Document:

Exhibit 41

		

			Exhibit 4.1

		

		

			 

		

		
			DESCRIPTION OF THE REGISTRANT’S SECURITIES
		

		
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			REGISTERED PURSUANT TO SECTION 12 OF THE
SECURITIES EXCHANGE ACT OF 1934
		

		
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			As of the date of the Annual Report on Form 10-K (the “Annual Report”) of which this exhibit is a part, Essential Utilities, Inc. (the “Registrant”) has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (1) its common stock, par value $0.50 per share, and (2) its 6.00% Tangible Equity Units.
		

		
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			Common Stock
		

		
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			Overview
		

		
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			As of December 31, 2020,  the authorized capital stock of the Company was 601,770,819 shares, consisting of:
		

		
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			    600,000,000 shares of common stock, par value $0.50 per share; and
		

		
			    1,770,819 shares of preferred stock, par value $1.00 per share.
		

		
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			The following summary of certain terms of the Registrant’s common stock is qualified in its entirety by the provisions of the Registrant’s Amended and Restated Articles of Incorporation,  and Amended and Restated Bylaws, each of which is incorporated by reference as an exhibit to the Annual Report.
		

		
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			Voting Rights
		

		
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			Holders of the Registrant’s common stock are entitled to one vote for each share held by them at all meetings of the shareholders and are not entitled to cumulate their votes for the election of directors.
		

		
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			Dividend Rights and Limitations
		

		
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			Holders of the Registrant’s common stock may receive dividends when declared by its board of directors. Because the Registrant is a holding company, the funds used to pay any dividends on common stock are derived predominantly from the dividends that received from its direct and indirect subsidiaries. Therefore, the Registrant’s ability to pay dividends to holders of its common stock depends upon the subsidiaries’ earnings, financial condition and ability to pay dividends. Most of the subsidiaries are subject to regulation by state utility commissions and the amounts of their earnings and dividends are affected by the manner in which they are regulated. In addition, they are subject to restrictions on the payment of dividends contained in their various debt agreements. Payment of dividends on common stock is also subject to the preferential rights of the holders of any outstanding preferred stock.
		

		
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			Liquidation Rights
		

		
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			In the event that the Registrant liquidates, dissolves or winds-up, the holders of its common stock are entitled to share ratably in all of the assets that remain after the Registrant pays its liabilities. This right is subject, however, to the prior distribution rights of any outstanding preferred stock.
		

		
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			Listing
		

		
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			The common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “WTRG.”
		

		
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		Anti-Takeover Provisions
		

		
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			Pennsylvania State Law Provisions
		

		
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			Under Section 1712 of the Pennsylvania Business Corporation Law of 1988, as amended (“PBCL”), which is applicable to the Registrant, directors stand in a fiduciary relation to their corporation and, as such, are required to perform their duties in good faith, in a manner they reasonably believe to be in the best interests of the corporation and with such care, including reasonable inquiry, skill and diligence, as a person of ordinary prudence would use under similar circumstances. Under Section 1715 of the PBCL, in discharging their duties, directors may, in considering the best interests of their corporation, consider various constituencies, including, shareholders, employees, suppliers, customers and creditors of the corporation, and upon communities in which offices or other establishments of the corporation are located. Directors are not required to give prominent consideration to the interests of any particular constituency. Absent a breach of fiduciary duty, a lack of good faith or self-dealing, any act of the board of directors, a committee thereof or an individual director is presumed to be in the best interests of the corporation. Actions by directors relating to an acquisition or potential acquisition of control of the corporation are not subject to any greater obligation to justify, or higher burden of proof, than is applied to any other acts of directors. The PBCL expressly provides that the fiduciary duty of directors does not require them to (i) redeem or otherwise render inapplicable outstanding rights issued under any shareholder rights plan; (ii) render inapplicable the anti-takeover statutes set forth in Chapter 25 of the PBCL (described below); or (iii) take any action solely because of the effect it may have on a proposed acquisition or the consideration to be received by shareholders in such a transaction. In addition, Section 2513 of the PBCL specifically validates shareholder rights plans, or “poison pills,” and the discriminatory dilution provisions contained in such plans.
		

		
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			Chapter 25 of the PBCL contains several anti-takeover statutes applicable to publicly-traded corporations. Corporations may opt-out of such anti-takeover statutes under certain circumstances. The Registrant has not opted-out of any of such statutes.
		

		
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			Section 2538 of Subchapter 25D of the PBCL requires certain transactions with an “interested shareholder” to be approved by a majority of disinterested shareholders. “Interested shareholder” is defined broadly to include any shareholder who is a party to the transaction or who is treated differently than other shareholders and affiliates of the interested shareholder.
		

		
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			Subchapter 25E of the PBCL requires a person or group of persons acting in concert which acquires 20% or more of the voting shares of the corporation to offer to purchase the shares of any other shareholder at “fair value.” “Fair value” means the value not less than the highest price paid per share by the controlling person or group during the 90-day period prior to the control transaction, plus a control premium. Among other exceptions, Subchapter 25E does not apply to shares acquired directly from the corporation in a transaction exempt from the registration requirements of the Securities Act of 1933, or to a one-step merger.
		

		
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			Subchapter 25F of the PBCL generally establishes a 5-year moratorium on a “business combination” with an “interested shareholder.” “Interested shareholder” is defined generally to be any beneficial owner of 20% or more of the corporation’s voting stock or an affiliate or associate of the corporation that at any time within the prior five-year period was a beneficial owner of 20% or more of the corporation’s voting stock. “Business combination” is defined broadly to include mergers, consolidations, asset sales and certain self-dealing transactions. Certain restrictions apply to business combination following the 5-year period. Among other exceptions, Subchapter 25F will be rendered inapplicable if the board of directors approves the proposed business combination, or approves the interested shareholder’s acquisition of 20% of the voting shares, in either case prior to the date on which the shareholder first becomes an interested shareholder.
		

		

		

		 

		

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			Subchapter 25G of the PBCL provides that “control shares” lose voting rights unless such rights are restored by the affirmative vote of a majority of (i) the disinterested shares (generally, shares held by persons other than the acquiror, executive officers of the corporation and certain employee stock plans) and (ii) the outstanding voting shares of the corporation. “Control shares” are defined as shares which, upon acquisition, will result in a person or group acquiring for the first time voting control over (a) 20%, (b) 33 1/3% or (c) 50% or more of the outstanding shares, together with shares acquired within 180 days of attaining the applicable threshold and shares purchased with the intention of attaining such threshold. A corporation may redeem control shares if the acquiring person does not request restoration of voting rights as permitted by Subchapter 25G. Among other exceptions, Subchapter 25G does not apply to a merger, consolidation or a share exchange if the corporation is a party to the transaction agreement.
		

		
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			Subchapter 25H of the PBCL provides in certain circumstances for the recovery by the corporation of profits realized from the sale of its stock by a controlling person or group if the sale occurs within 18 months after the controlling person or group became a controlling person or group, and the stock was acquired during such month period or within 24 months before such period. A controlling person or group is a person or group that has acquired, offered to acquire, or publicly disclosed an intention to acquire 20% or more of the voting shares of the corporation or a person or group that has otherwise publicly disclosed or caused to be disclosed that it may seek to acquire control of the corporation through any means. Among other exceptions, Subchapter 25H does not apply to transactions approved by both the board of directors and the shareholders prior to the acquisition or distribution, as appropriate.
		

		
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			Subchapter 25I of the PBCL mandates severance compensation for eligible employees who are terminated within 24 months after the approval of a control-share acquisition. Eligible employees generally are all employees employed in Pennsylvania for at least two years prior to the control-share approval. Severance equals the weekly compensation of the employee multiplied by the employee’s years of service (up to 26 years), less payments made due to the termination.
		

		
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			Subchapter 25J of the PBCL requires the continuation of certain labor contracts relating to business operations owned at the time of a control-share approval.
		

		
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			Articles of Incorporation and Bylaw Provisions
		

		
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			Certain provisions of the Registrant’s Amended and Restated Articles of Incorporation, as amended (the “Articles”), and Amended and Restated Bylaws (the “Bylaws”) may have the effect of discouraging unilateral tender offers or other attempts to take over and acquire its business. These provisions might discourage some potentially interested purchaser from attempting a unilateral takeover bid for the Registrant on terms which some shareholders might favor. The Articles require that certain fundamental transactions must be approved by the holders of 75% of the outstanding shares of capital stock entitled to vote on the matter unless at least a majority of the members of the board of directors has approved the transaction, in which case the required shareholder approval will be the minimum approval required by applicable law. The fundamental transactions that are subject to this provision are those transactions that require approval by shareholders under applicable law or the Articles. These transactions include certain amendments of the Articles or Bylaws, certain sales or other dispositions of our assets, certain issuances of our capital stock, or certain transactions involving our merger, consolidation, division, reorganization, dissolution, liquidation or winding up. The Registrant’s Articles and Bylaws provide that:
		

		
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			    a special meeting of shareholders may only be called by the chairman, the president, the board of directors or shareholders entitled to cast a majority of the votes which all shareholders are entitled to cast at the particular meeting;
		

		
			    nominations for election of directors may be made by any shareholder entitled to vote for election of directors if the name of the nominee and certain information relating to the nominee is filed 
		

		 

		

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		with our corporate secretary not less than 14 days nor more than 50 days before any meeting of shareholders to elect directors; 
		

		
			    under a “proxy access bylaw”, any eligible shareholder, or eligible group of up to 20 shareholders, owning 3% or more of the Registrant’s common stock continuously for a three-year period and through the date of the next annual meeting of shareholders may, subject to certain limitations and conditions set forth in the Bylaws, nominate and include in the Company’s proxy materials for such annual meeting of shareholders a number of director nominees not to exceed the greater of (a) one director and (b) 20% of the directors then serving on the Board (rounded down to the nearest whole number); 
		

		
			    certain advance notice procedures must be met for shareholder proposals to be made at annual meetings of shareholders. These advance notice procedures generally require a notice to be delivered not less than 90 days nor more than 120 days before the anniversary date of the immediately preceding annual meeting of shareholders; and
		

		
			    Unless the Registrant consents in writing to the selection of an alternative forum, the sole and exclusive judicial forum for certain legal actions enumerated in the Bylaws shall be a state court located within Montgomery County, Pennsylvania, or if no state court located within such county has jurisdiction over such action or proceeding, the federal United States District Court for the Eastern District of Pennsylvania.  
		

		 

		

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		6.00% Tangible Equity Units
		

		
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			Overview
		

		
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			In April 2019, the Registrant issued 13,800,000 of its 6.00% tangible equity units, or “Units.” Each Unit has a stated amount of $50.00. Each Unit is comprised of (i) a prepaid stock purchase contract (a “purchase contract”) issued by the Registrant and (ii) a senior amortizing note due April 30, 2022 (an “amortizing note”) issued by the Registrant.  
		

		
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			The following summary of the terms of the Units, the purchase contracts and the amortizing notes are subject to, and qualified in their entirety by reference to, the related contracts. We refer the holder to:
		

		
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			    the purchase contract agreement (the “purchase contract agreement”), entered into among the Registrant, U.S. Bank National Association, as purchase contract agent (the “purchase contract agent”) and attorney-in-fact for the holders of purchase contracts from time to time, and U.S. Bank National Association, as trustee (the “trustee”) under the indenture described below, pursuant to which the purchase contracts and Units were issued; and
		

		
			     the indenture between the Registrant, as issuer, and the trustee, and a related supplemental indenture, between us, as issuer, and U.S. Bank National Association, as trustee, each to be dated the date of first issuance of the Units, under which the amortizing notes were issued.
		

		
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			The form of indenture, a supplemental indenture related to a change in governing law to New York law, among other matters, and a supplemental indenture for the amortizing notes and the form of purchase contract agreement have each been incorporated by reference as an exhibit to the Annual Report.    Whenever particular sections or defined terms are referred to, such sections or defined terms are incorporated herein by reference.
		

		
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			As used in this description of the 6.00% Tangible Equity Units, unless the context otherwise requires, references to “Essential Utilities,” “we,” “us” or “our” refer to Essential Utilities, Inc. and do not include any of its existing or future subsidiaries.
		

		
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			Description of the Units
		

		
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			Components of the Units
		

		
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			Each Unit is comprised of:
		

		
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			    a prepaid stock purchase contract issued by us pursuant to which we will deliver to the holder, not later than 5:00 p.m., New York City time, on April 30, 2022 (subject to postponement in certain limited circumstances, the “mandatory settlement date”), unless earlier redeemed or settled, a number of shares of our common stock, par value $0.50 per share (the “common stock”), per purchase contract equal to the settlement rate described below under “Description of the Purchase Contracts—Delivery of Common Stock;” and
		

		
			    a senior amortizing note issued by us with an initial principal amount of $8.62909 that pays equal quarterly installments of $0.75000 per amortizing note (except for the July 30, 2019 installment payment, which was $0.80833 per amortizing note), which cash payment in the aggregate is equivalent to 6.00% per year with respect to the $50.00 stated amount per Unit.
		

		
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			Unless previously settled at the option of the holder as described in “Description of the Purchase Contracts—Early Settlement” or “Description of the Purchase Contracts—Early Settlement Upon a Fundamental Change,” settled at our option as described in “Description of the Purchase Contracts—
		

		 

		

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		Early Mandatory Settlement at Our Election” or redeemed at our option as described in “Description of the Purchase Contracts—Acquisition Termination Redemption,” we will deliver to the holder not more than 1.4442 shares and not less than 1.1790 shares of our common stock on the mandatory settlement date, based upon the applicable “settlement rate” (as defined under “Description of the Purchase Contracts—Delivery of Common Stock”), which is subject to adjustment as described herein, and the “applicable market value” (as defined under “Description of the Purchase Contracts—Delivery of Common Stock”) of our common stock, as described below under “Description of the Purchase Contracts—Delivery of Common Stock.”
		

		
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			Each amortizing note has an initial principal amount of $8.62909. On each January 30, April 30, July 30 and October 30, commencing on July 30, 2019, we will pay equal cash installments of $0.75000 on each amortizing note (except for the July 30, 2019 installment payment, which was $0.80833 per amortizing note). Each installment payment constitutes a payment of interest (at a rate of 3.00% per annum) and a partial repayment of principal on the amortizing note, allocated as set forth on the amortization schedule set forth under “Description of the Amortizing Notes—Amortization Schedule.”
		

		
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			The stated amount of each Unit must be allocated between the amortizing note and the purchase contract based upon their relative fair market values. We have determined that the fair market value of each amortizing note is $8.62909 and the fair market value of each purchase contract is $41.37091, as set forth in the purchase contract agreement. Each holder agrees to such allocation and this position is binding upon each holder (but not on the Internal Revenue Service).
		

		
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			Separating and Recreating Units
		

		
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			Upon the conditions and under the circumstances described below, a holder of a Unit has the right to separate a Unit into its component parts, and a holder of a separate purchase contract and a separate amortizing note will have the right to combine the two components to recreate a Unit.
		

		
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			Separating Units
		

		
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			At initial issuance, the purchase contracts and amortizing notes may be purchased and transferred only as Units and will trade under the CUSIP number for the Units.
		

		
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			On any business day during the period beginning on, and including, the business day immediately following the date of initial issuance of the Units to, but excluding, the second scheduled trading day immediately preceding April 30, 2022 or, if earlier, the second scheduled trading day immediately preceding any “early mandatory settlement date” (as defined under “Description of the Purchase Contracts”) or the second scheduled trading day immediately preceding any “acquisition redemption settlement date” (as defined under “Description of the Purchase Contracts”) and also excluding the business day immediately preceding any installment payment date (provided, the right to separate the Units shall resume after such business day), the holder will have the right to separate its Unit into its constituent purchase contract and amortizing note (which we refer to as a “separate purchase contract” and a “separate amortizing note,” respectively, and which will thereafter trade under their respective CUSIP numbers), in which case that Unit will cease to exist. If the holder beneficially owns a Unit, the holder may separate it into its component purchase contract and component amortizing note by delivering written instructions to the broker or other direct or indirect participant through which the holder hold an interest in its Unit (“participant”) to notify The Depository Trust Company (“DTC”) through DTC’s Deposit/Withdrawal at Custodian (“DWAC”) system of its desire to separate the Unit. Holders who elect to separate a Unit into its constituent purchase contract and amortizing note shall be responsible for any fees or expenses payable in connection with such separation.
		

		
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		“Business day” means any day other than a Saturday, Sunday or any day on which banking institutions in New York, New York are authorized or obligated by applicable law or executive order to close or be closed.
		

		
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			Separate purchase contracts and separate amortizing notes will be transferable independently from each other.
		

		
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			Recreating Units
		

		
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			On any business day during the period beginning on, and including, the business day immediately following the date of initial issuance of the Units to, but excluding, the second scheduled trading day immediately preceding April 30, 2022 or, if earlier, the second scheduled trading day immediately preceding any early mandatory settlement date or the second scheduled trading day immediately preceding any acquisition redemption settlement date and also excluding the business day immediately preceding any installment payment date (provided, the right to recreate the Units shall resume after such business day), the holder may recreate a Unit from its separate purchase contract and separate amortizing note. If the holder beneficially owns a separate purchase contract and a separate amortizing note, the holder may recreate a Unit by delivering written instruction to its participant to notify DTC through DTC’s DWAC system of its desire to recreate the Unit. Holders who elect to recreate Units shall be responsible for any fees or expenses payable in connection with such recreation.
		

		
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			Global Securities
		

		
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			Each Unit, purchase contract and amortizing note will be represented by global securities registered in the name of a nominee of DTC. The holder will not be entitled to receive definitive physical certificates for its Units, purchase contracts or amortizing notes, except under the limited circumstances described under “Book-Entry Procedures and Settlement.” Beneficial interests in a Unit and, after separation, the separate purchase contract and separate amortizing note will be represented through book-entry accounts of, and transfers will be effected through, direct or indirect participants in DTC.
		

		
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			Deemed Actions by Holders by Acceptance
		

		
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			Each holder of Units or separate purchase contracts, by acceptance of such securities, will be deemed to have:
		

		
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			    irrevocably authorized and directed the purchase contract agent to execute, deliver and perform on its behalf the purchase contract agreement, and appointed the purchase contract agent as its attorney-in-fact for any and all such purposes;
		

		
			    in the case of a purchase contract that is a component of a Unit, or that is evidenced by a separate purchase contract, irrevocably authorized and directed the purchase contract agent to execute, deliver and hold on its behalf the separate purchase contract or the component purchase contract evidencing such purchase contract, and appointed the purchase contract agent as its attorney-in-fact for any and all such purposes;
		

		
			    consented to, and agreed to be bound by, the terms and provisions of the purchase contract agreement; and
		

		
			    represented that either (i) no portion of the assets used to acquire or hold the Units, common stock issuable on upon settlement of the purchase contracts or amortizing notes constitutes assets of any (a) employee benefit plans that are subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (b) plan, individual retirement account or other arrangement that is subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”) or provisions under any other U.S. or non-U.S. federal, state, local or other laws or regulations 
		

		 

		

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		that are similar to such provisions of ERISA or the Code (collectively, “Similar Laws”), or (c) entity which is deemed to hold the assets of any of the foregoing types of plans, accounts or arrangements described in clauses (a) and (b) (each of the foregoing described in clause (a), (b) and (c) referred to as a “Plan”) or (ii) (1) the acquisition and holding of the Units, common stock issuable upon settlement of the purchase contracts or amortizing notes and any of its constituent parts will not constitute or result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a similar violation under any applicable Similar Laws and (2) neither Essential Utilities, the underwriters or any of their respective affiliates is, or is undertaking to be, a fiduciary with respect to the Plan in connection with the Plan’s acquisition, holding or disposition of the Units, common stock issuable upon settlement of the purchase contracts or amortizing notes, as applicable;
		

		
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			o    in the case of a holder of a Unit, agreed, for all purposes, including U.S. federal income tax purposes, to treat:
		

		
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			a Unit as an investment unit composed of two separate instruments, in accordance with its form;

			
	
			
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			the amortizing notes as indebtedness of ours; and

			
	
			
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			the allocation of the $50.00 stated amount per Unit between the purchase contract and the amortizing note so that such holder’s initial tax basis in each purchase contract will be $41.37091 and such holder’s initial tax basis in each amortizing note will be $8.62909.

		
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			Listing of Securities
		

		
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			We have listed the Units on the NYSE under the symbol “WTRU.” However, listing on the NYSE does not guarantee that a trading market will develop, and the underwriters may discontinue market making at any time in their sole discretion without notice. Accordingly, we cannot assure the holder that a liquid trading market will develop for the Units (or, if developed, that a liquid trading market will be maintained), that the holder will be able to sell Units at a particular time or that the prices the holder receive when the holder sell will be favorable.
		

		
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			We did not initially apply to list the separate purchase contracts or the separate amortizing notes on any securities exchange or automated inter-dealer quotation system. If (i) a sufficient number of Units are separated into separate purchase contracts and separate amortizing notes and traded separately such that applicable listing requirements are met and (ii) a sufficient number of holders of such separate purchase contracts and separate amortizing notes request that we list such separate purchase contracts and separate amortizing notes, we may endeavor to list such separate purchase contracts and separate amortizing notes on an exchange of our choosing (which may or may not be the NYSE) subject to applicable listing requirements.
		

