with the covenants set forth in Section 11 hereof, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and (b) Event of Default -- a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervi- sion, a review of the transactions and conditions of the Company and its Sub- sidiaries from the beginning of the quarterly or annual period covered by the state- ments then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto. 7.3. Inspection. The Company shall permit the representatives of the holder of a Note: (a) No Default -- if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to the Company, to visit the principal executive office of the Company, to examine all of its books of account, records, reports and other papers, and to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and 

 

13 (with the consent of the Company, which consent will not be unreasonably withheld) to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and (b) Default -- if a Default or Event of Default then exists, at the expense of the Company to visit and inspect any of the offices or properties of the Company or any Subsidiary, to examine all their respective books of account, records, reports and other papers, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be requested. 8. PREPAYMENT OF THE NOTES. 8.1. Optional Prepayments with Premium. (a) The Company shall not have the right to prepay the Notes prior to July 31, 2018.  On any date on or after July 31, 2018, through and including October 31, 2018, the Company may, at its option, upon notice as provided in clause (c) below, prepay at any time all of the Notes at 100% of the principal amount outstanding, plus the accrued but unpaid interest accrued to but excluding the date of payment.   (b) The Company shall not have the right to prepay the Notes on any date after October 31, 2018 and until September 30, 2020.  On any date on or after September 30, 2020, the Company may, at its option, upon notice as provided in clause (c) below, prepay at any time all of the Notes at 105% of the principal amount outstanding, plus the accrued but unpaid interest accrued to but excluding the date of payment.  Any repayment, prepayment or redemption of the Notes made on or after September 30, 2020, in each case whether or not as a result of any Event of Default, any voluntary, involuntary or automatic acceleration of the Notes and/or the exercise of remedies by any holder of a Note, shall be at 105% of the principal amount outstanding, plus the accrued but unpaid interest accrued to but excluding the date of repayment, prepayment or redemption. (c) The Company will give the holder of a Note written notice of each optional prepayment under this Section 8.1 not less than 30 days prior to the date fixed for such prepayment under Section 8.1(a) or Section 8.1(b).  Each such notice shall specify such date and the aggregate principal amount of the Notes outstanding and to be prepaid on such date, and the interest (and premium, if applicable) to be paid on the prepayment date with respect to such principal (and premium, if applicable) amount being prepaid.  Prepayment notice provided by the Company does not accelerate the Company’s obligation to pay any portion of the Notes and any such prepayment notice may be conditioned upon the completion of any financing for such prepayment.  From and after the date fixed for such prepayment, unless the Company shall fail to pay such principal amount when so due and payable, interest on such principal amount shall cease to accrue. 

 

14 8.2. Maturity; Surrender, etc. Upon payment or prepayment of each Note in full, such Note shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount. 9. AFFIRMATIVE COVENANTS. The Company covenants that so long as the Notes are outstanding: 9.1. Compliance with Law. The Company will and will cause each of its Subsidiaries to comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 9.2. Insurance. The Company will and will cause each of its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective proper- ties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated. 9.3. Payment of Taxes and Claims. The Company will and will cause each of its Subsidiaries to file all income and other material Tax returns required to be filed in any jurisdiction and to pay and discharge all Taxes shown to be due and payable on such returns and all other Taxes imposed on them or any of their properties, assets, income or franchises, to the extent such Taxes have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that have or might become a Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company nor any Subsidiary need pay any such Tax if (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such Taxes in the aggregate would not reasonably be expected to have a Material Adverse Effect.  

 

15 9.4. Corporate Existence, etc. The Company will at all times preserve and keep in full force and effect its corporate existence.  Except as otherwise permitted in this Agreement, the Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the Company or a Subsidiary) and all rights and franchises of the Company and its Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material Ad- verse Effect.  9.5. Post-Closing Matters. On or before October 31, 2017, the Company shall consummate a common equity raise in the amount of $5,000,000 and deliver to each Purchaser evidence of same on the date of such raise. 9.6. ERISA. None of the Company nor any of its ERISA Affiliates shall maintain, contribute to or have any actual or contingent, direct or indirect obligation to maintain or contribute to, any employee benefit plan that is subject to Title I or Title IV of ERISA or section 4975 of the Code. 10. NEGATIVE COVENANTS. The Company covenants that so long as the Notes are outstanding: 10.1. Merger, Consolidation, Disposition of Assets, etc. The Company shall not consolidate with or merge with any other Person, liquidate, wind-up or dissolve itself, or convey, dispose, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person, outside the ordinary course of its business, unless: (a) the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, disposition, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation organized and existing under the laws of the United States or any State thereof (including the District of Columbia), and, if the Company is not such corporation, (i) such corporation shall have executed and delivered to each holder of any Note its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and each Note and (ii) shall have caused to be delivered to the Required Holders an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments 

 

16 effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; (b) immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing or would result therefrom;  (c) immediately after giving pro forma effect to such transaction, the successor, survivor or transferee Person shall be in compliance with the financial covenants set forth in Section 11 hereof; (d) the successor, survivor or transferee Person and its Subsidiaries shall be engaged primarily in the business engaged in by the Company and its Subsidiaries as of the Closing Date; and (e) contemporaneously with the closing of such transaction, the Company shall have delivered to the holder of each Note an officers’ certificate stating that such transaction and the requirements of this Section 10.1 have been satisfied. No such transaction or conveyance, disposition, transfer or lease of all or substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation that shall theretofore have become such in the manner prescribed in this Section 10.1 from its liability under this Agreement or the Notes. 10.2. Indebtedness.   The Company will not, and will not permit its Subsidiaries to, become or remain obligated for any Indebtedness, except: (a)  Indebtedness to each holder of a Note; (b) Indebtedness of the Company under Capital Leases in existence as of the date hereof not to exceed $100,000 for office machinery; (c) Indebtedness of the Company in an principal amount not to exceed $10,000,000 in the aggregate; (d) Indebtedness existing as of the Closing Date and listed on Schedule 10.2; and (e) purchase money Indebtedness incurred in connection with the acquisition of fixed assets in an aggregate amount not exceeding $1,000,000 incurring during any single fiscal year of the Company and $3,000,000 in the aggregate at any time outstanding. 

 

17 10.3. Acquisitions.   The Company shall not, and shall cause its Subsidiaries to not, purchase or otherwise acquire, or become obligated for the purchase of all or substantially all of the assets or business interests of any Person, firm or corporation or any shares of stock of any corporation, trusteeship or association or in any other manner effectuate or attempt to effectuate an expansion of present business by acquisition with a purchase price or consideration in excess of $10,000,000; provided, further, that, immediately before and after giving effect to such transaction, (a) no Default or Event of Default shall have occurred and be continuing or would result therefrom and (b) the Company shall be in pro forma compliance with the financial covenants set forth in Section 11 hereof. 10.4. Restricted Payments.   The Company shall not declare or pay any dividends or make any other distribution upon its equity interests if at the time declared or paid or if after giving effect thereto (a) a Default or Event of Default (or event which with the giving of notice or the passage of time or both would constitute an Event of Default) shall have occurred and be continuing or would result therefrom or (b) the Company shall not be in pro forma compliance with the financial covenants set forth in Section 11 hereof. 10.5. Sale-Leaseback Transactions. The Company will not, and will not permit its Subsidiaries to, engage in a sale leaseback, synthetic lease or similar transaction involving any of its assets, in excess of $1,500,000 in the aggregate through the Maturity Date. 10.6. Change in Existing Investment Policies.   The Company will not, and will not permit its Subsidiaries to, permit or suffer any material adverse change in its investment policies with respect to cash and marketable securities that would have a Material Adverse Effect on the Company or its Subsidiaries. 10.7. Restriction on Guarantees.   The Company will not, and will not permit its Subsidiaries to, enter into any Guaranty of any Indebtedness of any other Person, except by endorsement for deposit in the ordinary course of business and guarantees of Indebtedness otherwise permitted pursuant to Section 10.2.

 

18 10.8. Economic Sanctions, etc. The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws. 11. FINANCIAL COVENANTS. The Company covenants that so long as the Notes are outstanding it will, and will to the extent applicable cause its Subsidiaries to: 11.1. Tangible Net Worth.   Maintain as of the end of each fiscal quarter of the Company a Tangible Net Worth of not less than $45,000,000 as of September 30, 2017, or $50,000,000 thereafter. 11.2. Fixed Charge Coverage Ratio.   Commencing with the fiscal quarter ending March 31, 2018, maintain as of the end of each fiscal quarter of the Company a Fixed Charge Coverage Ratio of not less than 1.25 to 1.0. 11.3. Dividend Paying Capacity. Not permit the Dividend Paying Capacity of any Insurance Subsidiary for any fiscal year to be less than $1,000,000.  This Section does not apply to Red Cedar Insurance Company. 11.4. Reinsurance Retentions.  Not permit reinsurance contracts to have a greater retention (or deductible) than those in place as of July 1, 2017. 11.5. Risk-Based Capital.   Not permit “total adjusted capital” (within the meaning of the Risk-Based Capital for Insurers Model Act as promulgated by the NAIC as of the date of this Agreement (the “Model Act”)) of any of its Insurance Subsidiaries as of the last day of each fiscal year to be less than 300% of the applicable “authorized control level of risk-based capital” (within the meaning of the Model Act) for such Insurance Subsidiary.  This Section does not apply to Red Cedar Insurance Company. 

 

19 11.6. Consolidated Debt to Tangible Capital. Commencing with the fiscal quarter ending December 31, 2017, not permit the ratio of the total Consolidated Indebtedness to the Total Capital to exceed 0.45 to 1.00.  For purposes of the foregoing calculation, solely with respect to any revolving credit facility of the Company permitted to be incurred hereunder, only amounts drawn or otherwise outstanding thereunder shall be considered Indebtedness. 12. EVENTS OF DEFAULT. An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing: (a) the Company defaults in the payment of any principal (or premium, as applicable) on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or (b) the Company defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or (c) the Company defaults in the performance of or compliance with any term contained in Section 7.1(d), (e) or (f), Section 9.4, Section 9.5, Section 10, Section 11 or Section 17.7; or (d) the Company defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 12) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from the holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 12); or (e)  any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or in any writing fur- nished in connection with the transactions contemplated hereby proves to have been false or incorrect in any material respect on the date as of which made; or (f)  (i) the Company or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make- whole amount or interest on any Indebtedness that is outstanding in an aggregate principal amount of at least $1,500,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the per- formance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $1,500,000 or of any mortgage, indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared (or one or more Persons are entitled to declare such Indebtedness to 

 

20 be), due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests) the Company or any Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $1,500,000 (or its equivalent in the relevant currency of payment); or (g)  the Company or any Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing of a petition against it for relief or reorganization or rehabilitation, conservation, supervision, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, rehabilitation, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or (h)  a court of competent jurisdiction or Governmental Authority enters an order appointing, without consent by the Company or any of its Subsidiaries, a custodian, receiver, rehabilitator, supervisor, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization, rehabilitation, conservation, supervision, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up, rehabilitation, liquidation or any similar relief of or with respect to the Company or any of its Subsidiaries, or any such petition shall be filed against the Company or any of its Subsidiaries and such petition shall not be dismissed within 60 days; or (i)  a final order, orders, judgment or judgments for the payment of money aggregating in excess of $1,000,000 are rendered against one or more of the Company and its Subsidiaries and which judgments are not, within 30 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 30 days after the expiration of such stay;  (j) if any of the Insurance Subsidiaries shall be prohibited by any Regulatory Agency from issuing new insurance policies in any jurisdiction and such prohibition shall have a Material Adverse Effect on such Insurance Subsidiary’s business; or (k)  if the operation of the Company or any of its Subsidiaries shall become 

 

21 subject to the control of any Regulatory Agency, other than in the normal course of business. 13. REMEDIES ON DEFAULT. 13.1. Acceleration. (a)  If an Event of Default with respect to the Company described in paragraph (g) or (h) of Section 12 (other than an Event of Default described in clause (i) of paragraph (g) or described in clause (vi) of paragraph (g) by virtue of the fact that such clause encompasses clause (i) of paragraph (g)) has occurred, the Notes then outstanding shall automatically become immediately due and payable. (b)  If any other Event of Default has occurred and is continuing, the Required Holders, by notice, may declare the Notes to be immediately due and payable. Upon the Notes becoming due and payable under this Section 13.1, whether automatically or by declaration, the Notes will forthwith mature and the entire unpaid principal amount of the Notes, including any applicable premium, plus all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived; provided, that for the avoidance of doubt, the amounts contemplated by 8.1(b) shall be payable in each case whether or not any payment, prepayment or redemption of the Notes is as a result of any Event of Default, any voluntary, involuntary or automatic acceleration of the Notes and/or the exercise of remedies by any holder thereof after September 30, 2020; provided, further, such contemplated amount payable shall be presumed to be liquidated damages sustained by each holder of a Note as the result of the early payment and termination and the Company agrees that it is reasonable under the circumstances.  13.2. Other Remedies. If any Default or Event of Default has occurred and is continuing, and irrespective of whether the Notes has become or have been declared immediately due and payable under Section 13.1, each holder of a Note at the time outstanding may proceed to protect and enforce the rights of the holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise. 13.3. Rescission. At any time after any Note has been declared due and payable pursuant to Section 13.1, the holder of such Note then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences (and such rescission and annulment shall be deemed to occur if such action is approved by the Required Holders) if (a) the Company has paid all overdue interest on such Note and all principal (and premium, 

 

22 as applicable) on such Note that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal (and premium, as applicable) and (to the extent permitted by applicable law) any overdue interest in respect of such Note, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 19, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to such Note.  No rescission and annulment under this Section 13.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon. 13.4. No Waivers or Election of Remedies, Expenses, etc. No course of dealing and no delay on the part of the holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note upon the holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  The Company will pay to the holder of any Note on demand such further amount as shall be sufficient to cover all costs and expenses of the holder incurred in any enforcement or collection under this Section 13, including, without limitation, reasonable attorneys’ fees, expenses and disbursements. 14. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.. 14.1. Registration of Notes. The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes. 14.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 14.1), for registration of transfer or exchange (and in the case of a surrender for registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, 

 

23 address and other information for notices of each transferee of such Note or part thereof), within 10 Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit 1.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.1. 14.3. Replacement of Notes. Upon receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 14.1) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon. 15. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT. All representations and warranties contained herein shall survive the execution and delivery of this Agreement and each Note, the purchase and the payment of any Note.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement.  Subject to the preceding sentence, this Agreement and each Note embodies the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 16. PAYMENTS ON THE NOTES. 16.1. Place of Payment. Subject to Section 16.2 and the Schedules hereto, payments of principal and interest becoming due and payable on each Note shall be made by the Company to each Purchaser or holder of a Note as set forth on Schedule A hereto or otherwise designated by such Purchaser or holder in writing. 16.2. Interest. 

 

24 Each Note shall bear interest on their principal amount (i) from and including the date of issuance to, but excluding, the fifth anniversary of the Closing Date (the “First Reset Date”), at a rate of 8.00% per annum, (ii) from and including the First Reset Date to, but excluding, the tenth anniversary of the Closing Date (the “Second Reset Date”) at a rate per annum which shall be 1250 basis points above the 5-Year Mid-Swap Rate and (iii) from and including the Second Reset Date until the Maturity Date at a rate per annum which shall be 1500 basis points above the 5-Year Mid-Swap Rate.  Interest on each Note will be payable quarterly in arrears on the last Business Day of each March, June, September and December of each year, commencing on the last Business Day of December 2017 (each such date, an “Interest Payment Date”), to the holder of each Note at the close of business on such day (whether or not a Business Day), as the case may be.  Interest shall at all times be computed on the basis of a 360-day year consisting of twelve 30-day months.  Not less than 10 days prior to the First Reset Date and the Second Reset Date (each a “Reset Interest Determination Date”), the Company shall provide written notice of the applicable 5-Year Mid-Swap Rate (which shall be agreed to by the holder of each Note) and the interest rate that will be applicable commencing as of the First Reset Date or the Second Reset Date, as applicable.   16.3. Deferral of Interest. So long as no Default or Event of Default has occurred and is continuing, the Company shall have the right, at any time and from time to time to defer the payment of interest of each Note for a period of up to four quarterly interest payment periods in the aggregate through the Maturity Date (any such quarterly interest period, an “Interest Deferral Period”), during which Interest Deferral Period(s), the Company shall have the right to make no payments or partial payments of interest on any Interest Payment Date.  No Interest Deferral Period shall end on a date other than an Interest Payment Date and no Interest Deferral Period shall extend beyond the stated maturity of the principal of the Notes or if such extension would cause the Interest Deferral Period to exceed four fiscal quarters in the aggregate through the Maturity Date.  No interest shall be due and payable during an Interest Deferral Period (and during such period the interest otherwise payable shall cease), except at the end thereof.  At the end of any such Interest Deferral Period, the Company shall pay all interest then accrued and unpaid on each Note, including during the applicable Interest Deferral Periods.  Prior to the termination of any quarterly interest payment period within an Interest Deferral Period, the Company may extend such Interest Deferral Period and further defer the payment of interest through the next quarterly interest payment period; provided that (i) all such previous and further extensions comprising such Interest Deferral Period do not exceed four quarterly interest payment periods in the aggregate through the Maturity Date, (ii) no Interest Deferral Period shall end on a date other than an Interest Payment Date, (iii) no Interest Deferral Period shall extend beyond the stated maturity of the principal of the Notes or if such extension would cause the Interest Deferral Period to exceed four fiscal quarters in the aggregate through the Maturity Date and (iv) no Default or Event of Default has occurred and is continuing.  Upon the termination of any such Interest Deferral Period and upon the payment of all accrued and unpaid interest then due on any Interest Payment Date, including during the applicable Interest Deferral Periods, the Company may elect to begin a new Interest Deferral Period; provided, that (i) such Interest 

 

25 Deferral Period does not exceed four quarterly interest payment periods in the aggregate through the Maturity Date, (ii) no Interest Deferral Period shall end on a date other than an Interest Payment Date, (iii) no Interest Deferral Period shall extend beyond the stated maturity of the principal of the Notes or if such extension would cause the Interest Deferral Period to exceed four fiscal quarters in the aggregate through the Maturity Date and (iv) no Default or Event of Default has occurred and is continuing.  The Company shall notify the holder of each Note to begin any such Interest Deferral Period no later than 10 days prior to the commencement or extension thereof. 17. SUBORDINATION OF THE NOTES. 17.1. Notes Subordinate to Senior Debt. The Company covenants and agrees, and each holder of a Note, by its acceptance thereof, likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth, the payment of the principal of and any premium and interest on each and all of the Notes are hereby expressly made subordinate and subject in right of payment to the prior payment in full of all Senior Debt.  “Senior Debt” means the principal of and any premium and interest on (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company, whether or not such claim for post-petition interest is allowed in such proceeding) all Indebtedness of the Company, incurred on or after the date of this Agreement and permitted to be incurred hereunder, unless it is provided in the instrument creating or evidencing the same or pursuant to which the same is outstanding that the obligations under such instrument are not superior in right of payment to the Notes issued under this Agreement; provided, however, that the amount of such Senior Debt shall in no event exceed $10,000,000; provided, further, that Senior Debt shall not include:  (a) any obligation of the Company to any Subsidiary or any obligation of a Subsidiary to the Company or another Subsidiary; (b) any liability for Federal, state, foreign, local or other taxes owed or owing by the Company or any of its Subsidiaries; (c) any accounts payable or other liability to trade creditors arising in the ordinary course of business (including guarantees thereof or instruments evidencing such liabilities); (d) Indebtedness to, or guaranteed on behalf of, any director, officer or employee of the Company or any of its Subsidiaries (including amounts owed for compensation); (e) any capital stock or redeemable stock of the Company or its Subsidiaries; (f) any Indebtedness that is expressly subordinate or junior in right of payment to the Notes; or (g) any Indebtedness incurred in violation of this Agreement.  Only Indebtedness of the Company that is Senior Debt shall rank senior to the Notes.  Each holder of a Note agrees, if requested by the Senior Lender to execute a Subordination Agreement for the benefit of the Senior Lender consistent with the provisions of this Section 17.1. 17.2. No Payment When Senior Debt in Default; Payment Over of Proceeds Upon Dissolution, Etc. (a) In the event and during the continuation of any default by the Company in the payment of any principal of or any premium or interest on any Senior Debt (following any grace period, if applicable) when the same becomes due and payable, whether at maturity or at a date fixed for redemption or by declaration of acceleration or 

 

26 otherwise, then, upon written notice of such default to the Company and each holder of a Note by the holders of such Senior Debt therefor, unless and until such default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment (in case, property, securities, by set-off or otherwise) shall be made or agreed to be made on account of the principal of or any premium or interest on a Note, or in respect of any redemption, repayment, retirement, purchase or other acquisition of a Note. (b) In the event of a bankruptcy, insolvency or other similar proceeding described in the definition of Event of Default (each such event, if any, herein sometimes referred to as a “Proceeding”), all Senior Debt (including any interest thereon accruing after the commencement of any such proceedings) shall first be paid in full before any payment or distribution, whether in cash, securities or other property, shall be made to any holder of a Note on account thereof.  Any payment or distribution, whether in cash, securities or other property (other than securities of the Company or any other entity provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in these subordination provisions with respect to the Indebtedness evidenced by the Notes, to the payment of all Senior Debt at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustment), which would otherwise (but for these subordination provisions) be payable or deliverable in respect of the Notes shall be paid or delivered directly to the holders of Senior Debt in accordance with the priorities then existing among such holders until all Senior Debt (including any interest thereon accruing after the commencement of any Proceeding) shall have been paid in full.  In the event of any Proceeding, after payment in full of all sums owing with respect to Senior Debt, each holder of a Note, together with the holders of any obligations of the Company ranking on a parity with the Notes, shall be entitled to be paid from the remaining assets of the Company the amounts at the time due and owing on account of unpaid principal of and any premium and interest on the Notes and such other obligations before any payment or other distribution, whether in cash, property or otherwise, shall be made on account of any capital stock or any obligations of the Company ranking junior to the Notes and such other obligations. (c) If, notwithstanding the foregoing, any payment or distribution of any character or any security, whether in cash, securities or other property (other than securities of the Company or any other entity provided for by a plan of reorganization or readjustment the payment of which is subordinate, at least to the extent provided in these subordination provisions with respect to the Indebtedness evidenced by the Notes, to the payment of all Senior Debt at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustment) shall be received by the holder in contravention of any of the terms hereof and before all Senior Debt shall have been paid in full, such payment or distribution or security shall be received in trust for the benefit of, and shall be paid over or delivered and transferred to, the holders of the Senior Debt at the time outstanding in accordance with the priorities then existing among such holders for application to the payment of all Senior Debt remaining unpaid, to the extent necessary to pay all such Senior Debt (including any interest thereon accruing after the commencement of any Proceeding) in full.  In the event of the failure of the holder of a Note to endorse or assign any such payment, distribution or security, each holder of Senior Debt is hereby irrevocably authorized to endorse or assign the same. 

 

27 (d) Each holder of a Note, at the expense of the Company, shall take such reasonable action (including the delivery of this Agreement to an agent for any holders of Senior Debt or consent to the filing of a financing statement with respect hereto) as may, in the opinion of counsel designated by the holders of a majority in principal amount of the Senior Debt at the time outstanding, be necessary or appropriate to assure the effectiveness of the subordination effected by these provisions, including the execution of a standalone Subordination Agreement. 17.3. Payment Permitted If No Default. Nothing contained herein or elsewhere in this Agreement or in the Notes shall prevent the Company, at any time, except during the pendency of the conditions described above or of any Proceeding, from making payments at any time of principal of and any premium and interest on the Notes. 17.4. Subrogation to Rights of Holders of Senior Debt. Subject to the payment in full of all amounts due or to become due on all Senior Debt, whether in cash, securities or other property, each holder of a Note shall be subrogated to the extent of the payments or distributions made to the holders of such Senior Debt pursuant to the provisions hereof (equally and ratably with the holders of all Indebtedness of the Company that by its express terms is subordinated to Senior Debt of the Company to substantially the same extent as each Note is subordinated to the Senior Debt and is entitled to like rights of subrogation by reason of any payments or distributions made to holders of such Senior Debt) to the rights of the holders of such Senior Debt to receive payments and distributions of cash, property and securities applicable to the Senior Debt until the principal of and any premium and interest on the Notes shall be paid in full.  For purposes of such subrogation, no payments or distributions to the holders of the Senior Debt of any cash, property or securities to which each holder of a Note would be entitled except for these subordination provisions, and no payments made pursuant to these subordination provisions to the holders of Senior Debt by the holder of a Note, shall, as among the Company, its creditors other than holders of Senior Debt, and the holder of a Note, be deemed to be a payment or distribution by the Company to or on account of the Senior Debt. 17.5. Provisions Solely to Define Relative Rights. These subordination provisions are and are intended solely for the purpose of defining the relative rights of each holder of a Note on the one hand and the holders of Senior Debt on the other hand.  Nothing contained herein or elsewhere in this Agreement or in the Notes is intended to or shall (a) impair, as between the Company and each holder of a Note, the obligations of the Company, which are absolute and unconditional, to pay to each holder of a Note the principal of and any premium and interest on the Notes as and when the same shall become due and payable in accordance with their terms, (b) affect the relative rights against the Company and each holder of a Note and creditors of the Company other than their rights in relation to the holders of Senior Debt or (c) prevent the holder of a Note 

 

28 from exercising all remedies otherwise permitted by applicable law upon default under this Agreement, including filing and voting claims in any Proceeding, subject to the rights, if any, of the holders of Senior Debt to receive cash, property and securities otherwise payable or deliverable to the holder. 17.6. No Waiver of Subordination Provisions. No right of any present or future holder of any Senior Debt to enforce subordination as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to act on the part of the Company or by any act or failure to act, in good faith, by any such holder, or by any noncompliance by the Company with the terms, provisions and covenants of this Agreement, regardless of any knowledge thereof that the holder may have or be otherwise charged with.  Without in any way limiting the generality of the foregoing sentence, the holders of Senior Debt may, at any time and form time to time, without the consent of or notice to the holder of a Note, without incurring responsibility to such holder of a Note and without impairing or releasing the subordination providing herein or the obligations hereunder of the holder of a Note to the holders of Senior Debt, do any one or more of the following (unless in violation of this Agreement):  (i) change the manner, place or terms of payment or extend the time of payment of, or renew or alter, Senior Debt, or otherwise amend or supplement in any manner Senior Debt or any instrument evidencing the same or any agreement under which Senior Debt is outstanding, (ii) sell, exchange, release or otherwise deal with any property pledged, mortgaged or otherwise securing Senior Debt, (iii) release any Person liable in any manner for the payment of Senior Debt and (iv) exercise or refrain from exercising any rights against the Company and any other Person.  17.7. Notice to Holders. The Company shall give prompt written notice to the holder of a Note of any fact known to the Company that would prohibit the making of any payment in respect of the Notes. 17.8. Reliance on Judicial Order or Certificate of Liquidating Agent. Upon any payment or distribution of assets of the Company, each holder of a Note shall be entitled to conclusively rely upon any order or decree entered by any court of competent jurisdiction in which such Proceeding is pending, or a certificate of the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the holders of the Notes, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of the Senior Debt and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto. 

 

29 18. EXPENSES, ETC. 18.1. Transaction Expenses. Except as otherwise provided herein, each party hereto shall pay its own fees, costs and expenses incurred in connection herewith and the transactions contemplated hereby, including the fees, costs and expenses of its financial advisors, accountants and legal counsel. The Company will pay all reasonable and documented costs and expenses (including reasonable attorneys’ fees of a single counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes, including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and (c) the costs and expenses incurred in connection with the initial filing of this Agreement and all related documents and financial information with a Regulatory Agency provided, that such costs and expenses under this clause (c) shall not exceed $3,000 for each series of Notes and provided further that the reasonable costs and expenses incurred in the diligence, negotiation and execution of this Agreement shall not exceed $50,000.  If required by the NAIC, the Company shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).  The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes) and (ii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys’ fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby; provided that such indemnity shall not, as to any Purchaser or holder of Note, be available to the extent that such judgments, liabilities, claims, orders, decrees, fines, penalties, costs, fees, expenses or obligations (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from (i) the gross negligence or willful misconduct of such Purchaser or holder of a Note or (ii) a material breach by such Purchaser or holder of a Note of its express obligations under this Agreement or (y) result from claims of any Purchaser or holder of a Note solely against one or more other Purchasers or holders of a Note. 18.2. Certain Taxes. Any and all payments by the Company or on account of the Note shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law requires (in the good faith determination of the Company) the deduction or withholding of any Taxes from any such payment, then the Company shall 

 

30 (i) make such deduction or withholding, (ii) timely pay the full amount deducted or withheld to the appropriate Governmental Authority, and (iii) if such Taxes are Indemnified Taxes, pay an additional amount so that the total sum each Purchaser receives net of such deduction or withholding (including any deduction or withholding required with respect to additional amounts) equals the sum that Purchaser would have received had no such deduction or withholding been made.  Each Purchaser will use commercially reasonable efforts to cooperate with the Company to reduce any Taxes required to be deducted or withheld from payments by the Company or on account of the Note. The Company and the Subsidiaries shall jointly and severally indemnify each Purchaser, within 10 days of written demand therefor, for the full amount of any Indemnified Taxes paid by such Purchaser on account of the Note or payments thereunder, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. 18.3. Other Taxes. The Company agrees to pay all stamp, documentary or similar Taxes or fees which may be payable in respect of the execution and delivery or the enforcement of this Agreement or the execution and delivery (but not the transfer) or the enforcement of any of the Notes in the United States or any other jurisdiction where the Company has assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or of any of the Notes, and to pay any value added Tax due and payable in respect of reimbursement of costs and expenses by the Company pursuant to this Section 18, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such Tax or fee required to be paid by the Company hereunder. 18.4. Tax Treatment. The parties agree to treat the Note for all U.S. federal income and Code Chapter 3 and 4 purposes as indebtedness. 18.5. Survival. The obligations of the parties under this Section 18 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement. 19. AMENDMENT AND WAIVER. 19.1. Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders. 