		
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			Title
		

		
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			We, the purchase contract agent and the trustee will treat the registered owner, which at initial issuance was a nominee of DTC, of any Unit or separate purchase contract or separate amortizing note as the absolute owner of the Unit or separate purchase contract or separate amortizing note for the purpose of settling the related purchase contract or making payments on the separate amortizing note and for all other purposes.
		

		
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		Accounting for the Units
		

		
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			We record the issuance of the purchase contract portion of the Units as additional paid-in-capital, net of issuance costs of the purchase contracts, in our financial statements. We also record the amortizing notes portion of the Units as long-term debt and record the issuance costs of the amortizing notes as an adjustment to the carrying amount of the amortizing notes. The amortization of the amortizing notes is calculated using the effective interest method over the life of the amortizing notes. We allocate the proceeds from the issuance of the Units to the purchase contracts and amortizing notes based on the relative fair values of the respective components, determined as of the date of issuance of the Units. We have determined that the allocation of the purchase price of each Unit as between the amortizing note and the purchase contract is $8.62909 for the amortizing note and $41.37091 for the purchase contract, as set forth in the purchase contract agreement.
		

		
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			Based on U.S. GAAP, we do not expect the purchase contract component of the Units to be revalued under fair value accounting principles.
		

		
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			Our earnings per share calculations will reflect the shares issuable upon settlement of the purchase contracts portion of the Units. Our basic earnings per share will include the minimum shares issuable under the purchase contract for each period and our diluted earnings per share will include any incremental shares that would be issuable assuming a settlement of the purchase contract at the end of each accounting period, if dilutive.
		

		
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			Replacement of Unit Certificates
		

		
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			In the event that physical certificates evidencing the Units have been issued, any mutilated Unit certificate will be replaced by us at the expense of the holder upon surrender of the certificate to the purchase contract agent. Unit certificates that become destroyed, lost or stolen will be replaced by us at the expense of the holder upon delivery to us and the purchase contract agent of evidence of their destruction, loss or theft satisfactory to us and the purchase contract agent. In the case of a destroyed, lost or stolen Unit certificate, an indemnity satisfactory to us and the purchase contract agent may be required at the expense of the holder of the Units before a replacement will be issued.
		

		
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			Notwithstanding the foregoing, we will not be obligated to replace any Unit certificates on or after the second scheduled trading day immediately preceding April 30, 2022 or the second scheduled trading day immediately preceding any early mandatory settlement date or the second scheduled trading day immediately preceding any acquisition redemption settlement date. In those circumstances, the purchase contract agreement provides that, in lieu of the delivery of a replacement Unit certificate, the purchase contract agent, upon delivery of the evidence and indemnity described above, will deliver or arrange for delivery of the shares of common stock issuable (and/or, in the case of an acquisition redemption settlement date, make the required cash payment, if any) pursuant to the purchase contracts included in the Units evidenced by the Unit certificate.
		

		
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			Miscellaneous
		

		
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			The purchase contract agreement provides that we will pay all fees and expenses related to the offering of the Units and the enforcement by the purchase contract agent of the rights of the holders of the Units or the separate purchase contracts or separate amortizing notes, other than expenses (including legal fees) of the underwriters.
		

		
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			Should the holder elect to separate or recreate Units, the holder will be responsible for any fees or expenses payable in connection with that separation or recreation, and we will have no liability therefor.
		

		
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		Description of the Purchase Contracts
		

		
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			General
		

		
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			The purchase contracts are issued pursuant to the terms and provisions of the purchase contract agreement. The following summary of the terms of the purchase contracts contains a description of certain terms of the purchase contracts, but is not complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the purchase contract agreement, including the definitions of specified terms in the purchase contract agreement. 
		

		
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			Each purchase contract initially formed a part of a Unit. Each Unit may be separated by a holder into its constituent purchase contract and amortizing note on any business day during the period beginning on, and including, the business day immediately following the date of initial issuance of the Units to, but excluding, the second scheduled trading day immediately preceding April 30, 2022 or, if earlier, the second scheduled trading day immediately preceding any “early mandatory settlement date” or the second scheduled trading day immediately preceding any “acquisition redemption settlement date,” and also excluding the business day immediately preceding any installment payment date (provided, the right to separate the Units shall resume after such business day). Following such separation, purchase contracts may be transferred separately from amortizing notes.
		

		
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			As used in this section for the description of the 6.00% Tangible Equity Units, unless the context otherwise requires, references to:
		

		
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			    “close of business” refer to 5:00 p.m., New York City time; and
		

		
			    “open of business” refer to 9:00 a.m., New York City time.
		

		
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			Delivery of Common Stock
		

		
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			Unless previously redeemed or settled early at the holder’s or our option, for each purchase contract we will deliver to the holder on April 30, 2022 (subject to postponement in certain limited circumstances described below, the “mandatory settlement date”) a number of shares of our common stock. The number of shares of our common stock issuable upon settlement of each purchase contract (the “settlement rate”) will be determined as follows:
		

		
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			    if the “applicable market value” (as defined below) of our common stock is greater than the “threshold appreciation price” (as defined below), then the holder will receive 1.1790 shares of common stock for each purchase contract (the “minimum settlement rate”);
		

		
			    if the applicable market value of our common stock is less than or equal to the threshold appreciation price but greater than or equal to the “reference price” (as defined below), then the holder will receive a number of shares of common stock for each purchase contract equal to the Unit stated amount of $50.00, divided by the applicable market value; and
		

		
			    if the applicable market value of our common stock is less than the reference price, then the holder will receive 1.4442 shares of common stock for each purchase contract (the “maximum settlement rate”).
		

		
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			The maximum settlement rate and the minimum settlement rate are each subject to adjustment as described under “—Adjustments to the Fixed Settlement Rates” below. Each of the minimum settlement rate and the maximum settlement rate is referred to as a “fixed settlement rate.”
		

		
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			The reference price is calculated by dividing $50.00 by the then applicable maximum settlement rate and initially is approximately equal to $34.62.
		

		

		

		 

		

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			The threshold appreciation price is calculated by dividing $50.00 by the then applicable minimum settlement rate. The threshold appreciation price, which is initially approximately $42.41, represents a premium of approximately 22.5% over the reference price.
		

		
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			“Applicable market value” means the arithmetic average of the VWAP per share of our common stock over the settlement period.
		

		
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			“Settlement period” means the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately preceding April 30, 2022.
		

		
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			“VWAP” per share of our common stock on any trading day means the per share volume-weighted average price as displayed under the heading “Bloomberg VWAP” on Bloomberg (or any successor service) page “WTRG <Equity> AQR” (or its equivalent successor if such page is not available) in respect of the period from the scheduled open until the scheduled close of trading of the primary trading session on such trading day; or, if such price is not available, the market value per share of our common stock on such trading day as determined, using a volume-weighted average method, by a nationally recognized independent investment banking firm retained by us for this purpose. For the avoidance of doubt, “VWAP” will be determined without regard to after-hours trading or any other trading outside of the regular trading session trading hours.
		

		
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			“Trading day” means a day on which:
		

		
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			    there is no “market disruption event” (as defined below); and
		

		
			    trading in our common stock (or other security for which a VWAP must be determined) generally occurs on the relevant stock exchange (as defined below);
		

		
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			provided, that if our common stock (or such other security) is not so listed or traded, “trading day” means a “business day.”
		

		
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			“Relevant stock exchange” means the NYSE or, if our common stock (or other security for which a VWAP or closing price must be determined) is not then listed on the NYSE, on the principal other U.S. national or regional securities exchange on which our common stock (or such other security) is then listed or, if our common stock (or such other security) is not then listed on a U.S. national or regional securities exchange, on the principal other market on which our common stock (or such other security) is then listed or admitted for trading.
		

		
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			“Scheduled trading day” means a day that is scheduled to be a trading day on the relevant stock exchange. If our common stock (or other such security) is not listed or admitted for trading on a relevant stock exchange, “scheduled trading day” means a “business day.”
		

		
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			“Market disruption event” means:
		

		
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			    a failure by the relevant stock exchange to open for trading during its regular trading session; or
		

		
			    the occurrence or existence on the relevant stock exchange prior to 1:00 p.m., New York City time, on any scheduled trading day for our common stock (or such other security) for more than one half-hour period in the aggregate during regular trading hours of any suspension or limitation imposed on trading (by reason of movements in price exceeding limits permitted by the relevant stock exchange or otherwise) in our common stock (or such other security) or in any options contracts or futures contracts relating to our common stock (or such other security).
		

		

		

		 

		

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			On the mandatory settlement date, our common stock will be issued and delivered to the holder or the holder’s designee, upon:
		

		
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			    surrender of certificates representing the purchase contracts, if such purchase contracts are held in certificated form; and
		

		
			    payment by the holder of any transfer or similar taxes payable in connection with the issuance of our common stock to any person other than the holder.
		

		
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			As long as the purchase contracts are evidenced by one or more global purchase contract certificates deposited with DTC, procedures for settlement will be governed by DTC’s applicable procedures.
		

		
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			If one or more of the 20 consecutive scheduled trading days in the settlement period is not a trading day, the mandatory settlement date will be postponed until the second scheduled trading day immediately following the last trading day of the settlement period.
		

		
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			Prior to the close of business on the last trading day of the settlement period, the shares of common stock underlying each purchase contract will not be outstanding, and the holder of such purchase contract will not have any voting rights, rights to dividends or other distributions or other rights of a holder of our common stock by virtue of holding such purchase contract. The person in whose name any shares of our common stock shall be issuable upon settlement of the purchase contract on the mandatory settlement date will be treated as the holder of record of such shares as of the close of business on the last trading day of the settlement period.
		

		
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			We will pay any documentary, stamp or similar issue or transfer tax due on the issue of any shares of our common stock upon settlement or redemption of the purchase contracts, unless the tax is due because the holder requests any shares to be issued in a name other than the holder’s name, in which case the holder will be obligated to pay that tax.
		

		
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			Early Settlement
		

		
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			Prior to the close of business on the second scheduled trading day immediately preceding April 30, 2022, a holder of Units or a holder of separate purchase contracts, may elect to settle its purchase contracts early, in whole or in part, and receive a number of shares of common stock per purchase contract equal to the “early settlement rate” (and any cash payable for fractional shares). The early settlement rate is equal to the minimum settlement rate in effect on the early settlement date unless the holder elect to settle its purchase contracts early in connection with a fundamental change, in which case the holder will receive upon settlement of its purchase contracts a number of shares of our common stock based on the “fundamental change early settlement rate” as described under “—Early Settlement Upon a Fundamental Change.”
		

		
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			A holder’s right to receive common stock (and any cash payable for fractional shares) upon early settlement of a purchase contract is subject to:
		

		
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			    delivery of a written and signed notice of election (an “early settlement notice”) to the purchase contract agent electing early settlement of such purchase contract;
		

		
			    if the Unit that includes such purchase contract or such purchase contract is held in certificated form, surrendering the certificates representing the purchase contract, or if held in global form, surrendering in accordance with DTC’s applicable procedures; and
		

		
			    payment by the holder of any transfer or similar taxes payable in connection with the issuance of our common stock to any person other than the holder.
		

		

		

		 

		

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			As long as the purchase contracts or the Units are evidenced by one or more global certificates deposited with DTC, procedures for early settlement will be governed by DTC’s applicable procedures.
		

		
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			Upon surrender of the Unit or the separate purchase contract and payment of any applicable transfer or similar taxes due because of any issue of such shares in a name of a person other than the holder, the holder will receive the applicable number of shares of common stock (and any cash payable for fractional shares) due upon early settlement on the second business day following the “early settlement date” (as defined below).
		

		
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			If the holder comply with the requirements for effecting early settlement of its purchase contracts earlier than the close of business on any business day, then that day will be considered the “early settlement date.” If the holder comply with such requirements at or after the close of business on any business day or at any time on a day that is not a business day, then the next succeeding business day will be considered the “early settlement date.” Prior to the close of business on the early settlement date, the shares of common stock underlying each purchase contract will not be outstanding, and the holder of such purchase contract will not have any voting rights, rights to dividends or other distributions or other rights of a holder of our common stock by virtue of holding such purchase contract. The person in whose name any shares of our common stock shall be issuable upon such early settlement of the purchase contract will be treated as the holder of record of such shares as of the close of business on the relevant early settlement date.
		

		
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			Upon early settlement at the holder’s election of the purchase contract component of a Unit, the amortizing note underlying such Unit will remain outstanding and be beneficially owned by or registered in the name of, as the case may be, the holder who elected to settle the related purchase contract early and will no longer constitute a part of the Unit.
		

		
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			Early Settlement Upon a Fundamental Change
		

		
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			If a “fundamental change” occurs and the holder elects to settle its purchase contracts early in connection with such fundamental change, the holder will receive per purchase contract a number of shares of our common stock (and any cash payable for fractional shares) (or, if a reorganization event has occurred, cash, securities or other property, as applicable) equal to the “fundamental change early settlement rate,” as described below. An early settlement will be deemed for these purposes to be “in connection with” such fundamental change if the holder deliver its early settlement notice to the purchase contract agent, and otherwise satisfy the requirements for effecting early settlement of its purchase contracts, during the period beginning on, and including, the effective date of the fundamental change and ending at the close of business on the 35th business day thereafter (or, if earlier, the second scheduled trading day immediately preceding April 30, 2022) (the “fundamental change early settlement period”). We refer to this right as the “fundamental change early settlement right.”
		

		
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			A holder’s right to common stock (and any cash payable for fractional shares) (or, if a reorganization event has occurred, cash, securities or other property, as applicable) upon early settlement in connection with a fundamental change is subject to compliance with the conditions described under “—Early Settlement.”
		

		
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			Upon surrender of the Unit or the separate purchase contract and payment of any applicable transfer or similar taxes due because of any issue of such shares in a name of a person other than the holder, the holder will receive the applicable number of shares of common stock (and any cash payable for fractional shares) (or, if a reorganization event has occurred, cash, securities or other property, as applicable) issuable as a result of its exercise of the fundamental change early settlement right on the second business day following the “fundamental change early settlement date” (as defined below).
		

		

		

		 

		

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			If the holder complies with the requirements for effecting early settlement of its purchase contracts in connection with a fundamental change prior to the close of business on any business day during the fundamental change early settlement period, then that day will be considered the “fundamental change early settlement date.” If the holder comply with such requirements at or after the close of business on any business day during the fundamental change early settlement period or at any time on a day during the fundamental change early settlement period that is not a business day, then the next succeeding business day will be considered the “fundamental change early settlement date.”
		

		
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			We will provide the purchase contract agent, the trustee and the holders of Units and separate purchase contracts with a notice of a fundamental change within five business days after its effective date and issue a press release announcing such effective date. The notice will also set forth, among other things:
		

		
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			    the applicable fundamental change early settlement rate;
		

		
			    if not common stock, the kind and amount of cash, securities and other property receivable by the holder upon settlement; and
		

		
			    the deadline by which each holder’s fundamental change early settlement right must be exercised.
		

		
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			A “fundamental change” will be deemed to have occurred upon the occurrence of any of the following:
		

		
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			    any “person” or “group” within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than us, any of our subsidiaries and any of our and their employee benefit plans, files a Schedule TO or any other schedule, form or report under the Exchange Act disclosing that such person or group has become the direct or indirect “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of our common stock representing more than 50% of the voting power of our common stock;
		

		
			    the consummation of (A) any recapitalization, reclassification or change of our common stock (other than changes resulting from a subdivision or combination) as a result of which our common stock would be converted into, or exchanged for, stock, other securities, other property or assets; (B) any share exchange, consolidation or merger of us pursuant to which our common stock will be converted into cash, securities or other property or assets; or (C) any sale, lease or other transfer in one transaction or a series of transactions of all or substantially all of the consolidated assets of us and our subsidiaries, taken as a whole, to any person or persons other than one of our wholly owned subsidiaries;
		

		
			    our stockholders approve any plan or proposal for the liquidation or dissolution of us; or
		

		
			    our common stock (or other common stock receivable upon settlement of its purchase contracts, if applicable) ceases to be listed or quoted on any of the NYSE, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of their respective successors).
		

		
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			A transaction or transactions described in clauses (1) or (2) above will not constitute a fundamental change, however, if (a) at least 90% of the consideration received or to be received by our common stockholders (excluding cash payments for fractional shares and cash payments made in respect of dissenters’ appraisal rights) in connection with such transaction or transactions consists of shares of common stock that are listed or quoted on any of the NYSE, the NASDAQ Global Select Market or the NASDAQ Global Market (or any of their respective successors), or will be so listed or quoted when issued or exchanged in connection with such transaction or transactions, and (b) as a result of such transaction or transactions such consideration becomes the consideration receivable upon settlement of its purchase contracts, if applicable, excluding cash payments for fractional shares.
		

		
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		If any transaction in which our common stock is replaced by the securities of another entity occurs, following completion of any related fundamental change early settlement period (or, in the case of a transaction that would have been a fundamental change but for the immediately preceding paragraph, following the effective date of such transaction), references to us in the definition of “fundamental change” above shall instead be references to such other entity.
		

		
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			The “fundamental change early settlement rate” will be determined by us by reference to the table below, based on the date on which the fundamental change occurs or becomes effective (the “effective date”) and the “stock price” in the fundamental change, which will be:
		

		
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			    in the case of a fundamental change described in clause (2) of the definition of “fundamental change” in which all holders of shares of our common stock receive only cash in the fundamental change, the stock price will be the cash amount paid per share of our common stock; and
		

		
			    in all other cases, the stock price will be the arithmetic average of the VWAPs of our common stock over the five consecutive trading day period ending on, and including, the trading day immediately preceding the effective date.
		

		
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			The stock prices set forth in the column headings of the table below will be adjusted as of any date on which the fixed settlement rates are adjusted. The adjusted stock prices will equal the stock prices applicable immediately prior to such adjustment, multiplied by a fraction, the numerator of which is the maximum settlement rate immediately prior to the adjustment giving rise to the stock price adjustment and the denominator of which is the maximum settlement rate as so adjusted. The fundamental change early settlement rates per purchase contract in the table below will be adjusted in the same manner and at the same time as the fixed settlement rates as set forth under “—Adjustments to the Fixed Settlement Rates.”
		

		
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		The following table sets forth the fundamental change early settlement rate per purchase contract for each stock price and effective date set forth below:
		

		
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						Stock Price

				
	
					
						Effective Date

					
					
						$ 10.00

					
					
						$ 17.20

					
					
						$ 25.00

					
					
						$ 30.00

					
					
						$ 34.62

					
					
						$ 37.50

					
					
						$ 40.00

					
					
						$ 42.41

					
					
						$ 45.00

					
					
						$ 50.00

					
					
						$ 60.00

					
					
						$ 75.00

					
					
						$ 100.00

				
	
					
						April 23, 2019

					1.1093 
					1.2275 
					1.2513 
					1.2383 
					1.2837 
					1.1947 
					1.1785 
					1.1641 
					1.1508 
					1.1340 
					1.1290 
					1.1382 
					1.1483 
				
	
					
						July 30, 2019

					1.1358 
					1.2458 
					1.2667 
					1.2520 
					1.2882 
					1.2043 
					1.1865 
					1.1706 
					1.1561 
					1.1380 
					1.1332 
					1.1418 
					1.1510 
				
	
					
						October 30, 2019

					1.1610 
					1.2630 
					1.2814 
					1.2652 
					1.2928 
					1.2135 
					1.1940 
					1.1766 
					1.1608 
					1.1415 
					1.1371 
					1.1451 
					1.1535 
				
	
					
						January 30, 2020

					1.1867 
					1.2805 
					1.2964 
					1.2790 
					1.2979 
					1.2229 
					1.2016 
					1.1824 
					1.1652 
					1.1449 
					1.1411 
					1.1485 
					1.1560 
				
	
					
						April 30, 2020

					1.2130 
					1.2982 
					1.3119 
					1.2933 
					1.3036 
					1.2327 
					1.2091 
					1.1881 
					1.1693 
					1.1481 
					1.1452 
					1.1518 
					1.1585 
				
	
					
						July 30, 2020

					1.2399 
					1.3161 
					1.3277 
					1.3081 
					1.3096 
					1.2425 
					1.2164 
					1.1932 
					1.1727 
					1.1510 
					1.1493 
					1.1552 
					1.1611 
				
	
					
						October 30, 2020

					1.2673 
					1.3343 
					1.3439 
					1.3238 
					1.3175 
					1.2527 
					1.2237 
					1.1978 
					1.1755 
					1.15538 
					1.1535 
					1.1586 
					1.1636 
				
	
					
						January 30, 2021

					1.2953 
					1.3525 
					1.3065 
					1.3403 
					1.3382 
					1.2633 
					1.2306 
					1.2015 
					1.1773 
					1.1566 
					1.1577 
					1.1619 
					1.1662 
				
	
					
						April 30, 2021

					1.3239 
					1.3710 
					1.3776 
					1.3581 
					1.3591 
					1.2746 
					1.2371 
					1.2041 
					1.1779 
					1.1599 
					1.1619 
					1.1653 
					1.1687 
				
	
					
						July 30, 2021

					1.3531 
					1.3894 
					1.3951 
					1.3773 
					1.3802 
					1.2867 
					1.2427 
					1.2044 
					1.1769 
					1.1639 
					1.1662 
					1.1687 
					1.1713 
				
	
					
						October 30, 2021

					1.3829 
					1.4079 
					1.4127 
					1.3987 
					1.4014 
					1.3005 
					1.2466 
					1.2013 
					1.1745 
					1.1687 
					1.1704 
					1.1721 
					1.1739 
				
	
					
						January 30, 2022

					1.4112 
					1.4262 
					1.4297 
					1.4224 
					1.4227 
					1.3178 
					1.2470 
					1.1925 
					1.1736 
					1.1739 
					1.1747 
					1.1756 
					1.1764 
				
	
					
						April 30, 2022

					1.4442 
					1.4442 
					1.4442 
					1.4442 
					1.44421 
					1.3333 
					1.2500 
					1.1790 
					1.1790 
					1.1790 
					1.1790 
					1.1790 
					1.1790 
				

		
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			The exact stock price and effective date may not be set forth in the table above, in which case:
		

		
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			    if the applicable stock price is between two stock prices in the table or the applicable effective date is between two effective dates in the table, the fundamental change early settlement rate will be determined by straight line interpolation between the fundamental change early settlement rates set forth for the higher and lower stock prices and the earlier and later effective dates, as applicable, based on a 365-or 366-day year, as applicable;
		

		
			    if the applicable stock price is greater than $100.00 per share (subject to adjustment in the same manner and at the same time as the stock prices set forth in the column headings of the table above), then the fundamental change early settlement rate will be the minimum settlement rate; or
		

		
			    if the applicable stock price is less than $100.00 per share (subject to adjustment in the same manner and at the same time as the stock prices set forth in the column headings of the table above, the “minimum stock price”), the fundamental change early settlement rate will be determined as if the stock price equaled the minimum stock price, and using straight line interpolation, as described in the first bullet of this paragraph, if the effective date is between two effective dates in the table.
		

		
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		The maximum number of shares of our common stock deliverable under a purchase contract is 1.4442, subject to adjustment in the same manner and at the same time as the fixed settlement rates as set forth under “—Adjustments to the Fixed Settlement Rates.”
		

		
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			Our obligation to settle the purchase contracts at the fundamental change early settlement rate could be considered a penalty, in which case the enforceability thereof would be subject to general principles of reasonableness of economic remedies.
		

		
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			We will deliver the shares of our common stock (and any cash payable for fractional shares) (or, if a reorganization event has occurred, cash, securities or other property, as applicable) payable as a result of its exercise of the fundamental change early settlement right on the second business day following the fundamental change early settlement date.
		

		
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			Prior to the close of business on the fundamental change early settlement date, the shares of common stock or other securities, if applicable, underlying each purchase contract will not be outstanding, and the holder of such purchase contract will not have any voting rights, rights to dividends or other distributions or other rights of a holder of our common stock or such other securities by virtue of holding such purchase contract. The person in whose name any shares of our common stock or such other securities shall be deliverable following exercise of a holder’s fundamental change early settlement right will be treated as the holder of record of such shares or such other securities as of the close of business on the fundamental change early settlement date.
		

		
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			Upon early settlement at the holder’s election upon a fundamental change of the purchase contract component of a Unit, the amortizing note underlying such Unit will remain outstanding and will be beneficially owned by or registered in the name of, as the case may be, the holder who elected to settle the related purchase contract early upon the fundamental change and will no longer constitute a part of the Unit.
		

		
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			If the holder do not elect to exercise its fundamental change early settlement right, its purchase contracts will remain outstanding and will be subject to normal settlement on any subsequent early settlement date, any subsequent fundamental change early settlement date, any subsequent early mandatory settlement date or the mandatory settlement date or redemption on any subsequent acquisition redemption settlement date, as the case may be.
		

		
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			For the avoidance of doubt, each of the calculation methodologies and adjustments described above also shall apply if the fundamental change repurchase rate is being used as the acquisition redemption rate as described below under “—Acquisition Termination Redemption.”
		

		
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			Early Mandatory Settlement at Our Election
		

		
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			We have the right to settle the purchase contracts on or after January 30, 2020, in whole but not in part, on a date fixed by us as described below at the “early mandatory settlement rate” described below. We refer to this right as our “early mandatory settlement right.”
		

		
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			The “early mandatory settlement rate” will be the maximum settlement rate as of the date (the “notice date”) of the early mandatory settlement notice (as defined below) unless the closing price (as defined below) per share of our common stock for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the notice date in a period of 30 consecutive trading days ending on, and including, the trading day immediately preceding the notice date exceeds 130% of the threshold appreciation price in effect on each such trading day, in which case the “early mandatory settlement rate” will be the minimum settlement rate as of the notice date.
		

		
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		The “closing price” per share of our common stock (or any other security) on any day means:
		

		
			﻿
		

		
			    the closing sale price per share (or if no closing sale price is reported, the average of the bid and ask prices or, if more than one in either case, the average of the average bid and the average ask prices) on that date as reported in composite transactions for the relevant stock exchange;
		

		
			    if our common stock (or any other security) is not listed for trading on a relevant stock exchange on the relevant date, the last quoted bid price for our common stock (or such other security) in the over-the-counter market on the relevant date as reported by OTC Markets Group Inc. or a similar organization; and
		

		
			    if our common stock (or any other security) is not so quoted, the average of the mid-point of the last bid and ask prices for our common stock (or such other security) on the relevant date from each of at least three nationally recognized independent investment banking firms selected by us for this purpose.
		

		
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			In the event we elect to settle the purchase contracts early, holders of the amortizing notes (whether as components of Units or separate amortizing notes) will have the right to require us to repurchase some or all of their amortizing notes on the repurchase date and at the repurchase price, as described under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder.” If we exercise our early mandatory settlement right and the holder of any Unit does not require us to repurchase the amortizing note that is a component of such Unit, such amortizing note will remain outstanding and will be beneficially owned by or registered in the name of, as the case may be, such holder. If we exercise our early mandatory settlement right and the holder of any Unit requires us to repurchase the amortizing note that is a component of such Unit but the related repurchase date falls after the early mandatory settlement date, such amortizing note will remain outstanding (pending such repurchase date) and will be beneficially owned by or registered in the name of, as the case may be, such holder.
		

		
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			If we elect to exercise our early mandatory settlement right, we will provide the purchase contract agent and the holders of Units, separate purchase contracts and separate amortizing notes with a notice of our election (the “early mandatory settlement notice”) and issue a press release announcing our election. The early mandatory settlement notice will specify, among other things:
		

		
			﻿
		

		
			    the early mandatory settlement rate;
		

		
			    the date on which we will deliver shares of our common stock (and any cash payable for fractional shares) following exercise of our early mandatory settlement right (the “early mandatory settlement date”), which will be on or after January 30, 2020 and at least five but not more than 20 business days following the notice date;
		

		
			    that holders of Units and separate amortizing notes will have the right to require us to repurchase their amortizing notes that are a component of the Units or their separate amortizing notes, as the case may be (subject to certain exceptions described under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder”);
		

		
			    if applicable, the “repurchase price” and “repurchase date” (each as defined below under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder”);
		

		
			    if applicable, the last date on which holders of amortizing notes may exercise their repurchase right; and
		

		
			    if applicable, the procedures that holders of amortizing notes must follow to require us to repurchase their amortizing notes.
		

		
			﻿
		

		
			We will deliver the shares of our common stock (and any cash payable for fractional shares) to the holder on the early mandatory settlement date.
		

		

		

		 

		

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			Prior to the close of business on the notice date, the shares of common stock underlying each purchase contract will not be outstanding, and the holder of such purchase contract will not have any voting rights, rights to dividends or other distributions or other rights of a holder of our common stock by virtue of holding such purchase contract. The person in whose name any shares of our common stock shall be issuable following exercise of our early mandatory settlement right will be treated as the holder of record of such shares as of the close of business on the notice date.
		

		
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			Acquisition Termination Redemption
		

		
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			If the closing of the Peoples Gas Acquisition has not occurred on or prior to April 22, 2020, or if, prior to such date, the Purchase Agreement is terminated, we may elect to redeem all, but not less than all, of the outstanding purchase contracts on the terms described below (an “acquisition termination redemption”), by delivering notice during the five business day period immediately following the earlier of (x) April 22, 2020 if the closing of the Acquisition has not occurred on or prior to such date and (y) the date on which the Purchase Agreement is terminated (such notice, the “acquisition redemption notice”) to the purchase contract agent, the trustee and all holders of Units, separate purchase contracts or separate amortizing notes and will issue a press release announcing any such election.
		

		
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			In the event of an acquisition termination redemption, the holder will have the right to require us to repurchase its amortizing notes (whether as components of Units or separate amortizing notes) on the repurchase date and at the repurchase price, as described under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder.” If we exercise our right to cause an acquisition termination redemption and the holder of any Unit or separate amortizing note does not require us to repurchase such amortizing note, such amortizing note will remain outstanding and be beneficially owned by or registered in the name of, as the case may be, such holder. If we exercise our right to cause an acquisition termination redemption and the holder of any Unit requires us to repurchase the amortizing note that is a component of such Unit but the related repurchase date falls after the acquisition termination settlement date, such amortizing note will remain outstanding (pending such repurchase date) and will be beneficially owned by or registered in the name of, as the case may be, such holder.
		

		
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			As further described below, redemptions of purchase contracts pursuant to an acquisition termination redemption will be settled in cash if the relevant acquisition termination stock price is equal to or less than the reference price. If the relevant acquisition termination stock price is greater than the reference price, redemptions of purchase contracts pursuant to an acquisition termination redemption will be settled in shares of our common stock, with the amount of such common stock to be determined by reference to the table set forth above in “—Early Settlement Upon a Fundamental Change”; provided that, in such case, we may elect to pay cash in lieu of delivering any or all of such number of shares of our common stock, all as further described below.
		

		
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			The acquisition redemption notice will specify, among other things:
		

		
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			    the “acquisition termination stock price” (as defined below);
		

		
			    the “scheduled acquisition redemption settlement date” (as defined below);
		

		
			    if the “redemption amount” (as defined below) is determined pursuant to the first bullet point in the definition thereof, the redemption amount;
		

		
			    if the redemption amount is determined pursuant to the second bullet point in the definition thereof, the acquisition redemption rate, and, if applicable, the number of shares of our common stock that would otherwise be included in the applicable redemption amount that will be replaced with cash;
		

		

		

		 

		

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			    that holders of Units and separate amortizing notes will have the right to require us to repurchase their amortizing notes that are a component of the Units or their separate amortizing notes, as the case may be, as described under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder”;
		

		
			    if applicable, the “repurchase price” and “repurchase date,” each as defined below under “Description of the Amortizing Notes—Repurchase of Amortizing Notes at the Option of the Holder”;
		

		
			    if applicable, the last date on which holders of amortizing notes may exercise their repurchase right; and
		

		
			    if applicable, the procedures that holders of amortizing notes must follow to require us to repurchase their amortizing notes.
		

		
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			If we do not specify a number of shares of common stock that will be replaced with cash in the acquisition redemption notice, we will be deemed to have elected to settle the redemption amount solely in shares of common stock.
		

		
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			In the event of an acquisition termination redemption, we will deliver the applicable redemption amount on the acquisition redemption settlement date. “Redemption amount” per purchase contract means:
		

		
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			    if the acquisition termination stock price is equal to or less than the reference price, an amount of cash equal to (x) $50.00 less (y) the applicable repurchase price for the amortizing notes; or
		

		
			    if the acquisition termination stock price is greater than the reference price, a number of shares of our common stock (the “acquisition redemption rate”) equal to the number of shares of our common stock determined by reference to the table set forth above in “—Early Settlement Upon a Fundamental Change” (with references to “stock price” deemed to refer to the “acquisition termination stock price,” references to “fundamental change early settlement rate” deemed to refer to the “acquisition redemption rate,” and references to “effective date” deemed to refer to the date of the related acquisition redemption notice); provided that we may elect to pay cash in lieu of delivering any or all of the shares of our common stock in an amount equal to such number of shares multiplied by the redemption market value; provided further that, if we so elect to pay cash, we will specify in the acquisition redemption notice the number of shares of our common stock that will be replaced with cash.
		

		
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			“Acquisition termination stock price” means the arithmetic average of the VWAPs of our common stock over the five consecutive trading day period ending on, and including, the trading day immediately preceding the date we provide the acquisition redemption notice.
		

		
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			“Redemption market value” means the arithmetic average of the VWAPs of our common stock for the 20 consecutive trading day period beginning on, and including, the 21st scheduled trading day immediately preceding the scheduled acquisition redemption settlement date.
		

		
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			“Acquisition redemption settlement date” means:
		

		
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			    if (x) the acquisition termination stock price is greater than the reference price and (y) we elect to pay cash in lieu of delivering any or all of the shares of our common stock that would otherwise be included in the redemption amount, the second business day following the last trading day of the 20 consecutive trading day period used to determine the redemption market value; or
		

		
			    otherwise, the scheduled acquisition redemption settlement date specified in the acquisition redemption notice.
		

		
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		“Scheduled acquisition redemption settlement date” means:
		

		
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			    if (x) the acquisition termination stock price is greater than the reference price and (y) we elect to pay cash in lieu of delivering any or all of the shares of our common stock that would otherwise be included in the redemption amount, a date that is at least 30 and no more than 60 calendar days after the date of the acquisition redemption notice; or
		

		
			    otherwise, a date that is at least 5 and no more than 30 calendar days after the date of the acquisition redemption notice.
		

		
			    The person in whose name any shares of our common stock shall be issuable will be treated as the holder of record of such shares as of the close of business on:
		

		
			    the date of the acquisition redemption notice, if we have elected (or are deemed to have elected) to settle the redemption amount solely in shares of our common stock, or
		

		
			    the last trading day in the 20 consecutive trading day period used to determine the redemption market value, if the acquisition termination stock price is greater than the reference price and we have elected to pay cash in lieu of delivering any of the shares of our common stock that would otherwise be included in the redemption amount.
		

		
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			Prior to such time, the shares of common stock underlying each purchase contract will not be outstanding, and the holder of such purchase contract will not have any voting rights, rights to dividends or other distributions or other rights of a holder of our common stock by virtue of holding such purchase contract, but, for the avoidance of doubt, the anti-dilution adjustments provided herein under “—Adjustments to the Fixed Settlement Rates” below will continue to apply to the purchase contracts prior to such time.
		

		
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			Adjustments to the Fixed Settlement Rates
		

		
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			The fixed settlement rates will be adjusted as described below, except that we will not make any adjustments to the fixed settlement rates if holders of the purchase contracts participate (other than in the case of (x) a share split or share combination or (y) a tender or exchange offer), at the same time and upon the same terms as holders of our common stock and solely as a result of holding the purchase contracts, in any of the transactions described below without having to settle their purchase contracts as if they held a number of shares of our common stock equal to the maximum settlement rate, multiplied by the number of purchase contracts held by such holders.
		

		
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			(a)    If we issue common stock to all or substantially all of the holders of our common stock as a dividend or other distribution, or if we effect a share split or share combination, then each fixed settlement rate will be adjusted based on the following formula:
		

		
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						SR1  =

					
					
						SR0     x

					
					
						OS1

				
	
					
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						OS0

				

		
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			where,
		

		
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			SR0  =    the fixed settlement rate in effect immediately prior to the close of business on the record date (as defined below) for such dividend or distribution or immediately prior to the open of business on the effective date (as defined below) for such share split or share combination, as the case may be;
		

		
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			SR1  =    the fixed settlement rate in effect immediately after the close of business on such record date or immediately after the open of business on such effective date, as the case may be;
		

		
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		OS0  =    the number of shares of our common stock outstanding immediately prior to the close of business on such record date or immediately prior to the open of business on such effective date, as the case may be (in either case, prior to giving effect to such event); and
		

		
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			OS1  =    the number of shares of our common stock that would be outstanding immediately after, and solely as a result of, such dividend, distribution, share split or share combination.
		

		
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			Any adjustment made pursuant to this clause (a) will become effective immediately after the close of business on the record date for such dividend or distribution, or immediately after the open of business on the effective date for such share subdivision or share combination, as the case may be. If any dividend or distribution described in this clause (a) is declared but not so paid or made, each fixed settlement rate will be readjusted, effective as of the date our board of directors (or a committee thereof) publicly announces its decision not to make such dividend or distribution, to such fixed settlement rate that would be in effect if such dividend or distribution had not been declared. For the purposes of this clause (a), the number of shares of common stock outstanding immediately prior to the close of business on the record date for such dividend or distribution or the open of business on the effective date for such share subdivision or share combination, as applicable, will not include shares held in treasury but will include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of common stock. We will not pay any such dividend or make any such distribution on shares of common stock held in treasury.
		

		
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			“Record date” means, when used with respect to any dividend, distribution or other transaction or event in which the holders of our common stock (or other applicable security) have the right to receive any cash, securities or other property or in which our common stock (or other applicable security) is exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of holders of our common stock (or other applicable security) entitled to receive such cash, securities or other property (whether such date is fixed by our board of directors or a committee thereof, or by statute, contract or otherwise).
		

		
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			“Effective date” means the first date on which the shares of our common stock trade on the relevant stock exchange, regular way, reflecting the relevant share split or share combination, as applicable.
		

		
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			(b)    If we issue to all or substantially all holders of our common stock rights, options or warrants (other than rights issued pursuant to a stockholder rights plan) entitling them, for a period of up to 45 calendar days from the date of issuance of such rights, options or warrants, to subscribe for or purchase our shares of common stock at a price per share less than the average of the closing prices (as defined under “—Early Mandatory Settlement at Our Election) per share of our common stock for the 10 consecutive trading day (as defined below) period ending on, and including, the trading day immediately preceding the date of announcement for such distribution per share of our common stock, then each fixed settlement rate will be adjusted based on the following formula: 
		

		
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						SR1  =

					
					
						SR0     x

					
					
						(OS0  + X)

				
	
					
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						(OS0  + Y)

				

		
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			where,
		

		
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			SR0 =     the fixed settlement rate in effect immediately prior to the close of business on the record date for such issuance;
		

		
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			SR1 =     the fixed settlement rate in effect immediately after the close of business on such record date;
		

		
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			OS0 =     the number of shares of our common stock outstanding immediately prior to the close of business on such record date;
		

		

		

		 

		

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			X =     the total number of shares of our common stock issuable pursuant to such rights, options or warrants; and
		

		
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			Y =     the total number of shares of our common stock equal to the aggregate price payable to exercise such rights, options or warrants, divided by the average of the closing prices per share of our common stock for the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the date of announcement for such distribution.
		

		
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			Any adjustment made pursuant to this clause (b) will be made successively whenever any such rights, options or warrants are issued and will become effective immediately after the close of business on the record date for such issuance. In the event that such rights, options or warrants described in this clause (b) are not so issued, each fixed settlement rate will be readjusted, effective as of the date our board of directors (or a committee thereof) publicly announces its decision not to issue such rights, options or warrants, to such fixed settlement rate that would then be in effect if such issuance had not been declared. To the extent that such rights, options or warrants are not exercised prior to their expiration or shares of our common stock are otherwise not delivered pursuant to such rights, options or warrants upon the exercise of such rights, options or warrants, each fixed settlement rate will be readjusted, effective as of the date of such expiration or the date it is determined such shares will not be delivered, as the case may be, to such fixed settlement rate that would then be in effect had the adjustment made upon the issuance of such rights, options or warrants been made on the basis of the delivery of only the number of shares of our common stock actually delivered.
		

		
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			In determining whether any rights, options or warrants entitle the holders thereof to subscribe for or purchase shares of our common stock at less than the average of the closing prices per share of our common stock for the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the date of announcement for such distribution, and in determining the aggregate price payable to exercise such rights, options or warrants, there will be taken into account any consideration received by us for such rights, options or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by our board of directors, or a committee thereof.
		

		
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			For the purposes of this clause (b), the number of shares of common stock at the time outstanding will not include shares held in treasury but will include any shares issuable in respect of any scrip certificates issued in lieu of fractions of shares of common stock. We will not issue any such rights, options or warrants in respect of shares of common stock held in treasury.
		

		
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			(c) (1)   If we distribute to all or substantially all holders of our common stock shares of our capital stock (other than our common stock), evidences of our indebtedness, assets or rights, options or warrants to acquire our capital stock, indebtedness or assets, excluding:
		

		
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			    any dividend or distribution (including share splits or share combinations) as to which an adjustment was effected pursuant to clause (a) above;
		

		
			    any rights, options or warrants as to which an adjustment was effected pursuant to clause (b) above;
		

		
			    except as otherwise described below, rights issued pursuant to any stockholder rights plan of ours then in effect;
		

		
			    any dividend or distribution described in clause (d) below;
		

		
			    distributions of exchange property in a transaction described in “—Recapitalizations, Reclassifications and Changes of Our Common Stock;” and
		

		

		

		 

		

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		    any spin-off (as defined below) to which the provisions set forth below in clause (c)(2) shall apply;
		

		
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			then each fixed settlement rate will be adjusted based on the following formula:
		

		
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						SR1  =

					
					
						SR0     x

					
					
						SP0

				
	
					
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						(SP0 – FMV)

				

		
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			where,
		

		
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			SR0  =    the fixed settlement rate in effect immediately prior to the close of business on the record date for such dividend or distribution;
		

		
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			SR1  =    the fixed settlement rate in effect immediately after the close of business on such record date;
		

		
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			SP0  =    the average of the closing prices per share of our common stock for the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the ex-date for such dividend or distribution; and
		

		
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			FMV =    the fair market value (as determined by our board of directors or a committee thereof) on the ex-date for such dividend or distribution, of the shares of our capital stock, evidences of our indebtedness, assets or rights, options or warrants so distributed, expressed as an amount per share of common stock.
		