 

31 19.2. Binding Effect, etc. Any amendment or waiver consented to as provided in this Section 19 applies the holders of Notes and is binding upon the holders and upon the Company without regard to whether each such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the holders of the Notes nor any delay in exercising any rights hereunder or under the Notes shall operate as a waiver of any rights of the holders of such Notes.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented. 20. NOTICES. All notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent: (i) if to a Purchaser or its nominee, to such Purchaser or it at the address specified for such communications in Schedule A, or at such other address as such Purchaser or it shall have specified to the Company in writing, (ii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Brian Roney, President, or at such other address as the Company shall have specified to the holder of each Note in writing. Notices under this Section 20 will be deemed given only when actually received. 21. CONFIDENTIAL INFORMATION. For the purposes of this Section 21, “Confidential Information” means in- formation delivered to a Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by a Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to a Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by a Purchaser or any person acting on its behalf, (c) otherwise becomes known to a Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to a Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser and each holder will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by a Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that each 

 

32 Purchaser and each holder may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its Note), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which it may sell or offer to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (v) any Person from which it may offer to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (vi) any federal or state regulatory authority having jurisdiction over it, (vii) the NAIC or any similar organization, or any nationally recognized rating agency that requires access to information about its investment portfolio or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to it, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which it is a party or (z) if an Event of Default has occurred and is continuing, to the extent it may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under its Note and this Agreement.   22. MISCELLANEOUS. 22.1. Successors and Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not, except that (x) subject to Section 10.1, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Notes without the prior written consent of each holder and (y) in the absence of the existence and the continuation of an Event of Default, no Purchaser may assign any of its right, title or interest in and to any Note without the consent of the Company (not to be unreasonably withheld, conditioned or delayed).  Any assignee of the Purchaser or any other holder shall execute a joinder to this Agreement. 

 

33 22.2. Accounting Terms. All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with this Agreement (including Section 9, Section 10, Section 11 and the definition of “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made as if such election had not been made. 22.3. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to the contrary notwithstanding, any payment of principal of or interest on the Notes that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day. 22.4. Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 22.5. Construction. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. Defined terms herein shall apply equally to the singular and plural forms of the terms defined.  Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, 

 

34 instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (b) subject to Section 22.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time. 22.6. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 22.7. Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit or require the application of the laws of a jurisdiction other than such State. 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a)  The Company irrevocably submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. (b) The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 22.8(a) brought in any such court shall be conclusive and binding upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by a suit upon such judgment. (c) The Company consents to process being served by or on behalf of any holder of a Note in any suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof by registered, certified, priority or express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery 

 

35 confirmation requested, to it at its address specified in Section 20 or at such other address of which such holder shall then have been notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service. (d) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holder of such Note may have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction. (e) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THEREWITH.  22.9. No Recourse Against Others. This Agreement, the Notes and the obligations hereunder and thereunder are fully recourse to the Company.  No director, officer, employee, incorporator, Affiliate or stockholder of the Company shall have any liability for any obligations of the Company under the Notes or this Agreement or for a claim based on, in respect of, or by reason of, such obligations or their creation.  Each holder of a Note, by accepting such Note, waives and releases all such liability.  The waiver and release are part of the consideration for the issuance of the Notes. *    *    *    *    * 

 

 

Signature Page to Note Purchase Agreement The foregoing is hereby agreed to as of the date thereof. ELANUS CAPITAL INVESTMENTS MASTER SP SERIES 3 By:   Matthew Moniot Its: Sole Director 

 

SCHEDULE A 1 Schedule A 25598028 INFORMATION RELATING TO PURCHASERS Principal Amount of  Name and Address of Purchasers Note to be Purchased Elanus Capital Investments Master SP Series 3               $30,000,000   (1) All payments by wire transfer of immediately available funds to: The Bank of New York Mellon ABA #: 021000018 Account Number 9932228400 Account Name: ELANUS CAP INVS MSTR SP SER 3 with sufficient information to identify the source and application of such funds.   (2) All notices of payments and written confirmations of such wire transfers: Address:  c/o Elanus Capital Management LLC (the manager) 180 Varick Street Suite 416 New York, NY 10014 Fax:  917-398-5790 Contacts: Matthew Moniot, David Michael and Ling Marquardt Email: mmoniot@elanuscapital.com; dmichael@elanuscapital.com; and lmarquardt@elanuscapital.com    (3) All other communications: Address:  c/o Elanus Capital Management LLC (the manager) 180 Varick Street Suite 416 New York, NY 10014 Fax:  917-398-5790 Contacts:  Matthew Moniot, David Michael and Ling Marquardt Email:  mmoniot@elanuscapital.com; dmichael@elanuscapital.com; and lmarquardt@elanuscapital.com With a copy to: 

 

SCHEDULE A 2 Schedule A 25598028 Andrew J. Young CLIFFORD CHANCE US LLP  31 West 52nd Street New York, NY 10019 Fax:  212-878-8375 Email:  andrew.young@cliffordchance.com

 

SCHEDULE B 1 Schedule B 25598028 DEFINED TERMS As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term: “5-Year Mid-Swap Rate” means the 5-year semi-annual mid-swap rate as displayed on the Reset Screen Page on the Reset Interest Determination Date.  In the event that the 5-year semi-annual U.S. dollar mid-swap rate does not appear on the Reset Screen Page on the Reset Interest Determination Date, the 5-Year Mid-Swap Rate shall be the Reset Reference Bank Rate on the Reset Interest Determination Date.  “5-Year Mid-Swap Rate Quotation” means, in each case, the arithmetic mean of the bid and offered rates for the semi-annual fixed leg (calculated on a basis of a 360-date year of twelve 30-day months) of a fixed-for-floating U.S. dollar interest rate swap which (i) has a term of 5 years commencing on the Reset Date, (ii) is in an amount that is representative of a single transaction in the relevant market at the relevant time with an acknowledged dealer of good credit in the swap market and (iii) has a floating leg based on the 3-month U.S. dollar LIBOR rate (calculated on basis of the actual number of days elapsed in 360-day year). “Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Company or any Subsidiary or any Person of which the Company and its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company. “Agreement” means this Note Purchase Agreement, including all Schedules attached to this Agreement. “Anti-Corruption Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010. “Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction regarding money laundering, drug trafficking, terrorist- related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA PATRIOT Act. 

 

2 Schedule B 25598028 “Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b). “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City or Detroit, Michigan are required or authorized to be closed. “Capital Lease” means, at any time, a lease with respect to which the lessee is or is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP as in effect on the effective date of this Agreement. “Closing” is defined in Section 3. “Closing Date” is defined in Section 3. “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time. “Company” means Conifer Holdings, Inc., a Michigan corporation. “Consolidated Indebtedness” means, as at any date of determination, the aggregate amount of all Indebtedness of the Company and its Subsidiaries. “Confidential Information” is defined in Section 21. “Consolidated Net Income” means the net income (or loss) of the Company and its consolidated Subsidiaries for such period, all as determined in accordance with GAAP. “Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates. “Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default. “Default Rate” means that rate of interest that is 2% per annum above the 

 

3 Schedule B 25598028 rate of interest stated in clause (a) of the first paragraph of each Note. “Disclosure Documents” is defined in Section 5.3. “Dividend Paying Capacity” means for any Insurance Subsidiary for any fiscal quarter end, the greater of (i) net income of such Insurance Subsidiary for the most recent year end or (ii) 10% of Statutory Surplus for such Insurance Subsidiary as of the last day of the most recent quarter end, all as determined in accordance with GAAP or SAP. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.  “ERISA Affiliate” means any trade or business (whether or not incor- porated) that is treated as a single employer together with the Company under section 414 of the Code. “Event of Default” is defined in Section 12. “Excluded Taxes” means any of the following Taxes imposed on or with respect to Purchaser or required to be withheld or deducted from a payment to Purchaser, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Purchaser being organized under the laws of, or having its principal office in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Taxes imposed as a result of a present or former connection between Purchaser and the jurisdiction imposing such Tax (other than connections arising from the Purchaser having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement, or sold or assigned an interest in the Note or this Agreement), (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of Purchaser pursuant to a law in effect on the date on which Purchaser acquires a Note except to the extent that, pursuant to Section 18, amounts with respect to such Taxes were payable to such Purchaser’s assignor immediately before such assignee became a party hereto, (c) Taxes attributable to Purchaser’s failure to provide the Company appropriate Tax forms pursuant to Section 6.2, and (d) any U.S. federal withholding Taxes imposed under FATCA. “Existing Credit Facility” means that certain Amended and Restated Credit Agreement, dated as of September 29, 2014 (as amended, restated, supplemented or modified from time to time), among the Company and Comerica Bank, and each other Loan Document (as defined therein). 

 

4 Schedule B 25598028 “Exchange Act” means the Securities Exchange Act of 1934, as amended. “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version), current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, other official administrative guidance promulgated thereunder, any intergovernmental agreements entered into by the United States in connection with the implementation thereof, and any fiscal or regulatory legislation, rules or official guidance adopted pursuant to such intergovernmental agreement. “First Reset Date” is defined in Section 16.2 “Fixed Charge Coverage Ratio” means, as of any date of determination, a ratio, the numerator of which is Consolidated Net Income of the Company less net income from Subsidiaries (to the extent included in Consolidated Net Income when applying the equity basis of accounting, in accordance with GAAP) for the four preceding fiscal quarters ending on such date, plus to the extent deducted in determining Consolidated Net Income, interest expense, depreciation and amortization expenses (only to the extent directly recorded by the Company) for such period, plus the Dividend Paying Capacity of all Insurance Subsidiaries plus dividends received in cash by the Company from its Subsidiaries during such period and the denominator of which is the sum of (A) the amount of all dividends paid by the Company to its shareholders during such period, (B) all scheduled principal and interest payments with respect to the Consolidated Indebtedness of the Company and its Subsidiaries during such period and (C) all payments by the Company with respect to Capital Leases during such period; provided that during an Interest Deferral Period, the amount included in clause (B) shall exclude the amount of all deferred interest permitted to be deferred hereunder. “GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America. “Governmental Authority” means (a) the government of (i) the United States of America or any State or other political subdivision thereof, or (ii) any jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of the Company or any Subsidiary, or (b) any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government, including any 

 

5 Schedule B 25598028 securities exchange and any self-regulatory organization (including the NAIC). “Governmental Licenses” is defined in Section 5.7 “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other Person in any manner, whether directly or indirectly, in- cluding (without limitation) obligations incurred through an agreement, contingent or other- wise, by such Person. “Holder” or "holder" means, with respect to each Note, the Person in whose name the Note is registered in the register maintained by the Company pursuant to Section 14.1. “Indebtedness” shall mean, with respect to any Person, (a) all indebtedness for borrowed money (excluding trade liabilities incurred in the ordinary course of business and payable in accordance with customary practices) which is evidenced by a note, bond, debenture or similar instrument, (b) all obligations under Capital Leases, (c) all obligations in respect of letters of credit, acceptances or similar obligations issued or created for the account of the Company or any of its Subsidiaries as of such date, other than insurance contracts issued by the Company or any of its Subsidiaries in the ordinary course of business, (d) net obligations in respect of interest rate or currency obligation swaps, hedges or similar arrangements (the amount of any such obligation to be equal at any time to the termination value of such agreement or arrangement giving rise to such obligation that would be payable by such Person at such time), (e) amounts owed as deferred purchase price for the purchase of any property or services, (f) all indebtedness of others secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the indebtedness secured thereby has been assumed, (g) all liabilities of Company or any Subsidiary under any securitization, any so-called “synthetic lease” or “tax ownership operating lease” or any other off balance sheet transaction which is the functional equivalent of or takes the place of borrowing but which does not constitute a liability on a balance sheet of such Person, based on the outstanding amount of such liability if it had been structured as a financing on the balance sheet of such Person, (h) all obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of any mandatorily redeemable capital stock, and (i) obligations to guarantee any of the foregoing obligations on behalf of any Person other than the Company and its Subsidiaries; provided that standard trust accounts, deposit requirements or obligations of regulatory agencies and any collateral requirements or obligations of other insurance business partners in the normal course of business shall not constitute Indebtedness. “Indemnified Taxes” means Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the 

 

6 Schedule B 25598028 Company or its Subsidiaries under this Agreement and the Note. “Insurance Licenses” is defined in Section 5.7. “Insurance Regulatory Authority” means, with respect to any Insurance Subsidiary, the insurance department or similar governmental authority charged with regulating insurance companies or insurance holding companies, in its state of domicile and, to the extent that it has regulatory authority over such Insurance Subsidiary, in each other jurisdiction in which such Insurance Subsidiary conducts business or is licensed to conduct business. “Insurance Subsidiary” means any Subsidiary of the Company, the ability of which to pay dividends is regulated by an Insurance Regulatory Authority or that is otherwise required to be regulated thereby in accordance with the applicable requirement of law of its state of domicile. “Interest Deferral Period” is defined in Section 16.3. “Interest Payment Date” is defined in Section 16.2. “LIBOR” means, for each interest period, the offered rate per annum (but not less than 0.00%) for deposits of U.S. dollars for the applicable interest period that appears on Reuters Screen LIBOR01 Page (or the applicable successor page) as of 11:00 a.m. (London, England time) two Business Days prior to the first day in such interest period.  If no such offered rate exists, such rate will be the rate of interest per annum, as determined by the Required Holders at which deposits of U.S. dollars in immediately available funds are offered at 11:00 a.m. (London, England time) two Business Days prior to the first day in such interest period by major financial institutions reasonably satisfactory to the Required Holders in the London interbank market or such other market and reference rate acceptable to the holders of the Notes for such interest period for the applicable principal amount on such date of determination. “Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement or Capital Lease, upon or with respect to any property or asset of such Person (including in the case of stock, stockholder agreements, voting trust agreements and all similar arrangements). “Material” means material in relation to the business, operations, affairs, financial condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole. “Material Adverse Effect” means a material adverse effect on (a) the busi-

 

7 Schedule B 25598028 ness, financial condition, or assets of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement and the Notes, or (c) the validity or enforceability of this Agreement or the Notes. “Maturity Date” is defined in the first paragraph of each Note. “NAIC” means the National Association of Insurance Commissioners or any successor thereto. “Net Worth” means as of any date of determination shareholders’ equity, including all common stock, Preferred Stock and any minority interests of the Company and its consolidated Subsidiaries as of such date as determined in accordance with GAAP as in effect on the date of this Agreement. “Note” is defined in Section 1. “OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury. “OFAC Sanctions Program” means any economic or trade sanction that OFAC is responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource- center/sanctions/Programs/Pages/Programs.aspx. “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Company whose responsibilities extend to the subject matter of such certificate. “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto. “Permitted Liens” means (A) to the extent incurred in the normal course of business (i) rights of third parties with respect to standard trust accounts, (ii) deposit requirements or similar obligations of regulatory agencies, and (iii) any collateral requirements or obligations of other insurance business partners, (B) Liens securing Indebtedness permitted in Section 10.2(b), Section 10.2(c) or Section 10.2(e), (C) Liens for taxes, fees, assessments or other governmental charges which are not past due or remain payable without penalty or which are disputed in good faith and in appropriate proceedings, and for which the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary, and (D) other Liens incurred in the ordinary course or which are not material in amount or nature and which do not secure Indebtedness. “Person” means an individual, partnership, corporation, limited liability 

 

8 Schedule B 25598028 company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof. “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability. “Preferred Stock” means any class of capital stock of a corporation that is preferred over any other class of capital stock of such corporation as to the payment of divi- dends or the payment of any amount upon liquidation or dissolution of such corporation. “Proceeding” is defined in Section 17.2(b). “Property” or “Properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate. “Purchaser” or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser’s successors and assigns (so long as any such assignment complies with Section 22.1), provided, however, that any Purchaser of a Note that ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 14.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement upon such transfer. “Regulatory Agency” means any state board, commission, department or other regulatory body which regulates insurance companies or insurance holding companies. “Required Holders” means, at any time, the holders of at least 50% of the principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its Affiliates). “Reset Date” means the First Reset Date or the Second Reset Date (as applicable) (each as defined in Section 16.2) “Reset Interest Determination Date” is defined in Section 16.2. “Reset Reference Bank Rate” means the percentage rate determined on the basis of the 5-Year Mid-Swap Rate Quotation provided by five leading swap dealers in the interbank market (selected by the Required Holders) to the paying agent at approximately 11:00 a.m. (New York time) on the Reset Interest Determination Date.  If at least three quotations are provided, the 5-Year Mid-Swap Rate will be the arithmetic mean of the 

 

9 Schedule B 25598028 quotations, eliminating the highest quotation (or, in the event of equality one of the highest) and the lowest quotation (or, in the event of equality, one of the lowest).  If only two quotations are provided, the 5-Year Mid-Swap Rate will be the arithmetic mean of the quotations provided.  If only one quotation is provided, the 5-Year Mid-Swap Rate will be the quotation provided.  If no quotations are provided, the 5-Year Mid-Swap Rate shall be equal to the last available 5-year semi-annual mid-swap rate on the Reset Screen Page. “Reset Screen Page” means Bloomberg screen “USSW5 Curncy” (or any successor page or, if a successor page is unavailable, the equivalent page of Reuters or any comparable provider) as of 11:00 a.m. (New York time). “Responsible Officer” means any Senior Financial Officer and any other officer of the Company with responsibility for the administration of the relevant portion of this Agreement. “SAP” means, with respect to any Insurance Subsidiary, the statutory accounting practices and procedures, prescribed or permitted, by the relevant Insurance Regulatory Authority of its state of domicile. “Second Reset Date” is defined in Section 16.2. “Securities Act” means the Securities Act of 1933, as amended from time to time. “Senior Debt” is defined in Section 17.1. “Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Company. “Senior Lender” means any issuer of Senior Debt. "Solvent" means, with respect to any Person as of any date of determination, that, as of such date, (a) the value of the assets of such Person (both at fair value and present fair saleable value) is greater than the total amount of liabilities (including contingent, unliquidated and probable liabilities) of such Person, (b) such Person is able to pay all liabilities of such Person as such liabilities mature and (c) such Person does not have unreasonably small capital with which to conduct its business.  In computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.  “State Sanctions List” means a list that is adopted by any state Governmental Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a 

 

10 Schedule B 25598028 target of economic sanctions imposed under U.S. Economic Sanctions Laws. “Statutory Surplus” of any Person means the statutory surplus of such Person computed in the manner required for its annual statement of condition and affairs prepared in accordance with SAP. “Subordinated Debt” means all Indebtedness of the Company for borrowed money which is subordinated to the Company’s Indebtedness to the Senior Lender pursuant to a Subordination Agreement. “Subordination Agreements” means the subordination agreements executed from time to time by the Required Holders in favor of the Senior Lender in each case in form and substance acceptable to the Senior Lender and the Required Holders. “Subsidiary” means, as to any Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company. “Tangible Net Worth” means as of any date Net Worth less the Intangible Assets of the Company and its consolidated Subsidiaries, all determined as of such date.  For purposes of this Agreement, “Intangible Assets” means the amount (to the extent reflected in determining such Net Worth) of goodwill, patents, trademarks, service marks, trade names, customer lists, renewal rights, copyrights, organization, and research and/or developmental expenses. “Taxes” means all means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. “Total Capital” means (i) the Consolidated Indebtedness plus (ii) Net Worth. “USA PATRIOT Act” means United States Public Law 107-56, Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001 and the rules and regulations 

 

11 Schedule B 25598028 promulgated thereunder from time to time in effect. “U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation or regulations administered and enforced by the United States pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions Program. 

 

EXHIBIT 1 1 25598028 This instrument and the rights and obligations evidenced hereby are subordinate in right of payment to the prior payment in full, in the manner and to the extent set forth in that certain Note Purchase Agreement (as amended, restated, amended and restated, modified or supplemented from time to time, the “Note Purchase Agreement”) dated as of September 29, 2017, among Conifer Holdings, Inc. (“Issuer”) and the Purchasers party thereto, to the Senior Debt (as such term is defined in the Note Purchase Agreement) and each holder of this instrument, by its acceptance hereof, irrevocably agrees to be bound by the subordination provisions set forth in the Note Purchase Agreement. [FORM OF NOTE] CONIFER HOLDINGS, INC. 8% SUBORDINATED NOTE DUE SEPTEMBER 29, 2032 No. [_____] [Date] $[_______] FOR VALUE RECEIVED, the undersigned, CONIFER HOLDINGS, INC. (herein called the “Company”), a corporation organized and existing under the laws of the State of Michigan, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] DOLLARS on September 29, 2032 (the "Maturity Date") with interest (computed on the basis of a 360-day year of twelve 30-day months). Capitalized terms used herein and not otherwise defined shall have the meaning ascribed to such term in the Note Purchase Agreement.  From and including the date of issuance of this Note, but excluding, the fifth anniversary of the Closing Date, interest shall accrue and be payable at a rate of 8% per annum (the “First Reset Date”).  From and including the First Reset Date to, but excluding, the tenth anniversary of the Closing Date (the “Second Reset Date”), interest shall accrue and be payable at a rate per annum which shall be 1250 basis points above the 5-Year Mid- Swap Rate.  From and including the Second Reset Date until the Maturity Date, interest shall accrue and be payable at a rate per annum which shall be 1500 basis points above the 5-Year Mid-Swap Rate. Interest shall be payable quarterly, on the last Business Day of December, March, June and September in each year, commencing with the last Business Day of December 2017, until the principal hereof shall have become due and payable; provided that the Issuer may defer any interest payments due hereunder to the extent permitted by Section 16.3 of the Note Purchase Agreement, and to the extent permitted by law on any overdue payment (including any overdue prepayment) of principal (and any premium due thereon), any overdue payment of interest payable quarterly as aforesaid (or, at the option of the registered holder hereof, on demand) and during the continuance of an Event of Default, on any such unpaid amounts, at a rate per annum from time to time equal to 2% otherwise 

 

25598028 payable hereunder. Payments of principal of and premium and interest on with respect to this Note are to be made in lawful money of the United States of America at [   ] or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreements referred to below. This Note is issued pursuant to the Note Purchase Agreement, dated as of September 29, 2017 (as from time to time amended, the “Note Purchase Agreement”), between the Company and the Purchaser named therein and is entitled to the benefits thereof.   This Note is subject to optional prepayment at the times and on the terms specified in the Note Purchase Agreement, but not otherwise. If an Event of Default, as defined in the Note Purchase Agreement, occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price and with the effect provided in the Note Purchase Agreement. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit or require the application of the laws of a jurisdiction other than such State. CONIFER HOLDINGS, INC. By_________________________    [Title]EX-10.1

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 Exhibit 10.1 

EXECUTION VERSION 

PUBLISHED CUSIP NUMBERS: 

DEAL CUSIP - 87512QAF7 

FACILITY CUSIP - 87512QAG5 

CREDIT AGREEMENT 
 dated as
of November 2, 2017 
 among 

TAMPA ELECTRIC COMPANY, 
 a Florida
Corporation, 
 as Borrower 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Administrative Agent 
 and 

THE LENDERS PARTY HERETO 
  

 
 WELLS FARGO
SECURITIES, LLC, 
 JPMORGAN CHASE BANK, N.A., 

BANK OF TOKYO-MITSUBISHI UFJ, LTD., 

THE BANK OF NOVA SCOTIA 
 and 

ROYAL BANK OF CANADA 
 as Joint
Lead Arrangers, 
 JPMORGAN CHASE BANK, N.A., 

BANK OF TOKYO-MITSUBISHI UFJ, LTD., 

THE BANK OF NOVA SCOTIA 
 and 

ROYAL BANK OF CANADA 
 Joint
Bookrunners and Syndication Agents 

Table of Contents

 TABLE OF CONTENTS 

 

							
	 ARTICLE I DEFINITIONS
	  	 	1	 
			
	 1.1
	 	 Definitions
	  	 	1	 
	 1.2
	 	 Rules of Interpretation
	  	 	1	 
		
	 ARTICLE II THE FACILITY 
	  	 	1	 
			
	 2.1
	 	 The Facility
	  	 	1	 
		 	 2.1.1      Loans
	  	 	1	 
		 	 2.1.2      
Interest Provisions Applicable to all Loans
	  	 	2	 
		 	 2.1.3      Conversion of
Loans
	  	 	3	 
		 	 2.1.4      Loan Principal
Payment
	  	 	4	 
		 	 2.1.5      Promissory
Notes
	  	 	4	 
		 	 2.1.6      Optional
Prepayments
	  	 	4	 
	 2.2
	 	 [Reserved]
	  	 	4	 
	 2.3
	 	 [Reserved]
	  	 	4	 
	 2.4
	 	 Fees
	  	 	4	 
	 2.5
	 	 Other Payment Terms
	  	 	4	 
		 	 2.5.1      Place and
Manner
	  	 	4	 
		 	 2.5.2      Date
	  	 	5	 
		 	 2.5.3      Late Payments
	  	 	5	 
		 	 2.5.4      Net of Taxes,
Etc
	  	 	5	 
		 	 2.5.5      Application of
Payments
	  	 	6	 
		 	 2.5.6      
Failure to Pay Administrative Agent
	  	 	6	 
		 	 2.5.7      
Withholding Exemption Certificates
	  	 	7	 
		 	 2.5.8      
Certain Deductions by Administrative Agent
	  	 	8	 
	 2.6
	 	 Pro Rata Treatment
	  	 	8	 
		 	 2.6.1      Borrowings, Payments,
Etc
	  	 	8	 
		 	 2.6.2      Sharing of Payments,
Etc
	  	 	8	 
	 2.7
	 	 Change of Circumstances
	  	 	8	 
		 	 2.7.1      
Inability to Determine Rates
	  	 	8	 
		 	 2.7.2      Illegality
	  	 	9	 
		 	 2.7.3      Increased
Costs
	  	 	9	 
		 	 2.7.4      Capital
Requirements
	  	 	10	 
		 	 2.7.5      Delay in
Request
	  	 	10	 
	 2.8
	 	 Funding Losses
	  	 	10	 
	 2.9
	 	 Alternate Office, Minimization of Costs
	  	 	10	 
		 	 2.9.1      Minimization of
Costs
	  	 	10	 
		 	 2.9.2      Replacement
Rights
	  	 	11	 
		 	 2.9.3      Alternate
Office
	  	 	11	 
	 2.10
	 	 [Reserved]
	  	 	11	 
	 2.11
	 	 Defaulting Lenders
	  	 	11	 
		
	 ARTICLE III CONDITIONS PRECEDENT 
	  	 	12	 
			
	 3.1
	 	 Conditions Precedent to Obligation to Make Loans
	  	 	12	 
		 	 3.1.1      Credit Facility
Documents
	  	 	12	 
		 	 3.1.2      Resolutions
	  	 	12	 
		 	 3.1.3      Incumbency
	  	 	12	 
		 	 3.1.4      Legal Opinions
	  	 	12	 

  
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Table of Contents

							
		 	 3.1.5      Financial
Statements
	  	 	12	 
		 	 3.1.6      
Accuracy of Representations and Warranties; No Defaults
	  	 	12	 
		 	 3.1.7      Certificate of
Borrower
	  	 	12	 
		 	 3.1.8      Payment of
Fees
	  	 	13	 
	 3.2
	 	 Conditions Precedent to Borrowing
	  	 	13	 
		 	 3.2.1      
Accuracy of Representations and Warranties
	  	 	13	 
		 	 3.2.2      No Defaults
	  	 	13	 
		 	 3.2.3      Notice of
Borrowing
	  	 	13	 
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES 
	  	 	13	 
			
	 4.1
	 	 Corporate Existence and Business
	  	 	13	 
	 4.2
	 	 Power and Authorization; Enforceable Obligations
	  	 	13	 
	 4.3
	 	 No Legal Bar
	  	 	14	 
	 4.4
	 	 No Proceeding, Litigation or Investigation
	  	 	14	 
	 4.5
	 	 Governmental Approvals
	  	 	14	 
	 4.6
	 	 Financial Statements
	  	 	14	 
	 4.7
	 	 True and Complete Disclosure
	  	 	14	 
	 4.8
	 	 Investment Company Act
	  	 	14	 
	 4.9
	 	 Compliance with Law
	  	 	14	 
	 4.10
	 	 ERISA
	  	 	15	 
	 4.11
	 	 Solvency
	  	 	15	 
	 4.12
	 	 Taxes
	  	 	15	 
	 4.13
	 	 Use of Credit
	  	 	15	 
	 4.14
	 	 FCPA; OFAC; Anti-Money Laundering
	  	 	15	 
		 	 4.14.1    
No Unlawful Contributions or Other Payments
	  	 	15	 
		 	 4.14.2    OFAC
	  	 	15	 
		 	 4.14.3    No Conflict with Money Laundering
Laws
	  	 	16	 
		