		
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			Notwithstanding the foregoing, if FMV (as defined above) is equal to or greater than SP0 (as defined above) or if the difference between SP0 and FMV is less than $1.00, in lieu of the foregoing adjustment, provision shall be made for each holder of a Unit or separate purchase contract to receive, for each Unit or separate purchase contract, at the same time and upon the same terms as holders of our common stock, the kind and amount of our capital stock, evidences of our indebtedness, assets or rights, options or warrants that such holder would have received if such holder owned a number of shares of our common stock equal to the maximum settlement rate in effect on the record date for the dividend or distribution.
		

		
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			Any adjustment made pursuant to this clause (c)(1) will become effective immediately after the close of business on the record date for such dividend or distribution. In the event that such dividend or distribution is not so made, each fixed settlement rate will be readjusted, effective as of the date our board of directors (or a committee thereof) publicly announces its decision not to make such dividend or distribution, to such fixed settlement rate that would then be in effect if such dividend or distribution had not been declared. We will not make any such distribution on shares of common stock held in treasury.
		

		
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			“Ex-date,” when used with respect to any issuance or distribution, means the first date on which shares of our common stock (or other applicable security) trade on the applicable exchange or in the applicable market, regular way, without the right to receive such issuance, dividend or distribution in question from us or, if applicable, from the seller of our common stock (or other applicable security) on such exchange or market (in the form of due bills or otherwise) as determined by such exchange or market.
		

		
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			(c)(2)   In the event that we make a dividend or distribution to all or substantially all holders of our common stock consisting of capital stock of, or similar equity interests in, or relating to, a subsidiary or other business unit of ours that, upon issuance, will be traded on a U.S. national securities exchange (herein referred to as a “spin-off”), each fixed settlement rate will be adjusted based on the following formula:
		

		
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						SR1  =

					
					
						SR0     x

					
					
						(FMV0 + MP0)

				
	
					
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						MP0

				

		

		

		 

		

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			where,
		

		
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			SR0  =    the fixed settlement rate in effect immediately prior to the open of business on the ex-date for the spin-off;
		

		
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			SR1  =    the fixed settlement rate in effect immediately after the open of business on the ex-date for the spin-off;
		

		
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			FMV0 = the average of the closing prices (as defined above, as if references to “common stock” therein were references to such capital stock or similar equity interest distributed to the holders of our common stock) per share of the capital stock or similar equity interests so distributed applicable to one share of our common stock for the 10 consecutive trading day period commencing on, and including, the ex-date date for the spin-off (the “valuation period”); and
		

		
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			MP0 =     the average of the closing prices per share of our common stock for the valuation period.
		

		
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			Any adjustment made pursuant to this clause (c)(2) will become effective immediately after the close of business on the last trading day of the valuation period but will be given effect as of immediately after the open of business on the ex-date of the spin-off. Because we will make the adjustment to each fixed settlement rate with retroactive effect, we will delay any settlement of a Unit or separate purchase contract where any date for determining the number of shares of our common stock issuable to a holder occurs during the valuation period until the second business day after the last date for determining the number of shares of our common stock issuable to such holder with respect to such settlement occurs. In the event that such dividend or distribution described in this clause (c)(2) is not so made, each fixed settlement rate will be readjusted, effective as of the date our board of directors (or a committee thereof) publicly announces its decision not to pay such dividend or distribution, to such fixed settlement rate that would then be in effect if such distribution had not been declared. We will not make any such dividend or distribution on shares of common stock held in treasury.
		

		
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			(d)    If we make a dividend or distribution consisting exclusively of cash to all or substantially all holders of our common stock, excluding:
		

		
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			    any regular quarterly dividend that does not exceed $0.219 per share of common stock (the “dividend threshold amount”);
		

		
			    any cash that is distributed in, and will constitute exchange property as a result of, a reorganization event (as defined below) in exchange for shares of our common stock; and
		

		
			    any dividend or distribution in connection with our liquidation, dissolution or winding up);
		

		
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			then each fixed settlement rate will be adjusted based on the following formula:
		

		
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						SR1  =

					
					
						SR0     x

					
					
						(SP0 – T)

				
	
					
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						(SP0 – C)

				

		
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			where,
		

		
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			SR0  =    the fixed settlement rate in effect immediately prior to the close of business on the record date for such dividend or distribution;
		

		
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			SR1  =    the fixed settlement rate in effect immediately after the close of business on the record date for such dividend or distribution;
		

		

		

		 

		

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			SP0  =    the average of the closing prices per share of our common stock over the 10 consecutive trading day period ending on, and including, the trading day immediately preceding the ex-date for such dividend or distribution;
		

		
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			T =    the dividend threshold amount; provided that if the dividend or distribution is not a regular quarterly cash dividend, the dividend threshold amount will be deemed to be zero; and
		

		
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			C =    the amount in cash per share we distribute to holders of our common stock.
		

		
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			The dividend threshold amount is subject to adjustment on an inversely proportional basis whenever the fixed settlement rates are adjusted (by multiplying the dividend threshold amount by a fraction, the numerator of which will be the minimum settlement rate in effect immediately prior to the adjustment and the denominator of which will be the minimum settlement rate as adjusted), but no adjustment will be made to the dividend threshold amount for any adjustment made to the fixed settlement rates pursuant to this clause (d).
		

		
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			If C (as defined above) is equal to or greater than SP0 (as defined above) or if the difference between SP0  and C is less than $1.00, in lieu of the foregoing adjustment, provision shall be made for each holder of a Unit or separate purchase contract to receive, for each Unit or separate purchase contract, at the same time and upon the same terms as holders of our common stock, the amount of cash that such holder would have received if such holder owned a number of shares of our common stock equal to the maximum settlement rate on the record date for such cash dividend or distribution.
		

		
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			Any adjustment made pursuant to this clause (d) will become effective immediately after the close of business on the record date for such dividend or distribution. In the event that any dividend or distribution described in this clause (d) is not so made, each fixed settlement rate will be readjusted, effective as of the date our board of directors (or a committee thereof) publicly announces its decision not to pay such dividend or distribution, to such fixed settlement rate which would then be in effect if such dividend or distribution had not been declared. We will not make any such dividend or distribution on shares of common stock held in treasury.
		

		
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			(e)    If we or any of our subsidiaries successfully complete a tender or exchange offer for our common stock where the cash and the value of any other consideration included in the payment per share of our common stock validly tendered or exchanged exceeds the average of the closing prices per share of our common stock for the 10 consecutive trading day period (the “averaging period”) commencing on, and including, the trading day next succeeding the last date on which tenders or exchanges may be made pursuant to such tender offer or exchange offer (the “expiration date”), then each fixed settlement rate will be adjusted based on the following formula:
		

		
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						SR1  =

					
					
						SR0     x

					
					
						(AC + (SP x OS1))

				
	
					
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						(SP x OS0)

				

		
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			where,
		

		
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			SR0  =    the fixed settlement rate in effect immediately prior to the close of business on the expiration date;
		

		
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			SR1  =    the fixed settlement rate in effect immediately after the close of business on the expiration date;
		

		
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		AC =    the aggregate value of all cash and the fair market value (as determined by our board of directors, or a committee thereof) on the expiration date of any other consideration paid or payable for shares of common stock acquired pursuant to such tender offer or exchange offer;
		

		
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			OS1  =    the number of shares of our common stock outstanding immediately after the expiration date, after giving effect to the purchase of all shares accepted for purchase or exchange in such tender or exchange offer;
		

		
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			OS0  =    the number of shares of our common stock outstanding immediately prior to the expiration date, prior to giving effect to the purchase of any shares accepted for purchase or exchange in such tender or exchange offer; and
		

		
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			SP =    the average of the closing prices per share of our common stock over the averaging period.
		

		
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			Any adjustment made pursuant to this clause (e) will become effective immediately after the close of business on the expiration date. Because we will make the adjustment to each fixed settlement rate with retroactive effect, we will delay any settlement of a Unit or separate purchase contract where any date for determining the number of shares of our common stock issuable to a holder occurs during the averaging period until the second business day after the last date for determining the number of shares of our common stock issuable to such holder with respect to such settlement occurs. In the event that we are, or one of our subsidiaries is, obligated to purchase shares of our common stock pursuant to any such tender or exchange offer, but we are, or such subsidiary is, permanently prevented by applicable law from effecting any such purchases, or all such purchases are rescinded, then each fixed settlement rate will be readjusted to be such fixed settlement rate that would then be in effect if such tender or exchange offer had not been made.
		

		
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			To the extent that we have a rights plan in effect with respect to our common stock on any date for determining the number of shares of our common stock issuable to a holder, the holder will receive, in addition to our common stock, the rights under the rights plan, unless, prior to such determination date, the rights have separated from our common stock, in which case each fixed settlement rate will be adjusted at the time of separation as if we made a distribution to all holders of our common stock as described in clause (c)(1) above, subject to readjustment in the event of the expiration, termination or redemption of such rights.
		

		
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			For purposes of this “—Adjustments to the Fixed Settlement Rates” section, “trading day” means a day on which:
		

		
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			    trading in our common stock (or other security for which a closing sale price must be determined) generally occurs on the relevant stock exchange, or, if our common stock (or such other security) is not then listed on a relevant stock exchange, on the principal other market on which our common stock (or such other security) is then listed or admitted for trading; and
		

		
			    a closing price per share for our common stock (or closing sale price for such other security) is available on such securities exchange or market.
		

		
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			If our common stock (or such other security) is not so listed or traded, “trading day” means a “business day.”
		

		
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			In addition, subject to applicable law and the applicable listing standards of the NYSE (or any other securities exchange where our common stock is listed) and in accordance with the provisions of the purchase contract agreement, we may make such increases in each fixed settlement rate as we determine to be in our best interests or we deem advisable. We may also (but are not required to) increase each fixed settlement rate in order to avoid or diminish any income tax to holders of our common stock resulting 
		

		 

		

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		from any dividend or distribution of shares of our common stock (or issuance of rights, options or warrants to acquire shares of our common stock) or from any event treated as such for income tax purposes or for any other reason. We may only make such a discretionary adjustment if we make the same proportionate adjustment to each fixed settlement rate.
		

		
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			The holder might be treated as receiving a constructive distribution from us if (i) the fixed settlement rates are adjusted and as a result of such adjustment its proportionate interest in our assets or earnings and profits is increased and (ii) the adjustment is not made pursuant to a bona fide, reasonable anti-dilution formula. An adjustment in the fixed settlement rates would not be considered made pursuant to such a formula if the adjustment were made to compensate the holder for taxable distributions with respect to our common stock (for example, if we increase the cash dividend on our common stock). Certain of the possible settlement rate adjustments (including, without limitation, adjustments in respect of taxable dividends to holders of our common stock and as discussed in “Description of the Purchase Contracts—Early Settlement Upon a Fundamental Change”) may not qualify as being pursuant to a bona fide reasonable adjustment formula. Thus, under certain circumstances, an increase in the fixed settlement rates might give rise to a constructive distribution to the holder even though the holder would not receive any cash related thereto. In addition, in certain situations, the holder might be treated as receiving a constructive distribution if we fail to adjust the fixed settlement rates. Any constructive distribution will be taxable as a dividend, return of capital, or capital gain in accordance with the earnings and profits rules described in the prospectus supplement under which we offered the Units.
		

		
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			Adjustments to each fixed settlement rate will be calculated to the nearest 1/10,000th of a share. No adjustment in the fixed settlement rates will be required unless the adjustment would require an increase or decrease of at least one percent. If any adjustment is not required to be made because it would not change the fixed settlement rates by at least one percent, then the adjustment will be carried forward and taken into account in any subsequent adjustment; provided that, on any date for determining the number of shares of our common stock issuable to a holder (including any date for determining the amount of cash payable in connection with an acquisition termination redemption), adjustments to the fixed settlement rates will be made with respect to any such adjustment carried forward and which has not been taken into account before such determination date.
		

		
			﻿
		

		
			The fixed settlement rates will only be adjusted as set forth above and will not be adjusted:
		

		
			﻿
		

		
			    upon the issuance of any common stock pursuant to any present or future plan providing for the reinvestment of dividends or interest payable on our securities and the investment of additional optional amounts in common stock under any plan;
		

		
			    upon the issuance of any common stock or rights, options or warrants to purchase those shares pursuant to any present or future employee, director or consultant benefit plan or program of or assumed by us or any of our subsidiaries;
		

		
			    upon the repurchase of any shares of our common stock pursuant to an open market share repurchase program or other buy-back transaction, including structured or derivative transactions, that is not a tender offer or exchange offer of the nature described in clause (e) above;
		

		
			    for the sale or issuance of shares of our common stock, or securities convertible into or exercisable for shares of our common stock, for cash, including at a price per share less than the fair market value thereof or otherwise or in an acquisition, except as described in one of clauses (a) through (e) above;
		

		
			    for a third-party tender offer;
		

		
			    upon the issuance of any common stock pursuant to any option, warrant, right or exercisable, exchangeable or convertible security outstanding as of the date the Units were first issued;
		

		
			    solely for a change in, or elimination of, the par value of our common stock; or
		

		

		

		 

		

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		    for accrued and unpaid interest, if any.
		

		
			﻿
		

		
			Whenever the fixed settlement rates are adjusted, we will deliver to the purchase contract agent a certificate setting forth in reasonable detail the method by which the adjustment to each fixed settlement rate was determined and setting forth each adjusted fixed settlement rate. In addition, we will, within five business days of any event requiring such adjustment, provide or cause to be provided written notice of the adjustment to the holders of the Units and separate purchase contracts and describe in reasonable detail the method by which each fixed settlement rate was adjusted.
		

		
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			We will adjust the fundamental change early settlement rates and acquisition redemption rates at the time we adjust the fixed settlement rates. For the avoidance of doubt, if we make an adjustment to the fixed settlement rates, it will result in a corresponding adjustment to the early settlement rate and the early mandatory settlement rate. For the further avoidance of doubt, if we make an adjustment to the fixed settlement rates, no separate inversely proportionate adjustment will be made either to (i) the threshold appreciation price because it is equal to $50.00 divided by the minimum settlement rate as adjusted in the manner described herein (rounded to the nearest $0.0001) or (ii) the reference price because it is equal to $50.00 divided by the maximum settlement rate as adjusted in the manner described herein (rounded to the nearest $0.0001).
		

		
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			Whenever the terms of the purchase contracts require us to calculate closing prices, VWAPs or any other prices or amounts over a span of multiple days (including, without limitation, the applicable market value, the redemption market value, the “stock price” or the “acquisition termination stock price”), we will make appropriate adjustments, if any, to each to account for any adjustment to the fixed settlement rates if the related record date, ex-date, effective date or expiration date occurs during the period in which the closing prices, the VWAPs or such other prices or amounts are to be calculated.
		

		
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			Recapitalizations, Reclassifications and Changes of our Common Stock
		

		
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			In the event of:
		

		
			﻿
		

		
			    any consolidation or merger of us with or into another person (other than a merger or consolidation in which we are the continuing or surviving corporation and in which the shares of our common stock outstanding immediately prior to the merger or consolidation are not exchanged for cash, securities or other property of us or another person);
		

		
			    any direct or indirect sale, lease, assignment, transfer or conveyance of all or substantially all of our consolidated property or assets;
		

		
			    any reclassification of our common stock into securities, including securities other than our common stock (other than changes in par value or resulting from a subdivision or combination); or
		

		
			    any statutory exchange of our securities with another person (other than in connection with a merger or acquisition);
		

		
			﻿
		

		
			in each case, as a result of which our common stock would be converted into, or exchanged for, securities, cash or other property (each, a “reorganization event”), each purchase contract outstanding immediately prior to such reorganization event will, without the consent of the holders of the purchase contracts, become a contract to purchase the kind of securities, cash and/or other property that a holder of common stock would have been entitled to receive in connection with such reorganization event (such securities, cash and other property, the “exchange property” with each unit of exchange property being the kind and amount of exchange property that a holder of one share of our common stock would have received in such reorganization event) and, prior to or at the effective time of such reorganization event, we or the successor or purchasing person, as the case may be, shall execute with the purchase contract agent and the 
		

		 

		

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		trustee a supplemental agreement pursuant to the purchase contract agreement and the purchase contracts to provide for such change in the right to settle the purchase contracts.
		

		
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			For purposes of the foregoing, the type and amount of exchange property in the case of any reorganization event that causes our common stock to be converted into, or exchanged for, the right to receive more than a single type of consideration (determined based in part upon any form of shareholder election) will be deemed to be the weighted average of the types and amounts of consideration actually received by the holders of our common stock.
		

		
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			The number of units of exchange property we will deliver for each purchase contract settled or redeemed (if we elect not to deliver solely cash in respect of such redemption) following the effective date of such reorganization event will be equal to the number of shares of our common stock we would otherwise be required to deliver as determined by the fixed settlement rates then in effect on the applicable settlement date, or such other settlement rates or redemption rates as provided herein (without interest thereon and without any right to dividends or distributions thereon which have a record date prior to the close of business such purchase contracts are actually settled). Each fixed settlement rate will be determined using the applicable market value of a unit of exchange property, and such value will be determined, on any date of determination, with respect to:
		

		
			﻿
		

		
			    in the case of any publicly traded securities that comprise all or part of the exchange property, based on the VWAP of such securities on such date;
		

		
			    in the case of any cash that comprises all or part of the exchange property, based on the amount of such cash; and
		

		
			    in the case of any other property that comprises all or part of the exchange property, based on the value of such property on such date, as determined by a nationally recognized independent investment banking firm retained by us for this purpose.
		

		
			﻿
		

		
			In addition, if the exchange property in respect of any reorganization event includes, in whole or in part, securities of another entity, we shall amend the terms of the purchase contract agreement and the purchase contracts, without the consent of holders thereof, to: (x) provide for anti-dilution and other adjustments that shall be as nearly equivalent as practicable, as determined by the officer executing such amendment, to the adjustments described above under the heading “—Adjustments to the Fixed Settlement Rates”; and (y) otherwise modify the terms of the purchase contract agreement and the purchase contracts to reflect the substitution of the applicable exchange property for our common stock (or other exchange property then underlying the purchase contracts). In establishing such anti-dilution and other adjustments referenced in the immediately preceding sentence, such officer shall act in a commercially reasonable manner and in good faith.
		

		
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			In connection with any adjustment to the fixed settlement rates described above, we will also adjust the dividend threshold amount based on the number of shares of common stock comprising the exchange property and (if applicable) the value of any non-stock consideration comprising the exchange property. If the exchange property is comprised solely of non-stock consideration, the dividend threshold amount will be zero.
		

		
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			Fractional Shares
		

		
			﻿
		

		
			No fractional shares of our common stock will be issued to holders upon settlement or redemption of the purchase contracts. In lieu of fractional shares otherwise issuable, holders will be entitled to receive an amount in cash equal to the fraction of a share of our common stock, calculated on an aggregate basis in respect of the purchase contracts being settled or redeemed (provided that, so long as the Units are in global form, we may elect to aggregate Units for purposes of these calculations on any basis permitted by the applicable procedures of DTC), multiplied by the VWAP of our common stock on the trading day 
		

		 

		

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		immediately preceding the mandatory settlement date, early settlement date, fundamental change early settlement date, early mandatory settlement date or acquisition redemption settlement date, as the case may be.
		

		
			﻿
		

		
			Legal Holidays
		

		
			﻿
		

		
			In any case where the mandatory settlement date, early settlement date, fundamental change early settlement date, early mandatory settlement date or acquisition redemption settlement date, as the case may be, shall not be a business day, notwithstanding any term to the contrary in the purchase contract agreement or purchase contract, the settlement or redemption of the purchase contracts shall not be effected on such date, but instead shall be effected on the next succeeding business day with the same force and effect as if made on such settlement date, and no interest or other amounts shall accrue or be payable by us or to any holder in respect of such delay.
		

		
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			Consequences of Bankruptcy
		

		
			﻿
		

		
			Pursuant to the terms of the purchase contract agreement, the mandatory settlement date for each purchase contract, whether held separately or as part of a Unit, will automatically accelerate upon the occurrence of specified events of bankruptcy, insolvency or reorganization with respect to us. Pursuant to the terms of the purchase contract agreement, upon acceleration, holders will be entitled under the terms of the purchase contracts to receive a number of shares of our common stock per purchase contract equal to the maximum settlement rate in effect immediately prior to such acceleration (regardless of the market value of our common stock at that time). If for any reason the accelerated purchase contracts are not settled by the delivery of our common stock (for example, a bankruptcy court may prevent us from delivering our common stock in settlement of the accelerated purchase contracts), a holder may have a damage claim against us for the value of the common stock that we would have otherwise been required to deliver upon settlement of the purchase contracts. We expect that any such damage claim that holders have against us following such acceleration would rank equally with the claims of holders of our common stock in the relevant bankruptcy proceeding. As such, to the extent we fail to deliver common stock to the holder upon such an acceleration, the holder will only be able to recover damages to the extent holders of our common stock receive any recovery.
		

		
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			Modification
		

		
			﻿
		

		
			The purchase contract agreement will contain provisions permitting us, the purchase contract agent and the trustee to modify the purchase contract agreement or the purchase contracts without the consent of the holders of purchase contracts (whether held separately or as a component of Units) for any of the following purposes:
		

		
			﻿
		

		
			    to evidence the succession of another person to us, and the assumption by any such successor of the covenants and obligations of ours in the purchase contract agreement and the units and separate purchase contracts, if any;
		

		
			    to add to the covenants for the benefit of holders of purchase contracts or to surrender any of our rights or powers under the agreement;
		

		
			    to evidence and provide for the acceptance of appointment of a successor purchase contract agent;
		

		
			    upon the occurrence of a reorganization event, solely: (i) to provide that each purchase contract will become a contract to purchase exchange property; and (ii) to effect the related changes to the terms of the purchase contracts, in each case, as required by the applicable provisions of the purchase contract agreement;
		

		

		

		 

		

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		    to conform the provisions of the purchase contract agreement to the “Description of the Purchase Contracts” and “Description of the Units” sections in the prospectus supplement under which the Units were offered, as supplemented by the related pricing term sheet;
		

		
			    to cure any ambiguity or manifest error, to correct or supplement any provisions that may be inconsistent; and
		

		
			    to make any other provisions with respect to such matters or questions, so long as such action does not adversely affect the interest of the holders.
		

		
			﻿
		

		
			The purchase contract agreement will contain provisions permitting us, the purchase contract agent and the trustee, with the consent of the holders of not less than a majority of the purchase contracts at the time outstanding, to modify the terms of the purchase contracts or the purchase contract agreement. However, no such modification may, without the consent of the holder of each outstanding purchase contract affected by the modification,
		

		
			﻿
		

		
			    reduce the number of shares of common stock deliverable upon settlement of the purchase contract (except to the extent expressly provided in the anti-dilution adjustments);
		

		
			    change the mandatory settlement date, or adversely modify the right to settle purchase contracts early or the fundamental change early settlement right;
		

		
			    reduce the redemption amount or adversely modify the right of any holder to receive such amount if we elect to redeem the purchase contract in connection with an acquisition termination redemption;
		

		
			    impair the right to institute suit for the enforcement of the purchase contracts; or
		

		
			    reduce the above-stated percentage of outstanding purchase contracts the consent of the holders of which is required for the modification or amendment of the provisions of the purchase contracts or the purchase contract agreement.
		

		
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			In executing any supplement, modification or amendment to the purchase contract agreement, the purchase contract agent and trustee shall be provided an officer’s certificate and an opinion of counsel stating that the execution of such supplemental agreement is authorized or permitted by the purchase contract agreement, and that any and all conditions precedent to the execution and delivery of such supplemental agreement have been satisfied.
		

		
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			Consolidation, Merger, Conveyance, Transfer or Lease
		

		
			﻿
		

		
			The purchase contract agreement provides that Essential Utilities will not consolidate or merge with or into any other entity, or sell, transfer, lease or otherwise convey its properties and assets as an entirety or substantially as an entirety to any entity, unless:
		

		
			﻿
		

		
			    (i) it is the continuing entity (in the case of a merger), or (ii) the successor entity formed by such consolidation or into which it is merged or which acquires by sale, transfer, lease or other conveyance of its properties and assets, as an entirety or substantially as an entirety, is a corporation organized and existing under the laws of the United States of America or any State thereof or the District of Columbia, and expressly assumes, by a supplement to the purchase contract agreement, all our obligations under the purchase contract agreement; and
		

		
			    immediately after giving effect to the transaction, no event of default, and no event which after notice or lapse of time or both would become an event of default under the purchase contract agreement or the purchase contracts, has or will have occurred and be continuing.
		

		
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			32

		

		

			 

		

 

		Although there is a limited body of case law interpreting the phrase “substantially as an entirety,” there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of our properties and assets “substantially as an entirety.” As a result, it may be unclear as to whether the foregoing restrictions on mergers, consolidations, sales, conveyances, transfers, leases and other dispositions would apply to a particular transaction as described above absent a decision by a court of competent jurisdiction.
		

		
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			Reservation of Common Stock
		

		
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			We will at all times reserve and keep available out of our authorized and unissued common stock, solely for issuance upon settlement or redemption of the purchase contracts, the number of shares of common stock that would be issuable upon the settlement of all purchase contracts then outstanding, assuming settlement at the maximum settlement rate.
		

		
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			Governing Law
		

		
			﻿
		

		
			The purchase contract agreement, the Units, the purchase contracts and any claim, controversy or dispute arising under or related to the purchase contract agreement, the Units or the purchase contracts will be governed by, and construed in accordance with, the laws of the State of New York.
		

		
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			Waiver of Jury Trial
		

		
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			The purchase contract agreement provides that we, the purchase contract agent and the trustee will waive its respective rights to trial by jury in any action or proceeding arising out of or related to the purchase contracts, the purchase contract agreement or the transactions contemplated thereby, to the maximum extent permitted by law.
		

		
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			Information Concerning the Purchase Contract Agent
		

		
			﻿
		

		
			U.S. Bank N.A. is the purchase contract agent. The purchase contract agent acts as the agent for the holders of Units and separate purchase contracts from time to time but has no fiduciary relationship to the holder of the Units or any other party. The purchase contract agreement does not obligate the purchase contract agent to exercise any discretionary actions in connection with a default under the terms of the purchase contracts or the purchase contract agreement.
		

		
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			The purchase contract agreement contains provisions limiting the liability of the purchase contract agent. The purchase contract agreement contains provisions under which the purchase contract agent may resign or be replaced. This resignation or replacement would be effective upon the acceptance of appointment by a successor purchase contract agent.
		

		
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			We maintain banking relationships in the ordinary course of business with the purchase contract agent and its affiliates.
		

		
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			Calculations in Respect of Purchase Contracts
		

		
			﻿
		

		
			We will be responsible for making all calculations called for under the Units and any separate purchase contracts. The purchase contract agent will have no obligation to make, review or verify any such calculations. All such calculations made by us will be made in good faith and, absent manifest error, will be final and binding on the purchase contract agent and the holders of the Units and any separate purchase contracts. We will provide a schedule of such calculations to the purchase contract agent and the purchase 
		

		 

		

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		contract agent will be entitled to conclusively rely upon the accuracy of such calculations without independent verification.
		

		
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			Description of the Amortizing Notes
		

		
			﻿
		

		
			The amortizing notes were issued by us pursuant to an indenture, as amended, between us, as issuer, and U.S. Bank N.A., as trustee, and a related supplemental indenture, each dated the date of first issuance of the Units (collectively referred to herein as the “indenture”).
		

		
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			The following summary of the terms of the amortizing notes contains a description of certain terms of the amortizing notes but is not complete and is subject to, and is qualified in its entirety by reference to, all of the provisions of the indenture, including the definitions in the indenture of certain terms. 
		

		
			﻿
		

		
			General
		

		
			﻿
		

		
			The amortizing notes were issued as a separate series of senior debt securities under the indenture. The amortizing notes were issued by us in an aggregate initial principal amount of $119,081,442.  The final installment payment date will be April 30, 2022. We may not redeem the amortizing notes, and no sinking fund is provided for the amortizing notes.
		

		
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			Each amortizing note initially formed a part of a Unit. Each Unit may be separated by a holder into its constituent purchase contract and amortizing note on any business day during the period beginning on, and including, the business day immediately following the date of initial issuance of the Units to, but excluding, the second scheduled trading day immediately preceding April 30, 2022 or, if earlier, the second scheduled trading day immediately preceding any “early mandatory settlement date” or the second scheduled trading day immediately preceding any “acquisition redemption settlement date” and also excluding the business day immediately preceding any installment payment date (provided, the right to separate the Units shall resume after such business day). Following such separation, amortizing notes may be transferred separately from purchase contracts.
		

		
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			Amortizing notes were only issued in certificated form in exchange for a global security under the circumstances described under “Book-Entry Procedures and Settlement.” In the event that amortizing notes are issued in certificated form, such amortizing notes may be transferred or exchanged at the offices described below.
		

		
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			Payments on amortizing notes issued as a global security will be made to DTC, or a successor depositary. In the event amortizing notes are issued in certificated form, installment payments will be made, at the corporate trust office of the trustee. Installment payments on certificated amortizing notes may be made at our option by check mailed to the address of the persons entitled thereto. See “Book-Entry Procedures and Settlement.”
		

		
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			The amortizing notes will not be guaranteed by any of our subsidiaries.
		

		
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			There are no covenants or provisions in the indenture that would afford the holders of the amortizing notes protection in the event of a highly leveraged transaction, reorganization, restructuring, merger or similar transaction involving us that may adversely affect such holders, except to the extent set forth under “—Consolidation, Merger, Conveyance, Transfer or Lease.”
		

		
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			The indenture does not limit the aggregate principal amount of indebtedness that may be issued thereunder and provides that debt securities may be issued thereunder from time to time in one or more series.
		

		
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		Ranking
		

		
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			The amortizing notes are our general unsecured senior obligations and rank equally in right of payment with all of our other existing and future unsecured senior indebtedness and guarantees and are structurally subordinated to the indebtedness and other liabilities of our subsidiaries, including, upon consummation of the Peoples Gas Acquisition, indebtedness and other liabilities of LDC and its subsidiaries that we assume in connection with the Peoples Gas Acquisition. The amortizing notes will rank senior to all of our existing and future indebtedness, if any, that is subordinated to the amortizing notes. The amortizing notes will be effectively subordinated to any of our secured indebtedness to the extent of the collateral securing that indebtedness.
		

		
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			The amortizing notes are our obligations exclusively, and are not the obligations of any of our subsidiaries. We conduct our operations primarily through our subsidiaries and substantially all of our consolidated assets are held by our subsidiaries and, therefore, we depend on the cash flow of our subsidiaries to meet our obligations, including our obligations under the amortizing notes. Many of our subsidiaries are limited in their ability to pay dividends or make loans or distributions to us, including, without limitation, as a result of legislation, regulation, court order, contractual restrictions and other restrictions or in times of financial distress. Likewise, certain of the Peoples Gas companies and its subsidiaries face similar restrictions that, if the Peoples Gas Acquisition is consummated, will limit their ability to pay dividends or make loans or distributions to us. As a result, we may not be able to cause such subsidiaries and other entities to distribute funds or provide loans sufficient to enable us to meet our debt and other obligations, including obligations under the amortizing notes. 
		

		
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			Installment Payments
		

		
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			Each amortizing note has an initial principal amount of $8.62909. On each January 30, April 30, July 30 and October 30, commencing on July 30, 2019 (each, an “installment payment date”), we will pay, in cash, equal quarterly installments of $0.75000 on each amortizing note (except for the July 30, 2019 installment payment, which will be $0.80833 per amortizing note). Each installment payment will constitute a payment of interest (at a rate of 3.00% per annum) and a partial repayment of principal on the amortizing note, allocated as set forth on the amortization schedule set forth under “—Amortization Schedule.”
		

		
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			Installments will be paid to the person in whose name an amortizing note is registered as of 5:00 p.m., New York City time, on January 15, April 15, July 15 and October 15, as applicable.
		

		
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			Each installment payment for any period will be computed on the basis of a 360-day year of twelve 30-day months. The installment payable for any period shorter or longer than a full installment payment period will be computed on the basis of the actual number of days elapsed per 30-day month. In the event that any date on which an installment is payable is not a business day, then payment of the installment on such date will be made on the next succeeding day that is a business day, and without any interest or other payment in respect of any such delay.
		

		
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		Amortization Schedule
		

		
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			The total installments of principal of and interest on the amortizing notes for each installment payment date are set forth below:
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Installment Payment Date

					
					
						Amount of Principal

					
					
						Amount of Interest

				
	
					
						July 30, 2019

					
					
						$    0.73858

					
					
						$    0.06975

				
	
					
						October 30, 2019

					
					
						$    0.69082

					
					
						$    0.05918

				
	
					
						January 30, 2020

					
					
						$    0.69600

					
					
						$    0.05400

				
	
					
						April 30, 2020

					
					
						$    0.70122

					
					
						$    0.04878

				
	
					
						July 30, 2020

					
					
						$    0.70648

					
					
						$    0.04352

				
	
					
						October 30, 2020

					
					
						$    0.71178

					
					
						$    0.03822

				
	
					
						January 30, 2021

					
					
						$    0.71712

					
					
						$    0.03288

				
	
					
						April 30, 2021

					
					
						$    0.72250

					
					
						$    0.02750

				
	
					
						July 30, 2021

					
					
						$    0.72792

					
					
						$    0.02208

				
	
					
						October 30, 2021

					
					
						$    0.73337

					
					
						$    0.01663

				
	
					
						January 30, 2022

					
					
						$    0.73888

					
					
						$    0.01112

				
	
					
						April 30, 2022

					
					
						$    0.74442

					
					
						$    0.00558

				

		
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			Repurchase of Amortizing Notes at the Option of the Holder
		

		
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			If we elect to exercise our early mandatory settlement right with respect to, or cause an acquisition termination redemption of, the purchase contracts, then holders of the amortizing notes (whether as components of Units or separate amortizing notes) will have the right (the “repurchase right”) to require us to repurchase some or all of their amortizing notes for cash at the repurchase price per amortizing note to be repurchased on the repurchase date, as described below. Holders may not require us to repurchase a portion of an amortizing note. Holders will not have the right to require us to repurchase any or all of such holder’s amortizing notes in connection with any early settlement of such holder’s purchase contracts at the holder’s option, as described above under “Description of the Purchase Contracts—Early Settlement” and “Description of the Purchase Contracts—Early Settlement Upon a Fundamental Change.”
		

		
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			The “repurchase date” will be a date specified by us in the early mandatory settlement notice, or acquisition redemption notice, as the case may be, which will be at least 20 but not more than 35 business days following the date of our early mandatory settlement notice as described under “Description of the Purchase Contracts—Early Mandatory Settlement at Our Election” or the date of the acquisition redemption notice as described under “Description of the Purchase Contracts—Acquisition Termination Redemption,” as the case may be (and which may or may not fall on the early mandatory settlement date or acquisition redemption settlement date, as the case may be).
		

		
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			The “repurchase price” per amortizing note to be repurchased will be equal to the principal amount of such amortizing note as of the repurchase date, plus accrued and unpaid interest on such principal amount from, and including, the immediately preceding installment payment date to, but not including, the repurchase date, calculated at an annual rate of 3.00%; provided that, if the repurchase date falls after a regular record date for any installment payment and on or prior to the immediately succeeding installment payment date, the installment payment payable on such installment payment date will be paid on such installment payment date to the holder as of such regular record date and will not be included in the repurchase price per amortizing note.
		

		
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			To exercise its repurchase right, the holder must deliver, on or before 5:00 p.m., New York City time, on the business day immediately preceding the repurchase date, the amortizing notes to be repurchased (or the Units, if the early mandatory settlement date or acquisition redemption settlement date, as the case may be, occurs on or after the repurchase date and the holder have not separated its Units into their 
		

		 

		

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		constituent components), together with a duly completed written repurchase notice in the form entitled “Form of Repurchase Notice” on the reverse side of the amortizing notes (a “repurchase notice”), in each case, in accordance with appropriate DTC procedures, unless the holder hold certificated amortizing notes (or Units), in which case the holder must deliver the amortizing notes to be repurchased (or Units), duly endorsed for transfer, together with a repurchase notice, to the paying agent. The repurchase notice must state:
		

		
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			    if certificated amortizing notes (or Units) have been issued, the certificate numbers of the amortizing notes (or Units), or if not certificated, the repurchase notice must comply with appropriate DTC procedures;
		

		
			    the number of amortizing notes to be repurchased; and
		

		
			    that the amortizing notes are to be repurchased by us pursuant to the applicable provisions of the amortizing notes and the indenture.
		

		
			﻿
		

		
			The holder may withdraw any repurchase notice (in whole or in part) by a written, irrevocable notice of withdrawal delivered (in the case of an amortizing note in global form, in accordance with the appropriate DTC procedures) on or before 5:00 p.m., New York City time, on the business day immediately preceding the repurchase date. The notice of withdrawal must state:
		

		
			﻿
		

		
			    if certificated amortizing notes (or Units) have been issued, the certificate numbers of the withdrawn amortizing notes (or Units), or if not certificated, the notice must comply with appropriate DTC procedures;
		

		
			    the number of the withdrawn amortizing notes; and
		

		
			    the number of amortizing notes, if any, that remain subject to the repurchase notice.
		

		
			﻿
		

		
			We will be required to repurchase the amortizing notes on the repurchase date. The holder will receive payment of the repurchase price on the later of (i) the repurchase date and (ii) the time of book-entry transfer or the delivery of the amortizing notes. If the trustee holds money sufficient to pay the repurchase price of the amortizing notes to be purchased on the repurchase date, then:
		

		
			﻿
		

		
			    such amortizing notes will cease to be outstanding and interest will cease to accrue (whether or not book-entry transfer of the amortizing notes is made or whether or not the amortizing notes are delivered to the trustee); and
		

		
			    all other rights of the holder will terminate (other than the right to receive the repurchase price and, if the repurchase date falls between a regular record date and the corresponding installment payment date, the related installment payment).
		

		
			﻿
		

		
			Upon repurchase of the amortizing note component of a Unit prior to the related acquisition redemption settlement date, if applicable, the purchase contract component of such Unit will remain outstanding (pending such acquisition redemption settlement date) and beneficially owned by or registered in the name of, as the case may be, the holder who elected repurchase of the related amortizing note and will no longer constitute a part of the Unit.
		

		
			﻿
		

		
			In connection with any repurchase offer pursuant to an early mandatory settlement notice or acquisition redemption notice, we will, if required, comply with the provisions of the tender offer rules under the Exchange Act that may then be applicable.
		

		
			﻿
		

		
			No amortizing notes may be repurchased at the option of holders if the principal amount thereof has been accelerated, and such acceleration has not been rescinded, on or prior to the repurchase date (except in the 
		

		 

		

			37

		

		

			 

		

 

		case of an acceleration resulting from a default by us of the payment of the repurchase price with respect to such amortizing notes).
		

		
			﻿
		

		
			Events of Default
		

		
			﻿
		

		
			Each of the following will be an “event of default” under the indenture with respect to the amortizing notes:
		

		
			﻿
		

		
			    default in the payment of any installment payment on any amortizing notes as and when the same shall become due and payable and continuance of such failure for a period of 30 days;
		

		
			    default in the payment of the repurchase price of any amortizing notes when the same shall become due and payable;
		

		
			    our failure to give notice of a fundamental change as described under “Description of the Purchase Contracts—Early Settlement Upon a Fundamental Change” when due and continuance of such failure for a period of five business days;
		

		
			    our failure to perform for 90 days after notice any other covenant in the amortizing notes or the indenture; and
		

		
			    certain events of bankruptcy or insolvency of Essential Utilities, whether voluntary or not.
		

		
			﻿
		

		
			Discharge and Defeasance of Indenture
		

		
			﻿
		

		
			After we have deposited with the trustee, cash or government securities, in trust for the benefit of the holders sufficient to pay the principal of, premium, if any, and interest on the debt securities of such series when due, and satisfied certain other conditions, including receipt of an opinion of counsel that holders will not recognize taxable gain or loss for United States federal income tax purposes, then: 
		

		
			﻿
		

		
			    we will be deemed to have paid and satisfied our obligations on all outstanding debt securities of such series, which is known as defeasance and discharge; or 
		

		
			﻿
		

		
			    we will cease to be under any obligation, other than to pay when due the principal of, premium, if any, and interest on such debt securities, relating to the debt securities of such series, which is known as covenant defeasance.
		

		
			﻿
		

		
			When there is a defeasance and discharge, the applicable indenture will no longer govern the debt securities of such series, we will no longer be liable for payments required by the terms of the debt securities of such series and the holders of such debt securities will be entitled only to the deposited funds. When there is a covenant defeasance, however, we will continue to be obligated to make payments when due if the deposited funds are not sufficient. 
		

		
			﻿
		

		
			The foregoing defeasance provisions are applicable to the amortizing notes; provided that (i) the coin or currency unit to be deposited with the trustee under such provisions shall be U.S. dollars, (ii) references therein to “principal” shall be deemed to refer to “the portion of all future scheduled installment payments constituting the payment of principal in respect of the amortizing notes and the portion of the repurchase price constituting the principal amount of the amortizing notes” and (iii) references therein to “interest” shall be deemed to refer to “the portion of all future scheduled installment payments constituting the payment of interest in respect of the amortizing notes and the portion of the repurchase price constituting the accrued but unpaid interest on the amortizing notes.”
		