	 ARTICLE V COVENANTS OF BORROWER 
	  	 	16	 
			
	 5.1
	 	 Existence
	  	 	16	 
	 5.2
	 	 Consents, Legal Compliance
	  	 	16	 
	 5.3
	 	 Prohibition of Certain Transfers
	  	 	16	 
	 5.4
	 	 Payment and Performance of Material Obligations
	  	 	17	 
	 5.5
	 	 Taxes
	  	 	17	 
	 5.6
	 	 Maintenance of Property, Insurance
	  	 	17	 
	 5.7
	 	 Compliance with Laws, Instruments, Etc
	  	 	17	 
	 5.8
	 	 No Change in Business
	  	 	18	 
	 5.9
	 	 Financial Statements
	  	 	18	 
	 5.10
	 	 Notices
	  	 	19	 
	 5.11
	 	 Financial Covenants
	  	 	19	 
	 5.12
	 	 Indemnification
	  	 	19	 
	 5.13
	 	 Federal Regulations
	  	 	21	 
	 5.14
	 	 Use of Proceeds
	  	 	21	 
	 5.15
	 	 Transactions with Affiliates
	  	 	21	 
		
	 ARTICLE VI EVENTS OF DEFAULT; REMEDIES 
	  	 	22	 
			
	 6.1
	 	 Events of Default
	  	 	22	 
		 	 6.1.1      Payments
	  	 	22	 
		 	 6.1.2      Debt Cross
Default
	  	 	22	 
		 	 6.1.3      Bankruptcy;
Insolvency
	  	 	22	 
		 	 6.1.4      Misstatements
	  	 	22	 

  
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Table of Contents

							
		 	 6.1.5      
Breach of Terms of Agreement
	  	 	22	 
		 	 6.1.6      Judgments
	  	 	22	 
		 	 6.1.7      Change in
Control
	  	 	23	 
		 	 6.1.8      ERISA
Violations
	  	 	23	 
		 	 6.1.9      Lack of Validity,
Etc
	  	 	23	 
	 6.2
	 	 Remedies
	  	 	23	 
		 	 6.2.1      No Further
Loans
	  	 	23	 
		 	 6.2.2      
Cure by Administrative Agent
	  	 	23	 
		 	 6.2.3      Acceleration
	  	 	24	 
		
	 ARTICLE VII ADMINISTRATIVE AGENT, SUBSTITUTION, AMENDMENTS,
 ETC. 
	  	 	24	 
			
	 7.1
	 	 Appointment, Powers and Immunities
	  	 	24	 
	 7.2
	 	 Reliance
	  	 	25	 
	 7.3
	 	 Non-Reliance
	  	 	26	 
	 7.4
	 	 Defaults
	  	 	26	 
	 7.5
	 	 Indemnification
	  	 	26	 
	 7.6
	 	 Successor Administrative Agent
	  	 	27	 
	 7.7
	 	 Authorization
	  	 	27	 
	 7.8
	 	 Administrative Agent’s Other Roles; Other Agents
	  	 	27	 
	 7.9
	 	 Amendments; Waivers
	  	 	27	 
	 7.10
	 	 Withholding Tax
	  	 	28	 
	 7.11
	 	 General Provisions as to Payments
	  	 	29	 
	 7.12
	 	 Participations
	  	 	29	 
	 7.13
	 	 Transfer of Commitments
	  	 	30	 
		 	 7.13.1    Assignments
	  	 	30	 
		 	 7.13.2    Register
	  	 	31	 
		 	 7.13.3    No Assignments to Certain
Persons
	  	 	32	 
		 	 7.13.4    Assignability as to
Collateral
	  	 	32	 
		
	 ARTICLE VIII MISCELLANEOUS 
	  	 	32	 
			
	 8.1
	 	 Addresses
	  	 	32	 
	 8.2
	 	 Additional Security; Right to Set-Off
	  	 	34	 
	 8.3
	 	 Delay and Waiver
	  	 	35	 
	 8.4
	 	 Costs, Expenses and Attorneys’ Fees
	  	 	35	 
	 8.5
	 	 Entire Agreement
	  	 	35	 
	 8.6
	 	 Governing Law
	  	 	35	 
	 8.7
	 	 Severability
	  	 	35	 
	 8.8
	 	 Headings
	  	 	36	 
	 8.9
	 	 Accounting Terms
	  	 	36	 
	 8.10
	 	 No Partnership, Etc
	  	 	36	 
	 8.11
	 	 Limitation on Liability
	  	 	36	 
	 8.12
	 	 Waiver of Jury Trial
	  	 	36	 
	 8.13
	 	 Consent to Jurisdiction
	  	 	36	 
	 8.14
	 	 Knowledge and Attribution
	  	 	37	 
	 8.15
	 	 Successors and Assigns
	  	 	37	 
	 8.16
	 	 Counterparts
	  	 	37	 
	 8.17
	 	 Patriot Act Notice
	  	 	37	 
	 8.18
	 	 Payments Set Aside
	  	 	37	 
	 8.19
	 	 No Advisory or Fiduciary Responsibility
	  	 	38	 
	 8.20
	 	 Acknowledgement and Consent to Bail-In of EEA Financial Institutions

	  	 	38	 

  
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Table of Contents

			
	SCHEDULES	  	
		
	Schedule 1	  	Lenders and Commitments
	Schedule 5.3.3	  	Existing Liens
		
	EXHIBITS	  	
		
	Exhibit A	  	Definitions
	Exhibit B	  	Form of Assignment and Assumption
	Exhibit C	  	Form of Note
	Exhibit D	  	[Reserved]
	Exhibit E-1	  	[Reserved]
	Exhibit E-2	  	Form of Notice of Conversion of Loan Type
	Exhibit E-3	  	Form of Confirmation of Interest Period Selection
	Exhibit E-4	  	[Reserved]
	Exhibit F	  	[Reserved]
	Exhibit G	  	Form of Borrower’s Closing Certificate
	Exhibit H-1	  	Form of Opinion of Assistant General Counsel to Borrower
	Exhibit H-2	  	Form of Opinion of Locke Lord LLP, counsel to Borrower
	Exhibit H-3	  	Form of Opinion of Milbank, Tweed, Hadley & McCloy LLP, counsel to the Administrative Agent

  
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Table of Contents

 CREDIT AGREEMENT (this “Agreement”) dated as of November 2, 2017 among
TAMPA ELECTRIC COMPANY, a Florida corporation (“Borrower”), the LENDERS party hereto and WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent. 

RECITALS 
 Borrower desire to
enter into, and the Lenders are willing to provide, the 364-day senior unsecured term loan credit facility set forth herein and, accordingly, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS 
 
1.1    Definitions. Except as otherwise expressly provided, capitalized terms used in this Agreement and its exhibits shall have the meanings given in Exhibit A. 

1.2    Rules of Interpretation. Except as otherwise expressly provided, the Rules
of Interpretation set forth in Exhibit 
A shall apply to this Agreement and the other Credit Facility Documents. 
 ARTICLE II 

THE FACILITY 
 
2.1    The Facility. 
 2.1.1    Loans. 

2.1.1.1    Commitments. Subject to the terms and conditions set forth in this Agreement, each Lender severally
agrees to make Loans in a single drawing on the Closing Date to Borrower in the full amount of such Lender’s Commitment. Amounts borrowed under this Section 2.1.1.1 and prepaid or repaid under Section 2.1.6 may not be reborrowed. The
Commitments of all the Lenders shall be automatically and permanently terminated on the Closing Date after giving effect to the borrowing to be made on the Closing Date. 

2.1.1.2    The Borrowing. The Loans shall be made initially as LIBOR Loans with an initial Interest Period of one
week in the aggregate amount of $300,000,000 on the Closing Date to the account(s) to which the proceeds of the Borrowing are to be credited, as contemplated by Section 2.1.1.3(d). 

2.1.1.3    Loan Funding. 

(a)    [Reserved] 

(b)    Pro Rata Loans. Each Loan shall be made on a pro rata basis by the Lenders in accordance with their
respective Proportionate Shares, with each Borrowing to consist of a Loan by each Lender equal to such Lender’s Proportionate Share of such Borrowing. 

(c)    Lender Funding. Each Lender shall, before 12:00 noon on the date of the Borrowing, make available to
Administrative Agent at the Administrative Agent’s Office, in same day funds, such Lender’s Proportionate Share of the Borrowing. The failure of any Lender to make the Loan to be made by it as part of the Borrowing shall not relieve any
other Lender of its obligation hereunder to make its Loan on the date of the Borrowing. No Lender shall be responsible for the failure of any other Lender to make the Loan to be made by such other Lender on the date of the Borrowing. 

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 (d)    Funding of Loans. No later than 2:00 p.m. on the Closing Date,
if the applicable conditions precedent listed in Article III have been satisfied or waived and to the extent Administrative Agent shall have received the appropriate funds from the Lenders, Administrative Agent shall make available the Loans in
Dollars and in immediately available funds, at Administrative Agent’s Office, and shall transfer such funds to the bank account(s) specified by Borrower in writing to Administrative Agent before the Closing Date in accordance with
Section 3.2.3. 
 2.1.2    Interest Provisions Applicable to all Loans. 

2.1.2.1    Loan Interest Rates. Borrower shall pay interest on the unpaid principal amount of each Loan from the
date of such Loan until the maturity or prepayment thereof at one of the following rates per annum: 
 (a)    With
respect to the principal portion of each Loan that is, and during such periods as such Loan is, a Base Rate Loan, at a rate per annum equal to the Alternate Base Rate plus the Applicable Rate; and 

(b)    With respect to the principal portion of each Loan that is, and during such periods as such Loan is, a LIBOR Loan,
at a rate per annum during each Interest Period for such LIBOR Loan equal to the LIBO Rate for such Interest Period plus the Applicable Rate. 

2.1.2.2    Interest Provisions. Unless otherwise specified by Borrower in a Notice of Conversion of Loan Type and
except as otherwise provided for herein, all Loans shall bear interest based on the LIBO Rate with a one week Interest Period, and subject to the applicable limitations set forth herein, Loans shall bear interest based upon the LIBO Rate or
Alternate Base Rate as specified by Borrower in a Notice of Conversion of Loan Type. Borrower shall not request, and the Lenders shall not be obligated to make, LIBOR Loans at any time an Inchoate Default or Event of Default exists. If an Event of
Default exists at the end of an Interest Period, the LIBOR Loans whose Interest Period is then ending shall automatically convert to Base Rate Loans at such time (notwithstanding the delivery of a Confirmation of Interest Period Selection with
respect to such Loans). 
 2.1.2.3    Interest Payment Dates. Borrower shall pay accrued interest on the unpaid
principal amount of each Loan (i) in the case of each Base Rate Loan, on the last Banking Day of each calendar quarter, (ii) in the case of each LIBOR Loan, on the last day of each Interest Period related to each LIBOR Loan and, with
respect to Interest Periods longer than three months, on each successive date three months after the first day of such Interest Period, and (iii) in all cases, upon prepayment (to the extent thereof and including any optional prepayments), upon
conversion from one Type of Loan to another Type, and at maturity (whether by acceleration or otherwise). 

2.1.2.4    Interest Periods and Selection. 

(a)    Notwithstanding anything herein to the contrary, (i) Borrower may not at any time have outstanding more than
eight different Interest Periods relating to LIBOR Loans; and (ii) LIBOR Loans for each Interest Period shall be in the amount of at least $5,000,000. 

(b)    Borrower may contact Administrative Agent at any time prior to the end of an Interest Period for a quotation of
interest rates in effect at such time for given Interest Periods and Administrative Agent shall promptly provide such quotation. Borrower may select an 

  
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Interest Period telephonically within the time periods specified in Section 2.1.1.2, which selection shall be irrevocable on and after commencement of the applicable Minimum Notice Period.
Borrower shall confirm such telephonic notice to Administrative Agent by telecopy on the day such notice is given (in substantially the form of Exhibit E-3, a “Confirmation of Interest Period
Selection”) and Administrative Agent shall promptly forward the same to the Lenders. Borrower shall promptly deliver to Administrative Agent the original of the Confirmation of Interest Period Selection initially delivered by telecopy. If
Borrower fails to notify Administrative Agent of the next Interest Period for any LIBOR Loans in accordance with this Section 2.1.2.4(b), such Loans shall automatically convert to Base Rate Loans on the last day of the current Interest Period
therefor. Administrative Agent shall as soon as practicable (and, in any case, within two Banking Days after delivery of the Confirmation of Interest Period Selection by telecopy as provided for above) notify Borrower of each determination of the
interest rate applicable to each Loan. 
 2.1.2.5    Interest Account and Interest Computations. Borrower
authorizes Administrative Agent to record in an account or accounts maintained by Administrative Agent on its books (i) the interest rates applicable to all Loans and the effective dates of all changes thereto, (ii) the Interest Period for
each LIBOR Loan, (iii) the date and amount of each principal and interest payment on each Loan and (iv) such other information as Administrative Agent may determine is necessary for the computation of interest payable by Borrower
hereunder. Borrower agrees that all computations by Administrative Agent of interest shall be conclusive in the absence of demonstrable error. All computations of interest on Loans shall be based upon a year of 360 days, except that interest
computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or LIBO Rate shall be determined by Administrative Agent, and such determination shall be conclusive absent manifest error. 

2.1.3    Conversion of Loans. Borrower may convert any Loan from one Type of Loan
to another Type; provided, however, that (i) any conversion of LIBOR Loans into Base Rate Loans shall be made on, and only on, the first day after the last day of an Interest Period for such LIBOR Loans, and (ii) Loans shall
be converted only in amounts of $5,000,000 and increments of $1,000,000 in excess thereof. Borrower shall request such a conversion by a written notice to Administrative Agent in the form of Exhibit E-2,
appropriately completed (a “Notice of Conversion of Loan Type”), which specifies: 
 (a)    the Loans,
or portion thereof, which are to be converted; 
 (b)    the Type into which such Loans, or portion thereof, are to be
converted; 
 (c)    if such Loans are to be converted into LIBOR Loans, the initial Interest Period selected by
Borrower for such Loans in accordance with Section 2.1.2.4(b); and 
 (d)    the date of the requested conversion,
which shall be a Banking Day. 
 Borrower shall give each Notice of Conversion of Loan Type to Administrative Agent so as to provide at
least the applicable Minimum Notice Period. Any Notice of Conversion of Loan Type may be modified or revoked by Borrower through the Banking Day prior to the Minimum Notice Period, and shall thereafter be irrevocable. Each Notice of Conversion of
Loan Type shall be delivered by first-class mail or telecopy to Administrative Agent at the office or to the telecopy number and as otherwise specified in Section 8.1; provided, however, that Borrower shall promptly deliver to
Administrative Agent the original of any Notice of Conversion of Loan Type initially delivered by telecopy. Administrative Agent shall promptly notify each Lender of the contents of each Notice of Conversion of Loan Type. 

  
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 2.1.4    Loan Principal Payment.
Borrower shall repay to Administrative Agent, for the account of each Lender on the Maturity Date the unpaid principal amount of each Loan made by such Lender. Upon payment in full of the aggregate principal amount of the Loans, all accrued and
unpaid interest thereon and all other amounts owed by Borrower to Administrative Agent or the Lenders hereunder and under the other Credit Facility Documents, the Lenders shall promptly mark any Notes cancelled and return such cancelled Notes to
Borrower. 
 2.1.5    Promissory Notes. The obligation of Borrower to repay the
Loans made by each Lender and to pay interest thereon at the rates provided herein shall, upon the written request of any Lender, be evidenced by promissory notes in the form of Exhibit C (each, a “Note”), payable to such
Lender and in the principal amount of such Lender’s Commitment. Borrower authorizes each Lender to record on the schedule annexed to such Lender’s Note, and/or in such Lender’s internal records, the date and amount of each Loan made
by such Lender, and each payment or prepayment of principal thereunder and agrees that all such notations shall constitute prima facie evidence of the matters noted. Borrower further authorizes each Lender to attach to and make a part of such
Lender’s Note continuations of the schedule attached thereto as necessary. No failure to make any such notations, nor any errors in making any such notations shall affect the validity of Borrower’s obligation to repay the full unpaid
principal amount of the Loans or the duties of Borrower hereunder or thereunder. 

2.1.6    Optional Prepayments. Borrower may, at its option and without penalty,
upon notice to Administrative Agent before 12:00 noon on the date of prepayment (which shall be a Banking Day), in the case of Base Rate Loans, or upon at least three Banking Days’ notice to Administrative Agent, in the case of LIBOR Loans,
prepay any Loans in whole or in part in an amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof (except in the case of a prepayment of all the Loans). Upon the prepayment of any Loan, Borrower shall pay to Administrative
Agent for the account of the Lender which made such Loan (i) all accrued interest and fees to the date of such prepayment on the amount prepaid and (ii) if such prepayment is the prepayment of a LIBOR Loan on a day other than the last day
of an Interest Period for such LIBOR Loan, all Liquidation Costs incurred by such Lender as a result of such prepayment (pursuant to the terms of Section 2.8). 

2.2    [Reserved] 

2.3    [Reserved] 

2.4    Fees. Borrower agrees to pay to WFS the fees in the amounts previously
agreed with WFS, at the times when due and payable, in accordance with the terms thereof. 

2.5    Other Payment Terms. 

2.5.1    Place and Manner. Borrower shall make all payments due to each Lender
hereunder to the Administrative Agent’s Office, for the account of such Lender, to an account specified by Administrative Agent to Borrower for such purpose, in lawful money of the United States and in immediately available funds not later than
12:00 noon on the date on which such payment is due, without set-off or counterclaim. Any payment received after such time on any day shall be deemed received on the Banking Day after such payment is received.
Administrative Agent shall disburse to each Lender each such payment received by Administrative Agent for such Lender, such disbursement to occur on the day such payment is received if received by 12:00 noon, otherwise on the next Banking Day. 

  
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 2.5.2    Date. Whenever any payment
due hereunder shall fall due on a day other than a Banking Day, such payment shall be made on the next succeeding Banking Day, and such extension of time shall be included in the computation of interest or fees, as the case may be, without
duplication of any interest or fees so paid in the next subsequent calculation of interest or fees payable. 

2.5.3    Late Payments. If any amounts required to be paid by Borrower under this
Agreement or the other Credit Facility Documents (including principal or interest payable on any Loan, and any fees or other amounts otherwise payable to Administrative Agent or any Lender) remain unpaid after such overdue amounts are due, Borrower
shall pay interest (including following any Bankruptcy Event with respect to Borrower) on the aggregate, outstanding balance of such amounts from the date due until those amounts are paid in full at a per annum rate equal to the Default Rate. 

2.5.4    Net of Taxes, Etc. 

2.5.4.1    Taxes. Subject to each Lender’s compliance with Section 2.5.7, any and all payments to or for
the benefit of Administrative Agent or any Lender by Borrower hereunder or under any other Credit Facility Document shall be made free and clear of and without deduction, setoff or counterclaim of any kind whatsoever and in such amounts as may be
necessary in order that all such payments, after deduction for or on account of any Indemnified Taxes or Other Taxes, shall be equal to the amounts otherwise specified to be paid under this Agreement and the other Credit Facility Documents. If
Borrower shall be required by law to withhold or deduct any Indemnified Taxes or Other Taxes from or in respect of any sum payable hereunder or under any other Credit Facility Document to Administrative Agent or any Lender, (i) the sum payable
shall be increased as may be necessary so that after making all required deductions of Indemnified Taxes or Other Taxes, as applicable (including deductions applicable to additional sums payable under this Section 2.5.4), Administrative Agent
or such Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions and (iii) Borrower shall pay the full amount deducted to the Governmental Authority in
accordance with applicable law, rule or regulation. In addition, Borrower agrees to pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law, rule or regulation. 

2.5.4.2    Indemnity. Borrower shall indemnify each Lender for and hold it harmless against the full amount of
Indemnified Taxes and Other Taxes (including any Indemnified Taxes or Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.5.4) paid by any Lender, or any liability (including penalties, interest and expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted; provided that Borrower shall not be obligated to indemnify any Lender for any penalties, interest or expenses relating to Indemnified
Taxes or Other Taxes arising from such Lender’s gross negligence or willful misconduct. Each Lender agrees to give notice to Borrower of the assertion of any claim against such Lender relating to such Indemnified Taxes or Other Taxes as
promptly as is practicable after being notified of such assertion, and in no event later than 90 days after the principal officer of such Lender responsible for administering this Agreement obtains knowledge thereof; provided that any
Lender’s failure to notify Borrower of such assertion within such 90 day period shall not relieve Borrower of its obligation under this Section 2.5.4 with respect to Indemnified Taxes or Other Taxes, penalties, interest or expenses arising
prior to the end of such period, but shall relieve Borrower of its obligations under this Section 2.5.4 with respect to Indemnified Taxes and Other Taxes, penalties, interest or expenses accruing between the end of such period and such time as
Borrower receives notice from such Lender as provided herein. Payments by Borrower pursuant to this indemnification shall be made within 30 days from the date such Lender makes written demand therefor (submitted through Administrative Agent), which
demand shall be accompanied by a certificate describing in reasonable detail the basis thereof. 

  
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 2.5.4.3    Notice. Within 30 days after the date of any payment of
Taxes by Borrower, Borrower shall furnish to Administrative Agent, at its address referred to in Section 8.1, the original or a certified copy of a receipt evidencing payment thereof or if such receipt is not obtainable, other evidence of such
payment by Borrower reasonably satisfactory to Administrative Agent. Borrower shall compensate each Lender for all reasonable losses and expenses sustained by such Lender as a result of any failure by Borrower to so furnish such copy of such
receipt. 
 2.5.4.4    FATCA. If a payment made to a Lender under this Agreement or any other Credit Facility
Document would be subject to U.S. Federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as
applicable), such Lender shall deliver to Borrower and Administrative Agent (each, a “Withholding Agent”), at the time or times prescribed by law and at such time or times reasonably requested by any Withholding Agent, as the case
may be, such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by such Withholding Agent as may be necessary for such Withholding
Agent to comply with its obligations under FATCA, to determine that such Lender has or has not complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this
Section 2.5.4.4, FATCA shall include any amendments made to FATCA after the date of this Agreement. 

2.5.4.5    Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good
faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.5.4 (including additional amounts paid pursuant to this Section 2.5.4), it shall pay to the indemnifying party an amount equal
to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket
expenses (including any Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party,
shall repay to such indemnified party the amount paid to such indemnifying party pursuant to the previous sentence (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event such indemnified party is
required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this Section 2.5.4.5, in no event will any indemnified party be required to pay any amount to any indemnifying party pursuant to this
Section 2.5.4.5 if such payment would place such indemnified party in a less favorable position (on a net after-Tax basis) than such indemnified party would have been in if the indemnification payments or
additional amounts giving rise to such refund had never been paid. This Section 2.5.4.5 shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes which it deems
confidential) to the indemnifying party or any other Person. 
 2.5.4.6    Survival of Obligations. The
obligations of Borrower under this Section 2.5.4 shall survive the termination of this Agreement and the repayment of the Obligations. 

2.5.5    Application of Payments. Payments made under this Agreement or the other
Credit Facility Documents shall (a) first be applied to any fees, costs, charges or expenses due and payable to Administrative Agent and the Lenders hereunder or under the other Credit Facility Documents, (b) next to any accrued but unpaid
interest then due and owing and (c) 
then to outstanding principal then due and payable or otherwise to be prepaid. 
 2.5.6   
 Failure to Pay Administrative Agent. Unless Administrative Agent shall have received notice from Borrower at least two Banking Days prior to the date on which any payment is due to the Lenders hereunder that Borrower will not make such
payment in full, Administrative Agent may 

  
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assume that Borrower has made such payment in full to Administrative Agent on such date and Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the extent Borrower shall not have so made such payment in full to Administrative Agent, such Lender shall repay to Administrative Agent forthwith upon demand such amount
distributed to such Lender, together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to Administrative Agent, at the greater of the Federal Funds Effective
Rate and a rate determined by Administrative Agent in accordance with banking industry rules for interbank compensation. A certificate of Administrative Agent submitted to any Lender with respect to any amounts owing by such Lender under this
Section 2.5.6 shall be conclusive in the absence of demonstrable error. 

2.5.7    Withholding Exemption Certificates. Each Lender that is not a United
States person within the meaning of Section 7701(a)(30) of the Code upon becoming a Lender hereunder including any entity to which any Lender grants a participation or otherwise transfers its interest in this Agreement, agrees that it will
deliver to Administrative Agent and Borrower two duly completed copies of United States Internal Revenue Service Form W-8IMY, W-8ECI or W-8BEN or successor applicable form, as the case may be, certifying in each case that such Lender is not a United States person and, to the extent applicable, is entitled to receive payments under this Agreement
with an exemption or reduction of the deduction or withholding of any United States Federal income taxes. Each Lender which delivers to Borrower and Administrative Agent a Form W-8IMY, W-8ECI or W-8BEN pursuant to the preceding sentence further undertakes to deliver to Borrower and Administrative Agent further copies of the said letter and Form W-8IMY, W-8ECI or W-8BEN, or successor applicable forms, or other manner of certification or procedure, as the case may be,
on or before the date that any such letter or form expires or becomes obsolete or within a reasonable time after gaining knowledge of the occurrence of any event requiring a change in the most recent letter and forms previously delivered by it to
Borrower, and such extensions or renewals thereof as may reasonably be requested by Borrower, certifying in the case of a Form W-8IMY, W-8ECI or W-8BEN that such Lender is not a United States person and, to the extent applicable, is entitled to receive payments under this Agreement with an exemption or reduction of the deduction or withholding of any United
States Federal income taxes, unless in any such cases an event (including any change in any treaty, law or regulation) has occurred prior to the date on which any such delivery would otherwise be required which renders all such forms inapplicable or
which would reasonably prevent a Lender from duly completing and delivering any such letter or form with respect to it and such Lender advises Borrower that it is not capable of receiving payments with an exemption or reduction of any deduction or
withholding of United States Federal income tax, and in the case of Form W-8IMY, W-8ECI or W-8BEN, establishing an exemption
from United States backup withholding tax. In the case of a Lender entitled to an exemption from the withholding of United States federal income tax under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio
interest,” such Lender shall also deliver to Administrative Agent and Borrower with its Form W-8IMY, W-8ECI and W-8BEN or
successor applicable form, as the case may be, a certificate, or certificates, to the effect that such Lender (or in the case of a Form W-8IMY, such Lender’s beneficial owners to the extent applicable) is
not (A) a “bank” within the meaning of Section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower within the meaning of Section 881(c)(3)(B) of the Code and (C) a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code. Each Lender providing such a certificate shall provide a new certificate at any time thereafter when a change in such Lender’s circumstances renders an existing
certificate obsolete or invalid or requires a new certificate to be provided, and within fifteen Banking Days after a reasonable written request of Administrative Agent or Borrower from time to time; provided that it shall not be a breach of
this Section 2.5.7 if such Lender is unable to provide such certificate as a result of a Change of Law after the date it becomes a Lender hereunder. Each Lender that is a United States person within the meaning of Section 7701(a)(30) of
the Code shall provide two duly completed copies of United States Internal Revenue Service Form W-9 or 

  
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successor applicable form, as the case may be, at the times specified for the delivery of forms under this Section 2.5.7 with respect to Forms W-8IMY,
W-8ECI and W-8BEN or successor applicable form, as the case may be. Borrower shall not be obligated, however, to pay any additional amounts in respect of United States
Federal income tax pursuant to Section 2.5.4.1 (or make an indemnification payment pursuant to Section 2.5.4.2) to any Lender (including any entity to which any Lender sells, assigns, grants a participation in, or otherwise transfers its
rights under this Agreement) if the obligation to pay such additional amounts (or such indemnification) would not have arisen but for a failure of such Lender to comply with its obligations under this Section 2.5.7. 

2.5.8    Certain Deductions by Administrative Agent. If any Lender shall fail to
make any payment required to be made by it pursuant to Section 2.5.6 or Section 7.5, then Administrative Agent may, in its discretion and notwithstanding any contrary provision hereof, (a) apply any amounts thereafter received by
Administrative Agent for the account of such Lender for the benefit of Administrative Agent to satisfy such Lender’s obligations to Administrative Agent under such Section until all such unsatisfied obligations are fully paid, and/or
(b) hold any such amounts in a segregated account as cash collateral for, and application to, any future funding obligations of such Lender under any such Section, in the case of each of clauses (a) and (b) above, in any order as
determined by Administrative Agent in its discretion. 
 2.6    Pro Rata
Treatment. 
 2.6.1    Borrowings, Payments, Etc. Except as otherwise
provided herein, (a) each Borrowing shall be made or allocated among the Lenders pro rata according to their respective Proportionate Shares then in effect and (b) each payment of principal of or interest on the Loans shall be shared among
the Lenders pro rata in accordance with the amounts of such principal, interest or fees, as the case may be, then due and payable to them. 

2.6.2    Sharing of Payments, Etc. If any Lender shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of set-off, or otherwise) hereunder in excess of its ratable share of payments in accordance with Section 2.6.1, such Lender shall forthwith
purchase from the other Lenders to which such payments were required to be made such participations in the Loans as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided that
(i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and
(ii) the provisions of this Section 2.6.2 shall not be construed to apply to any payment made by Borrower pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to Borrower or any subsidiary or Affiliate thereof (as to which the provisions of this Section 2.6.2 shall apply). Borrower agrees that any
Lender so purchasing a participation from another Lender pursuant to this Section 2.6.2 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off)
with respect to such participation as fully as if such Lender were the direct creditor of Borrower in the amount of such participation. 
 
2.7    Change of Circumstances. 
 2.7.1    Inability
to Determine Rates. If, on or before the first day of any Interest Period for any LIBOR Loans, (a) Administrative Agent determines that the LIBO Rate for such Interest Period cannot be adequately and reasonably determined due to the
unavailability of funds in or other circumstances affecting the London interbank market, or (b) the Required Lenders shall advise Administrative Agent that (i) the rates of interest for such LIBOR Loans do not adequately and fairly

  
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reflect the cost to such Lenders of making or maintaining such Loans or (ii) deposits in Dollars in the London interbank market are not available to such Lenders (as conclusively certified
by each such Lender in good faith in writing to Administrative Agent and to Borrower) in the ordinary course of business in sufficient amounts to make and/or maintain its LIBOR Loans, Administrative Agent shall immediately give notice of such
condition to Borrower. After the giving of any such notice and until Administrative Agent shall otherwise notify Borrower that the circumstances giving rise to such condition no longer exist, Borrower’s right to request the making of or
conversion to, and the Lenders’ obligations to make or convert to, LIBOR Loans shall be suspended. Any LIBOR Loans outstanding at the commencement of any suspension shall be converted at the end of the then current Interest Period for such
Loans into Base Rate Loans, as applicable, unless such suspension has then ended. 

2.7.2    Illegality. If any Change of Law shall make it unlawful or impossible for
any Lender to make or maintain any LIBOR Loan, such Lender shall immediately notify Administrative Agent and Borrower of such Change of Law. Upon receipt of such notice, (a) Borrower’s right to request the making of or conversion to, and
the Lenders’ obligations to make or convert to, LIBOR Loans, as the case may be, shall be suspended for so long as such condition shall exist, and (b) Borrower shall, at the request of such Lender, either (i) pursuant to
Section 2.1.3, convert any then outstanding LIBOR Loans into Base Rate Loans at the end of the current Interest Periods for such Loans, or (ii) immediately repay or convert (at Borrower’s option) LIBOR Loans into Base Rate Loans if
such Lender shall notify Borrower that such Lender may not lawfully continue to fund and maintain such Loans as LIBOR Loans. Any conversion or prepayment of LIBOR Loans made pursuant to the preceding sentence prior to the last day of an Interest
Period for such Loans shall be deemed a prepayment thereof for purposes of Section 2.8. 

2.7.3    Increased Costs. If any Change of Law shall: 

2.7.3.1    impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended or participated in by, any Lender (without duplication of any reserve requirement included within the applicable interest rate through the definition of “Reserve Requirement”); or

 2.7.3.2    subject any Lender to any tax of any kind whatsoever with respect to this Agreement or any LIBOR Loan
made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for (A) Indemnified Taxes or Other Taxes covered by Section 2.5.4 and (B) the imposition of, or any change in the rate of, any Excluded
Tax payable by such Lender); or 
 2.7.3.3    impose on any Lender or the London interbank market any other condition,
cost or expense (other than Taxes) affecting this Agreement or LIBOR Loans made by such Lender (without duplication of any reserve requirement included within the applicable interest rate through the definition of “Reserve Requirement”);

 and the result of any of the foregoing shall be to increase the cost to such Lender of making, converting to, continuing or maintaining any LIBOR Loan or
of maintaining its obligation to make any such Loan other than any cost related to Taxes or to reduce the amount of any sum received or receivable by such Lender hereunder (whether of principal, interest or otherwise) by an amount deemed by such
Lender to be material, then Borrower will pay to such Lender within 30 days after its demand, such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered. A certificate setting forth in
reasonable detail the amount of such increased costs or reduced amounts and the basis for determination of such amount, submitted by such Lender to Borrower, shall, in the absence of demonstrable error, be conclusive and binding on Borrower for
purposes of this Agreement. 

  
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 2.7.4    Capital Requirements. If any
Lender determines that any Change of Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a
consequence of this Agreement, the Commitments of such Lender or the Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change of Law (taking into consideration
such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time Borrower shall pay to such Lender, within 30 days after its demand such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered. A certificate of such Lender, setting forth in reasonable detail the computation of any such amount, submitted by such Lender to Borrower, shall, in the
absence of demonstrable error, be conclusive and binding on Borrower for purposes of this Agreement. 

2.7.5    Delay in Request. Failure or delay on the part of any Lender to demand
compensation pursuant to this Section 2.7 shall not constitute a waiver of such Lender’s right to demand such compensation; provided that Borrower shall not be required to compensate a Lender pursuant to this Section 2.7 for
any costs or reductions incurred more than 180 days prior to the date that such Lender notifies Borrower of the event giving rise to such costs or reductions and of such Lender’s intention to claim compensation therefor; provided
further that, if the event giving rise to such costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. 

2.8    Funding Losses. If Borrower shall (a) repay or prepay any LIBOR Loans
on any day other than the last day of an Interest Period for such Loans (including as a result of an assignment effected pursuant to Section 2.9.2), (b) fail to satisfy the applicable conditions for the Borrowing on the date of this Agreement,
(c) fail to convert any Base Rate Loans into LIBOR Loans in accordance with a Notice of Conversion of Loan Type delivered to Administrative Agent (whether as a result of the failure to satisfy any applicable conditions or otherwise) after such
notice has become irrevocable, (d) fail to continue a LIBOR Loan in accordance with a Confirmation of Interest Period Selection after such notice of confirmation has become irrevocable or (e) fail to make any prepayment in accordance with
any notice of prepayment delivered to Administrative Agent, Borrower shall, within 30 days after demand by any Lender (other than in the case of the costs covered by the parenthetical clause under clause (a) above, which shall be paid in
accordance with Section 2.9.2), reimburse such Lender for all reasonable costs and losses incurred by such Lender (“Liquidation Costs”) due to such payment, prepayment or failure. Borrower understands that such costs and losses
may include losses incurred by a Lender as a result of funding and other contracts entered into by such Lender to fund LIBOR Loans (other than non-receipt of the Applicable Rate in respect of the interest rate
on LIBOR Loans). Each Lender demanding payment under this Section 2.8 shall deliver to Borrower a certificate setting forth in reasonable detail the amount of costs and losses for which demand is made. Such a certificate so delivered to
Borrower shall, in the absence of demonstrable error, be conclusive and binding as to the amount of such loss for purposes of this Agreement. 

2.9    Alternate Office, Minimization of Costs. 

2.9.1    Minimization of Costs. To the extent reasonably possible, each Lender
shall designate an alternative Lending Office with respect to its LIBOR Loans and otherwise take any reasonable actions to reduce any liability of Borrower to any Lender under Sections 2.5.4, 2.7.3, 2.7.4 or 2.8, or to avoid the unavailability
of any Type of Loans under Section 2.7.2 so long as (in the case of the designation of an alternative Lending Office) such Lender, in its sole discretion, does not determine that such designation is disadvantageous to such Lender. 

  
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 2.9.2    Replacement Rights. If and
with respect to each occasion that a Lender (i) makes a demand for compensation pursuant to Section 2.5.4, 2.7.3 or 2.7.4, (ii) is unable for a period of three consecutive months to fund LIBOR Loans pursuant to Section 2.7.2 or such
Lender wrongfully fails to fund a Loan, (iii) becomes a Defaulting Lender or (iv) has failed to consent to any proposed waiver or amendment with respect to this Agreement that requires the consent of all the Lenders or all the Lenders
directly affected and with respect to which the Required Lenders shall have granted their consent, Borrower may, at its sole expense, upon at least five Banking Days’ prior irrevocable written notice to the affected Lender and Administrative
Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 7.13.1), all its interests, rights and obligations under this Agreement to an eligible assignee that
shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that Borrower shall have received the prior written consent of Administrative Agent with respect to such assignee to the
extent consent would be required under the terms of Section 7.13.1 in connection with an assignment to such assignee (which consent, in each case, shall not be unreasonably withheld). Such replacement Lender shall upon the effective date of
replacement purchase the Obligations owed to such replaced Lender for the aggregate amount thereof and shall thereupon and for all purposes become a “Lender” hereunder. Such notice from Borrower shall specify an effective date for the
replacement of such Lender’s Loans and Commitments, which date shall not be later than the 14th day after the day such notice is given. On the effective date of any replacement of a
Lender’s Loans and Commitments and Obligations pursuant to this Section 2.9.2, Borrower shall pay to Administrative Agent for the account of such Lender (a) any fees due to such Lender to the date of such replacement; (b) the
principal of and accrued interest on the principal amount of outstanding Loans held by such Lender to the date of such replacement (such amount to be represented by the purchase of the Obligations of such replaced Lender by the replacing Lender and
not as a prepayment of such Loans or other amounts), and (c) the amount or amounts due to such Lender pursuant to each of Sections 2.5.4, 2.7.3 or 2.7.4, as applicable, and any other amount then payable hereunder to such Lender. In
addition, if the replacement Lender was not previously a “Lender” hereunder, Borrower shall pay to Administrative Agent an administrative fee of $3,500. Borrower will remain liable to such replaced Lender for any Liquidation Costs that
such Lender may sustain or incur as a consequence of the purchase of such Lender’s Loans (unless such Lender has defaulted on its obligation to fund a Loan hereunder). Upon the effective date of the purchase of any Lender’s Loans and
termination of such Lender’s Commitments pursuant to this Section 2.9.2, such Lender shall cease to be a Lender hereunder. No such replacement of such Lender’s Commitments and the purchase of such Lender’s Loans pursuant to this
Section 2.9.2 shall affect (i) any liability or obligation of Borrower or any other Lender to such replaced Lender, or any liability or obligation of such replaced Lender to Borrower or any other Lender, which accrued on or prior to the
date of such replacement or (ii) such replaced Lender’s rights hereunder in respect of any such liability or obligation. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver
or otherwise, the circumstances entitling Borrower to require such assignment and delegation cease to apply. 
 
2.9.3    Alternate Office. Any Lender may designate a Lending Office other than that set forth in its Administrative Questionnaire and may assign all of its interests under the Credit Facility Documents to such Lending
Office, provided that such designation and assignment do not at the time of such designation and assignment increase the reasonably foreseeable liability of Borrower under Sections 2.5.4, 2.7.3 or 2.7.4, or make an interest rate option
unavailable pursuant to Section 2.7.2. 
 2.10    [Reserved] 

2.11    Defaulting Lenders. Notwithstanding any provision of this Agreement to the
contrary, if any Lender becomes a Defaulting Lender, then for so long as such Lender is a Defaulting Lender the Commitment and Loans of such Defaulting Lender shall not be included in determining whether the Required Lenders have taken or may take
any action hereunder (including any consent to any amendment, 

  
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waiver or other modification pursuant to Section 7.9), except that (i) the Commitment(s) of any Defaulting Lender may not be increased or extended, or the maturity of any of its Loans
may not be extended, the rate of interest on any of its Loans may not be reduced and the principal amount of any of its Loans may not be forgiven, in each case without the consent of such Defaulting Lender and (ii) any amendment, waiver or
consent requiring the consent of all the Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than the other affected Lenders shall require the consent of such Defaulting Lender. 

ARTICLE III 

CONDITIONS PRECEDENT 
 
3.1    Conditions Precedent to Obligation to Make Loans. Each Lender’s obligation to make Loans pursuant to this Agreement is subject to the satisfaction of the following conditions precedent: 

3.1.1    Credit Facility Documents. Delivery to Administrative Agent of executed
originals of each Credit Facility Document (or written evidence satisfactory to Administrative Agent of the execution thereof by the parties thereto (which may include fax or electronic transmission of a signed signature page thereto)). 

3.1.2    Resolutions. Delivery to Administrative Agent of a copy of one or more
resolutions or other authorizations of Borrower in form and substance reasonably satisfactory to Administrative Agent and certified by an appropriate authorized officer of Borrower as being in full force and effect on the Closing Date, authorizing
the execution, delivery and performance of this Agreement and the other Credit Facility Documents and any instruments or agreements required hereunder or thereunder to which Borrower is a party. 

3.1.3    Incumbency. Delivery to Administrative Agent of a certificate in form and
substance reasonably satisfactory to Administrative Agent, from Borrower signed by the appropriate authorized officer and dated the Closing Date, as to the incumbency of the natural persons authorized to execute and deliver this Agreement and each
other Credit Facility Document and any instruments or agreements required hereunder or thereunder to which Borrower is a party. 
 
3.1.4    Legal Opinions. Delivery to Administrative Agent of legal opinions of in-house and external counsel to Borrower and counsel to Administrative Agent, in the form of
Exhibits H-1, H-2 and H-3, respectively. 

3.1.5    Financial Statements. The Lenders shall have received the most recent
annual audited financial statements or Form 10-K from Borrower and, to the extent obtainable, the most recent quarterly financial statements or Form 10-Q of
Borrower, with certificates from the appropriate Responsible Officer thereof, stating that no material adverse change in the consolidated assets, liabilities, operations or financial condition of Borrower has occurred from those set forth in the
most recent financial statements or the balance sheet, as the case may be, so provided to Administrative Agent. 
 
3.1.6    Accuracy of Representations and Warranties; No Defaults. As of the Closing Date, the conditions set forth in Sections 3.2.1 and 3.2.2 shall be satisfied. 

3.1.7    Certificate of Borrower. Administrative Agent shall have received a
certificate, dated as of the Closing Date, signed by a Responsible Officer of Borrower, in substantially the form of Exhibit G. 

  
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 3.1.8    Payment of Fees. All amounts
required to be paid by Borrower to WFS in connection with the execution and delivery of the Credit Facility Documents, and all taxes, fees and other costs payable in connection with the execution and delivery of the documents and instruments
referred to in this Section 3.1 (or incorporated herein by reference) shall have been paid in full. 
 Administrative Agent shall
notify Borrower and the Lenders of the Closing Date, and such notice shall be conclusive and binding. 

3.2    Conditions Precedent to Borrowing. The obligation of the Lenders to make
each Loan is subject to the prior satisfaction of each of the following conditions: 

3.2.1    Accuracy of Representations and Warranties. Each representation and
warranty set forth in Article IV shall be true and correct as if made on and as of the date of such Borrowing, before and after giving effect thereto and the application of the proceeds therefrom, unless such representation or warranty relates
solely to another time, in which event such representation or warranty shall be true and correct as of such other time. 
 
3.2.2    No Defaults. No Event of Default or Inchoate Default shall have occurred and is continuing or will result from such Borrowing. 

3.2.3    Notice of Borrowing. Borrower shall have delivered to Administrative Agent
a notification of the account or accounts to which the proceeds of the Loans shall be deposited, at least one Business Day prior to the Closing Date. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

Borrower makes the following representations and warranties to and in favor of Administrative Agent and the Lenders as of the Closing Date
and, unless otherwise expressly limited to the Closing Date, as of the date of the Borrowing (and all of these representations and warranties shall survive the Closing Date and the making of the Loans): 

4.1    Corporate Existence and Business. Borrower is a corporation duly organized
and validly existing in good standing under the laws of its jurisdiction of incorporation and is duly qualified to do business and is in good standing in each jurisdiction in which such qualification is necessary to execute, deliver and perform this
Agreement and each other Credit Facility Document to which it is or is to become a party. 

4.2    Power and Authorization; Enforceable Obligations. Borrower has full power
and authority and the legal right to execute, deliver and perform this Agreement and each other Credit Facility Document to which it is or is to become a party and to take all action as may be necessary to complete the transactions contemplated
hereunder and thereunder. Borrower has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement and each other Credit Facility Document to which it is or is to become a party to complete the
transactions contemplated hereby. No consent or authorization of, filing with, or other act by or in respect of any other Person or Governmental Authority is required in connection with the execution, delivery or performance by Borrower, or the
validity or enforceability as to Borrower, of this Agreement and each other Credit Facility Document to which it is or is to become a party, except such consents or authorizations or filings or other acts as have already been obtained or where the
failure to obtain such consent or authorization could not reasonably be expected to have a Material Adverse Effect. This Agreement and each other Credit Facility Document to which Borrower is a party have been duly executed and delivered by Borrower
and constitute, and each 

  
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other Credit Facility Document to which it is to become a party will upon execution and delivery thereof by Borrower and the other parties thereto (if any) constitute, a legal, valid and binding
obligation of Borrower enforceable against it in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the right of creditors generally and by
general principles of equity. 
 4.3    No Legal Bar. The execution, delivery and
performance by Borrower of this Agreement and each other Credit Facility Document to which it is or is to become a party to complete the transactions contemplated hereby and the making by Borrower of any payments hereunder or under any other Credit
Facility Document to which it is a party will not violate any applicable law or any material contractual obligation of Borrower and its subsidiaries and will not result in, or require, the creation or imposition of any Lien on any of the properties
or revenues of Borrower pursuant to any applicable law or any such contractual obligation except, in each case, where such violation, creation or imposition could not reasonably be expected to have a Material Adverse Effect. 

4.4    No Proceeding, Litigation or Investigation. No litigation, proceeding or to
the knowledge of Borrower, investigation of or before any Governmental Authority is pending or, to the knowledge of Borrower, threatened in writing against Borrower or any of its subsidiaries, except where such litigation, proceeding or
investigation could not reasonably be expected to have a Material Adverse Effect. 

4.5    Governmental Approvals. All governmental authorizations and actions
necessary in connection with the execution and delivery by Borrower of this Agreement and the other Credit Facility Documents and the performance of its obligations hereunder and thereunder have been obtained or performed and remain valid and in
full force and effect. 
 4.6    Financial Statements. All quarterly and annual
financial statements of Borrower and its consolidated subsidiaries heretofore delivered by Borrower to Administrative Agent did not fail to disclose any material liabilities, whether direct or contingent, and fairly presented in all material
respects the financial condition of Borrower and its consolidated subsidiaries, as the case may be, in each case as of the date delivered and were prepared in accordance with GAAP. Since December 31, 2016, there has been no development or event
that has had or could reasonably be expected to have a Material Adverse Effect. 

4.7    True and Complete Disclosure. All factual information heretofore or
contemporaneously furnished by Borrower or its representatives in writing to Administrative Agent or any Lender for purposes of or in connection with this Agreement or any transaction contemplated herein was true and accurate in all material
respects on the date as of which such information was dated or certified and at such date did not omit to state any fact necessary to make such information not misleading at such time in light of the circumstances under which such information was
provided. The information referred to in the immediately preceding sentence furnished to Administrative Agent or any Lender on or prior to the Closing Date, taken as a whole, as updated or supplemented from time to time, is true and correct in all
material respects as of the Closing Date, and as of the Closing Date all such information does not omit to state any fact which could reasonably be expected to have a Material Adverse Effect. 

4.8    Investment Company Act. Borrower is not an “investment company”
within the meaning of the Investment Company Act of 1940, as amended. 

4.9    Compliance with Law. There is no violation by Borrower or any Significant
Subsidiary of any Governmental Rule which could reasonably be expected to have a Material Adverse Effect. Except as have been delivered to Administrative Agent, no notices of any such violation of any Governmental Rule have been issued, entered or
received by Borrower or any Significant Subsidiary. 

  
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 4.10    ERISA. Borrower and any other
Person which is under common control (within the meaning of Section 414(b) or (c) of the Code) with Borrower have fulfilled their obligations (if any) under the minimum funding standards of ERISA and the Code for each ERISA Plan in
compliance in all material respects with the currently applicable provisions of ERISA and the Code and have not incurred any material liability to the PBGC or an ERISA Plan under Title IV of ERISA (other than liability for premiums due in the
ordinary course). Assuming that the credit extended hereunder does not involve the assets of any employee benefit plan subject to ERISA, neither the execution of this Agreement nor the consummation of the transactions contemplated hereby will
involve a Prohibited Transaction. 
 4.11    Solvency. Borrower and each
Significant Subsidiary is, and after giving effect to the incurrence of all Indebtedness and obligations being incurred in connection with this Agreement and the other Credit Facility Documents, will be and will continue to be, Solvent. 

4.12    Taxes. Each of Borrower and its subsidiaries has timely filed or caused to
be filed all tax returns and reports required to have been filed and has paid or caused to be paid all taxes required to have been paid by it, except (a) taxes that are being contested in good faith by appropriate proceedings and for which such
Person has established adequate reserves in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect. 

4.13    Use of Credit. Neither Borrower or any of its subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (as defined in Regulations T, U or X of the Federal Reserve
Board), and no part of the proceeds of any extension of credit hereunder will be used to buy or carry any such margin stock. 
 
4.14    FCPA; OFAC; Anti-Money Laundering. 

4.14.1    No Unlawful Contributions or Other Payments. Neither Borrower nor any of
its subsidiaries, nor, to Borrower’s knowledge, any director, officer, agent, employee or Affiliate of Borrower or any of its subsidiaries has taken or will take any action, directly or indirectly, that would result in a violation by such
persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce
corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to pay or authorization of the giving of anything of value to any “foreign official” (as such term
is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign political office. 
 
4.14.2    OFAC. 
 (a)    Neither Borrower nor any of its subsidiaries nor, to
Borrower’s knowledge, any officer or director of Borrower or any of its subsidiaries, nor any agent, employee or Affiliate of Borrower or any of its subsidiaries is (i) a Person that is, or is owned or controlled by a Person that is
currently the subject of any U.S. sanctions administered by OFAC (“Sanctions”), nor (ii) located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Cuba, Crimea,
Iran, North Korea, Sudan and Syria). 
 (b)    Borrower will not, directly or indirectly, use the proceeds of the
Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person to fund any activities or business of or with any Person or in any country or territory that, at the time of such funding,
is the subject of Sanctions or would be in violation of Money Laundering Laws. 

  
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 4.14.3    No Conflict with Money
Laundering Laws. To Borrower’s knowledge, the operations of Borrower and its subsidiaries are and have been conducted at all times in material compliance with (i) applicable financial recordkeeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, and the rules and regulations promulgated thereunder, (ii) the money laundering statutes of all jurisdictions where Borrower and its subsidiaries conduct business, and the
rules and regulations thereunder and (iii) any related or similar rules, regulations or guidelines issued, administered or enforced by any court, arbitrator, regulatory body, administrative agency, governmental body or other authority or agency
(collectively, the “Money Laundering Laws”). No action, suit or proceeding by or before any court, arbitrator, regulatory body, administrative agency, governmental body or other authority or agency involving Borrower or any of its
subsidiaries with respect to the Money Laundering Laws is pending or, to Borrower’s knowledge, threatened. 
 
ARTICLE V 
 COVENANTS OF BORROWER 

Borrower covenants and agrees that until the repayment in full of the Obligations (other than those contingent obligations that are intended
to survive the termination of this Agreement or the other Credit Facility Documents) and the expiration and termination of all Commitments, unless Administrative Agent on behalf of the Lenders waives compliance in writing: 

5.1    Existence. Borrower shall, and shall cause each Significant Subsidiary to,
maintain and preserve its existence in good standing in the state of its formation and its qualification to do business in each other jurisdiction where such qualification is necessary and all material rights, privileges and franchises necessary in
the normal conduct of its business, except as permitted under Section 5.3.1. 

5.2    Consents, Legal Compliance. Borrower shall maintain in full force and effect
all consents of any Governmental Authority that are required to be obtained by it in order for it to perform its obligations under this Agreement and the other Credit Facility Documents and will obtain any that may become necessary in the future.

 5.3    Prohibition of Certain Transfers. 

5.3.1    Borrower shall not, and shall not permit any Significant Subsidiary to, liquidate or dissolve, or combine,
consolidate or merge with or into another Person (other than any consolidation or mergers between or among Borrower and its Significant Subsidiaries); except that Borrower or any Significant Subsidiary may combine, consolidate or merge with another
Person if (i) Borrower or a Significant Subsidiary, as the case may be, is the surviving corporation of such merger, consolidation or combination; (ii) after giving effect thereto, Borrower’s ratings for the Index Debt from
Moody’s and S&P are at least Baa2 and BBB-, respectively, or Baa3 and BBB, respectively; (iii) prior to such merger, consolidation or combination, and after giving effect thereto, no Inchoate
Default or Event of Default shall have occurred and be continuing; (iv) Borrower shall have provided pro forma calculations to Administrative Agent demonstrating that, to the reasonable satisfaction of Administrative Agent, after giving effect
to such merger, consolidation or combination, the projected ratio of Total Debt to Capitalization for the next succeeding fiscal quarter will be less than or equal to 0.65 to 1.00; and (v) Borrower’s rights and obligations, and
Administrative Agent’s and the Lenders’ rights and remedies, under this Agreement and the other Credit Facility Documents shall not be diminished in any manner as a result of such merger, consolidation or combination. 

5.3.2    Except as set forth in this Section 5.3 or sales that are in the nature of financing leases, Borrower shall
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otherwise transfer or dispose of, directly or indirectly, all or any substantial part of its or such Significant Subsidiary’s property, business or assets; provided that
(i) Borrower or any Significant Subsidiary may sell, lease or otherwise transfer or dispose of, directly or indirectly, assets to Borrower or any Significant Subsidiary, (ii) Borrower may sell, contribute or otherwise transfer its
transmission and transmission-related assets for fair value to a regional transmission organization or conduct sales that are in the nature of financing leases, and (iii) the foregoing shall not limit Borrower’s ability to enter into
securitization transactions secured by a transfer of Borrower’s receivables. 
 5.3.3    Except as set forth in
this Section 5.3 or on Schedule 5.3.3, Borrower shall not, and shall not permit any Significant Subsidiary to, mortgage, pledge or encumber all or substantially all of its assets; provided that Borrower and any subsidiary of Borrower may
enter into limited recourse project financing transactions (including in the form of synthetic leases) in the ordinary course of Borrower’s or such subsidiary’s business. 

5.3.4    Except as set forth in this Section 5.3, Borrower shall not sell, assign or otherwise transfer, by way of
collateral assignment or otherwise, or dispose of, directly or indirectly (by way of collateral assignment or otherwise) any Equity Interests in any Significant Subsidiary; provided that Borrower or any subsidiary of Borrower may engage in
limited recourse project financing transactions as provided in Section 5.3.3; and provided further that the foregoing shall not limit Borrower’s ability to enter into securitization transactions secured by a transfer of
Borrower’s receivables. 
 5.4    Payment and Performance of Material
Obligations. Borrower shall, and shall cause each Significant Subsidiary to, pay and perform all its material obligations, howsoever arising, as and when due and payable or required to be performed, except (a) such as may be contested in
good faith or as to which a bona fide dispute may exist; provided that adequate reserves have been established in accordance with GAAP, and (b) trade payables which shall be paid in the ordinary course of business. 

5.5    Taxes. Borrower shall, and shall cause each Significant Subsidiary to, file
all tax returns and pay, or cause to be paid, as and when due and prior to delinquency, all material taxes, assessments and governmental charges of any kind that may at any time be lawfully assessed or levied against or with respect to it;
provided that Borrower or any Significant Subsidiary may contest in good faith any such taxes, assessments and other charges and, in such event, may permit the taxes, assessments or other charges so contested to remain unpaid during any
period, including appeals, when such Person is in good faith contesting the same, so long as (a) adequate reserves have been established in accordance with GAAP, (b) enforcement of the contested tax, assessment or other charge is
effectively stayed for the entire duration of such contest if such enforcement could reasonably be expected to have a Material Adverse Effect, and (c) any tax, assessment or other charge determined to be due, together with any interest or
penalties thereon, is promptly paid as required after final resolution of such contest. 

5.6    Maintenance of Property, Insurance. Borrower shall, and shall cause each
Significant Subsidiary to, (a) keep all property useful and necessary in its business in good working order and condition except where the failure to so maintain could not reasonably be expected to have a Material Adverse Effect,
(b) maintain proper books and records in accordance with GAAP, (c) permit Administrative Agent to visit and inspect its properties at reasonable times and upon reasonable notice, (d) maintain with financially sound and reputable
insurance companies insurance on all its property in at least such amounts and against at least such risks, and/or make provisions for self-insurance, in accordance with normal industry practice, and (e) furnish to Administrative Agent, upon
written request, full information as to the insurance carried. 
 5.7    Compliance
with Laws, Instruments, Etc. Borrower shall, and shall cause each Significant Subsidiary to, promptly comply, or cause compliance, with all Governmental Rules (except 

  
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where the failure to comply could not reasonably be expected to have a Material Adverse Effect) including Sanctions administered by OFAC and Governmental Rules relating to pollution control,
environmental protection, equal employment opportunity or employee benefit plans, ERISA Plans and employee safety. 
 
5.8    No Change in Business. Borrower shall maintain a substantial part of its business in the utility industry and businesses reasonably related thereto and Borrower shall, and shall cause each Significant Subsidiary
to, maintain as a substantial part of its business the general type of business now conducted by Borrower or such Significant Subsidiary, as the case may be. 

5.9    Financial Statements. Borrower shall furnish or cause to be furnished to
Administrative Agent: 
 5.9.1    As soon as practicable and in any event within 60 days after the end of the first,
second and third quarterly accounting periods of its fiscal year (commencing with the fiscal quarter ended March 31, 2018), an unaudited consolidated balance sheet of Borrower and its consolidated subsidiaries as of the last day of such
quarterly period and the related statements of income, cash flow, and shareholder’s equity (where applicable) for such quarterly period and (in the case of the second and third quarterly periods) for the portion of the fiscal year ending with
the last day of such quarterly period, setting forth in each case in comparative form corresponding unaudited figures from the preceding fiscal year. 