		
			﻿
		

		

		

		 

		

			38

		

		

			 

		

 

		Consolidation, Merger, Conveyance, Transfer or Lease
		

		
			﻿
		

		
			The indenture provides that Essential Utilities will not consolidate or merge with or into any other entity, or sell, transfer, lease or otherwise convey its properties and assets as an entirety or substantially as an entirety to any entity, unless:
		

		
			﻿
		

		
			    (i) it is the continuing entity (in the case of a merger), or (ii) the successor entity formed by such consolidation or into which it is merged or which acquires by sale, transfer, lease or other conveyance of its properties and assets, as an entirety or substantially as an entirety, is a corporation organized and existing under the laws of the United States of America or any State thereof or the District of Columbia,
		

		
			    and expressly assumes, by supplemental indenture, the due and punctual payment of the installment payments on all the debt securities and the performance of all of the covenants under the indenture; and
		

		
			    immediately after giving effect to the transaction, no event of default, and no event which after notice or lapse of time or both would become an event of default under the indenture, has or will have occurred and be continuing.
		

		
			﻿
		

		
			Although there is a limited body of case law interpreting the phrase “substantially as an entirety,” there is no precise established definition of the phrase under applicable law. Accordingly, in certain circumstances there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of our properties and assets “substantially as an entirety.” As a result, it may be unclear as to whether the foregoing restrictions on mergers, consolidations, sales, conveyances, transfers, leases and other dispositions would apply to a particular transaction as described above absent a decision by a court of competent jurisdiction.
		

		
			﻿
		

		
			Modifications and Amendments
		

		
			﻿
		

		
			We and the trustee may amend or supplement the indenture or the amortizing notes without consent of the holders to:
		

		
			﻿
		

		
			    cure any ambiguity, omission, defect or inconsistency in the indenture;
		

		
			    provide for the assumption by a successor corporation as set forth in “—Consolidation, Merger, Conveyance, Transfer or Lease;
		

		
			    comply with any requirements of the SEC in connection with the qualification of the indenture under the Trust Indenture Act;
		

		
			    to evidence and provide for the acceptance of appointment with respect to the amortizing notes by a successor trustee in accordance with the indenture, and add or change any of the provisions of the indenture as shall be necessary to provide for or facilitate the administration of the trusts under the indenture by more than one trustee;
		

		
			    secure the notes;
		

		
			    add guarantees with respect to the notes;
		

		
			    add covenants or events of default for the benefit of the holders or surrender any right or power conferred upon us;
		

		
			    make any change that does not adversely affect the rights of any holder in any material respect; and
		

		
			    conform the provisions of the indenture or the amortizing notes to any provision of the “Description of the Amortizing Notes” section in the prospectus supplement for the Units offering, as supplemented by the related pricing term sheet.
		

		

		

		 

		

			39

		

		

			 

		

 

		﻿
		

		
			We may not make any modification or amendment to the indenture or the amortizing notes without the consent of each holder affected thereby if that modification or amendment will:
		

		
			﻿
		

		
			    change any installment payment date or reduce the amount owed on any installment payment date; or
		

		
			    reduce the repurchase price or amend or modify in any manner adverse to the holders of the amortizing notes our obligation to make such payment.
		

		
			Governing Law
		

		
			﻿
		

		
			The indenture and the amortizing notes are governed by and construed in accordance with the laws of the State of New York.
		

		
			﻿
		

		
			Waiver of Jury Trial
		

		
			﻿
		

		
			The indenture provides that we and the trustee will waive our respective rights to trial by jury in any action or proceeding arising out of or related to the amortizing notes, the indenture or the transactions contemplated thereby, to the maximum extent permitted by law.
		

		
			﻿
		

		 

		

			40Exhibit 418

		
			Exhibit 4.18
		

		
			Execution Version
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Aqua Pennsylvania, Inc.
		

		
			$150,000,000
		

		
			﻿
		

		
			$50,000,000 First Mortgage Bonds, 2.85% Series due December 1, 2053

$50,000,000 First Mortgage Bonds, 2.89% Series due December 1, 2057

$50,000,000 First Mortgage Bonds, 2.90% Series due December 1, 2058
		

		
			_____________
		

		
			Bond Purchase Agreement
		

		
			_____________
		

		
			Dated as of October 13, 2020
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

 

		

			 

		

		Table of Contents
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section

					
					
						Heading

					
					
						Page

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 1.

					
					
						Authorization of Bonds

					1 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 2.

					
					
						Sale and Purchase of Bonds

					2 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 3.

					
					
						Execution Date and Closing

					2 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 4.

					
					
						Conditions to Closing

					2 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 4.1.

					
					
						Representations and Warranties

					3 
				
	
					
						Section 4.2.

					
					
						Performance; No Default

					3 
				
	
					
						Section 4.3.

					
					
						Compliance Certificates

					3 
				
	
					
						Section 4.4.

					
					
						Opinions of Counsel

					3 
				
	
					
						Section 4.5.

					
					
						Purchase Permitted by Applicable Law, Etc

					4 
				
	
					
						Section 4.6.

					
					
						Sale of Bonds

					4 
				
	
					
						Section 4.7.

					
					
						Payment of Special Counsel Fees

					4 
				
	
					
						Section 4.8.

					
					
						Private Placement Number

					4 
				
	
					
						Section 4.9.

					
					
						Changes in Corporate Structure

					4 
				
	
					
						Section 4.10.

					
					
						Funding Instructions

					4 
				
	
					
						Section 4.11.

					
					
						Proceedings and Documents

					5 
				
	
					
						Section 4.12.

					
					
						Execution and Delivery and Filing and Recording of the Supplement

					5 
				
	
					
						Section 4.13.

					
					
						Regulatory Approvals

					5 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 5.

					
					
						  Representations and Warranties of the Company

					5 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 5.1.

					
					
						Organization; Power and Authority

					5 
				
	
					
						Section 5.2.

					
					
						Authorization, Etc

					5 
				
	
					
						Section 5.3.

					
					
						Disclosure

					6 
				
	
					
						Section 5.4.

					
					
						Organization and Ownership of Shares of Subsidiaries

					6 
				
	
					
						Section 5.5.

					
					
						Financial Statements; Material Liabilities

					6 
				
	
					
						Section 5.6.

					
					
						Compliance with Laws, Other Instruments, Etc

					7 
				
	
					
						Section 5.7.

					
					
						Governmental Authorizations, Etc

					7 
				
	
					
						Section 5.8.

					
					
						Litigation; Observance of Statutes and Orders

					7 
				
	
					
						Section 5.9.

					
					
						Taxes

					7 
				
	
					
						Section 5.10.

					
					
						Title to Property; Leases

					8 
				
	
					
						Section 5.11.

					
					
						Licenses, Permits, Etc

					8 
				
	
					
						Section 5.12.

					
					
						Compliance with Employee Benefit Plans

					8 
				
	
					
						Section 5.13.

					
					
						Private Offering by the Company

					9 
				
	
					
						Section 5.14.

					
					
						Use of Proceeds; Margin Regulations

					9 
				
	
					
						Section 5.15.

					
					
						Existing Debt

					10 
				
	
					
						Section 5.16.

					
					
						Foreign Assets Control Regulations, Etc

					10 
				

		
			-i-
		

		 

		

			 

		

 

		

			 

		

			
					
						Section 5.17.

					
					
						Status under Certain Statutes

					11 
				
	
					
						Section 5.18.

					
					
						Environmental Matters

					11 
				
	
					
						Section 5.19.

					
					
						Lien of Indenture

					11 
				
	
					
						Section 5.20.

					
					
						Filings

					12 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 6.

					
					
						  Representations of the Purchasers

					12 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 6.1.

					
					
						Purchase for Investment

					12 
				
	
					
						Section 6.2.

					
					
						Source of Funds

					12 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 7.

					
					
						Information as to Company

					14 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 7.1.

					
					
						Financial and Business Information

					14 
				
	
					
						Section 7.2

					
					
						Officer’s Certificate

					16 
				
	
					
						Section 7.3.

					
					
						Visitation

					17 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 8.

					
					
						Purchase of Bonds

					17 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 9.

					
					
						Affirmative Covenants

					18 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 9.1.

					
					
						Compliance with Law

					18 
				
	
					
						Section 9.2.

					
					
						Insurance

					18 
				
	
					
						Section 9.3.

					
					
						Maintenance of Properties

					18 
				
	
					
						Section 9.4.

					
					
						Payment of Taxes

					19 
				
	
					
						Section 9.5.

					
					
						Corporate Existence, Etc

					19 
				
	
					
						Section 9.6.

					
					
						Books and Records

					19 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 10.

					
					
						  Negative Covenants

					19 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 10.1.

					
					
						Transactions with Affiliates

					19 
				
	
					
						Section 10.2.

					
					
						Merger, Consolidation, Etc

					19 
				
	
					
						Section 10.3.

					
					
						Line of Business

					20 
				
	
					
						Section 10.4.

					
					
						Economic Sanctions, Etc.

					20 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 11.

					
					
						Payments on Bonds

					20 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 11.1.

					
					
						Payment by Wire Transfer

					20 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 12.

					
					
						Registration; Exchange; Expenses, Etc

					21 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 12.1.

					
					
						Registration of Bonds

					21 
				
	
					
						Section 12.2.

					
					
						Transaction Expenses

					21 
				
	
					
						Section 12.3.

					
					
						Survival

					21 
				
	
					
						Section 12.4.

					
					
						Tax Withholding

					21 
				
	
					
						﻿

					
					
						 

					
					
						 

				

		
			-ii-
		

		 

		

			 

		

 

		

			 

		

			
					
						Section 13.

					
					
						Survival of Representations and Warranties; Entire Agreement

					21 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 14.

					
					
						Amendment and Waiver

					22 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 14.1.

					
					
						Requirements

					22 
				
	
					
						Section 14.2.

					
					
						Solicitation of Holders of Bonds

					22 
				
	
					
						Section 14.3.

					
					
						Binding Effect, Etc

					23 
				
	
					
						Section 14.4.

					
					
						Bonds Held by Company, Etc

					23 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 15.

					
					
						Notices

					23 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 16.

					
					
						Indemnification

					24 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 17.

					
					
						Reproduction of Documents

					24 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 18.

					
					
						Confidential Information

					24 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 19.

					
					
						  Miscellaneous

					25 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Section 19.1.

					
					
						Successors and Assigns

					25 
				
	
					
						Section 19.2.

					
					
						Accounting Terms

					25 
				
	
					
						Section 19.3.

					
					
						Severability

					26 
				
	
					
						Section 19.4.

					
					
						Construction, Etc

					26 
				
	
					
						Section 19.5.

					
					
						Counterparts

					26 
				
	
					
						Section 19.6.

					
					
						Governing Law

					26 
				
	
					
						Section 19.7.

					
					
						Jurisdiction and Process; Waiver of Jury Trial

					26 
				

		
			﻿
		

		
			-iii-
		

		

		

		 

		

			 

		

 

		

			 

		

		
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Schedule A

					
					
						—

					
					
						Information Relating to Purchasers

				
	
					
						Schedule B

					
					
						—

					
					
						Defined Terms

				
	
					
						Schedule 5.4

					
					
						—

					
					
						Subsidiaries of the Company and Ownership of Subsidiary Stock

				
	
					
						Schedule 5.5

					
					
						—

					
					
						Financial Statements

				
	
					
						Schedule 5.15(a)

					
					
						—

					
					
						Existing Debt

				
	
					
						Schedule 5.15(b)

					
					
						—

					
					
						Debt Instruments

				
	
					
						Exhibit A

					
					
						—

					
					
						Form of Fifty-ninth Supplemental Indenture

				
	
					
						Exhibit 4.4(a)

					
					
						—

					
					
						Form of Opinion of Counsel for the Company

				
	
					
						Exhibit 4.4(b)

					
					
						—

					
					
						Form of Opinion of Special Counsel for the Company

				
	
					
						Exhibit 4.4(c)

					
					
						—

					
					
						Form of Opinion of Special Counsel for the Purchasers

				
	
					
						Exhibit 12.4

					
					
						—

					
					
						 Form of US Tax Compliance Certificate

				

		
			﻿
		

		
			 
		

		

		

		 

		

			 

		

 

		

			 

		

		Aqua Pennsylvania, Inc.
		

		
			762 West Lancaster Avenue
Bryn Mawr, Pennsylvania 19010-3489
		

		
			$150,000,000
		

		
			$50,000,000 First Mortgage Bonds, 2.85% Series due December 1, 2053
$50,000,000 First Mortgage Bonds, 2.89% Series due December 1, 2057
$50,000,000 First Mortgage Bonds, 2.90% Series due December 1, 2058
		

		
			As of October 13, 2020
		

		
			To Each of the Purchasers Listed in
		

		
			Schedule A Hereto:
		

		
			Ladies and Gentlemen:
		

		
			Aqua Pennsylvania, Inc., a corporation organized under the laws of the Commonwealth of Pennsylvania (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as follows:
		

		
			Section 1.    Authorization of Bonds.
		

		
			The Company will authorize the issue and sale of (i) First Mortgage Bonds, 2.85% Series due December 1, 2053 (herein referred to as the “2.85% Series due December 1, 2053 Bonds”) in an aggregate principal amount of $50,000,000, to bear interest at the rate of 2.85% per annum, and to mature on December 1, 2053,  (ii) First Mortgage Bonds, 2.89% Series due December 1, 2057 (herein referred to as the “2.89% Series due December 1, 2057 Bonds”) in an aggregate principal amount of $50,000,000, to bear interest at the rate of 2.89% per annum, and to mature on December 1, 2057,  and (iii) First Mortgage Bonds,  2.90% Series due December 1, 2058 (herein referred to as the “2.90% Series due December 1, 2058 Bonds”) in an aggregate principal amount of $50,000,000, to bear interest at the rate of 2.90% per annum, and to mature on December 1, 2058 (the 2.85% Series due December 1, 2053 Bonds, the 2.89% Series due December 1, 2057 Bonds,  and the 2.90% Series due December 1, 2058 Bonds are collectively referred to as the “Bonds” and such term includes any such bonds issued in substitution therefor).  The Bonds will be issued under and secured by that certain Indenture of Mortgage dated as of January 1, 1941, from the Company (as successor by merger to the Philadelphia Suburban Water Company), as grantor, to The Bank of New York Mellon Trust Company, N.A., as successor trustee (the “Trustee”) (the “Original Indenture”), as previously amended and supplemented by fifty-eight supplemental indentures and as further supplemented by the Fifty-ninth Supplemental Indenture dated as of September 1, 2020 (such Fifty-ninth Supplemental Indenture being referred to herein as the “Supplement”) which will be substantially in the form attached hereto as Exhibit A, with such changes therein, if any, as shall be approved by the Purchasers and the Company.  The Original Indenture, as supplemented and amended by the aforementioned fifty-eight supplemental indentures and the Supplement, and as further supplemented or amended according to its terms, is 
		

		 

		

			 

		

 

		

			 

		

		hereinafter referred to as the “Indenture”.  Certain capitalized and other terms used in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.  Terms used herein but not defined herein shall have the meanings set forth in the Indenture.  
		

		
			Section 2.    Sale and Purchase of Bonds.
		

		
			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, Bonds in the principal amount and in the series specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non‐performance of any obligation by any other Purchaser hereunder.
		

		
			Section 3.    Execution Date and Closing.
		

		
			The execution and delivery of this Agreement will be made at the offices of Chapman and Cutler LLP, 111 West Monroe, Chicago, Illinois 60603 on October 13, 2020 (the “Execution Date”).  The sale and purchase of the Bonds to be purchased by each Purchaser shall occur at 10:00 A.M., Chicago time, at a closing on November 20, 2020 or on such other Business Day thereafter on or prior to November 30,  2020 as may be agreed upon by the Company and the Purchasers (the “Closing”).  At the Closing the Company will deliver to each Purchaser the Bonds to be purchased by such Purchaser in the form of one or more Bonds to be purchased by such Purchaser, as applicable, in such denominations as such Purchaser may request (with a minimum denomination of $100,000 for each Bond), dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for Account Number: 8559742757, Account Name: Aqua Pennsylvania, Inc., at PNC Bank, N.A., Philadelphia, Pennsylvania, ABA Number 031‐000053.  If at the Closing the Company shall fail to tender such Bonds to any Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Bonds or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction.
		

		
			Section 4.    Conditions to Closing.
		

		
			Each Purchaser’s obligation to execute and deliver this Agreement and to purchase and pay for the Bonds to be sold to such Purchaser at the Closing is subject to the fulfillment to such Purchaser’s satisfaction prior to or at the Closing of the following conditions:
		

		

		

		 

		

			-2-

		

 

		

			 

		

		    Section 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.
		

		
			    Section 4.2.    Performance; No Default.  The Company shall have performed and complied with all agreements and conditions contained in each Financing Agreement required to be performed or complied with by the Company prior to or at the Closing, and after giving effect to the issue and sale of the Bonds (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing.  
		

		
			    Section 4.3.    Compliance Certificates.  The Company shall have performed and complied with all agreements and conditions contained in the Indenture which are required to be performed or complied with by the Company for the issuance of the Bonds at the Closing.  In addition, the Company shall have delivered the following certificates:
		

		
			    (a)    Officer’s Certificate.  The Company shall have delivered to such Purchaser (i) an Officer’s Certificate, dated the date of the Closing, certifying that the conditions specified in Section 4 of this Agreement have been fulfilled, and (ii) copies of all certificates and opinions required to be delivered to the Trustee under the Indenture in connection with the issuance of the Bonds,  in each case, dated the date of the Closing.
		

		
			    (b)    Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of the Closing, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of this Agreement, the Bonds,  under the Indenture, and the Supplement. 
		

		
			    (c)    Certification of Indenture.  Such Purchaser shall have received a composite copy of the Indenture (together with all amendments and supplements thereto), certified by the Company as of the date of the Closing, exclusive of property exhibits, recording information and the like.
		

		
			    Section 4.4.    Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from Christopher P. Luning, counsel for the Company, covering the matters set forth in Exhibit 4.4(a) and covering such other 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 the Purchasers) and (b) from Dilworth Paxson, LLP, special counsel to the Company, covering the matters set forth in Exhibit 4.4(b) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or such Purchaser’s counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers), and (c) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(c) and covering such other matters incident to such transactions as such Purchaser may reasonably request.  The Company hereby directs its counsel to deliver the opinions required by this Section 4.4 and understands and agrees that each Purchaser will and hereby is authorized to rely on such opinions.
		

		

		

		 

		

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		    Section 4.5.    Purchase Permitted by Applicable Law, Etc.  On the date of the Closing such Purchaser’s purchase of Bonds shall (a) be permitted by the laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) 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 (c) 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 of the Closing.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.
		

		
			    Section 4.6.    Sale of Bonds.  Contemporaneously with the Closing, the Company shall sell to each Purchaser and each Purchaser shall purchase the Bonds to be purchased by it as specified in Schedule A.
		

		
			    Section 4.7.    Payment of Special Counsel Fees.  Without limiting the provisions of Section 12.2, the Company shall have paid on or before the Closing the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’ special counsel referred to in Section 4.4(c) to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing.
		

		
			    Section 4.8.    Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each series of Bonds issued at the Closing.
		

		
			    Section 4.9.    Changes in Corporate Structure.  The Company shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a party to any merger or consolidation or succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.
		

		
			    Section 4.10.    Funding Instructions.  At least five (5) Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number and (c) the account name and number into which the purchase price for the relevant series of Bonds is to be deposited.  Each Purchaser has the right, but not the obligation, upon written notice (which may be by email) to the Company, to elect to deliver a micro deposit (less than $51.00) to the account identified in the written instructions no later than two (2)  Business Days prior to Closing.  If a Purchaser delivers a micro deposit, a Responsible Officer must verbally verify the receipt and amount of the micro deposit to such Purchaser on a telephone call initiated by such Purchaser prior to Closing.  The Company shall not be obligated to return the amount of the micro deposit, nor will the amount of the micro deposit be netted against the Purchaser’s purchase price of the Bonds.
		

		
			    Section 4.11.    Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident 
		

		 

		

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		to such transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.  
		

		
			    Section 4.12.    Execution and Delivery and Filing and Recording of the Supplement.  Prior to or at the Closing, the Supplement shall have been duly executed and delivered by the Company, and the Company shall have filed, or delivered for recordation, the Supplement in all locations in Pennsylvania (and financing statements in respect thereof shall have been filed, if necessary) in such manner and in such places as is required by law (and no other instruments are required to be filed) to establish, preserve, perfect and protect the direct security interest and mortgage Lien of the Trust Estate created by the Indenture on all mortgaged and pledged property of the Company referred to in the Indenture as subject to the direct mortgage Lien thereof and the Company shall have delivered satisfactory evidence of such filings, recording or delivery for recording.  
		

		
			    Section 4.13.    Regulatory Approvals.  The issue and sale of the Bonds shall have been duly authorized by an order of the Pennsylvania Public Utility Commission and such order shall be in full force and effect on the date of the Closing and all appeal periods, if any, applicable to such order shall have expired.  The Company shall deliver satisfactory evidence that orders have been obtained approving the issuance of such Bonds from the Pennsylvania Public Utility Commission or that the Pennsylvania Public Utility Commission shall have waived jurisdiction thereof and such approval or waiver shall not be contested or subject to review, or that the Pennsylvania Public Utility Commission does not have jurisdiction.  
		

		
			Section 5.      Representations and Warranties of the Company.
		