5.9.2    As soon as practicable and in any event within 120 days after the close of each applicable fiscal year, audited
consolidated financial statements of Borrower and its consolidated subsidiaries. Such financial statements shall include a statement of equity, a balance sheet as of the close of such year, an income and expense statement, reconciliation of capital
accounts (where applicable) and a statement of cash flow, all prepared in accordance with GAAP, certified by an independent certified public accountant of recognized national standing selected by Borrower. Such certificate shall not be qualified or
limited because of restricted or limited examination by such accountant of any material portion of the records of Borrower. 

5.9.3    Each time the financial statements are delivered under Sections 5.9.1 or 5.9.2, deliver, along with such
financial statements, a certificate signed by a Responsible Officer of Borrower (i) setting forth reasonably detailed calculations demonstrating compliance with Section 5.11 and including a schedule describing all Contingent Obligations of
Borrower, and (ii) certifying that (A) such Responsible Officer has made or caused to be made a review of the transactions and financial condition of Borrower during the relevant fiscal period and that, to such Responsible Officer’s
knowledge, Borrower is in compliance with all applicable material provisions of each Credit Facility Document to which Borrower is a party or, if such is not the case, stating the nature of such non-compliance
and the corrective actions which Borrower has taken or proposes to take with respect thereto, and (B) such financial statements are true and correct in all material respects and that no material adverse change in the consolidated assets,
liabilities, operations, or financial condition of Borrower has occurred since the date of the immediately preceding financial statements provided to Administrative Agent or, if a material adverse change has occurred, the nature of such change. 

5.9.4    As long as Borrower is required or permitted to file reports under the Securities Exchange Act of 1934, as
amended, filing its report on Form 10-Q with a notice of such filing to Administrative Agent shall satisfy the requirements of Section 5.9.1 and Section 5.9.3(ii)(B), and filing Borrower’s
report on Form 10-K with a notice of such filing to Administrative Agent shall satisfy the requirements of Section 5.9.2 and Section 5.9.3(ii)(B). 

  
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 5.9.5    Promptly following any request therefor, such other information
regarding the operations, business affairs and financial condition of Borrower or any Significant Subsidiary, or compliance with the terms of this Agreement and the other Credit Facility Documents, as Administrative Agent or any Lender may
reasonably request. 
 5.10    Notices. Borrower shall promptly, upon acquiring
notice or giving notice, as the case may be, or obtaining knowledge thereof, deliver written notice to Administrative Agent of: 

5.10.1    Any litigation or investigation pending or threatened in writing against Borrower or any Significant Subsidiary
involving claims against Borrower or such Significant Subsidiary that could reasonably be expected to have a Material Adverse Effect, such notice to include copies of all papers filed in such litigation or investigation and to be given monthly if
any such papers have been filed since the last notice given; 
 5.10.2    Any dispute or disputes which may exist between
Borrower or any Significant Subsidiary and any Governmental Authority and which involve (i) claims against Borrower or such Significant Subsidiary, (ii) injunctive or declaratory relief, (iii) revocation or material modification or
the like of any applicable material permit or imposition of additional material conditions with respect thereto, or (iv) any liens for any material amount of taxes due but not paid, in each case that could reasonably be expected to have a
Material Adverse Effect; 
 5.10.3    (i) Any Inchoate Default or Event of Default or (ii) any default under any
agreement (other than this Agreement) with respect to any Indebtedness (other than Non-Recourse Indebtedness) of Borrower or any Significant Subsidiary outstanding in an amount equal to or in excess of
$50,000,000 or the acceleration of Indebtedness of Borrower for borrowed money in an amount equal to or in excess of $10,000,000; 

5.10.4    Borrower being placed on watch or review for possible rating down-grade by S&P or Moody’s, or any
negative change, from the date hereof, from the rating given to Borrower’s Index Debt by either S&P or Moody’s; and 

5.10.5    Any event or circumstance which could reasonably be expected to have a Material Adverse Effect. 

5.11    Financial Covenants. 

5.11.1    Borrower shall maintain, as of the last day of each fiscal quarter (commencing with the fiscal quarter ended
December 31, 2017), a ratio of Total Debt to Capitalization, for such fiscal quarter then ended, of less than or equal to 0.65 to 1.00. 

5.11.2    Borrower shall comply with the limitation on short-term indebtedness imposed on Borrower by the Florida Public
Service Commission. 
 5.12    Indemnification. 

5.12.1    Borrower shall indemnify, defend and hold harmless Administrative Agent and each Lender, each of their
Affiliates and their respective officers, directors, shareholders, controlling persons, employees, agents and servants (collectively, the “Indemnitees”) from and against and reimburse the Indemnitees for any and all penalties,
claims, damages, losses, liabilities and obligations, of any kind or nature whatsoever, that may be imposed upon, incurred by or asserted or awarded against any Indemnitee in any way relating to or arising out of or in connection with this
Agreement, the other Credit 

  
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Facility Documents, the use by Borrower of the proceeds hereof, or any related claim or investigation, litigation or proceeding, or the preparation of any defense with respect thereto, and will
reimburse each Indemnitee for all reasonable expenses (including all reasonable costs and expenses of a single legal counsel, together with a single legal counsel in each applicable jurisdiction, and all reasonable costs and expenses of multiple
legal counsels to the extent necessary in the event that (i) the circumstances giving rise to such indemnification create an ethical conflict for such single counsel or (ii) the Indemnitees have inconsistent or conflicting defenses)
incurred in connection with the investigation of, preparation for or defense of any pending or threatened claim, investigation, litigation or proceeding, whether or not such investigation, litigation or proceeding is brought by Borrower, or an
Indemnitee is otherwise a party thereto (but not in respect of any claim or action brought by Borrower against any Indemnitee to enforce its rights hereunder or under any other Credit Facility Document), and whether or not the transactions
contemplated by the Credit Facility Documents are consummated (collectively, “Subject Claims”). 

5.12.2    The foregoing indemnities shall not apply with respect to an Indemnitee, to the extent any such claim, penalty,
damage, loss, liability, obligation, cost, disbursement or expense incurred by or asserted or awarded against such Indemnitee is found in a final, non-appealable judgment by a court of competent jurisdiction
to have resulted from the gross negligence or willful misconduct of such Indemnitee, but shall continue to apply to other Indemnitees. Without limiting the generality of the foregoing, Borrower shall not be liable for any special, indirect,
consequential or punitive damages suffered by an Indemnitee, including any loss of profits, business or anticipated savings of such Indemnitee, other than any such damages or losses imposed upon or asserted or awarded against any Indemnitee by a
third party. No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed through electronic, telecommunications or other information transmission systems in connection
with this Agreement or the other Credit Facility Documents or the transactions contemplated hereby or thereby. 

5.12.3    If for any reason the foregoing indemnification is unavailable to any Indemnitee or is insufficient to hold it
harmless, then Borrower shall contribute to the amount paid or payable by such Indemnitee as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative economic interests of Borrower and its equity
holders on the one hand and such Indemnitee on the other hand in the matters contemplated by this Agreement and the other Credit Facility Documents as well as the relative fault of Borrower and such Indemnitee with respect to such loss, claim,
damage or liability and any other relevant equitable considerations. 
 5.12.4    The provisions of this
Section 5.12 shall survive the satisfaction or discharge of Borrower’s obligations hereunder, and shall be in addition to any other rights and remedies of the Lenders. 

5.12.5    In case any action, suit or proceeding shall be brought against any Indemnitee, such Indemnitee shall promptly
notify Borrower of the commencement thereof, and Borrower shall be entitled, at its expense, acting through counsel reasonably acceptable to such Indemnitee, to participate in, and, to the extent that Borrower desires, to assume and control the
defense thereof. Such Indemnitee shall be entitled, at its expense, to participate in any action, suit or proceeding the defense of which has been assumed by Borrower. Notwithstanding the foregoing, Borrower shall not be entitled to assume and
control the defense of any such action, suit or proceedings if and to the extent that, in the reasonable opinion of such Indemnitee and its counsel, such action, suit or proceeding involves the potential imposition of criminal liability upon such
Indemnitee or a conflict of interest between such Indemnitee and Borrower (unless such conflict of interest is waived in writing by the affected Indemnitees), and in such event (other than with respect to disputes between such Indemnitee and another
Indemnitee) Borrower shall pay the reasonable expenses of such Indemnitee in such defense to the extent provided in Sections 5.12.1 and 5.12.2. 

  
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 5.12.6    Borrower shall promptly report to the relevant Indemnitee(s) on the
status of such action, investigation, suit or proceeding the defense of which is assumed by Borrower in accordance with Section 5.12.5, as material developments shall occur and from time to time as requested by such Indemnitee (but not more
frequently than every 60 days). Borrower shall deliver to such Indemnitee a copy of each document filed or served on any party in such action, investigation, suit or proceeding, and each material document which Borrower possesses relating to such
action, investigation, suit or proceeding. 
 5.12.7    Notwithstanding Borrower’s rights hereunder to control
certain actions, investigations, suits or proceedings, if any Indemnitee reasonably determines that failure to compromise or settle any Subject Claim made against such Indemnitee is reasonably likely to have an imminent and material adverse effect
on such Indemnitee or such Indemnitee’s interest in Borrower, such Indemnitee shall be entitled to compromise or settle such Subject Claim; provided that such Indemnitee consults with and coordinates such compromise or settlement with
Borrower (although no prior consent by Borrower to any such compromise or settlement shall be required); and provided further that with respect to any Indemnitee other than a Lender, such right may be exercised only with the consent of
the Lender or Lenders which such Indemnitee is affiliated with or engaged by. Any such compromise or settlement shall be binding upon Borrower for the purposes of this Section 5.12. Notwithstanding Borrower’s rights hereunder, Borrower
shall not be entitled to settle any Subject Claim of an Indemnitee without the prior written consent of such Indemnitee or a full release of such Indemnitee, in form and substance satisfactory to such Indemnitee. Upon payment of any Subject Claim by
Borrower pursuant to this Section 5.12 or other similar indemnity provisions contained herein to or on behalf of an Indemnitee, Borrower, without any further action, shall be subrogated to any and all claims that such Indemnitee may have
relating thereto, and such Indemnitee shall cooperate with Borrower and Borrower’s insurance carrier, and give such further assurances as are necessary or advisable to enable Borrower vigorously to pursue such claims. 

5.12.8    Any amounts payable by Borrower pursuant to this Section 5.12 shall be regularly payable within 30 days
after Borrower receives an invoice for such amounts from any applicable Indemnitee, and if not paid within such 30-day period, shall bear interest at the Default Rate. 

5.12.9    Notwithstanding anything to the contrary set forth herein, except as provided in Section 5.12.1 or 5.12.5,
Borrower shall not, in connection with any one legal proceeding or claim, or separate but related proceedings or claims arising out of the same general allegations or circumstances, in which the interests of the Indemnitees do not materially differ,
be liable to the Indemnitees (or any of them) under any of the provisions set forth in this Section 5.12 for the fees and expenses of more than one separate firm of attorneys (which firm shall be selected by the affected Indemnitees, or upon
failure to so select, by Administrative Agent). 
 5.13    Federal Regulations.
Borrower shall not use any part of the proceeds of the Loans to purchase or carry any “margin stock” (within the meaning of Regulation U) or to purchase, carry or trade in any securities under such circumstances as to involve Borrower
in a violation of Regulation X or to involve any broker or dealer in Regulation T. 

5.14    Use of Proceeds. Borrower shall use, and cause its subsidiaries to use,
the proceeds of the Loans hereunder for general corporate purposes. 

5.15    Transactions with Affiliates. Borrower shall not, and shall not permit any
subsidiary to, enter into any transaction with any of its Affiliates (other than Borrower or any subsidiary) unless such transaction is on terms no less favorable to Borrower or such subsidiary than if the transaction had been negotiated in good
faith on an arm’s-length basis with a non-Affiliate. 

  
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 ARTICLE VI 

EVENTS OF DEFAULT; REMEDIES 
 
6.1    Events of Default. The occurrence of any of the following events shall constitute an event of default (“Event of Default”) hereunder: 

6.1.1    Payments. Borrower shall fail to pay, in accordance with the terms of this
Agreement or any other Credit Facility Document, (i) any principal on any Loan on the date such sum is due, (ii) any interest on any Loan or any scheduled fee, cost, charge or sum due hereunder or under any other Credit Facility Document,
(in the case of clause (ii)) within three Banking Days after the date that such sum is due, or (iii) any other fee, cost, charge or other sum due under this Agreement or any other Credit Facility Document, within 30 days after written notice
that such sum is due and has not been paid. 
 6.1.2    Debt Cross Default.
(i) Borrower or any Significant Subsidiary shall default for a period beyond any applicable grace period (a) in the payment of any principal, interest or other amount due under any Indebtedness (other than trade payables or non-recourse indebtedness), or (b) any other event shall occur or condition shall exist under an agreement, or related agreements, under which Borrower or any Significant Subsidiary has outstanding Indebtedness
(other than trade payables or non-recourse indebtedness), if the effect of such event or condition is to permit the acceleration of the maturity of such Indebtedness (other than trade payables or non-recourse indebtedness), and the outstanding amount or amounts payable under all such Indebtedness under clauses (a) and (b) equals or exceeds $50,000,000 or (ii) an event of default shall have occurred
and be continuing under an agreement, or related agreements, under which Borrower or any Significant Subsidiary has outstanding Indebtedness (other than trade payables or non-recourse indebtedness) of
$10,000,000 or more and, in the case of this clause (ii), such debt has been accelerated by the holder of such debt, or the holder of such debt has attempted to accelerate but such acceleration was prevented by applicable Governmental Rule. 

6.1.3    Bankruptcy; Insolvency. Borrower or any Significant Subsidiary shall
become subject to a Bankruptcy Event. 
 6.1.4    Misstatements. Any
representation or warranty of Borrower set forth in this Agreement or any other Credit Facility Document or any amendment or modification hereof or waiver hereunder, or in any report, certificate, financial statement or other document furnished
pursuant to or in connection with this Agreement, shall be untrue or misleading in any material respect as of the time made. 
 
6.1.5    Breach of Terms of Agreement. Borrower shall fail to perform or observe any of the covenants set forth in this Agreement and (except with respect to any covenants set forth in Section 5.1 (with respect to
its obligation to maintain its existence), 5.3, 5.8, 5.11 or 5.14) such failure shall continue unremedied for 30 days after Borrower becomes aware thereof or receives written notice with respect thereto from Administrative Agent. 

6.1.6    Judgments. A final judgment or judgments shall be entered against Borrower
or any Significant Subsidiary in the amount of $50,000,000 or more (net of amounts covered by insurance) individually or in the aggregate (other than (i) a judgment which is fully discharged within 30 days after its entry, or (ii) a
judgment, the execution of which is effectively stayed within 30 days after its entry but only for 30 days after the date on which such stay is terminated or expires) or, in the case of injunctive relief, which if left unstayed could reasonably be
expected to have a Material Adverse Effect. 

  
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 6.1.7    Change in Control. TECO
shall cease to directly or indirectly own and control at least 80% of (i) the economic interests and (ii) the voting interests (whether by committee, contract or otherwise) in Borrower. 

6.1.8    ERISA Violations. If Borrower or any ERISA Affiliate should establish,
maintain, contribute to or become obligated to contribute to any ERISA Plan and (a) a Reportable Event shall have occurred with respect to any ERISA Plan; or (b) a trustee shall be appointed by a United States District Court to administer
any ERISA Plan; or (c) the PBGC shall institute proceedings to terminate any ERISA Plan; or (d) a complete or partial withdrawal by Borrower or any ERISA Affiliate from any Multiemployer Plan shall have occurred, or any Multiemployer Plan
shall become insolvent, or terminate (or notify Borrower or any ERISA Affiliate of its intent to terminate) under Section 4041A of ERISA; or (e) any ERISA Plan fails to satisfy the “minimum funding standard” under Code
Section 412; or (f) Borrower or any ERISA Affiliate incurs any liability for a Prohibited Transaction under ERISA Section 502; provided that any of the events described in this Section 6.1.8 shall result in joint liability
of Borrower and all ERISA Affiliates in excess of $5,000,000. 
 6.1.9    Lack of
Validity, Etc. Any of the Credit Facility Documents, once executed and delivered, shall, except as the result of acts or omissions of Administrative Agent or the Lenders, fail to provide Administrative Agent and the Lenders the liens, security
interest, rights, titles, interest, remedies permitted by law, powers or privileges intended to be created thereby or cease to be in full force and effect (except as expressly contemplated by the terms thereof), or the validity thereof or the
applicability thereof to the Loans or other obligations purported to be secured or guaranteed thereby or any part thereof shall be disaffirmed by or on behalf of Borrower or any other party thereto (other than Administrative Agent or the Lenders).

 6.2    Remedies. Upon the occurrence and during the continuation of an Event
of Default, Administrative Agent and the Lenders may, at the election of the Required Lenders, without further notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any
kind, all such notices and demands other than notices required by this Agreement or any of the other Credit Facility Documents being waived (to the extent permitted by Governmental Rule), exercise any or all of the following rights and remedies, in
any combination or order that the Required Lenders may elect, in addition to such other rights or remedies as the Lenders may have hereunder, under the other Credit Facility Documents or at law or in equity, as follows: 

6.2.1    No Further Loans. Administrative Agent and the Lenders may refuse and
shall not be obligated to continue any Loans or to make any additional Loans and the Commitments may be terminated; provided that in the event of an Event of Default occurring under Section 6.1.3 with respect to Borrower, the foregoing
shall take effect immediately and without further act of Administrative Agent or the Lenders. 

6.2.2    Cure by Administrative Agent. Without any obligation to do so but only
during any time when a Loan is outstanding or any other amounts are due and owing hereunder to Administrative Agent or the Lenders, Administrative Agent may make disbursements or Loans in respect of which any amounts are outstanding to or on behalf
of Borrower to cure any Event of Default or Inchoate Default hereunder as the Required Lenders in their sole discretion may consider necessary or appropriate, whether to preserve and protect the Lenders’ interests under this Agreement or any
Credit Facility Documents or for any other reason, and all sums so expended, together with interest on such total amount at the Default Rate (but in no event shall the rate exceed the maximum lawful rate, if applicable), shall be repaid by Borrower
to Administrative Agent on demand and shall be secured by this Agreement and the other Credit Facility Documents and shall constitute an Obligation. 

  
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 6.2.3    Acceleration. Declare and
make all sums of accrued and outstanding principal and accrued but unpaid interest remaining under this Agreement together with all unpaid fees, costs (including Liquidation Costs) and charges due hereunder or under any other Credit Facility
Document, immediately due and payable and require Borrower immediately, without presentment, demand, protest or other notice of any kind, all of which Borrower hereby expressly waives, to pay Administrative Agent or the Lenders an amount in
immediately available funds equal to the aggregate amount of any outstanding Loans; provided that in the event of an Event of Default occurring under Section 6.1.3 with respect to Borrower, all such amounts shall become immediately due
and payable without further act of Administrative Agent or the Lenders. 
 ARTICLE VII 

ADMINISTRATIVE AGENT, SUBSTITUTION, AMENDMENTS, ETC. 

7.1    Appointment, Powers and Immunities. 

7.1.1    Each Lender hereby irrevocably appoints Administrative Agent to act on its behalf as Administrative Agent
hereunder and under the other Credit Facility Documents and authorizes Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to Administrative Agent by the terms of this Agreement and the other Credit
Facility Documents, together with such actions and powers as are reasonably incidental thereto. The provisions of this Article are solely for the benefit of Administrative Agent and the Lenders, and Borrower shall not have rights as a third-party
beneficiary of any of such provisions. It is understood and agreed that the use of the term “agent” herein or in any other Credit Facility Documents (or any other similar term) with reference to Administrative Agent is not intended to
connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship
between contracting parties. Administrative Agent shall not have any duties or obligations except those expressly set forth in this Agreement or in any other Credit Facility Document, and its duties hereunder shall be administrative in nature.
Notwithstanding anything to the contrary contained herein, Administrative Agent: (i) shall not be subject to any fiduciary or other implied duties, regardless of whether an Inchoate Default has occurred and is continuing; (ii) shall not
have any duty to take any action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Credit Facility Documents that Administrative Agent is required to exercise as directed in
writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Credit Facility Documents); provided Administrative Agent shall not be required to take any action that, in
its opinion or the opinion of its counsel, may expose Administrative Agent to liability or that is contrary to this Agreement or any other Credit Facility Document or any Governmental Rule, including for the avoidance of doubt any action that may be
in violation of the automatic stay under any Bankruptcy Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Bankruptcy Law; and (iii) shall not, except as expressly set forth
herein and in the other Credit Facility Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to Borrower or any of its Affiliates that is communicated to or obtained by the Person
serving as Administrative Agent or any of its Affiliates in any capacity. Each of Administrative Agent and the Lenders and any of their respective Affiliates shall not be responsible to any other Lender for or have any duty to ascertain or inquire
into (i) any statement, representation or warranty made by Borrower or its Affiliates made in or in connection with this Agreement or any other Credit Facility Document, (ii) the contents of any certificate, report or other document
referred to or provided for in, or received by Administrative Agent, or any Lender under this Agreement or any Credit Facility Document, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set
forth herein or therein, (iv) the validity, effectiveness, genuineness or enforceability of this Agreement, any other Credit Facility Document or any other agreement, instrument 

  
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or document, or (v) for any failure by Borrower, its Affiliates to perform their respective obligations hereunder or thereunder. Administrative Agent may employ agents and attorneys in fact
and shall not be responsible for the negligence or misconduct of any such agents or attorneys in fact selected by it with reasonable care. 

7.1.2    Administrative Agent and its directors, officers, employees or agents shall not be responsible for any action
taken or omitted to be taken by it or them hereunder or under any other Credit Facility Document or in connection herewith or therewith, except for its or their own gross negligence or willful misconduct as determined by a court of competent
jurisdiction by final and nonappealable judgment. Without limiting the generality of the foregoing, Administrative Agent (a) may treat the payee of any Note as the holder thereof until Administrative Agent receives written notice of the
assignment or transfer thereof signed by such payee and in form satisfactory to Administrative Agent; (b) may consult with legal counsel (including counsel for Borrower), independent public accountants and other experts selected by it and shall
not be liable for any action taken or omitted to be taken in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender for any statements, warranties or representations made in or
in connection with any Credit Facility Document; (d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any Credit Facility Document on the part of any party
thereto or to inspect the property (including the books and records) of Borrower or any other Person; and (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of
any Credit Facility Document or any other instrument or document furnished pursuant hereto. Except as otherwise provided under this Agreement and the other Credit Facility Documents, Administrative Agent shall take such action with respect to the
Credit Facility Documents as shall be directed by the Required Lenders. 
 7.1.3    Administrative Agent may perform any
and all of its duties and exercise its rights and powers hereunder or under any other Credit Facility Document by or through any one or more sub-agents appointed by Administrative Agent. Administrative Agent
and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. The exculpatory provisions of this Article shall apply to any such sub-agent and to the Affiliates of Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit
facility provided for in this Agreement as well as activities as Administrative Agent. Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agent except to the extent that
a court of competent jurisdiction determines in a final and nonappealable judgment that Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub-agents. 

7.2    Reliance. Administrative Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet, website posting or other distribution) believed by it to
be genuine and to have been signed, sent or otherwise authenticated by the proper Person. Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. As to any other matters not expressly provided for by this Agreement, Administrative Agent shall not be required to take any action or exercise any discretion, but shall be required to act or to refrain
from acting upon instructions of the Required Lenders (except that Administrative Agent shall not be required to take any action which exposes Administrative Agent to personal liability or which is contrary to this Agreement, any other Credit
Facility Document or any Governmental Rule). Administrative Agent shall in all cases (including when any action by Administrative Agent alone is authorized hereunder, if Administrative Agent elects in its sole discretion to obtain instructions from
the Required Lenders) be fully protected in acting, or in refraining from acting, hereunder or under any other Credit Facility Document in accordance with the instructions of the Required Lenders, and such instructions of the Required Lenders and
any action taken or failure to act pursuant thereto shall be binding on all of the Lenders. 

  
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7.3    Non-Reliance. Each Lender
acknowledges that it has, independently and without reliance on Administrative Agent, any arranger of this credit facility or any amendment thereto or any other Lender and their respective Related Parties, and based on such documents and information
as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon Administrative Agent, any arranger of this credit facility or
any amendment thereto or any other Lender and their respective Related Parties and based on such documents and information as it shall from time to time deem appropriate, continue to make its decisions in taking or not taking actions under this
Agreement or the other Credit Facility Documents or any related agreement or any document furnished hereunder or thereunder. Each of Administrative Agent and any Lender shall not be required to keep informed as to the performance or observance by
Borrower or its Affiliates under this Agreement or any other document referred to or provided for herein or to make inquiry of, or to inspect the properties or books of Borrower or its Affiliates. 

7.4    Defaults. Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Inchoate Default or Event of Default, unless such default relates to the payment of principal, interest and fees required to be paid to Administrative Agent for the account of the Lenders, or Administrative Agent has
received a written notice from a Lender or Borrower, referring to this Agreement, describing such Inchoate Default or Event of Default and indicating that such notice is a notice of default. If Administrative Agent receives such a notice of the
occurrence of an Inchoate Default or Event of Default, Administrative Agent shall give notice thereof to the Lenders. Administrative Agent shall take such action with respect to such Inchoate Default or Event of Default as is provided in Article VI
or if not provided for in Article VI, as Administrative Agent shall be reasonably directed by the Required Lenders; provided, however, that unless and until Administrative Agent shall have received such directions, Administrative Agent
may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Inchoate Default or Event of Default as it shall deem advisable in the best interest of the Lenders. 

7.5    Indemnification. Without limiting the Obligations of Borrower hereunder,
each Lender agrees to indemnify Administrative Agent, ratably in accordance with its Proportionate Share for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may at any time be imposed on, incurred by or asserted against Administrative Agent in any way relating to or arising out of this Agreement or any documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or the enforcement of any of the terms hereof or thereof or of any such other documents; provided, however, that no Lender shall be liable for any of the foregoing to the extent they arise from
Administrative Agent’s gross negligence or willful misconduct. Administrative Agent shall be fully justified in refusing to take or to continue to take any action hereunder or under any other Credit Facility Document unless it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. Without limitation of the foregoing, each Lender agrees to reimburse
Administrative Agent promptly upon demand for its Proportionate Share of any out-of-pocket expenses (including counsel fees) incurred by Administrative Agent in
connection with the preparation, execution, administration or enforcement of, or legal advice in respect of rights or responsibilities under, the Credit Facility Documents, to the extent that Administrative Agent is not reimbursed for such expenses
by Borrower. Notwithstanding the foregoing, Administrative Agent shall not be entitled to indemnification or reimbursement of its expenses under this Section 7.5 if it would not be entitled to indemnification or reimbursement under
Sections 5.12 and 8.4, respectively. 

  
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 7.6    Successor Administrative
Agent. Administrative Agent may resign hereunder at any time by giving written notice thereof to the Lenders and Borrower. Upon any such resignation, the Required Lenders, shall have the right to appoint the successor Administrative Agent
hereunder with the consent of Borrower, which consent shall not be unreasonably withheld or delayed; provided that Borrower’s consent shall not be required if an Event of Default shall have occurred and be continuing at such time
hereunder. If no successor Administrative Agent shall have been so appointed by the Required Lenders and shall have accepted such appointment, within 30 days after the retiring Administrative Agent’s giving of notice of resignation (or such
earlier day as shall be agreed by the Required Lenders), the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders with the consent of Borrower (such consent not to be unreasonably withheld or delayed) appoint
the successor Administrative Agent hereunder which shall be a Lender, if any Lender shall be willing to serve, and otherwise shall be a commercial bank having a combined capital and surplus of at least $500,000,000. Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative Agent such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent and the retiring Administrative Agent shall be discharged from its duties and obligations as Administrative Agent only under the Credit Facility Documents. Except for any indemnity payments owed to the retiring Administrative Agent, all
payments, communications and determinations provided to be made by, to or through Administrative Agent shall instead by made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent.
The fees payable by Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between Borrower and such successor. After any retiring Administrative Agent’s resignation hereunder
as Administrative Agent, the provisions of this Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under the Credit Facility Documents. 

7.7    Authorization. Administrative Agent is hereby authorized by the Lenders to
execute, deliver and perform each of the Credit Facility Documents to which Administrative Agent is or is intended to be a party and each Lender agrees to be bound by all of the agreements of Administrative Agent contained in the Credit Facility
Documents. Administrative Agent is further authorized by the Lenders to enter into agreements supplemental hereto for the purpose of curing any formal defect, inconsistency, omission or ambiguity in this Agreement or any Credit Facility Document to
which it is a party. 
 7.8    Administrative Agent’s Other Roles; Other
Agents. With respect to its Commitments, the Loans made by it and any Notes issued to it, Administrative Agent shall have the same rights and powers hereunder as any other Lender and may exercise the same as though it were not Administrative
Agent. The term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include Administrative Agent in its individual capacity. Administrative Agent and its Affiliates may
accept deposits from, lend money to, act as trustee under indentures of, own securities of, act as the financial adviser or in any other advisory capacity for, and generally engage in any kind of business with Borrower or any other Person, without
any duty to account therefor to the Lenders. Notwithstanding anything herein to the contrary, the Arrangers and the Syndication Agents named on the cover page of this Agreement shall not have any powers, duties or liabilities under this Agreement or
any other Credit Facility Document, except in their capacity, if any, as Administrative Agent or Lenders. 

7.9    Amendments; Waivers. Subject to the provisions of this Section 7.9,
unless otherwise specified in this Agreement or another Credit Facility Document, the Required Lenders (or 

  
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Administrative Agent with the consent in writing of the Required Lenders) and Borrower may enter into agreements supplemental hereto for the purpose of adding, modifying or waiving any provisions
to the Credit Facility Documents or changing in any manner the rights of the Lenders or Borrower hereunder or waiving any Inchoate Default or Event of Default; provided, however, that no such supplemental agreement shall: 

(a)    Modify Section 2.1.4, 2.5.1, 2.5.2, 2.5.3 or 2.6.1 without the written consent of each Lender affected
thereby; or 
 (b)    Reduce the percentage specified in the definition of Required Lenders, without the written consent
of each Lender; or 
 (c)    Permit Borrower to assign its rights under this Agreement, without the written consent of
each Lender; or 
 (d)    Amend this Section 7.9 or amend any defined term set forth herein, in any Credit Facility
Document or in Exhibit A, to the extent such amendment would have the effect of violating the effect of the provisions of this Section 7.9, without the written consent of each Lender; or 

(e)    Release any collateral from a lien securing the Obligations of Borrower hereunder or release any funds from any
account otherwise than in accordance with the terms hereof, without the written consent of each Lender; or 

(f)    Extend the maturity of any Loans (including any extension of any Maturity Date) or any Notes or reduce the
principal amount thereof, without the written consent of each Lender affected thereby; or 
 (g)    Reduce the rate or
change the time of payment of interest due on any Loan or any Note, without the written consent of each Lender affected thereby; or 

(h)    Reduce the amount or change the time of payment of any fee or other amount due or payable without the written
consent of each Lender affected thereby; or 
 (i)    Increase the amount of the Commitment of any Lender without the
written consent of such Lender. 
 provided further that no such agreement shall amend, modify or otherwise affect the rights or duties of
Administrative Agent without the prior written consent of Administrative Agent. 

7.10    Withholding Tax. 

7.10.1    If the forms or other documentation required by Section 2.5.7 are not delivered to Administrative Agent,
then Administrative Agent may withhold from any interest payment to any Lender not providing such forms or other documentation, an amount equivalent to the applicable withholding tax. 

7.10.2    If the Internal Revenue Service or any authority of the United States or other jurisdiction asserts a claim that
Administrative Agent did not properly withhold tax from amounts paid to or for the account of any Lender (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Administrative Agent of a
change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) 

  
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such Lender shall indemnify Administrative Agent fully for all amounts paid, directly or indirectly, by Administrative Agent as tax or otherwise, including penalties and interest, together with
all expenses incurred, including legal expenses, allocated staff costs, and any out of pocket expenses. Borrower shall not be responsible for any amounts paid or required to be paid by a Lender under this Section 7.10.2. 

7.10.3    If any Lender sells, assigns, grants participations in, or otherwise transfers its rights under this Agreement,
the purchaser, assignee, transferee or participant shall comply with and be bound by the terms of Sections 2.5.7, 7.10.1 and 7.10.2 as though it were such Lender. 

7.11    General Provisions as to Payments. Administrative Agent shall promptly
distribute to each Lender its pro rata share of each payment of principal and interest payable to the Lenders on the Loans and of fees hereunder received by Administrative Agent for the account of the Lenders and of any other amounts owing
under the Loans. The payments made for the account of each Lender shall be made, and distributed to it, for the account of (a) its domestic lending office in the case of payments of principal of, and interest on, its Base Rate Loans,
(b) its domestic or foreign lending office, as each Lender may designate in writing to Administrative Agent, in the case of payments of principal of, and interest on, its LIBOR Loans and (c) its domestic lending office, or such other
lending office as it may designate for the purpose from time to time, in the case of payments of fees and other amounts payable hereunder. Each Lender shall have the right to alter its designated domestic lending office upon notice to Administrative
Agent and Borrower. 
 7.12    Participations. 

7.12.1    Nothing herein provided shall prevent any Lender from selling a participation in its Commitments (and/or Loans
made thereunder) to one or more financial institutions or other entities (a “Participant”); provided that (a) no such sale of a participation shall alter such Lender’s or Borrower’s obligations hereunder and (b) any
agreement pursuant to which any Lender may grant a participation in its rights with respect to its Commitments (and/or Loans) shall provide that, with respect to such Commitments (and/or Loans), subject to the following proviso, such Lender shall
retain the sole right and responsibility to exercise the rights of such Lender, and enforce the obligations of Borrower relating to such Commitments (and/or Loans), including the right to approve any amendment, modification or waiver of any
provision of this Agreement or any other Credit Facility Document and the right to take action to have the Notes declared due and payable pursuant to Article VI; provided, however, that such agreement may provide that such Lender will
not, without the consent of the relevant Participant, agree to any amendment, modification or waiver described in the first proviso to Section 7.9 that affects such Participant. Borrower agrees that each Participant shall be entitled to the
benefits of Sections 2.5.4, 2.7.3 and 2.7.4 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to Section 7.13; provided that such Participant (1) shall be subject to the requirements and
limitations therein, including the requirements under Section 2.5.7 (it being understood that the documentation required under Section 2.5.7 shall be delivered to the participating Lender); (2) agrees to be subject to the provisions
of Sections 2.6.2 and 2.9 as if it were an assignee under Section 7.13; and (3) shall not be entitled to receive any greater payment under Sections 2.5.4, 2.7.3 and 2.7.4 with respect to any participation than its participating
Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change of Law that occurs after such Participant acquired the applicable participation. To the extent permitted by law,
each Participant also shall be entitled to the benefits of Section 8.2 as though it were a Lender, provided such Participant agrees to be subject to Section 2.6.2 as though it were a Lender. Each Lender that sells a participation
shall, acting solely for this purpose as a non-fiduciary agent of Borrower (and such agency being solely for tax purposes), maintain a register on which it enters the name and address of each Participant and
the principal amounts (and stated interest) of each Participant’s interest in the Loans or other obligations under this Agreement (the “Participant Register”); provided that no Lender shall have any obligation to

  
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disclose all or any portion of the Participant Register to any Person (including the identity of any Participant or any information relating to a Participant’s interest in any Commitment,
Loan, promissory note or other obligations under this Agreement or any other Credit Facility Document) except if additional payments under Sections 2.5.4, 2.7.3 and 2.7.4 are requested with respect to such Participant and except to the extent
that such disclosure is necessary to establish that such Commitment, Loan, promissory note or other obligation is at all times maintained in registered form within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related
regulations (and any successor provisions). The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such
participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant
Register. 
 7.12.2    Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to Administrative Agent and Borrower, the option to provide to Borrower all or any
part of any Loan that such Granting Lender would otherwise be obligated to make to Borrower pursuant to this Agreement; provided that (a) nothing herein shall constitute a commitment by any SPC to make any Loan, and (b) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the
Commitment of the Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after
the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings under the laws of the United States or any state thereof. In addition, notwithstanding anything to the contrary contained in this Section 7.12, any SPC may (x) with notice to, but without the prior written consent
of, Borrower and Administrative Agent and without paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any financial institutions (consented to by Borrower and Administrative Agent)
providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans and (y) disclose on a confidential basis any non-public information relating to
its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC. This Section 7.12 may not be amended without the written consent of all SPCs having outstanding Loans
or Commitments hereunder. 
 7.13    Transfer of Commitments. 

7.13.1    Assignments. Notwithstanding anything else herein to the contrary (but
subject to Section 7.12.2), any Lender may assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent, such consent, in each case, not to be unreasonably withheld or delayed, of: 
 (i)    Borrower,
provided that no consent of Borrower shall be required for an assignment to a Lender, an Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and is continuing, any other assignee; provided, further,
that Borrower shall be deemed to have consented to an assignment unless it shall have objected thereto by written notice to Administrative Agent within five Banking Days after having received notice thereof; and 

  
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 (ii)    Administrative Agent; provided that no consent of
Administrative Agent shall be required for an assignment to a Lender. 
 Assignments shall be subject to the following additional
conditions: 
 (A)    except in the case of an assignment to a Lender or an Affiliate of a Lender or an assignment of the
entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such
assignment is delivered to Administrative Agent) shall not be less than $5,000,000 unless each of Borrower and Administrative Agent otherwise consent; provided that no such consent of Borrower shall be required if an Event of Default has
occurred and is continuing; 
 (B)    each partial assignment shall be made as an assignment of a proportionate part of
all the assigning Lender’s rights and obligations under this Agreement; 
 (C)    the parties to each assignment
shall execute and deliver to Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; and 

(D)    the assignee, if it shall not be a Lender, shall deliver to Administrative Agent an Administrative Questionnaire.

 Subject to acceptance and recording thereof pursuant to this Section 7.13.1, from and after the effective date specified in each
Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights
and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.5.4, 2.7.3, 2.8, 5.12 and 8.4). Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section 7.13.1 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 7.12. 

Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Lender and an assignee, the assignee’s completed
Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in this Section 7.13.1 and any written consent to such assignment required hereby, Administrative Agent shall
accept such Assignment and Assumption and record the information contained therein in the Register; provided that if either the assigning Lender or the assignee shall have failed to make any payment required to be made by it pursuant to
Section 2.5.6 or 7.5, Administrative Agent shall have no obligation to accept such Assignment and Assumption and record the information therein in the Register unless and until such payment shall have been made in full, together with all
accrued interest thereon. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this Section 7.13.1. 

7.13.2    Register. Administrative Agent, acting solely for this purpose as a non-fiduciary agent of Borrower (and such agency being solely for tax purposes), shall maintain at one of its offices a 

  
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copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans owing
to, each Lender pursuant to the terms hereof from time to time (the “Register”). The entries in the Register shall be conclusive, and Borrower, Administrative Agent and the Lenders shall treat each Person whose name is recorded in
the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by Borrower and any Lender (with respect to its own interests
only), at any reasonable time and from time to time upon reasonable prior notice. This Section 7.13 shall be construed so that the Commitments, Loans, promissory notes or other obligations are at all times maintained in “registered
form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code and any related regulations (and any successor provisions). 

7.13.3    No Assignments to Certain Persons. Anything in this Section 7.13
to the contrary notwithstanding, no Lender may assign or participate any interest in any Loan held by it hereunder to (i) Borrower or any of its Affiliates or subsidiaries without the prior consent of each Lender, (ii) any Defaulting
Lender or any of its subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (ii) or (iii) a natural person. 

7.13.4    Assignability as to Collateral. Notwithstanding any other provision
contained in this Agreement or any other Credit Facility Document to the contrary, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender,
including any such pledge or assignment to a Federal Reserve Bank or any central bank having jurisdiction over such Lender; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 
 ARTICLE VIII

 MISCELLANEOUS 
 
8.1    Addresses. Any communications between the parties hereto or notices provided herein to be given shall be given to the following addresses: 

 

					
	If to Wells Fargo as Administrative Agent:	  	 David Anderson
 Wells Fargo Bank,
National Association
 1525 West W.T. Harris Blvd.
 Charlotte,
NC 28262
 Attention of: Syndication Agency Services
 Telephone
No.: 704-590-2770
 Facsimile No.: 704-715-0017
 Contact Email: David.Anderson2@wellsfargo.com

Group E-mail: AgencyServices.Requests@wellsfargo.com

  
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	If to Borrower:	  	 Tampa Electric Company
 702 North
Franklin Street
 Tampa, FL 33602
 Attention: Corporate
Secretary
 Telephone No.: (813) 228-4723

Telecopy No.: (813) 228-1328
  

with a copy to:
 TECO Services, Inc.
702 North Franklin
Street
Tampa, FL 33602
Attention: Kim M. Caruso
Telephone No.: (813) 228-1352
Telecopy No.: (813) 228-4262

		
	If to any other Lender:	  	To the address specified on such Lender’s Administrative Questionnaire.

 8.1.1    All notices or other communications required or permitted to be given hereunder
shall be in writing and shall be considered as properly given (a) if delivered in person, (b) if sent by overnight delivery service, (c) if mailed by first class United States Mail, postage prepaid, registered or certified with return
receipt requested or (d) if sent by facsimile or e-mail. Notice so given shall be effective upon receipt by the addressee, except that communication or notice so transmitted by telecopy or other direct
written electronic means shall be deemed to have been validly and effectively given on the day (if a Banking Day and, if not, on the next following Banking Day) on which it is transmitted if transmitted before 4:00 p.m., recipient’s time,
and, if transmitted after that time, on the next following Banking Day; provided, however, that if any notice is tendered to an addressee and the delivery thereof is refused by such addressee, such notice shall be effective upon such
tender. Any party shall have the right to change its address for notice hereunder to any other location within the continental United States by giving of 30 days’ notice to the other parties in the manner set forth above; provided,
however, that a Lender shall have the right to change its address for notice hereunder by giving notice to Administrative Agent and Borrower only. 

8.1.2    Borrower hereby agrees that it will provide to Administrative Agent all information, documents and other
materials that it is obligated to furnish to Administrative Agent pursuant to this Agreement or any other Credit Facility Document, including all notices, requests, financial statements, financial and other reports, certificates and other
information materials, but excluding any such communication that (a) relates to a request for a new, or a conversion of an existing, borrowing (including any election of an interest rate or interest period relating thereto), (b) relates to the
payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (c) provides notice of any default or event of default under this Agreement or (d) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any borrowing hereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by
transmitting the Communications in an electronic/soft medium in a format acceptable to Administrative Agent to Rufus.Kearney@wellsfargo.com or AgencyServices.Requests@wellsfargo.com. 

8.1.3    Borrower further agrees that Administrative Agent may make the Communications available to the Lenders by posting
the Communications on IntraLinks or a substantially similar electronic transmission systems (the “Platform”). Borrower acknowledges that the distribution of material through an electronic medium is not necessarily secure and that
there are confidentiality and other risks associated with such distribution. 

  
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 8.1.4    THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF
ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL ADMINISTRATIVE AGENT OR ANY OF ITS AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF BORROWER’S OR ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT
PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 

8.1.5    Administrative Agent agrees that the receipt of the Communications by Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to Administrative Agent for purposes of this Agreement and the other Credit Facility Documents. Each Lender agrees that notice
to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of this Agreement or any other Credit Facility
Document. Each Lender agrees to notify Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent
by electronic transmission and (ii) that the foregoing notice may be sent to such e-mail address. 

8.1.6    Nothing herein shall prejudice the right of Administrative Agent or any Lender to give any notice or other
communication pursuant to this Agreement or under any other Credit Facility Document in any other manner specified in such document. 
 
8.2    Additional Security; Right to Set-Off. Any deposits or other sums at any time credited or due from the Lenders and any securities or other property of Borrower in the
possession of Administrative Agent may at all times be treated as collateral security for the payment of the Loans and any Notes and all other obligations of Borrower to the Lenders under this Agreement and the other Credit Facility Documents, and
Borrower hereby pledges to Administrative Agent for the benefit of the Lenders and grants Administrative Agent a security interest in and to all such deposits, sums, securities or other property. Regardless of the adequacy of any other collateral,
Administrative Agent may execute or realize on the Lenders’ security interest in any such deposits or other sums credited by or due from the Lenders to Borrower, and may apply any such deposits or other sums to or set them off against
Borrower’s obligations to the Lenders under any Notes and this Agreement at any time after the occurrence and during the continuance of any Event of Default. 

  
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 8.3    Delay and Waiver. No delay or
omission to exercise any right, power or remedy accruing to the Lenders upon the occurrence of any Event of Default, Inchoate Default or any breach or default of Borrower under this Agreement or any other Credit Facility Document shall impair any
such right, power or remedy of the Lenders, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring, nor shall any waiver of any single Event
of Default, Inchoate Default or other breach or default be deemed a waiver of any other Event of Default, Inchoate Default or other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or
character on the part of Administrative Agent and/or the Lenders of any Event of Default, Inchoate Default or other breach or default under this Agreement or any other Credit Facility Document, or any waiver on the part of Administrative Agent
and/or the Lenders of any provision or condition of this Agreement or any other Credit Facility Document, must be in writing and shall be effective only to the extent in such writing specifically set forth. All remedies, either under this Agreement
or any other Credit Facility Document or by law or otherwise afforded to Administrative Agent and the Lenders, shall be cumulative and not alternative. 

8.4    Costs, Expenses and Attorneys’ Fees. Borrower will pay to each of
Administrative Agent and the Arrangers all of its reasonable costs and expenses in connection with the preparation, negotiation, closing and administering of this Agreement and the documents contemplated hereby and any participation or syndication
of the Loans or this Agreement, including the reasonable fees, expenses and disbursements of a single legal counsel, together with a single legal counsel in each applicable local jurisdiction, retained by the Arrangers and Administrative Agent in
connection with the preparation of such documents and any amendments hereof. Borrower will reimburse (a) Administrative Agent for all costs and expenses, including attorneys’ fees, expended or incurred by Administrative Agent, and the
Lenders for their internal out-of-pocket expenses in enforcing this Agreement or the other Credit Facility Documents in connection with an Event of Default or Inchoate
Default, in actions for declaratory relief in any way related to this Agreement or in collecting any sum which becomes due Administrative Agent or the Lenders under the Credit Facility Documents and (b) Administrative Agent and the Lenders for
their reasonable out-of-pocket expenses, including reasonable attorney fees, in the enforcement or protection of their rights under the Credit Facility Documents
including in the case of a restructuring or other workout or negotiation of the Loans in connection with the bankruptcy or insolvency of Borrower or any payment default requiring, among other things, amendments to the interest rates and/or repayment
dates for the Loans. Borrower shall not be responsible for any counsel fees of Administrative Agent or the Lenders other than as set forth above. 

8.5    Entire Agreement. This Agreement and any agreement, document or instrument
attached hereto or referred to herein integrate all the terms and conditions mentioned herein or incidental hereto and supersede all oral negotiations and prior writings in respect to the subject matter hereof. In the event of any conflict between
the terms, conditions and provisions of this Agreement and any such agreement, document or instrument, the terms, conditions and provisions of this Agreement shall prevail. 

8.6    Governing Law. THIS AGREEMENT, AND ANY INSTRUMENT OR AGREEMENT REQUIRED
HEREUNDER (TO THE EXTENT NOT OTHERWISE EXPRESSLY PROVIDED FOR THEREIN), SHALL BE GOVERNED BY, AND CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO CONFLICTS OF LAWS (OTHER THAN
SECTION 5-1401 AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

8.7    Severability. In case any one or more of the provisions contained in this
Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

  
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 8.8    Headings. Paragraph headings
have been inserted in this Agreement as a matter of convenience for reference only; such paragraph headings are not a part of this Agreement and shall not be used in the interpretation of any provision of this Agreement. 

8.9    Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with GAAP and practices consistent with those applied in the preparation of the financial statements submitted by Borrower to Administrative Agent, and all financial data submitted pursuant to this Agreement shall be
prepared in accordance with such principles and practices, as in effect from time to time; provided that, if Borrower notifies Administrative Agent that Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if Administrative Agent notifies Borrower that the Required Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended in accordance herewith. Indebtedness of Borrower shall be deemed to be carried at one hundred percent of the outstanding principal amount thereof, and the effects of
FASB ASC 805 and FASB ASC 825 shall be disregarded with respect to the reporting of the principal amount of Indebtedness. 
 
8.10    No Partnership, Etc. The Lenders and Borrower intend that the relationship between them shall be solely that of creditor and debtor. Nothing contained in this Agreement, the Notes or in any of the other Credit
Facility Documents shall be deemed or construed to create a partnership, tenancy-in-common, joint tenancy, joint venture or
co-ownership by or between the Lenders and Borrower or any other Person. 
 
8.11    Limitation on Liability. No claim shall be made by Borrower or any of its Affiliates against the Lenders or any of their Affiliates, directors, employees, attorneys or agents for any loss of profits, business
or anticipated savings, special or punitive damages or any indirect or consequential loss whatsoever in respect of any breach or wrongful conduct (whether or not the claim therefor is based on contract, tort or duty imposed by law), in connection
with, arising out of or in any way related to the transactions contemplated by this Agreement or the other Credit Facility Documents or any act or omission or event occurring in connection therewith; and Borrower hereby waives, releases and agrees
not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 
 
8.12    Waiver of Jury Trial. THE LENDERS, ADMINISTRATIVE AGENT AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON,
OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER CREDIT FACILITY DOCUMENT, OR ANY COURSE OR CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF ADMINISTRATIVE AGENT, THE LENDERS OR BORROWER.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDERS AND ADMINISTRATIVE AGENT TO ENTER INTO THIS AGREEMENT. 
 
8.13    Consent to Jurisdiction. The Lenders, Administrative Agent and Borrower agree that any legal action or proceeding by or against Borrower or with respect to or arising out of this Agreement, the Notes, or any
other Credit Facility Document may be brought in or removed to the courts of the State of New York, in and for the County of New York, or of the United States of America for the Southern District of New York, or any appellate court thereof, as
Administrative Agent may elect. By execution 

  
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and delivery of this Agreement, the Lenders, Administrative Agent and Borrower accept, for themselves and in respect of their property, generally and unconditionally, the jurisdiction of the
aforesaid courts. The Lenders, Administrative Agent and Borrower irrevocably consent to the service of process out of any of the aforementioned courts in any manner permitted by law. Nothing herein shall affect the right of Administrative Agent to
bring legal action or proceedings in any other competent jurisdiction. The Lenders, Administrative Agent and Borrower further agree that the aforesaid courts of the State of New York and of the United States of America shall have exclusive
jurisdiction with respect to any claim or counterclaim of Borrower based upon the assertion that the rate of interest charged by the Lenders on or under this Agreement, the Loans and/or the other Credit Facility Documents is usurious. The Lenders,
Administrative Agent and Borrower hereby waive any right to stay or dismiss any action or proceeding under or in connection with this Agreement or any other Credit Facility Document brought before the foregoing courts on the basis of forum non-conveniens. 
 8.14    Knowledge and
Attribution. References in this Agreement and the other Credit Facility Documents to the “knowledge,” “best knowledge” or facts and circumstances “known to” Borrower, and all like references, mean facts or
circumstances of which a Responsible Officer of Borrower has actual knowledge. 

8.15    Successors and Assigns. The provisions of this Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns. Borrower may not assign or otherwise transfer any of their rights under this Agreement, and the Lenders may not assign or otherwise transfer any of
their rights under this Agreement except as provided in Article VII. 

8.16    Counterparts. This Agreement may be executed in one or more duplicate
counterparts and when signed by all of the parties listed below shall constitute a single binding agreement. Delivery of an executed counterpart of a signature page of this Agreement by fax or other electronic transmission shall be effective as
delivery of a manually executed counterpart of this Agreement. 
 8.17    Patriot
Act Notice. Each Lender and Administrative Agent (for itself and not on behalf of any Lender) hereby notifies Borrower that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies
Borrower, which information includes the name and address of Borrower and other information that will allow such Lender or Administrative Agent, as applicable, to identify Borrower in accordance with the Patriot Act. Borrower shall, and shall cause
each of its Significant Subsidiaries to, provide, to the extent commercially reasonable, such information and take such actions as are reasonably requested by Administrative Agent or any Lender in order to assist Administrative Agent and the Lenders
in maintaining compliance with the Patriot Act. 
 8.18    Payments Set Aside.
To the extent that any payment by or on behalf of Borrower is made to Administrative Agent or any Lender, or Administrative Agent or any Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by Administrative Agent or such Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Bankruptcy Law or otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b) each Lender severally agrees to pay to Administrative Agent upon demand its applicable share (without duplication) of any amount so recovered from or repaid by
Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Effective Rate from time to time in effect. 

  
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 8.19    No Advisory or Fiduciary
Responsibility. In connection with all aspects of each transaction contemplated hereby (including in connection with any amendment, waiver or other modification hereof or of any other Credit Facility Document), Borrower acknowledges and agrees,
and acknowledge its Affiliates’ understanding, that (a) the arranging and other services regarding this Agreement provided by Administrative Agent, the Lenders, the Syndication Agents and the Arrangers are
arm’s-length commercial transactions between Borrower and its Affiliates, on the one hand, and Administrative Agent, the Lenders, the Syndication Agents and the Arrangers, on the other hand,
(b) Borrower has consulted their own legal, accounting, regulatory and tax advisors to the extent that they have deemed appropriate, (c) Borrower is are capable of evaluating, and understand and accept, the terms, risks and conditions of
the transactions contemplated hereby and by the other Credit Facility Documents, (d) Administrative Agent, the Lenders, the Syndication Agents and the Arrangers each is and has been acting solely as a principal and, except as expressly agreed
in writing by the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for Borrower or any of its Affiliates, or any other Person, (e) none of Administrative Agent, the Lenders, the Syndication Agents
and the Arrangers has any obligation to Borrower or any of its Affiliates with respect to the transactions contemplated hereby except those obligations expressly set forth herein and in the other Credit Facility Documents and (f) Administrative
Agent, the Lenders, the Syndication Agents and the Arrangers and their respective Affiliates may be engaged, for their own accounts or the accounts of customers, in a broad range of transactions that involve interests that differ from those of
Borrower and its Affiliates, and none of Administrative Agent, the Lenders, the Syndication Agents and the Arrangers has any obligation to disclose any of such interests to Borrower or its Affiliates. To the fullest extent permitted by law, Borrower
hereby waives and releases any claims that they may have against Administrative Agent, the Lenders, the Syndication Agents and the Arrangers with respect to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of
any transaction contemplated hereby. 
 8.20    Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Credit Facility Document or in any other agreement, arrangement or understanding among any such parties, each party hereto
acknowledges that any liability of any EEA Financial Institution arising under any Credit Facility Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees
and consents to, and acknowledges and agrees to be bound by: (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto
that is an EEA Financial Institution; and (b) the effects of any Bail-In Action on any such liability, including, if applicable: (i) a reduction in full or in part or cancellation of any such
liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Facility Document; or (iii) the variation of the
terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

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

			
	BORROWER:
	
	TAMPA ELECTRIC COMPANY
		
	By:	 	/s/ Kim M. Caruso
		 	 Name: Kim M. Caruso

Title:

  
 [Tampa Credit Agreement] 

Table of Contents

 
			
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Lender

		
	By:	 	/s/ Gregory R. Gredvig
		 	 Name: Gregory R. Gredvig

Title: Director

  
 [Tampa Electric Credit Agreement]

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	 JPMORGAN CHASE BANK, N.A.
 as
Lender

		
	By:	 	/s/ Amit Gaor
		 	 Name: Amit Gaor

Title: VP

  
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	 ROYAL BANK OF CANADA,
 as
Lender

		
	By:	 	/s/ Nirasha Thambiejal
	 Name: Nirasha Thambiejal

Title: Authorized Signatory

  
 [Tampa Electric Credit Agreement]

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	 BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as Lender

		
	By:	 	/s/ Eric Otieno
	 Name: Eric Otieno

Title: Vice President

  
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	 THE BANK OF NOVA SCOTIA,
 as
Lender

		
	By:	 	/s/ David Dewar
	 Name: David Dewar

Title: Director

  
 [Tampa Electric Credit Agreement]

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	 SUNTRUST BANK,
 as
Lender

		
	By:	 	/s/ Arize Agomadu
	 Name: Arize Agomadu

Title: Vice President

  
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	 THE BANK OF NEW YORK MELLON,
 as
Lender

		
	By:	 	/s/ Richard K. Fronaptel, Jr.
	 Name: Richard K. Fronaptel, Jr.

Title: Vice President

  
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	 BANK OF AMERICA NATIONAL ASSOCIATION,

CANADA BRANCH,
 as Lender

		
	By:	 	/s/ Adrian Plummer
	 Name: Adrian Plummer

Title: Associate

  
 [Tampa Electric Credit Agreement]

Table of Contents

 
			
	 CANADIAN IMPERIAL BANK OF COMMERCE,

as Lender

		
	By:	 	/s/ Gordon R. Fadon
	 Name: Gordon R. Fadon

Title: Authorized Signatory

  
 [Tampa Electric Credit Agreement]

Table of Contents

 
			
	 THE TORONTO-DOMINION BANK, NEW YORK

BRANCH,
 as Lender

		
	By:	 	/s/ Elisa Pileggi
	 Name: Elisa Pileggi

Title: Authorized Signatory

  
 [Tampa Electric Credit Agreement]

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 SCHEDULE 1 

LENDERS AND COMMITMENTS 
  

					
	 Lender
	  	
Amount of Commitment
	 
	 Wells Fargo Bank, National Association
	  	$	38,000,000	 
	 JPMorgan Chase Bank, N.A.
	  	$	38,000,000	 
	 Royal Bank of Canada
	  	$	38,000,000	 
	 Bank of Tokyo-Mitsubishi UFJ, Ltd.
	  	$	38,000,000	 
	 The Bank of Nova Scotia
	  	$	38,000,000	 
	 Suntrust Bank
	  	$	25,000,000	 
	 The Bank of New York Mellon
	  	$	25,000,000	 
	 Bank of America National Association, Canada Branch
	  	$	20,000,000	 
	 Canadian Imperial Bank of Commerce
	  	$	20,000,000	 
	 The Toronto-Dominion Bank, New York Branch
	  	$	20,000,000	 
		  	$	300,000,000	 

  
 Schedule 1 

Table of Contents

 SCHEDULE 5.3.3 

EXISTING LIENS 
 Indenture of Mortgage
dated as of August 1, 1946, between Tampa Electric Company and U.S. Bank National Association, as successor to State Street Bank and Trust Company, as Trustee, as supplemented and amended from time to time so long as no such amendment expands
the lien granted thereunder to cover additional assets (no bonds currently outstanding). 