		
			The Company represents and warrants to each Purchaser as of the date of this Agreement and at the Closing that:
		

		
			    Section 5.1.    Organization; Power and Authority.  The Company is a corporation duly organized, validly existing and subsisting under the laws of the Commonwealth of Pennsylvania, 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 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, the Bonds and the Supplement (and had the corporate power and authority to execute and deliver the Indenture at the time of execution and delivery thereof) and to perform the provisions of the Financing Agreements.  
		

		
			    Section 5.2.    Authorization, Etc.  At the Closing, each Financing Agreement has been duly authorized by all necessary corporate action on the part of the Company, and each Financing Agreement (other than the Supplement and the Bonds) constitutes, and when the Supplement is executed and delivered by the Company and the Trustee and when the Bonds are executed, issued and delivered by the Company, authenticated by the Trustee and paid for by the Purchasers, the Supplement and each Bond will constitute, a legal, valid and binding obligation of the Company 
		

		 

		

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		enforceable against the Company in accordance with its respective 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).
		

		
			    Section 5.3.    Disclosure.  This Agreement and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby, including the Private placement memorandum (including the documents incorporated therein by reference) dated September 2020, and the financial statements listed in Schedule 5.5 (collectively, 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.  Since June 30, 2020, there has been no change in the financial condition, operations, business or properties of the Company or any of its Subsidiaries except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.  There is no fact known to management of the Company that, in the reasonable judgment of management of the Company, could be expected to have a Material Adverse Effect that has not been set forth herein or in the other documents, certificates and other writings delivered to the Purchaser by the Company specifically for use in connection with the transactions contemplated hereby.
		

		
			    Section 5.4.    Organization and Ownership of Shares of Subsidiaries.    (a) Schedule 5.4 contains a complete and correct list 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.
		

		
			    (b)    All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary free and clear of any Lien.
		

		
			    (c)    Each Subsidiary identified in Schedule 5.4 is duly incorporated and is validly subsisting as a corporation under the laws of the Commonwealth of Pennsylvania, 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 could 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.
		

		
			    Section 5.5.    Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule 5.5.  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 financial statements and the 
		

		 

		

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		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 does not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.
		

		
			    Section 5.6.    Compliance with Laws, Other Instruments, Etc. The execution, delivery and performance by the Company of each Financing Agreement (including the prior execution and delivery of the Indenture), will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien, other than the Lien created under the Indenture, 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, regulations or by-laws, or any other Material 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, (b) 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 (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary, except for any such default, breach, contravention or violation which would not reasonably be expected to have a Material Adverse Effect.  
		

		
			    Section 5.7.    Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement, the Bonds and the Supplement, other than approval of the Pennsylvania Public Utility Commission, which has been obtained and is in full force and effect and final and is non-appealable.  
		

		
			    Section 5.8.    Litigation; Observance of Statutes and Orders.  (a) There are no actions, suits, investigations 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 (i) in default under any term of any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority naming or referring to the Company or any Subsidiary or (iii) in violation of any applicable law, or, to the knowledge of the Company, any ordinance, rule or regulation of any Governmental Authority (including, without limitation, Environmental Laws the USA Patriot Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
		

		
			Section 5.9.    Taxes.  The Company and its Subsidiaries have filed all income 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 payable by them, to the extent such 
		

		 

		

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		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 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.  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 finally determined (whether by reason of completed audits or the statute of limitations having run) for all fiscal years up to and including the fiscal year ended December 31, 2011 and all amounts owing in respect of such audit have been paid.  
		

		
			    Section 5.10.    Title to Property; Leases.  The Company and its Subsidiaries have good and sufficient title to their respective Material properties, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement or the Indenture, except for those defects in title and Liens that, individually or in the aggregate, would not have a Material Adverse Effect.  All Material leases are valid and subsisting and are in full force and effect in all material respects.
		

		
			    Section 5.11.    Licenses, Permits, Etc.  The Company and its Subsidiaries own or possess all licenses, permits, franchises, certificates of convenience and necessity, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, that are Material, without known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not have a Material Adverse Effect.  
		

		
			    Section 5.12.    Compliance with Employee Benefit Plans.  (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would reasonably be expected to result in the incurrence of any such liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412 of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be individually or in the aggregate Material.
		

		
			    (b)    The present value of the aggregate benefit liabilities under each of the Plans subject to section 412 of the Code (other than Multiemployer Plans), determined as of January 1, 2019 based on such Plan’s actuarial assumptions as of that date for funding purposes as documented in such Plan’s actuarial valuation reports dated September 2020 did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $5,000,000 in the case of any single Plan and by more than $5,000,000 in the aggregate for all Plans.  The term “benefit 
		

		 

		

			-8-

		

 

		

			 

		

		liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.
		

		
			    (c)    The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.
		

		
			    (d)    The expected postretirement benefit obligation (determined as of the last day of the Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 715‐60, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Company and its Subsidiaries is not Material.
		

		
			    (e)    The execution and delivery of this Agreement and the issuance and sale of the Bonds hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)‐(D) of the Code.  The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the Bonds to be purchased by such Purchaser.
		

		
			    (f)    The Company and its Subsidiaries do not have any Non‐U.S. Plans.
		

		
			    Section 5.13.    Private Offering by the Company.    Neither the Company nor anyone acting on the Company’s behalf has offered the Bonds 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 and not more than thirty-five (35) other Institutional Investors, each of which has been offered the Bonds in connection with a private sale for investment.  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 Bonds to the registration requirements of Section 5 of the Securities Act.
		

		
			    Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the Bonds to repay existing indebtedness and for general corporate purposes and in compliance with all laws referenced in Section 5.16.  No part of the proceeds from the sale of the Bonds hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 2% of the value of the consolidated assets of the Company and its Subsidiaries and the Company does not have any present intention that margin stock will constitute more than 2% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.
		

		

		

		 

		

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		    Section 5.15.    Existing Debt.  Except as described therein, Schedule 5.15(a) sets forth a complete and correct list of all outstanding Debt of the Company and its Subsidiaries as of June 30, 2020 since which date except as described therein there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the Company or its Subsidiaries.  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 Debt of the Company or any Subsidiary and no event or condition exists with respect to any Debt of the Company or any Subsidiary, the outstanding principal amount of which exceeds $5,000,000 that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment.  
		

		
			    (b)    Without limiting the representation in Section 5.6, the Company is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Debt of the Company or any Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Debt evidenced by the Bonds, except as specifically indicated in Schedule 5.15(b).
		

		
			    Section 5.16.    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 Bonds 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 
		

		 

		

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		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 applicable U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws and Anti‐Corruption Laws.
		

		
			    Section 5.17.    Status under Certain Statutes.  Neither the Company nor any Subsidiary is subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or subject to rate regulation under the Federal Power Act, as amended.  
		

		
			    Section 5.18.    Environmental Matters.  Neither the Company nor any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted of which it has received notice, raising any claim against the Company or any of its Subsidiaries or any of their respective real properties now or formerly owned, leased or operated by any of them, or other assets, alleging damage to the environment or any violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.  Except as otherwise disclosed to the Purchasers in writing:
		

		
			    (a)    neither the Company nor any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, for violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties or to other assets now or formerly owned, leased or operated by any of them or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect;
		

		
			    (b)    neither the Company nor any of its Subsidiaries has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them or has disposed of any Hazardous Materials in each case in a manner contrary to any Environmental Laws and in any manner that could reasonably be expected to result in a Material Adverse Effect; and
		

		
			    (c)    all buildings on all real properties now owned, leased or operated by the Company or any of its Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.
		

		
			    Section 5.19.    Lien of Indenture.  The Indenture (and for avoidance of doubt including the Supplement) constitutes a direct and valid Lien upon the Trust Estate, subject only to the exceptions referred to in the Indenture and Permitted Liens, and will create a similar Lien upon all properties and assets acquired by the Company after the date hereof which are required to be subjected to the Lien of the Indenture, when acquired by the Company, subject only to the exceptions referred to in the Indenture and Permitted Liens, and subject, further, as to real property interests, to the recordation of a supplement to the Indenture describing such after-acquired 
		

		 

		

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		property; the descriptions of all such properties and assets contained in the granting clauses of the Indenture are correct and adequate for the purposes of the Indenture; the Indenture has been duly recorded as a mortgage and deed of trust of real estate, and any required filings with respect to personal property and fixtures subject to the Lien of the Indenture have been duly made in each place in which such recording or filing is required to protect, preserve and perfect the Lien of the Indenture; and all taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Indenture, the filing of financing statements related thereto and similar documents and the issuance of the Bonds have been paid.
		

		
			    Section 5.20.    Filings.  No action, including any filings, registration or notice, is necessary or advisable in Pennsylvania or any other jurisdictions to ensure the legality, validity and enforceability of the Financing Agreements, except such action as has been previously taken, which action remains in full force and effect.  No action, including any filing, registration or notice, is necessary or advisable in Pennsylvania or any other jurisdiction to establish or protect for the benefit of the Trustee and the holders of Bonds, the security interest and Liens purported to be created under the Indenture and the priority and perfection thereof and the other Financing Agreements, except such action as has been previously taken, which action remains in full force and effect.  
		

		
			Section 6.      Representations of the Purchasers.
		

		
			    Section 6.1.    Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Bonds for its own account or for one or more separate accounts maintained by such Purchaser 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 such Purchaser’s or their property shall at all times be within such Purchaser’s or their control.  Each Purchaser understands that the Bonds have 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 the Bonds.
		

		
			    Section 6.2.    Source of Funds.  Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Bonds to be purchased by such Purchaser hereunder:
		

		
			    (a)    the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95‐60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the NAIC (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95‐60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general 
		

		 

		

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		account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or
		

		
			    (b)    the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or
		

		
			    (c)    the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90‐1 or (ii) a bank collective investment fund, within the meaning of the PTE 91‐38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or
		

		
			    (d)    the Source constitutes assets of an “investment fund” (within the meaning of Part VI of PTE 84‐14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no employee benefit plan’s assets that are managed by the QPAM in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, represent more than 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM maintains an ownership interest in the Company that would cause the QPAM and the Company to be “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of such QPAM and (ii) the names of any employee benefit plans whose assets in the investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee organization, represent 10% or more of the assets of such investment fund, have been disclosed to the Company in writing pursuant to this clause (d); or
		

		
			    (e)    the Source constitutes assets of a “plan(s)” (within the meaning of Part IV(h) of PTE 96‐23 (the “INHAM Exemption”)) managed by an “in‐house asset manager” or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or
		

		
			    (f)    the Source is a governmental plan; or
		

		

		

		 

		

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		    (g)    the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or
		

		
			    (h)    the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.
		

		
			As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.
		

		
			Section 7.     Information as to Company.
		

		
			    Section 7.1.    Financial and Business Information.  The Company shall deliver to each Purchaser and each holder of Bonds that is an Institutional Investor:
		

		
			    (a)    Quarterly Statements — within 60 days after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of:
		

		
			    (i)    a consolidated balance sheet of the Company and its Subsidiaries as at the end of such quarter, and
		

		
			    (ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,
		

		
			setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year‐end adjustments, provided that the delivery within the time period specified above of the Company’s said financial statements, prepared in accordance with the requirements therefor and filed with the Municipal Securities Rulemaking Board on the Electronic Municipal Market Access (“EMMA”) database shall be deemed to satisfy the requirements of this Section 7.1(a);
		

		
			    (b)    Annual Statements — within 120 days after the end of each fiscal year of the Company, duplicate copies of:
		

		
			    (i)    a consolidated balance sheet of the Company and its Subsidiaries, as at the end of such year, and
		

		

		

		 

		

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		    (ii)    consolidated statements of income, changes in shareholders’ equity and cash flows of the Company and its Subsidiaries for such year,
		

		
			setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Company’s said financial statements, prepared in accordance with the requirements therefor and containing the above-described audit opinion and filed with the Municipal Securities Rulemaking Board on the EMMA database shall be deemed to satisfy the requirements of this Section 7.1(b);
		

		
			    (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 to its public securities holders generally, and (ii) each regular or periodic report, each registration statement that shall have become effective (without exhibits except as expressly requested by such holder), and each final prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC, provided that the delivery within the time period specified above of the Company’s said financial statements, prepared in accordance with the requirements therefor and filed with the Municipal Securities Rulemaking Board on the EMMA database shall be deemed to satisfy the requirements of this Section 7.1(c);
		

		
			    (d)    Notice of Default or Event of Default — promptly, and in any event within five days after a Responsible Officer becomes aware of the existence of any Default or Event of Default, 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)    Employee Benefits Matters — promptly, and in any event within five days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:
		

		
			    (i)    with respect to any Plan (other than any Multiemployer Plan) that is subject to Title IV of ERISA, any reportable event, as defined in section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date hereof; or
		

		

		

		 

		

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		    (ii)    the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any such Plan, or the receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or
		

		
			    (iii)    any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, would reasonably be expected to have a Material Adverse Effect;
		

		
			    (f)    Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; 
		

		
			    (g)    Requested Information — with reasonable promptness, following the receipt by the Company of a written request by such holder of Bonds, the names and contact information of holders of the outstanding bonds issued under the Indenture (i.e. the bonds in which the Company or a trustee is required to keep in a register and that are not publicly traded) of which the Company has knowledge and the principal amount of the outstanding bonds issued under the Indenture owed to each holder (unless disclosure of such names, contact information or holdings is prohibited by law), and such 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 under any Financing Agreement as from time to time may be reasonably requested by any such holder of Bonds; and
		

		
			    (h)    Deliveries to Trustee — promptly, and in any event within five days after delivery to the Trustee, a copy of any deliveries made by the Company to the Trustee, including without limitation the annual report delivered to the Trustee pursuant to Article VIII, Section 12 of the Indenture.
		

		
			    Section 7.2    Officer’s Certificate.  Each set of financial statements delivered to a holder of Bonds pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer (which, in the case of financial statements filed with the Municipal Securities Rulemaking Board on the EMMA database, shall be by separate concurrent delivery of such certificate to each holder of Bonds) setting forth a statement that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then 
		

		 

		

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		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 (including, without limitation, any such event or condition resulting from the failure of the Company or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.
		

		
			    Section 7.3.    Visitation.  The Company shall permit the representatives of each Purchaser and each holder of Bonds that is an Institutional Investor:
		

		
			    (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 discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers, and, 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 during normal business hours 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, to make copies and extracts therefrom, 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 reasonable times and as often as may be requested.
		

		
			Section 8.    Purchase of Bonds
		

		
			The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Bonds except (a) upon the payment or prepayment of the Bonds in accordance with the terms of this Agreement and the Bonds or (b) pursuant to a written offer to purchase any outstanding Bonds made by the Company or an Affiliate pro rata to the holders of the Bonds upon the same terms and conditions.  Any such offer shall provide each holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 15 Business Days.  If the holders of more than 10% of the principal amount of the Bonds then outstanding accept such offer, the Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Bonds of such offer shall be extended by the number of days necessary to give each such remaining holder at least 10 Business Days from its receipt of such notice to accept such offer.  The Company will promptly cancel all Bonds acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Bonds pursuant to any provision of this Agreement and no Bonds may be issued in substitution or exchange for any such Bonds.
		

		

		

		 

		

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		Section 9.    Affirmative Covenants.
		

		
			The Company covenants that from the date of this Agreement and thereafter, so long as any of the Bonds are outstanding:
		

		
			    Section 9.1.    Compliance with Law.  Without limiting Section 10.4, 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, including, without limitation, ERISA, Environmental Laws, the USA Patriot Act and the other laws and regulations that are referred to in Section 5.16, 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 could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			    Section 9.2.    Insurance.  The Company will cause each of its Subsidiaries to maintain, with financially sound and reputable insurers, insurance with respect to their respective properties 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.
		

		
			    Section 9.3.    Maintenance of Properties.  The Company will cause each of its Subsidiaries to maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section 9.3 shall not prevent any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and the Company and such Subsidiary have concluded that such discontinuance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
		

		
			    Section 9.4.    Payment of Taxes.  The Company will cause each of its Subsidiaries to file all income tax or similar 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, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become delinquent, provided that any Subsidiary does not need to pay any such tax, assessment, charge or levy if (a) 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 Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of such Subsidiary or (b) the nonpayment of all such taxes, assessments, charges and levies in the aggregate would not reasonably be expected to have a Material Adverse Effect.
		

		

		

		 

		

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		    Section 9.5.    Corporate Existence, Etc.  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 wholly‐owned Subsidiary) and all rights and franchises of its Subsidiaries unless, in the good faith judgment of the Company or such Subsidiary, 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 Adverse Effect.
		

		
			    Section 9.6.    Books and Records.  The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary.  
		

		
			Section 10.      Negative Covenants.
		

		
			The Company covenants that from the date of this Agreement and thereafter, so long as any of the Bonds are outstanding:
		

		
			    Section 10.1.    Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the reasonable requirements of the Company’s or such Subsidiary’s business.
		

		
			    Section 10.2.    Merger, Consolidation, Etc.  The Company will not consolidate with or merge with any other Person or convey, transfer or lease all or substantially all of its assets in a single transaction or series of transactions to any Person unless:
		

		
			    (a)    the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, 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 or limited liability company 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 or limited liability company, such corporation or limited liability company shall have executed and delivered to each holder of any Bonds its assumption of the due and punctual performance and observance of each covenant and condition of the Financing Agreements (pursuant to such agreements and instruments as shall be reasonably satisfactory to the Required Holders), and the Company shall have caused to be delivered to each holder of Bonds an opinion of nationally recognized independent counsel, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and
		

		
			    (b)    immediately before and immediately after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing.
		

		

		

		 

		

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		No such conveyance, transfer or lease of substantially all of the assets of the Company shall have the effect of releasing the Company or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2 from its liability under the Financing Agreements.
		

		
			    Section 10.3.    Line of Business.  The Company will not engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the general nature of the business in which the Company and its Subsidiaries, taken as whole, is engaged on the date of this Agreement.
		

		
			    Section 10.4.    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 Bonds) 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.
		

		
			Section 11.    Payments on Bonds.
		

		
			    Section 11.1.    Payment by Wire Transfer.  So long as any Purchaser or its nominee shall be the holder of any Bond, and notwithstanding anything contained in the Indenture or in such Bond to the contrary, the Company will pay, or cause to be paid by a paying agent, a trustee or other similar party, all sums becoming due on such Bond for principal, Make‐Whole Amount or premium, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Bond or the making of any notation thereon, except that upon written request of the Company or any paying agent made concurrently with or reasonably promptly after payment or prepayment in full of any Bond, such Purchaser shall surrender such Bond for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Article II of the Indenture.  Prior to any sale or other disposition of any Bond held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Bond to the Company in exchange for a new Bond or Bonds pursuant to Article II of the Indenture.  The Company will afford the benefits of this Section 11.1 to any Institutional Investor that is the direct or indirect transferee of any Bond purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Bond as the Purchasers have made in this Section 11.1.
		

		

		

		 

		

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		Section 12.     Registration; Exchange; Expenses, Etc.
		

		
			    Section 12.1.    Registration of Bonds.  The Company shall cause the Trustee to keep a register for the registration and registration of transfers of Bonds in accordance with Article XIII, Section 9 of the Indenture.  
		

		
			    Section 12.2.    Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Bond in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of any Financing Agreement (whether or not such amendment, waiver or consent becomes effective), 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 any Financing Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Financing Agreement, or by reason of being a Purchaser or holder of any Bond, (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 by any Financing Agreement and (c) the costs and expenses incurred in connection with the initial filing of any Financing Agreement and all related documents and financial information with the SVO, provided that such costs and expenses under this clause (c) shall not exceed $6,000 for the Bonds.  The Company will pay, and will save each Purchaser and each other holder of a Bond harmless from, 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 Bonds).
		

		
			    Section 12.3.    Survival.  The obligations of the Company under this Section 12 will survive the payment or transfer of any Bond, the enforcement, amendment or waiver of any provision of any Financing Agreement, and the termination of any Financing Agreement.
		

		
			    Section 12.4.    Tax Withholding.  Except as otherwise required by applicable law, the Company agrees that it will not withhold from any applicable payment to be made to a holder of a Bond that is not a United States Person any tax so long as such holder shall have delivered to the Company (in such number of copies as shall be requested) on or about the date on which such holder becomes a holder under this Agreement (and from time to time thereafter upon the reasonable request of the Company), executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E, as applicable, as well as the applicable “U.S. Tax Compliance Certificate” substantially in the form attached as Exhibit 12.4, in both cases correctly completed and executed.
		

		
			Section 13.    Survival of Representations and Warranties; Entire Agreement.
		

		
			All representations and warranties contained herein shall survive the execution and delivery of this Agreement, the purchase or transfer by any Purchaser of any Bond or portion thereof or interest therein and the payment of any Bond, and may be relied upon by any subsequent holder of a Bond, regardless of any investigation made at any time by or on behalf of such 
		

		 

		

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		Purchaser or any other holder of a Bond.  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, the Financing Agreements embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.
		

		
			Section 14.    Amendment and Waiver.
		