  
 Schedule 5.3.3 

Table of Contents

 EXHIBIT A 

to the Credit Agreement 

DEFINITIONS 

“Administrative Agent” means Wells Fargo Bank, National Association, acting in its capacity as administrative agent for the
Lenders under the Credit Agreement, or its successor appointed pursuant to the terms of the Credit Agreement. 
 “Administrative
Agent’s Office” means Administrative Agent’s address and, as appropriate, account as set forth in Section 8.1 of the Credit Agreement, or such other address or account as Administrative Agent may from time to time notify to
Borrower and the Lenders. 
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by
Administrative Agent. 
 “Affiliates” of a specified Person means any other Person that directly, or indirectly through
one or more intermediaries, controls, is controlled by or is under common control with the Person specified, or who holds or beneficially owns 25% or more of the Equity Interest in the Person specified or 25% or more of any class of voting
securities of the Person specified. 
 “Alternate Base Rate” means, for any day, a rate per annum (rounded upwards, if
necessary, to the next 1/100 of 1%) equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 0.50% and (c) the LIBO Rate for the offering of Dollar
deposits for a one month Interest Period commencing on such day plus 1.00%. For purposes of clause (c) of this definition, such LIBO Rate for any day shall be determined by Administrative Agent based upon the rate appearing on Reuters
LIBOR01 Page and otherwise in accordance with the definition of “LIBO Rate”, except that (i) if a given day is a Banking Day, such determination shall be made on such day (rather than two Banking Days prior to the commencement of an
Interest Period) or (ii) if a given day is not a Banking Day, such rate for such day shall be the rate determined by Administrative Agent pursuant to the preceding clause (i) for the most recent Banking Day preceding such day. If for any
reason Administrative Agent shall have determined that it is unable to ascertain the Federal Funds Effective Rate, the Base Rate shall be determined without regard to clause (b) hereof, until the circumstances giving rise to such inability no
longer exist. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or such LIBO Rate shall be effective on the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or such LIBO
Rate, as the case may be. 
 “Applicable Rate” means a percentage per annum equal to (a) with respect to Base Rate
Loans, 0.00% and (b) with respect to LIBOR Loans, 0.70%. 
 “Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or
(c) an entity or an Affiliate of an entity that administers or manages a Lender. 
 “Arrangers” means entities listed
as Joint Lead Arrangers and Joint Bookrunners on the cover page of this Agreement. 
 “Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 7.13 of the Credit Agreement), and accepted by Administrative Agent, in the form of Exhibit B or any
other form approved by Administrative Agent. 

  
 Exhibit A-1 

Table of Contents

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

“Bail-In Legislation” means, with respect to any EEA Member Country implementing
Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule. 
 “Banking Day” means any day other than a Saturday, Sunday or other day on which banks are or are
authorized to be closed in New York, New York and, where such term is used in any respect relating to a LIBOR Loan, which is also a day on which dealings in Dollar deposits are carried out in the London interbank market. 

“Bankruptcy Event” shall be deemed to occur, with respect to any Person, if that Person shall institute a voluntary case
seeking liquidation or reorganization under a Bankruptcy Law, or shall consent to the institution of an involuntary case thereunder against it; or such Person shall file a petition or consent or shall otherwise institute any similar proceeding under
any other applicable Federal or state law, or shall consent thereto; or such Person shall apply for, or by consent or acquiescence there shall be an appointment of, a receiver, liquidator, sequestrator, trustee or other officer with similar powers
for itself or any substantial part of its assets; or such Person shall make a general assignment for the benefit of its creditors; or such Person shall admit in writing its inability to pay its debts generally as they become due; or if an
involuntary case shall be commenced seeking liquidation or reorganization of such Person under a Bankruptcy Law or any similar proceedings shall be commenced against such Person under any other applicable Federal or state law and (a) the
petition commencing the involuntary case is not timely controverted, (b) the petition commencing the involuntary case is not dismissed within 60 days of its filing, (c) an interim trustee is appointed to take possession of all or a
substantial portion of the property, and/or to operate all or any material part of the business of such Person and such appointment is not vacated within 60 days, or (d) an order for relief shall have been issued or entered therein; or a decree
or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee or other officer having similar powers, over such Person or all or a substantial part of its property shall have been
entered; or any other similar relief shall be granted against such Person under any applicable Federal or state law. 
 “Bankruptcy
Law” means Title 11, United States Code, and any other state or federal insolvency, reorganization, moratorium or similar law for the relief of debtors, or any successor statute. 

“Base Rate”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such
Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
 “Borrower” means Tampa
Electric Company, a Florida corporation. 
 “Borrowing” means Loans of the same Type. 

“Capitalization” means, as to Borrower, the sum of Total Debt and Consolidated Shareholders Equity, in each case, as of the
date of any determination thereof. 
 “Capitalized Lease Obligations” means, as to any Person, all rental obligations as
lessee which, under GAAP, are or will be required to be capitalized on the books of such Person, in each case taken at the amount thereof accounted for as indebtedness in accordance with GAAP. 

“Change of Law” means the occurrence after the date of this Agreement or, with respect to any Lender, such later date on
which such Lender becomes a party to this Agreement of: (a) the 

  
 Exhibit A-2 

Table of Contents

 
adoption of any law, rule, regulation or treaty, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority or (c) the
compliance by any Lender (or, for purposes of Section 2.7.4 of the Credit Agreement, by any lending office of such Lender or by such Lender’s holding company, if any) with any request, guideline or directive (whether or not having the
force of law) of any Governmental Authority; provided that, notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder
issued in connection therewith and (ii) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change of Law”, regardless of the date enacted, adopted or issued. 

“Closing Date” means the date (which shall not be later than November 30, 2017) when each of the conditions precedent
listed in Section 3.1 of the Credit Agreement has been satisfied (or waived in accordance with the terms of the Credit Agreement). 

“Code” means the Internal Revenue Code of 1986, as amended. 

“Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans hereunder on the Closing Date.
The amount of each Lender’s Commitment is set forth on Schedule 1, or in the Assignment and Assumption or other instrument entered into pursuant to this Agreement by which such Lender shall have assumed its Commitment, as applicable. 

“Confirmation of Interest Period Selection” has the meaning given in Section 2.1.2.4(b) of the Credit Agreement. 

“Consolidated Shareholders Equity” means, as of the date of any determination, the consolidated net worth of Borrower and
its subsidiaries, and including (without duplication) amounts attributable to (a) junior subordinated debentures that do not contain any scheduled principal payments or prepayments or any mandatory redemptions or mandatory repurchases prior to
the date at least 91 days after the Maturity Date, (b) Hybrid Equity Securities and (c) preferred stock to the extent excluded from Total Debt, minus the value of minority interests in any of Borrower’s subsidiaries, and
disregarding unearned compensation associated with Borrower’s employee stock ownership plan or other benefit plans, foreign currency translation adjustments and other comprehensive income adjustments and amounts attributable to the non-cash effects of pension and other post-retirement benefits, all determined in accordance with GAAP. 

“Contingent Obligation” means, as to any Person, any obligation of such Person guaranteeing any Indebtedness or lease
obligation (each a “primary obligation”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent, (a) to
purchase any such primary obligation or any property constituting direct or indirect security therefor, (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital
or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor or (c) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof;
provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be the
maximum probable liability in respect thereof (assuming such Person is required to perform thereunder) as determined in good faith by Borrower in accordance with GAAP. 

“Credit Agreement” or “Agreement” means the Credit Agreement dated as of November 2, 2017 among
Borrower, the Lenders party hereto and Administrative Agent, to which this Exhibit A is attached. 

  
 Exhibit A-3 

Table of Contents

 “Credit Facility Documents” means, collectively, the Credit Agreement, any
Notes and any other letter agreements or similar documents entered into by Administrative Agent (in its capacity as administrative agent under the Credit Agreement) and Borrower in connection with the transactions contemplated by the Credit Facility
Documents mentioned above. 
 “Default Rate” means (a) (i) with respect to principal of any LIBOR Loan, the interest
rate per annum applicable to such LIBOR Loan, plus 2.00%, (ii) with respect to any Base Rate Loan, the rate applicable to Base Rate Loans, plus 2.00% and (b) with respect to interest, fees and any other amounts, the interest rate
then applicable to Base Rate Loans, plus 2.00%. Interest computed with reference to the Default Rate shall be adjusted and calculated in the same manner as interest computed with reference to the Alternate Base Rate or the LIBO Rate (as
applicable). 
 “Defaulting Lender” means any Lender that (a) has failed, within two Banking Days of the date
required to be funded or paid, to (i) fund any portion of its Loans or (ii) pay over to Administrative Agent or any other Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such
Lender notifies Administrative Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to funding (specifically identified and including the particular default, if any) has not been
satisfied, (b) has notified Borrower or Administrative Agent in writing, or has made a public statement to the effect, that it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or
public statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically identified and including the particular default, if any) to funding a loan under this Agreement cannot be
satisfied) or generally under other agreements in which it commits to extend credit, (c) has failed, within three Banking Days after request by Administrative Agent, acting in good faith, to provide a certification in writing from an authorized
officer of such Lender that it will comply with its obligations to fund prospective Loans under this Agreement, provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon Administrative Agent’s
receipt of such certification in form and substance satisfactory to it, or (d) has (i) become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee, administrator, custodian, assignee for the
benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed for it, (ii) in the good faith determination of Administrative Agent, has taken any action in furtherance of, or indicating its
consent to, approval of, or acquiescence in, any such proceeding or appointment, or (iii) become the subject of a Bail-In Action (each a “bankruptcy event”), provided that a
bankruptcy event shall not result solely by virtue of any ownership interest, or the acquisition of any ownership interest, in such Person by a Governmental Authority or instrumentality thereof, provided, further, that such ownership
interest does not result in or provide such Person with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person (or such Governmental Authority
or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such Person. 

“Dollar” and “$” means United States dollars or such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts in the United States of America. 
 “EEA
Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member
Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of
this definition and is subject to consolidated supervision with its parent. 
 “EEA Member Country” means any of the
member states of the European Union, Iceland, Liechtenstein, and Norway. 

  
 Exhibit A-4 

Table of Contents

 “EEA Resolution Authority” means any public administrative authority or any
person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

“Equity Interests” means (a) shares of capital stock, partnership interests, membership interests in a limited
liability company, beneficial interests in a trust or other equity ownership interests in a Person or (b) any warrants, options or other rights to acquire such shares or interests. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“ERISA Affiliate” means (a) a corporation which is a member of a controlled group of corporations with Borrower within
the meaning of Section 414(b) of the Code, (b) a trade or business (including a sole proprietorship, partnership, trust, estate or corporation) which is under common control with Borrower within the meaning of Section 414(c) of the
Code or Section 4001(b)(1) of ERISA, (c) a member of an affiliated service group with Borrower within the meaning of Section 414(m) of the Code, or (d) an entity treated as under common control with Borrower by reason of
Section 414(o) of the Code. 
 “ERISA Plan” means any employee benefit plan (a) maintained by Borrower or any
ERISA Affiliate, or to which any of them contributes or is obligated to contribute, for its employees and (b) covered by Title IV of ERISA or to which Section 412 of the Code applies. 

“EU Bail-In Legislation Schedule” means the EU
Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“Event of Default” has the meaning given in Section 6.1 of the Credit Agreement. 

“Excluded Taxes” means, with respect to Administrative Agent or any Lender, (a) income or franchise Taxes imposed on
(or measured by) its net income by the United States of America, or by the jurisdiction under the laws of which such recipient is organized, of which it is a resident or in which it has an office or conducts business (other than a business which it
is deemed to conduct solely by reason of such Lender’s executing, delivering or performing its obligations or receiving a payment under, or enforcing, the Credit Agreement or any other Credit Facility Document), (b) any branch profits
Taxes imposed by the United States of America or any similar Tax imposed by any other jurisdiction of which Borrower is organized, is a resident or in which it has an office or conducts business (other than a business which it is deemed to conduct
solely by reason of such Lender’s executing, delivering or performing its obligations or receiving a payment under, or enforcing, this Agreement or any other Credit Facility Document), (c) in the case of any Lender (other than an assignee
pursuant to a request by Borrower under Section 2.9.2 of the Credit Agreement), any U.S. Federal withholding Tax that (i) is in effect and would apply to amounts payable to such Lender at the time such Lender becomes a party to this
Agreement or (ii) is attributable to such Lender’s failure or inability (other than as a result of a Change of Law after the date such Lender becomes a party to this Agreement) to comply with Section 2.5.7 of the Credit Agreement and
(d) any Taxes imposed under FATCA. 
 “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this
Agreement, and any current or future regulations or official interpretations thereof. 
 “Federal Funds Effective Rate”
means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for
such day (or, if such day is not a Banking Day, for the next preceding Banking Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Banking Day, the average (rounded upwards, if necessary, to the
next 1/100 of 1%) of the quotations for such day for such transactions 

  
 Exhibit A-5 

Table of Contents

 
received by Administrative Agent from three Federal funds brokers of recognized standing selected by it; provided that if the Federal Funds Effective Rate shall be less than zero, such
rate shall be deemed to be zero for all purposes of this Agreement. 
 “Federal Reserve Board” means the Board of
Governors of the Federal Reserve System (or any successor thereto). 
 “FERC” means the Federal Energy Regulatory
Commission and its successors. 
 “GAAP” means generally accepted accounting principles in the United States consistently
applied. 
 “Governmental Authority” means any national, state or local government (whether domestic or foreign), any
political subdivision thereof or any other governmental, quasi-governmental, judicial, regulatory, public or statutory instrumentality, authority, body, agency, bureau or entity (including any zoning authority, FERC, the Comptroller of the Currency
or the Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party to the Credit Agreement at law. 

“Governmental Rule” means any law, rule, regulation, ordinance, order, code interpretation, treaty, judgment, decree,
directive, guidelines, policy or similar form of decision of any Governmental Authority. 
 “Granting Lender” has the
meaning given in Section 7.12.2 of the Credit Agreement. 
 “Hedge Transactions” means transactions under any
interest swap agreements, caps, collars or other interest rate hedging mechanisms. 
 “Hybrid Equity Securities” means
securities issued by Borrower or any subsidiary that (a) are classified as possessing a minimum of (i) “intermediate equity content” by S&P and (ii) “Basket C equity credit” by Moody’s and (b) do not contain
any scheduled principal payments or prepayments or any mandatory redemptions or mandatory repurchases prior to the date that is at least 91 days after the Maturity Date. 

“Inchoate Default” means any occurrence, circumstance or event, or any combination thereof, which, with the lapse of time
and/or the giving of notice, would constitute an Event of Default. 
 “Indebtedness” of any Person means, without
duplication, (a) all indebtedness of such Person for borrowed money, (b) the deferred purchase price of assets or services which in accordance with GAAP would be shown on the liability side of the balance sheet of such Person, (c) the
face amount of all letters of credit issued for the account of such Person (other than letters of credit issued to secure a financial obligation of such Person to the extent such obligation is not outstanding at the time) and all unreimbursed drafts
drawn thereunder, (d) all Indebtedness of another Person secured by any Lien on any property owned by such Person, whether or not such Indebtedness has been assumed by such Person, (e) all Capitalized Lease Obligations of such Person,
(f) all obligations of such Person under any subscription or similar agreement, (g) the discounted present value of all obligations of such Person (other than Borrower) payable under agreements for the payment of a specified purchase price
for the purchase and resale of power whether or not delivered or accepted, i.e., take-or-pay and similar obligations, (h) any unfunded or underfunded
obligation subject to the minimum funding standards of Section 412 of the Code of such Person to any “employee pension benefit plan” (as defined in Section 3(2) of ERISA) maintained at any time, or contributed to, by such Person
or any other Person which is under common control (within the meaning of Section 414(b) or (c) of the Code) with such Person, (i) all Contingent Obligations of such Person and (j) all obligations of such Person in respect of
Hedge Transactions; provided, however, that Indebtedness shall specifically exclude accounts payable arising in the ordinary course of business. 

  
 Exhibit A-6 

Table of Contents

 “Indemnified Taxes” means (a) Taxes (other than Excluded Taxes) imposed on
or with respect to any payment made by or on account of any obligation of Borrower under this Agreement or any other Credit Facility Document and (b) to the extent not otherwise described in clause (a) above, Other Taxes. 

“Indemnitees” has the meaning given in Section 5.12.1 of the Credit Agreement. 

“Index Debt” means senior, unsecured, long-term indebtedness for borrowed money of Borrower that is not guaranteed by any
other Person or subject to any other credit enhancement. 
 “Interest Period” means, with respect to any LIBOR Borrowing,
the period commencing on the date of such Borrowing and ending one week thereafter or on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter, as Borrower may elect; provided that
(i) if any Interest Period would end on a day other than a Banking Day, such Interest Period shall be extended to the next succeeding Banking Day unless such next succeeding Banking Day would fall in the next calendar month, in which case such
Interest Period shall end on the next preceding Banking Day, (ii) any monthly Interest Period pertaining to a LIBOR Borrowing that commences on the last Banking Day of a calendar month (or on a day for which there is no numerically
corresponding day in the last calendar month of such Interest Period) shall end on the last Banking Day of the last calendar month of such Interest Period and (iii) no Interest Period for any LIBOR Loan may end after the Maturity Date. For
purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing. 

“Legal Requirements” means, as to any Person, the articles of incorporation, bylaws or other organizational or governing
documents of such Person, and any requirement under a Permit, and any Governmental Rule in each case applicable to or binding upon such Person or any of its properties or to which such Person or any of its property is subject. 

“Lender” or “Lenders” means the Persons listed on Schedule 1 and any other Person that shall have
become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. 

“Lending Office” means, with respect to any Lender, the office designated as such in such Lender’s Administrative
Questionnaire or such other office of such Lender as such Lender may specify from time to time to Administrative Agent and Borrower. 

“LIBO Rate” means, with respect to any LIBOR Loan for any Interest Period (rounded upwards if necessary, to the nearest 1/16th of 1%), the LIBOR Screen Rate as of approximately 11:00 a.m., London time, two Banking Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity
comparable to such Interest Period, provided that if the LIBOR Screen Rate shall not be available for such Interest Period with respect to such LIBOR Borrowing for any reason, then the applicable Reference Bank Rate shall be the LIBO Rate for
such Interest Period for such LIBOR Borrowing. 
 “LIBOR”, when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the LIBO Rate. 

“LIBOR Screen Rate” means the London interbank offered rate administered by the Intercontinental Exchange Benchmark
Administration (or any other Person that takes over the 

  
 Exhibit A-7 

Table of Contents

 
administration of such rate) for dollar deposits for a period equal in length to such Interest Period as displayed on pages LIBOR01 or LIBOR02 of the Reuters screen or, in the event such rate
does not appear on either of such Reuters pages, on any successor or substitute page on such screen that displays such rate, or on the appropriate page of such other information service that publishes such rate as shall be selected by the
Administrative Agent from time to time in its reasonable discretion; provided that, if any LIBOR Screen Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 

“Lien” on any asset means any mortgage, deed of trust, lien, pledge, charge, security interest, or easement or encumbrance
of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected or effective under applicable law, as well as the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention
agreement relating to such asset. 
 “Liquidation Costs” has the meaning given in Section 2.8 of the Credit
Agreement. 
 “Loans” means the loans made by the Lenders to Borrower pursuant to the Credit Agreement. 

“Material Adverse Effect” means (a) a material adverse change in the business, property, results of operations, or
financial condition of Borrower and any Significant Subsidiary thereof, taken as a whole or (b) any event or occurrence of whatever nature which materially and adversely (i) changes Borrower’s ability to perform its obligations under
the Credit Facility Documents to which it is a party or (ii) impairs the legality, validity, binding effect or enforceability of the Credit Facility Documents. 

“Maturity Date” means the date that is 364 days after the Closing Date (or if such date is not a Banking Day, the
immediately preceding Banking Day). 
 “Minimum Notice Period” means (a) at least three Banking Days before the date
of any continuation or conversion of a Loan resulting in whole or in part in one or more LIBOR Loans and (b) before 12:00 noon on the Banking Day of any conversion of a Loan resulting in whole or in part in one or more Base Rate Loans. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Multiemployer Plan” means any ERISA Plan that is a multiemployer plan (as defined in Section 3(37) of ERISA). 

“Non-Recourse Indebtedness” means Indebtedness which is not an obligation of, and is
otherwise without recourse to, the assets or revenues of Borrower or any subsidiary of Borrower. 
 “Note” has the meaning
given in Section 2.1.5 of the Credit Agreement. 
 “Notice of Conversion of Loan Type” has the meaning given in
Section 2.1.3 of the Credit Agreement. 
 “Obligations” means, collectively, all obligations of Borrower to
Administrative Agent and/or the Lenders arising under the Credit Agreement and the other Credit Facility Documents, in each case whether fixed, contingent, now existing or hereafter arising, created, assumed, incurred or acquired, and whether before
or after the occurrence of any Bankruptcy Event and including any obligation or liability in respect of any breach of any representation or warranty and all post-petition interest and funding losses, whether or not allowed as a claim in any
proceeding arising in connection with such an event. 

  
 Exhibit A-8 

Table of Contents

 “OFAC” means the Office of Foreign Assets Control of the United States
Department of the Treasury. 
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other
similar excise or property taxes, charges or similar levies arising from any payment made under this Agreement or any other Credit Facility Document from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement or any
other Credit Facility Document. 
 “Participant” has the meaning given in Section 7.12.1 of the Credit Agreement.

 “Participant Register” has the meaning given in Section 7.12.1 of the Credit Agreement. 

“Patriot Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, Pub. L. 107-56, signed into law October 26, 2001. 

“PBGC” means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA. 

“Permit” means any action, approval, consent, waiver, exemption, variance, franchise, order, permit, authorization, right or
license of or from a Governmental Authority. 
 “Person” means any natural person, corporation, partnership, limited
liability company, firm, association, Governmental Authority, trust, trustee or any other entity whether acting in an individual, fiduciary or other capacity. 

“Prime Rate” means the rate of interest per annum publicly announced from time to time by Administrative Agent as its prime
rate in effect at its principal office in New York City (the Prime Rate not being intended to be the lowest rate of interest charged by Administrative Agent in connection with extensions of credit to debtors). 

“Prohibited Transaction” means any transaction set forth in Section 406 of ERISA or Section 4975 of the Code which
is not exempt under Section 408 of ERISA or Section 4975(d) of the Code. 
 “Proportionate Share” means, with
respect to each Lender (i) at any time prior to the Closing Date, the percentage of the Commitments represented by such Lender’s Commitment and (ii) at any time after the Closing Date, the percentage of the aggregate amount of Loans
represented by such Lender’s Loans; provided that in the case of Section 2.11 when a Defaulting Lender shall exist, “Proportionate Share” shall mean the percentage of the Commitments or the aggregate amount of Loans (disregarding
any Defaulting Lender’s Commitment or Loans) represented by such Lender’s Commitment or Loans. 
 “Reference
Bank” means the three major banks in the London market that consent to provide rates and are selected by the Administrative Agent in consultation with Borrower. 

“Reference Bank Rate” means the arithmetic means of the rates (rounded upwards to four decimal places) supplied to the
Administrative Agent at its request by the Reference Banks as of approximately 11:00 am, London Time, two Banking Days prior to the commencement of such Interest Period at which the Administrative Agent could borrow funds in the London interbank
market for the relevant period, provided that if any Reference Bank Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement. 

“Register” has the meaning given it in Section 7.13.2 of the Credit Agreement. 

  
 Exhibit A-9 

Table of Contents

 “Regulation D” means Regulation D of the Federal Reserve Board as in
effect from time to time. 
 “Regulation T” means Regulation T of the Federal Reserve Board as in effect from time to
time. 
 “Regulation U” means Regulation U of the Federal Reserve Board as in effect from time to time. 

“Regulation X” means Regulation X of the Federal Reserve Board as in effect from time to time. 

“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors,
officers, employees, agents and advisors of such Person and such Person’s Affiliates. 
 “Reportable Event” means a
reportable event as defined in Section 4043 of ERISA with respect to an ERISA Plan. 
 “Required Lenders” means, at
any time, Lenders holding in excess of 50% of the Proportionate Shares. 
 “Reserve Requirement” means, for LIBOR Loans,
the maximum rate (expressed as a percentage) at which reserves (including any marginal, supplemental or emergency reserves) are required to be maintained during the Interest Period therefor under Regulation D by member banks of the Federal Reserve
System in New York City with deposits exceeding $1,000,000,000 against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of the foregoing, the Reserve Requirement shall reflect any
other reserves required to be maintained by such member banks by reason of any Change of Law against (i) any category of liabilities which includes deposits by reference to which the LIBO Rate or LIBOR Loans is to be determined, (ii) any
category of liabilities or extensions of credit or other assets which include LIBOR Loans or (iii) any category of liabilities or extensions of credit which are considered irrevocable commitments to lend. 

“Responsible Officer” means, as to any Person, its president, chief executive officer, any vice president, treasurer, or
secretary or any managing general partner or manager or managing member of a limited liability company (or any of the preceding with regard to such managing general partner, manager or managing member). 

“S&P” means Standard & Poor’s Financial Services LLC. 

“Sanctions” has the meaning given in Section 4.14.2(a). 

“Significant Subsidiary” means any subsidiary of Borrower formed or acquired after the Closing Date the total assets (after
intercompany eliminations) of which exceed 10% of the total assets of Borrower and its subsidiaries (taken as a whole). 

“Solvent” means, when used with respect to any Person, as of any date of determination, (a) the amount of the
“present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such date, as such quoted terms are determined in accordance
with applicable federal and state laws governing determinations of the insolvency of debtors, (b) the present fair saleable value of the assets of such Person will, as of such date, be greater than the amount that will be required to pay the
liability of such person on its debts as such debts become absolute and matured, (c) such Person will not have, as of such date, an unreasonably small amount of capital with which to conduct its business, (d) such Person will be able to

  
 Exhibit A-10 

Table of Contents

 
pay its debts as they mature, and (e) such Person is not insolvent within the meaning of any applicable Legal Requirements. For purposes of this definition, (i) “debt” means
liability on a “claim”, and (ii) “claim” means any (x) right to payment, whether or not such a right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,
equitable, secured or unsecured or (y) right to an equitable remedy for breach of performance if such breach gives rise to a right to payment, whether or not such right to an equitable remedy is reduced to judgment, fixed, contingent, matured
or unmatured, disputed, undisputed, secured or unsecured. 
 “SPC” has the meaning given in Section 7.12.2 of the
Credit Agreement. 
 “Subject Claims” has the meaning given in Section 5.12.1 of the Credit Agreement. 

“subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited
liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with
GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the
ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise controlled, by the parent or one or more
subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. Unless otherwise specified, references herein to a “subsidiary” refer to a subsidiary of Borrower. 

“Syndication Agents” means entities listed as Syndication Agents on the cover page of the Credit Agreement. 

“Taxes” means any present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto. 
 “TECO” means TECO Energy, Inc., a Florida corporation. 

“Total Debt” means, without duplication, Indebtedness of Borrower and its subsidiaries (taken as a whole) determined on a
consolidated basis in accordance with GAAP outstanding at the date of any determination thereof, without regard to the effects of FASB ASC 805 and FASB ASC 825, but expressly excluding (a) Non-Recourse
Indebtedness of Borrower and its subsidiaries, (b) junior subordinated debentures issued by Borrower and its subsidiaries that do not contain any scheduled principal payments or prepayments or any mandatory redemptions or mandatory repurchases
prior to the date at least 91 days after the Maturity Date, (c) Hybrid Equity Securities and (d) preferred stock of Borrower and its subsidiaries in an amount not to exceed 10% of Borrower’s Capitalization on such date. 

“Type” means the type of a Loan, whether a Base Rate Loan or LIBOR Loan. 

“Wells Fargo” means Wells Fargo Bank, National Association. 

“WFS” means Wells Fargo Securities, LLC. 

“Withholding Agent” has the meaning given in Section 2.5.4.4 of the Credit Agreement. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers
of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 

  
 Exhibit A-11 

Table of Contents

 RULES OF INTERPRETATION 

1.    The singular includes the plural and the plural includes the singular. 

2.    “or” is not exclusive. 

3.    A reference to a Governmental Rule or Legal Requirement includes any amendment or modification to such Governmental
Rule or Legal Requirement, and all regulations, rulings and other Governmental Rules or Legal Requirement promulgated under such Governmental Rule. 

4.    A reference to a Person includes its permitted successors and permitted assigns. 

5.    Accounting terms have the meanings assigned to them by GAAP, as applied by the accounting entity to which they
refer. 
 6.    The words “include,” “includes” and “including” are not limiting. 

7.    A reference in a document to an Article, Section, Exhibit, Schedule, Annex, Appendix or Attachment is to the
Article, Section, Exhibit, Schedule, Annex, Appendix or Attachment of such document unless otherwise indicated. Exhibits, Schedules, Annexes, Appendices or Attachments to any document shall be deemed incorporated by reference in such document. 

8.    References to any document, instrument or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or agreements issued or executed in replacement thereof, and (c) shall mean such document, instrument or agreement, or replacement or predecessor thereto, as amended,
modified and supplemented from time to time and in effect at any given time. 
 9.    The words “hereof,”
“herein” and “hereunder” and words of similar import when used in any document shall refer to such document as a whole and not to any particular provision of such document. 

10.    References to “days” shall mean calendar days, unless the term “Banking Days” shall be used.
References to a time of day shall mean such time in New York, New York, unless otherwise specified. 
 11.    The
Credit Facility Documents are the result of negotiations between, and have been reviewed by Borrower, Administrative Agent, each Lender and their respective counsel. Accordingly, the Credit Facility Documents shall be deemed to be the product of all
parties thereto, and no ambiguity shall be construed in favor of or against Borrower, Administrative Agent or any Lender solely as a result of any such party having drafted or proposed the ambiguous provision. 

  
 Exhibit A-12 

Table of Contents

 EXHIBIT B 

to the Credit Agreement 

ASSIGNMENT AND ASSUMPTION 
 This
Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name
of Assignee] (the “Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (as amended, the “Credit Agreement”), receipt of a copy
of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full. 
 For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby
irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by Administrative Agent as contemplated below (i) all of the
Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of
such outstanding rights and obligations of the Assignor under the facility identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its
capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based
on or related to any of the foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as
expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 
  

							
	1.        	  	Assignor:	 	 	 	
				
	2.	  	Assignee:	 	 	 	
			
		  		 	[and is an Affiliate/Approved Fund of [identify Lender]1]
				
	3.	  	Borrower(s):	 	 	 	
			
	4.	  	Administrative Agent:  	 	 Wells Fargo Bank, National Association, as Administrative Agent under the Credit
Agreement

			
	5.	  	Credit Agreement:	 	Credit Agreement dated as of November 2, 2017 among Tampa Electric Company, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent
				
	6.	  	Assigned Interest:	 		 	

  

	1 	Select as applicable. 

  
 Exhibit B-1 

Table of Contents

					
	 Aggregate Amount of

Commitment/Loans for
 all
Lenders
	  	 Amount of

Commitment/Loans
 Assigned
	  	 Percentage Assigned of

Commitment/Loans2

			
	$	  	$	  	%
			
	$	  	$	  	%
			
	$	  	$	  	%

 Effective Date:
                             , 201   [TO BE INSERTED BY
ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  

	2 	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder. 

  
 Exhibit B-2 

Table of Contents

 The terms set forth in this Assignment and Assumption are hereby agreed to: 

 

			
	ASSIGNOR
	
	[NAME OF ASSIGNOR]
		
	By:	 	 
		 	Title:
	
	ASSIGNEE
	
	[NAME OF ASSIGNEE]
		
	By:	 	 
		 	Title:

  
 Exhibit B-3 

Table of Contents

			
	Consented to and Accepted:
	
	[WELLS FARGO BANK, NATIONAL ASSOCIATION as Administrative Agent
		
	By	 	 
		 	Title:]3
	
	Consented to:
	
	[TAMPA ELECTRIC COMPANY
		
	By	 	 
		 	Title:]4

  

	3 	To be added only if the consent of Administrative Agent is required by the terms of the Credit Agreement. 

	4 	To be added only if the consent of Borrower is required by the terms of the Credit Agreement. 

  
 Exhibit B-4 

Table of Contents

 ANNEX 1 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ASSUMPTION 

1.    Representations and Warranties. 

1.1    Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial
owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any
other Credit Facility Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other Credit Facility Document, (iii) the financial condition of Borrower, any of its
subsidiaries or Affiliates or any other Person obligated in respect of the Credit Agreement or any other Credit Facility Document or (iv) the performance or observance by Borrower, any of its subsidiaries or Affiliates or any other Person of
any of their respective obligations under the Credit Agreement or any other Credit Facility Document. 

1.2.    Assignee. The Assignee (a) represents and warrants that (i) it has full power and
authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement or any other Credit Facility Document,
(ii) it satisfies the requirements, if any, specified in the Credit Agreement or any other Credit Facility Document that are required to be satisfied by it in order to acquire the Assigned Interest and become a Lender, (iii) from and after
the Effective Date, it shall be bound by the provisions of the Credit Agreement or any other Credit Facility Document as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
has received a copy of the Credit Agreement or any other Credit Facility Document, together with copies of the most recent financial statements delivered pursuant to Section 5.9 thereof, as applicable, and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without
reliance on Administrative Agent or any other Lender, and (v) if it is a Lender not formed under the laws of the United States of America or any state thereof, attached to the Assignment and Assumption is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement or any other Credit Facility Document, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on Administrative Agent,
the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or any other Credit Facility
Document, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement or any other Credit Facility Document are required to be performed by it as a Lender. 

2.    Payments. From and after the Effective Date, Administrative Agent shall make all payments in respect of
the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have accrued from and after the
Effective Date. 
 3.    General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed
counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of New York. 

  
 Annex 1-1 to Exhibit B

Table of Contents

 EXHIBIT C 

to the Credit Agreement 

FORM OF NOTE 
  

			
	$                            	  	New York, New York
	Note No.             	  	                    , 201  

 For value received, the undersigned TAMPA ELECTRIC COMPANY, a Florida corporation
(“Borrower”), promises to pay to
                                      
(“Lender”), at the office of                located at
                                         
   , in lawful money of the United States of America and in immediately available funds, the principal amount of
                               DOLLARS
($                            ), or if less, the aggregate unpaid and outstanding principal amount of
Loans made by Lender to Borrower pursuant to that certain Credit Agreement dated as of November 2, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among Borrower, the
lenders party thereto (the “Lenders”) and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders (“Administrative Agent”), and all other amounts owed by Borrower to Lender hereunder. 

This is one of the Notes referred to in the Credit Agreement and is entitled to the benefits thereof and is subject to all terms, provisions
and conditions thereof. Capitalized terms used and not defined herein shall have the meanings set forth in the Credit Agreement. 
 The
principal amount hereof is payable in accordance with the Credit Agreement, and such principal amount may be prepaid solely in accordance with the Credit Agreement. 

Borrower further agrees to pay, in lawful money of the United States of America and in immediately available funds, interest from the date
hereof on the unpaid and outstanding principal amount hereof until such unpaid and outstanding principal amount shall become due and payable (whether at stated maturity, by acceleration or otherwise) at the rates of interest and at the times set
forth in the Credit Agreement and Borrower agrees to pay other fees and costs as stated in the Credit Agreement. 
 If any payment on this
Note becomes due and payable on a date which is not a Banking Day, such payment shall be made on the first succeeding, or next preceding, Banking Day, in accordance with the terms of the Credit Agreement. 

All Loans made by Lender pursuant to the Credit Agreement and other Credit Facility Documents, and all payments and prepayments made on
account of the principal balance hereof shall be recorded by Lender on the grid attached hereto, provided that failure to make such a notation shall not affect or diminish Borrower’s obligation to repay all amounts due on this Note as
and when due. 
 Upon the occurrence and during the continuation of any one or more Events of Default, all amounts then remaining unpaid on this Note may
become or be declared to be immediately due and payable as provided in the Credit Agreement and other Credit Facility Documents. 

Borrower agrees to pay costs and expenses, including without limitation attorneys’ fees, as set forth in Section 8.4 of the Credit
Agreement. 
 This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 Exhibit C-1 

Table of Contents

 
			
	TAMPA ELECTRIC COMPANY
		
	By:	 	 
		 	Name:
		 	Title:

  
 Exhibit C-2 

Table of Contents

 EXHIBIT D 

to the Credit Agreement 

[Reserved] 

  
 Exhibit D-1 

Table of Contents

 EXHIBIT E-1 

to the Credit Agreement 

[Reserved] 

  
 Exhibit E-1-1 

Table of Contents

 EXHIBIT E-2 

to the Credit Agreement 

FORM OF NOTICE OF CONVERSION OF LOAN TYPE 

(Delivered pursuant to Section 2.1.3) 

[Date] 
 Wells Fargo Bank, National Association,

   as Administrative Agent for the Lenders 
 with
copy to: 
 Re: Tampa Electric Company Credit Agreement: Notice of Conversion of Loan Type 

Reference is hereby made to that certain Credit Agreement dated as of November 2, 2017 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among Tampa Electric Company, a Florida corporation (“Borrower”), the lenders party thereto (the “Lenders”) and Wells Fargo Bank, National Association, as
Administrative Agent for the Lenders (“Administrative Agent”). All capitalized terms used herein shall have the respective meanings specified in Exhibit A to the Credit Agreement unless otherwise defined herein or unless the
context requires otherwise. 
 Pursuant to Section 2.1.3 of the Credit Agreement, Borrower hereby requests conversion of the following
Loans as set forth below [include only those which are applicable]: 
  

							
		 	1.	 	Conversion of Base Rate Loans to LIBOR Loans:	  	
				
		 		 	 Base Rate Loans in the following amount:
 to
be converted to LIBOR Loans as follows:
	  	$                    
				
		 		 	LIBOR Loan to expire                     ,         :	  	$                    
				
		 		 	LIBOR Loan to expire                     ,         :	  	$                    
				
		 	2.	 	Conversion of LIBOR Loans to Base Rate Loans:	  	
				
		 		 	 LIBOR Loans in the following amount:
 to be
converted to Base Rate Loans.
	  	$                    

 The effective date of the conversion shall be         ,
         which is a Banking Day and which shall be the first day after the last day of an Interest Period if converting from LIBOR Loans. 

  
 Exhibit E-2-1 

Table of Contents

 IN WITNESS WHEREOF, Borrower has executed this Notice of Conversion of Loan Type on the date set
forth above. 
  

			
	TAMPA ELECTRIC COMPANY
		
	By:	 	 
		 	 Name:

Title:

 The undersigned acknowledges 

receipt of a copy of 
 this Notice of Conversion of Loan Type:

  

									
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

  as Administrative Agent
	 		 	Date:                 ,             
					
	By:	 	 	 		 		 	
		 	 Name:
	 		 		 	
		 	 Title:
	 		 		 	

  
 Exhibit E-2-2 

Table of Contents

 EXHIBIT E-3 

to the Credit Agreement 

FORM OF CONFIRMATION OF INTEREST PERIOD SELECTION 

(Delivered pursuant to Section 2.1.2.4(b)) 

[Date] 
 Wells Fargo Bank, National Association,

   as Administrative Agent for the Lenders 
 with
copy to: 
 Re: Tampa Electric Company Credit Agreement: Confirmation of Interest Period Selection 

This Confirmation of Interest Period Selection is delivered to you pursuant to Section 2.1.2.4(b) of the Credit Agreement dated as of
November 2, 2017 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Tampa Electric Company, a Florida corporation (“Borrower”), the lenders party thereto (the
“Lenders”) and Wells Fargo Bank, National Association, as Administrative Agent for the Lenders (“Administrative Agent”). All capitalized terms used herein shall have the respective meanings specified in Exhibit A to
the Credit Agreement unless otherwise defined herein or unless the context requires otherwise. 
 This Confirmation of Interest Period
Selection relates to $                      of the LIBOR Loans with an Interest Period ending on
                    . This Confirmation of Interest Period Selection constitutes a confirmation that effective
                     (which shall be the last day of an Interest Period): 

The requested Interest Period for
                     of such LIBOR Loans shall be [one week][     months]. 

This notice shall be effective only if delivered to Administrative Agent as a Confirmation of Interest Period Selection made pursuant to
Section 2.1.2.4(b) of the Credit Agreement. 
 The undersigned confirms and certifies to each Lender that as of the date of this
Confirmation of Interest Period Selection, no Event of Default or Inchoate Default exists under the Credit Agreement. 

  
 Exhibit E-3-1 

Table of Contents

 
			
	TAMPA ELECTRIC COMPANY
		
	By:	 	 
		 	 Name:

Title:

 The undersigned acknowledges receipt 

of a copy of this Confirmation of 
 Interest Period Selection:

  

									
	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent
	 		 	Date:                 ,             
					
	By:	 	 	 		 		 	
		 	 Name:
	 		 		 	
		 	 Title:
	 		 		 	

  
 Exhibit E-3-2 

Table of Contents

 EXHIBIT E-4 

to the Credit Agreement 

[Reserved] 

  
 Exhibit E-4-1 

Table of Contents

 EXHIBIT F 

to the Credit Agreement 

[Reserved] 

  
 Exhibit F-1 

Table of Contents

 EXHIBIT G 

to the Credit Agreement 

BORROWER’S CLOSING CERTIFICATE 

Pursuant to Section 3.1.7 of the Credit Agreement (as defined below), the undersigned hereby certifies on this 2nd day of November, 2017
to Wells Fargo Bank, National Association, as administrative agent (“Administrative Agent”) for the Lenders under that certain Credit Agreement dated as of November 2, 2017 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”) among Tampa Electric Company, a Florida corporation (“Borrower”), the lenders party thereto (the “Lenders”) and Administrative Agent, that: 

1.    Borrower is not or, but for the passage of time or the giving of notice or both will not be, in breach of any
material obligation thereunder which is reasonably expected to have a Material Adverse Effect. 
 2.    Each
representation and warranty made in Article IV of the Credit Agreement is true and correct as of the Closing Date (unless such representation or warranty expressly relates to another time). 

3.    There exists no Event of Default or Inchoate Default as of the Closing Date. 

4.    The conditions precedent set forth in Section 3.1 of the Credit Agreement have been satisfied or have been
waived in accordance with Section 7.9 of the Credit Agreement. 
 All capitalized terms used herein which are defined in the Credit Agreement shall
have the meaning given to them in Exhibit A to the Credit Agreement. 
 [SIGNATURE PAGES FOLLOW] 

  
 Exhibit G-1 

Table of Contents

 IN WITNESS WHEREOF, Borrower has executed this Certificate on the date set forth above. 

 

			
	TAMPA ELECTRIC COMPANY
		
	By:	 	 
		 	 Name:

Title:

  
 Exhibit G-2 

Table of Contents

 EXHIBIT H-1 

to the Credit Agreement 

[                 ,
        ] 
 Wells Fargo Bank, National Association, as Administrative Agent for 

the Lenders under the Credit Agreement described below, 
 and the
Lenders under such Credit Agreement 
 1525 West W.T. Harris Boulevard 

Charlotte, NC 28262 
  

	 	Re:	Credit Agreement for Tampa Electric Company 

 Ladies and Gentlemen: 

As Associate General Counsel of TECO Services, Inc., a Florida corporation and wholly owned subsidiary of TECO Energy, Inc., a Florida
corporation, I have acted as counsel to Tampa Electric Company, a Florida corporation (the “Company”) in connection with the Credit Agreement dated as of the date hereof among the Company, Wells Fargo Bank, National Association, as
Administrative Agent (the “Administrative Agent”) and the Lenders party thereto (the “Lenders”) (the “Credit Agreement”). This opinion is being delivered pursuant to Section 3.1.4 of the Credit Agreement.
Capitalized terms not otherwise defined in this opinion that are defined in the Credit Agreement have the meanings assigned to them in the Credit Agreement. 

In rendering the opinions set forth herein, I, or attorneys under my supervision, have examined and relied on originals or copies of the
Credit Agreement and the form of Notes to be issued by the Company pursuant to Section 2.1.5 thereunder (collectively, the “Credit Documents”) and the governing documents, and such other documents and made such examination of law as I
have deemed appropriate to give the opinions set forth below. I have relied, without independent verification, upon certificates of public officials and, as to matters of fact material to my opinions, on representations made in the Credit Agreement
and certificates and other inquiries of officers of the Company. When used in this opinion, the phrase “to my knowledge” or equivalent words with respect to a matter means that nothing has come to my attention in the course of my
representation of the Company which would lead me to question such matter but that, except as expressly stated, I have not made any special investigation with respect thereto. 

In my examination I have assumed the genuineness of all signatures (other than signatures made on behalf of the Company), including
endorsements, the legal capacity of natural persons, the authenticity of all documents submitted to me as originals, the conformity to original documents of all documents submitted to me as certified or photostatic copies and the authenticity of the
originals of such copies. Also, with your approval, I have relied as to certain legal matters on advice of other lawyers employed by TECO Services, Inc. who are more familiar with such matters. This opinion speaks only as of its date, and I
undertake no obligation to update it for any subsequent events or legal developments. 
 I am a member of the Florida Bar, and I express no
opinion as to the laws of any other jurisdiction other than the applicable laws of the State of Florida. I do not express any opinion concerning matters governed by any securities laws of the State of Florida. 

Based upon and subject to the foregoing and subject to the limitations, qualifications, exceptions and assumptions set forth herein, I am of
the opinion that: 
 1.    The Company is validly existing as a corporation in good standing under the laws of the State
of Florida, and has the corporate power to execute and deliver the Credit Documents and to perform its obligations thereunder. 

  
 Exhibit H-1-1 

Table of Contents

 2.    The Company has duly authorized the Credit Documents to which it is a
party and has executed and delivered the Credit Agreement. 
 3.    All consents, governmental approvals, licenses or
authorizations (including from the Florida Public Service Commission) required to be obtained by the Company before the date hereof for its execution, delivery and performance of the Credit Documents have been obtained and are in full force and
effect. To my knowledge, there is no proceeding pending or threatened that seeks, or may reasonably be expected, to rescind, terminate, modify, suspend, or withhold any of the consents, approvals, licenses, or authorizations referred to in this
paragraph. 
 I also advise you that, to my knowledge, there is no action, suit, or other proceeding at law or in equity, or any arbitration
proceeding, by or before any governmental agency or arbitrator now pending or overtly threatened in writing against the Company challenging the validity or enforceability of, or seeking to enjoin the performance of the Credit Documents. 

This opinion is furnished to you as Administrative Agent and to the Lenders who may become parties to the Credit Agreement in connection with
the transaction described above and may not be relied on without my prior written consent for any other purpose or by anyone else. I consent to reliance on the opinions expressed herein, solely in connection with the Credit Documents, by any party
that becomes a “Lender” or “Participant” under the Credit Agreement after the date of this opinion in accordance with the provisions of the Credit Agreement as if this opinion were addressed and delivered to such additional
Lender or Participant on the date hereof, on the condition and understanding that (a) any such reliance must be actual and reasonable under the circumstances existing at the time such Lender or Participant becomes a Lender or Participant,
including any circumstances relating to changes in law, facts or any other developments known to or reasonably knowable by such Lender or Participant at such time, (b) our consent to such reliance shall not constitute a reissuance of the
opinions expressed herein or otherwise extend any statute of limitations period applicable hereto on the date hereof, and (c) in no event shall any such Lender or Participant have any greater rights with respect hereto than the original
addressees of this letter on the date hereof or than its assignor. 
 Very truly yours, 

  
 Exhibit H-1-2 

Table of Contents

 EXHIBIT H-2 

to the Credit Agreement 

[                     ,
        ] 
 Wells Fargo Bank, National Association, as Administrative Agent for 

the Lenders under the Credit Agreement described below, 
 and the
Lenders under such Credit Agreement 
 1525 West W.T. Harris Boulevard 

Charlotte, NC 28262 
  

	 	Re:	Credit Agreement for Tampa Electric Company 

 Ladies and Gentlemen: 

We are furnishing this opinion to you pursuant to Section 3.1.4 of the Credit Agreement (the “Credit Agreement”) dated as of the
date hereof, among Tampa Electric Company (the “Company”), as borrower, Wells Fargo Bank, National Association, as Administrative Agent (the “Administrative Agent”), and the Lenders party thereto (the “Lenders”).
Capitalized terms used but not otherwise defined in this opinion have the meanings as assigned to them in the Credit Agreement. 
 We have
acted as counsel to the Company in connection with the Credit Agreement. We have examined the Credit Agreement and the form of Notes to be issued by the Company pursuant to Section 2.1.5 of the Credit Agreement (collectively, the “Credit
Documents”). We have also examined such other documents and certificates as we consider necessary to render this opinion. As to various questions of fact material to our opinion, we have relied, without independent verification, upon the
representations made in or pursuant to the Credit Agreement and upon certificates of officers of the Company. We have also relied upon the certificates of public officials. We have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies. We also have assumed that each Credit Document to which the Administrative Agent, or any of the Lenders is a party
constitutes its valid and binding obligation. 
 The opinion rendered herein is limited to the federal laws of the United States, the laws
of the State of Florida, and the laws of the State of New York , provided, however, that the opinions expressed herein are based upon a review of those laws, statutes and regulations that, in our experience, are generally recognized as applicable to
the transactions contemplated in the Credit Documents, and in any event, shall not include (and we express no opinion as to) any tax, antitrust or unfair competition laws or regulations, or any laws, regulations, executive orders or government
programs designed to combat terrorism, money laundering or racketeering, or any local or state laws governing licenses, permits and approvals necessary for the conduct of the Company’s business, or, except as set forth in paragraph 5 below, any
state or federal securities laws. 
 References in this opinion to matters known to us mean the actual knowledge of the lawyers in this firm
responsible for preparing this opinion after consultation with such other lawyers in the firm and review of such documents in our possession as they considered appropriate. 

Based on the foregoing and subject to the additional qualifications set forth below, we are of opinion that: 

1.    The Company is validly existing as a corporation in good standing under the laws of the State of Florida and has the
corporate power to enter into and perform its obligations under the Credit Documents. 

  
 Exhibit H-2-1 

Table of Contents

 2.    The Credit Agreement has been duly authorized, executed and delivered
by the Company and constitutes its valid and binding obligations enforceable against it in accordance with their terms. The Notes have been duly authorized by the Company, and each Note, when executed and delivered for value, will constitute its
valid and binding obligation enforceable against the Company in accordance with its terms. 
 3.    No filing with, or
authorization, approval, consent, license, order, registration, qualification or decree of, any court or governmental authority or agency is necessary or required under any New York or federal law of the United States in connection with the due
authorization, execution, delivery and performance of the Credit Documents by the Company. 
 4.    The execution and
delivery of the Credit Documents by the Company do not and the performance by it of its obligations will not (i) constitute a breach of, or default under or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company pursuant to, any written contract, indenture, mortgage, deed of trust, loan or credit agreement, note, lease or any other agreement or instrument that is listed as an exhibit to the Company’s Form 10-K for the year ended December 31, 2016, (ii) violate the charter or by-laws of the Company, (iii) violate any applicable New York or federal law,
statute, rule or regulation (including, without limitation, Regulations T, U or X of the Board of Governors of the Federal Reserve System) or (iv) violate any judgment, order, writ or decree applicable to the Company and known to us.

 5.    The Company is not an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended. 
 Our opinions above are subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other similar laws of general application affecting the rights and remedies of creditors and to general principles of equity. 

We express no opinion as to: 
  

	 	(i)	the enforceability of any provision of the Credit Documents that increases the rate of interest upon default or imposes a late fee to the extent either is determined to be a penalty; 

 

	 	(ii)	the enforceability of any provision of the Credit Documents purporting to grant a party conclusive rights of determination; 

  

	 	(iii)	the effect of any provision of the Credit Documents that purports to grant rights of set-off or similar rights (a) to any person other than the particular Lender,
(b) other than in accordance with applicable law, (c) to the extent a Lender or other person is authorized to set off against funds on deposit in the Company’s accounts that were accepted by such Lender or other person with the intent
to apply such funds to a preexisting claim rather than to hold the funds subject to withdrawals in the ordinary course, (d) to the extent that the funds on deposit in said accounts are in any manner special accounts, which by the express terms
on which they are created, are made subject to the rights of a third party, or (e) to the extent that a Lender or any other person is entitled to exercise rights of set-off or similar rights with respect
to accounts at any other institution; 

  

	 	(iv)	the grant of powers of attorney to the extent they are against public policy; 

  

	 	(v)	any exculpation or indemnification to the extent they are against public policy; 

  

	 	(vi)	the enforceability of any grant of exclusive jurisdiction; and 

  

	 	(vii)	the enforceability of Section 8.20 of the Credit Agreement. 

  
 Exhibit H-2-2 

Table of Contents

 Our opinion is also subject to the applicability of forum
non-conveniens doctrine or any other doctrine limiting the availability of the courts in a particular jurisdiction as a forum for the resolution of disputes not having a sufficient nexus to such jurisdiction.

 We also advise you that, to our knowledge, there is no action, suit or other proceeding at law or in equity, or any arbitration
proceeding, by or before any governmental agency or arbitrator now pending or overtly threatened in writing against the Company challenging the validity or enforceability of, or seeking to enjoin the performance of any of the Credit Documents. 

This opinion is being furnished solely to the addressees hereof and to the Lenders who may become parties to the Credit Agreement in
connection with the transaction described above and may not be relied on without our prior written consent for any other purpose or by anyone else. This opinion speaks only as of its date and we undertake no obligation to update it for subsequent
events or legal developments. We consent to reliance on the opinions expressed herein, solely in connection with the Credit Documents, by any party that becomes a “Lender” or “Participant” under the Credit Agreement after the
date of this opinion in accordance with the provisions of the Credit Agreement as if this opinion were addressed and delivered to such additional Lender or Participant on the date hereof, on the condition and understanding that (a) any such
reliance must be actual and reasonable under the circumstances existing at the time such Lender or Participant becomes a Lender or Participant, including any circumstances relating to changes in law, facts or any other developments known to or
reasonably knowable by such Lender or Participant at such time, (b) our consent to such reliance shall not constitute a reissuance of the opinions expressed herein or otherwise extend any statute of limitations period applicable hereto on the
date hereof, and (c) in no event shall any such Lender or Participant have any greater rights with respect hereto than the original addressees of this letter on the date hereof or than its assignor. 

Very truly yours, 

LOCKE LORD LLP 

  
 Exhibit H-2-3 

Table of Contents

 EXHIBIT H-3 

to the Credit Agreement 

[                   
  ], 2017 
 To the Lenders party to the 
 Credit
Agreement referred to below and 
 Wells Fargo Bank, National Association, as Administrative Agent 

Ladies and Gentlemen: 
 We have acted as special
New York counsel to Wells Fargo Bank, National Association (“Wells Fargo”), as Administrative Agent, in connection with the Credit Agreement dated as of November 2, 2017 (the “Credit Agreement”) among Tampa Electric Company
(the “Borrower”), the lenders party thereto and the Administrative Agent. Except as otherwise defined herein, terms defined in the Credit Agreement have the same defined meanings when used herein. 

In rendering the opinions expressed below, we have examined an executed counterpart of the Credit Agreement. In our examination, we have
assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with authentic original documents of all documents submitted to us as copies. When relevant facts were not independently
established, we have relied upon representations made in or pursuant to the Credit Agreement. We have also assumed that the Credit Agreement has been duly authorized, executed and delivered by, and (except, to the extent set forth below, as to the
Borrower) constitutes legal, valid, binding and enforceable obligations of, all of the parties thereto, that all signatories thereto have been duly authorized and that all such parties are duly organized and validly existing and have the power and
authority (corporate or other) to execute, deliver and perform the same. In addition, we have assumed that (i) all conditions required for the effectiveness of the Credit Agreement pursuant to Section 3.1 thereof shall have been satisfied
and (ii) notification of the Closing Date pursuant to said Section 3.1 is being given by the Administrative Agent contemporaneously with the delivery of this opinion. 

Based upon and subject to the foregoing and subject also to the comments and qualifications set forth below, and having considered such
questions of law as we have deemed necessary as a basis for the opinions expressed below, we are of the opinion that the Credit Agreement constitutes a legal, valid and binding obligation of the Borrower, enforceable against it in accordance with
its terms, except as may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or other similar laws relating to or affecting the rights of creditors generally, and except as the enforceability of the
Credit Agreement is subject to the application of general principles of equity (regardless of whether considered in a proceeding in equity or at law), including without limitation (i) the possible unavailability of specific performance,
injunctive relief or any other equitable remedy and (ii) concepts of materiality, reasonableness, good faith and fair dealing. 
 The
foregoing opinions are also subject to the following comments and qualifications: 
 (A) The enforceability of provisions in
the Credit Agreement to the effect that terms may not be waived or modified except in writing may be limited under certain circumstances. 

(B) We express no opinion as to any provision, however expressed, providing for (i) a limitation on reliance, exculpation,
disclaimer, limitation or extension of liability, limitation or exclusion of remedies, contribution, indemnification, or waiver, or (ii) the shortening or lengthening the period suit otherwise could be brought under the applicable statute of
limitations. 

  
 Exhibit H-3-1 

Table of Contents

 (C) We express no opinion as to (i) the effect of the laws of any
jurisdiction in which any Lender is located (other than New York) that limits the interest, fees or other charges it may impose for the loan or use of money or other credit, (ii) the last sentence of Section 2.6.2 of the Credit
Agreement, (iii) Section 8.2 of the Credit Agreement, (iv) the first sentence of Section 8.13 of the Credit Agreement, insofar as such sentence relates to the subject-matter jurisdiction of the United States District Court for
the Southern District of New York to adjudicate any controversy related to the Credit Agreement or (iv) the waiver of inconvenient forum set forth in the last sentence of Section 8.13 of the Credit Agreement with respect to
proceedings in the United States District Court for the Southern District of New York. 
 The foregoing opinions are limited to matters
involving the Federal laws of the United States and the law of the State of New York, and we do not express any opinion as to the law of any other jurisdiction. 

This opinion letter is provided to you by us as special New York counsel to Wells Fargo as the Administrative Agent pursuant to
Section 3.1.4 of the Credit Agreement and may not be relied upon by any other person or for any purpose other than in connection with the transactions contemplated by the Credit Agreement without our prior written consent in each instance. 

Very truly yours, 
 BT/EKM

  
 Exhibit H-3-2

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