		
			    Section 14.1.    Requirements.  This Agreement and the Bonds may be amended, and the observance of any term hereof or of the Bonds may be waived (either retroactively or prospectively), with (and only with) the written consent of the Company and the Required Holders, except that (i) no amendment or waiver of any of the provisions of Sections 1,  2,  3,  4,  5,  6, or 19 hereof, or any defined term, will be effective as to any holder of Bonds unless consented to by such holder of Bonds in writing, and (ii) no such amendment or waiver may, without the written consent of all of the holders of Bonds at the time outstanding affected thereby, (A) subject to the provisions of the Indenture relating to acceleration, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest (if such change results in a decrease in the interest rate) or of the Make-Whole Amount on, the Bonds, (B) change the percentage of the principal amount of the Bonds the holders of which are required to consent to any such amendment or waiver, or (C) amend any of Sections 8, 14, or 18.  
		

		
			    Section 14.2.    Solicitation of Holders of Bonds.
		

		
			    (a)    Solicitation.  The Company will provide each holder of Bonds (irrespective of the amount of Bonds then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Bonds.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 14 to each Purchaser and each holder of outstanding Bonds promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Bonds.
		

		
			    (b)    Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise (other than legal fees or other related expenses), or grant any security or provide other credit support, to any holder of Bonds as consideration for or as an inducement to the entering into by any holder of Bonds of any waiver or amendment of any of the terms and provisions hereof or of the Bonds unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each holder of Bonds then outstanding even if such holder did not consent to such waiver or amendment.
		

		
			    (c)    Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 14 by a holder of Bonds that has transferred or has agreed to transfer its Bonds to (i) the Company, (ii) any Subsidiary or any other Affiliate, or (iii) any other Person in connection with, or in 
		

		 

		

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		anticipation of, such other Person acquiring, making a tender offer for or merging with the Company and/or any of its Affiliates, and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Bonds that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.
		

		
			    Section 14.3.    Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 14 applies equally to all holders of Bonds and is binding upon them and upon each future holder of any Bond and upon the Company without regard to whether such Bond 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 any holder of any Bond nor any delay in exercising any rights hereunder or under any Bond shall operate as a waiver of any rights of any holder of such Bond. 
		

		
			    Section 14.4.    Bonds Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Bonds then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Bonds, or have directed the taking of any action provided herein or in the Bonds to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Bonds then outstanding, Bonds directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.
		

		
			Section 15.    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 any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing,
		

		
			    (ii)    if to any other holder of any Bond, to such holder at such address as such other holder shall have specified to the Company in writing, or
		

		
			    (iii)    if to the Company, to the Company at its address set forth at the beginning hereof to the attention of 762 West Lancaster Avenue, Bryn Mawr, Pennsylvania 19010-3489, or at such other address as the Company shall have specified to the holder of each Bond in writing.
		

		
			Notices under this Section 15 will be deemed given only when actually received.
		

		

		

		 

		

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		Section 16.    Indemnification.
		

		
			The Company hereby agrees to indemnify and hold the Purchasers harmless from, against and in respect of any and all loss, liability and expense (including reasonable attorneys’ fees) arising from any misrepresentation or nonfulfillment of any undertaking on the part of the Company under this Agreement.  The indemnification obligations of the Company under this Section 16 shall survive the execution and delivery of this Agreement, the delivery of the Bonds to the Purchasers and the consummation of the transactions contemplated herein.
		

		
			Section 17.    Reproduction of Documents.
		

		
			This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Bonds themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 17 shall not prohibit the Company or any other holder of Bonds from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.
		

		
			﻿
		

		
			Section 18.    Confidential Information.
		

		
			For the purposes of this Section 18,  “Confidential Information” means information delivered to any 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 such 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 such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 of this Agreement or under the Indenture that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by Bonds), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this 
		

		 

		

			-24-

		

 

		

			 

		

		Section 18, (iii) the Trustee or any other holder of any Bond, (iv) any Institutional Investor to which it sells or offers to sell such Bond 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 18), (v) any Person from which it offers 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 18), (vi) any federal or state or provincial regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s 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 such Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser is a party, or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser 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 any Financing Agreement.  Each holder of a Bond, by its acceptance of a Bond, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 18 as though it were a party to this Agreement.  On reasonable request by the Company in connection with the delivery to any holder of a Bond of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Company embodying the provisions of this Section 18.
		

		
			In the event that as a condition to receiving access to information relating to the Company or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Bond is required to agree to a confidentiality undertaking (whether through EMMA, another secure website, a secure virtual workspace or otherwise) which is different from this Section 18, this Section 18 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 18 shall supersede any such other confidentiality undertaking.
		

		
			﻿
		

		
			Section 19.      Miscellaneous.
		

		
			    Section 19.1.    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 Bond) whether so expressed or not,  except that, subject to Section 10.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or under the Bonds without the prior written consent of each holder.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.
		

		
			    Section 19.2.    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, (a) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (b) all financial statements shall be 
		

		 

		

			-25-

		

 

		

			 

		

		prepared in accordance with GAAP.  For purposes of determining compliance with the financial covenants contained in the Financing Agreements, if any, any election by the Company to measure Debt 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 and such Debt shall be valued at not less than 100% of the principal amount thereof.
		

		
			    Section 19.3.    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.
		

		
			    Section 19.4.    Construction, Etc.  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.
		

		
			For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be deemed to be a part hereof.
		

		
			    Section 19.5.    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.
		

		
			    Section 19.6.    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 Commonwealth of Pennsylvania excluding choice‐of‐law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.
		

		
			    Section 19.7.    Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any Pennsylvania State or federal court sitting in Philadelphia, Pennsylvania, over any suit, action or proceeding arising out of or relating to this Agreement or the Bonds.  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 consents to process being served by or on behalf of any holder of Bonds in any suit, action or proceeding of the nature referred to in Section 19.7(a) by mailing a copy thereof 
		

		 

		

			-26-

		

 

		

			 

		

		by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 15 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.
		

		
			    (c)    Nothing in this Section 19.7 shall affect the right of any holder of a Bond to serve process in any manner permitted by law, or limit any right that the holders of any of the Bonds 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.
		

		
			    (d)    The parties hereto hereby waive trial by jury in any action brought on or with respect to this Agreement, the Bonds or any other document executed in connection herewith or therewith.
		

		
			    Section 19.8.    Payments Due on Non-Business Days.  Anything in this Agreement or the Bonds to the contrary notwithstanding, any payment of principal of or Make-Whole Amount or interest on any Bond 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; provided that if the maturity date of any Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.
		

		
			*   *   *   *   *
		

		

		

		 

		

			-27-

		

 

		

			 

		

		If you are in agreement with the foregoing, please sign the form of agreement on a counterpart of this Bond Purchase Agreement and return it to the Company, whereupon this Agreement shall become a binding agreement between you and the Company.
		

		
			﻿
		

		
			Very truly yours,
		

		
			﻿
		

		
			Aqua Pennsylvania, Inc.
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Stanley F. Szczygiel

				
	
					
						Name:

					
					
						Stanley F. Szczygiel

				
	
					
						Its:

					
					
						VP Finance and Treasurer

				

		
			﻿
		

		

		

		 

		

			-28-

		

 

		

			 

		

		Accepted as of the date first written above.
		

		
			﻿
		

		
			American General Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Yvette M. Dennis

				
	
					
						Name:

					
					
						Yvette M. Dennis

				
	
					
						Its:

					
					
						Authorized Signatory by American General Life Insurance Company, Its Vice President

				

		
			﻿
		

		

		

		 

		

			-29-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			The Variable Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Yvette M. Dennis

				
	
					
						Name:

					
					
						Yvette M. Dennis

				
	
					
						Its:

					
					
						Authorized Signatory by The Variable Life Insurance Company, Its Vice President

				

		
			﻿
		

		

		

		 

		

			-30-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			The United States Life Insurance Company in the City of New York
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Yvette M. Dennis

				
	
					
						Name:

					
					
						Yvette M. Dennis

				
	
					
						Its:

					
					
						Authorized Signatory by The United States Life Insurance Company in the City of New York, Its Vice President

				

		
			﻿
		

		

		

		 

		

			-31-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			MetLife Insurance K.K.
		

		
			﻿
		

			
					
						By 

					
					
						/s/ John Wills

				
	
					
						Name:

					
					
						John Wills

				
	
					
						Its:

					
					
						Authorized Signatory by MetLife Insurance K.K. 

				

		
			﻿
		

		

		

		 

		

			-32-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Pacific Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Matthew A. Levene

				
	
					
						Name:

					
					
						Matthew A. Levene

				
	
					
						Its:

					
					
						Authorized Signatory by Pacific Life Insurance Company, Its Assistant Vice President

				

		
			﻿
		

		

		

		 

		

			-33-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Equitable Financial Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Amy Judd

				
	
					
						Name:

					
					
						Amy Judd

				
	
					
						Its:

					
					
						Authorized Signatory by Equitable Financial Life Insurance Company, Its Investment Officer

				

		

		

		 

		

			-34-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Transamerica Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Christopher D. Pahlke

				
	
					
						Name:

					
					
						Christopher D. Pahlke

				
	
					
						Its:

					
					
						Authorized Signatory by Transamerica Life Insurance Company, Its Vice President

				

		

		

		 

		

			-35-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Transamerica Life (Bermuda) LTD
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Christopher D. Pahlke

				
	
					
						Name:

					
					
						Christopher D. Pahlke

				
	
					
						Its:

					
					
						Authorized Signatory by Transamerica Life (Bermuda) LTD, Its Vice President

				

		
			﻿
		

		

		

		 

		

			-36-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Principal Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Karl Goodman

				
	
					
						Name:

					
					
						Karl Goodman

				
	
					
						Its:

					
					
						Authorized Signatory by Principal Life Insurance Company, Its Counsel

				

		
			﻿
		

		

		

		 

		

			-37-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Principal Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Wei-erh Chen

				
	
					
						Name:

					
					
						Wei-erh Chen

				
	
					
						Its:

					
					
						Authorized Signatory by Principal Life Insurance Company, Its Counsel

				

		

		

		 

		

			-38-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Ameritas Life Insurance Corp. 
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Tina Udell

				
	
					
						Name:

					
					
						Tina Udell

				
	
					
						Its:

					
					
						Authorized Signatory by Ameritas Life Insurance Corp., Its Vice President & Managing Director

				

		
			﻿
		

		

		

		 

		

			-39-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Ameritas Life Insurance Corp. of New York
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Tina Udell

				
	
					
						Name:

					
					
						Tina Udell

				
	
					
						Its:

					
					
						Authorized Signatory by Ameritas Life Insurance Corp. of New York, Its Vice President & Managing Director

				

		

		

		 

		

			-40-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			The State Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ David M. Weisenburger

				
	
					
						Name:

					
					
						David M. Weisenburger

				
	
					
						Its:

					
					
						Authorized Signatory by The State Life Insurance Company, Its Vice President Fixed Income Securities

				

		

		

		 

		

			-41-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Nassau Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ David E. Czerniekci

				
	
					
						Name:

					
					
						David E. Czerniekci

				
	
					
						Its:

					
					
						Authorized Signatory by Nassau Life Insurance Company, Its Chief Investment Officer

				

		
			﻿
		

		

		

		 

		

			-42-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Life Insurance Company of the Southwest
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Paul Koenig

				
	
					
						Name:

					
					
						Paul Koenig

				
	
					
						Its:

					
					
						Authorized Signatory by Life Insurance Company of the Southwest, Its Head of Portfolio Management National Life Group

				

		
			﻿
		

		

		

		 

		

			-43-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			United Farm Family Life Insurance Group
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Michael Lucado

				
	
					
						Name:

					
					
						Michael Lucado

				
	
					
						Its:

					
					
						Authorized Signatory by United Farm Family Life Insurance Group, Its Portfolio Manager

				

		
			﻿
		

		

		

		 

		

			-44-

		

 

		

			 

		

		
		

		
			Accepted as of the date first written above.
		

		
			﻿
		

		
			Farm Bureau Life Insurance Company
		

		
			﻿
		

			
					
						By 

					
					
						/s/ Herman L. Riva

				
	
					
						Name:

					
					
						Herman L. Riva

				
	
					
						Its:

					
					
						Authorized Signatory by Farm Bureau Life Insurance Company, Its Securities Vice President

				

		
			﻿
		

		
			 
		

		
			
		

		 

		

			-45-

		

 

		

			 

		

		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:
		

		
			“2.85% Series due December 1, 2053 Bonds” is defined in Section 1.
		

		
			“2.89% Series due December 1, 2057 Bonds” is defined in Section 1.
		

		
			“2.90% Series due December 1, 2058 Bonds” is defined in Section 1.
		

		
			“Affiliate” means, at any time, and with respect to any Person, 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.  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 Bond Purchase Agreement, including all Schedules and Exhibits 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.
		

		
			“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).
		

		
			“Bonds” is defined in Section 1.
		

		
			“Business Day” means for the purposes of any provision of this Agreement, any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or Philadelphia, Pennsylvania are required or authorized to be closed.
		

		

		

		 

		

			Schedule B
(to Bond Purchase Agreement)

		

 

		

			 

		

		“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.
		

		
			“Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person.
		

		
			“Closing” 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 Aqua Pennsylvania, Inc., a corporation existing under the laws of the Commonwealth of Pennsylvania.
		

		
			“Controlled Entity” means any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates.  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.
		

		
			“Debt” means, with respect to any Person, without duplication,
		

		
			    (a)    its liabilities for borrowed money;
		

		
			    (b)    its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable and other accrued liabilities arising in the ordinary course of business but including, without limitation, all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);
		

		
			    (c)    its Capital Lease Obligations; 
		

		
			    (d)    all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); 
		

		
			    (e)    all non-contingent liabilities in respect of reimbursement agreements or similar agreements in respect of letters of credit or instruments serving a similar function issued or accepted for its account by banks and other financial institutions; 
		

		
			    (f)    Swaps of such Person; and
		

		

		

		 

		

			B-2

		

 

		

			 

		

		    (g)    Guaranties of such Person with respect to liabilities of a type described in any of clauses (a) through (f) hereof.
		

		
			Debt of any Person shall include all obligations of such Person of the character described in clauses (a) through (g) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.  
		

		
			“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.
		

		
			“Disclosure Documents” is defined in Section 5.3.
		

		
			“EMMA” is defined in Section 7.1(a).
		

		
			“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to Hazardous Materials.
		

		
			“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 incorporated) that is treated as a single employer together with the Company under section 414 of the Code.
		

		
			“Event of Default” is an “event of default” as defined in the Indenture.
		

		
			“Execution Date” is defined in Section 3.
		

		
			“Financing Agreements” means this Agreement, the Indenture (including without limitation the Supplement), and the Bonds.
		

		
			“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 other 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-3

		

 

		

			 

		

		    (b)    any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.
		

		
			“Governmental Official” means any governmental official or employee, employee of any government‐owned or government‐controlled entity, political party, any official of a political party, candidate for political office, official of any public international organization or anyone else acting in an official capacity.
		

		
			“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 Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:
		

		
			    (a)    to purchase such Debt or obligation or any property constituting security therefor primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation;
		

		
			    (b)    to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation;
		

		
			    (c)    to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; or
		

		
			    (d)    otherwise to assure the owner of such Debt or obligation against loss in respect thereof.
		

		
			In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor, provided that the amount of such Debt outstanding for purposes of this Agreement shall not exceed the maximum amount of Debt that is the subject of such Guaranty.  
		

		
			“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law including, but not limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.
		

		
			“holder” is defined in the Indenture.
		

		
			“Indenture” is defined in Section 1.
		

		

		

		 

		

			B-4

		

 

		

			 

		

		“Institutional Investor” means (a) any Purchaser of a Bond, (b) any holder of a Bond holding (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the Bonds then outstanding, (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form, and (d) any Related Fund of any holder of any Bond.
		

		
			“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).
		

		
			“Make-Whole Amount” is defined in the Supplement.
		

		
			“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole.
		

		
			“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a whole, (b) the ability of the Company to perform its obligations under this Agreement, the Bonds or the Indenture, or (c) the validity or enforceability of any Financing Agreement.
		

		
			“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in section 4001(a)(3) of ERISA).
		

		
			“NAIC” means the National Association of Insurance Commissioners or any successor thereto.
		

		
			“Non‐U.S. Plan” means any plan, fund or other similar program that (a) is established or maintained outside the United States of America by the Company or any Subsidiary primarily for the benefit of employees of the Company or one or more Subsidiaries residing outside the United States of America, which plan, fund or other similar program provides, or results in, retirement income, a deferral of income in contemplation of retirement or payments to be made upon termination of employment, and (b) is not subject to ERISA or the Code.
		

		
			“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
		

		

		

		 

		

			B-5

		

 

		

			 

		

		“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.
		

		
			“Original Indenture” is defined in Section 1.
		

		
			“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.
		

		
			“Permitted Liens” shall have the meaning assigned to such term in the Indenture. 
		

		
			“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, business entity or Governmental Authority.
		

		
			“Plan” means an “employee benefit plan” (as defined in section 3(2) of ERISA) subject to Title I 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.
		

		
			“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.
		

		
			“PTE” is defined in Section 6.2(a).
		

		
			“Purchaser” is defined in the first paragraph of this Agreement.
		

		
			“Related Fund” means, with respect to any holder of any Bond, any fund or entity that (i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same investment advisor as such holder or by an affiliate of such holder or such investment advisor.
		

		
			“Required Holders” means (i) at any time prior to the Closing, the Purchasers of the Bonds; and (ii) at any time on or after the Closing, the holders of at least 51% in principal amount of the Bonds at the time outstanding (exclusive of Bonds then owned by the Company or any of its Affiliates).
		

		
			“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.
		

		
			“SEC” means the Securities and Exchange Commission of the United States, or any successor thereto.
		

		

		

		 

		

			B-6

		

 

		

			 

		

		“Securities” or “Security” shall have the meaning specified in section 2(a)(1) of the Securities Act.
		

		
			“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.
		

		
			“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Company.
		

		
			“Source” is defined in Section 6.2.
		

		
			“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 target of economic sanctions imposed under U.S. Economic Sanctions Laws.
		

		
			“Subsidiary” means, as to any Person, any other Person in which such first Person or one or more of its Subsidiaries or such first 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 second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture 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.
		

		
			“Supplement” is defined in Section 1.
		

		
			“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.
		

		
			“Swaps” means, with respect to any Person, payment obligations with respect to interest rate swaps, currency swaps and similar obligations obligating such Person to make payments, whether periodically or upon the happening of a contingency.  For the purposes of this Agreement, the amount of the obligation under any Swap shall be the amount determined in respect thereof as of the end of the then most recently ended fiscal quarter of such Person, based on the assumption that such Swap had terminated at the end of such fiscal quarter, and in making such determination, if any agreement relating to such Swap provides for the netting of amounts payable by and to such Person thereunder or if any such agreement provides for the simultaneous payment of amounts by and to such Person, then in each such case, the amount of such obligation shall be the net amount so determined.
		

		
			“Trust Estate” is defined in the Indenture.
		

		
			“Trustee” is defined in Section 1.  
		

		

		

		 

		

			B-7

		

 

		

			 

		

		“UCC” means, the Uniform Commercial Code as enacted and in effect from time to time in the state whose laws are treated as applying to the Trust Estate.
		

		
			“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, as amended from time to time, and the rules and regulations 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, each as amended from time to time, and any other OFAC Sanctions Program.
		

		
			﻿
		

		
			 
		

		

		

		 

		

			B-8

		

 

		

			 

		

		Aqua Pennsylvania, Inc.
Subsidiaries of the Company,
Ownership of Subsidiary Stock
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
						Company Name

					
					
						State of Incorporation

					
					
						% of Ownership (Direct & Indirect)

				
	
					
						Aqua Pennsylvania, Inc.

					
					
						Pennsylvania

					
					
						100%

				
	
					
						          1. Aqua Pennsylvania Wastewater, Inc.

					
					
						Pennsylvania

					
					
						100%

				
	
					
						          2. Honesdale Consolidated Water Company

					
					
						Pennsylvania

					
					
						100%

				

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 5.4
(to Bond Purchase Agreement)

		

 

		

			 

		

		Financial Statements
		

		
			﻿
		

			
	
			
				 1.
			

			
	
			
			Aqua Pennsylvania, Inc. Consolidated Financial Statements as of and for the years ended December 31, 2019, 2018, and 2017 (audited)

			
	
			
				 2.
			

			
	
			
			Aqua Pennsylvania, Inc. Report for Quarter Ended June 30, 2020

		
			﻿
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 5.5
(to Bond Purchase Agreement)

		

 

		

			 

		

		﻿
		

		
			Aqua Pennsylvania and Subsidiaries
		

		
			Schedule 5.15(a) - Existing Debt
		

		
			as of 6/30/2020
		

		
			﻿
		

			
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

					
					
						Outstanding

					
						Balance

				
	
					
						Unsecured Note

					
					
						5.64%

					5,466,000 
				
	
					
						Unsecured Note

					
					
						5.64%

					5,461,000 
				
	
					
						Unsecured Note

					
					
						5.95%

					10,000,000 
				
	
					
						Unsecured Note

					
					
						5.95%

					10,000,000 
				
	
					
						Unsecured Note

					
					
						5.95%

					10,000,000 
				
	
					
						Unsecured Note

					
					
						5.95%

					10,000,000 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total Unsecured Notes

					
					
						 

					50,927,000 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Tax Exempt-Bond Premium

					
					
						 

					1,298,837 
				
	
					
						Tax Exempt-Bond Premium

					
					
						 

					217,234 
				
	
					
						Tax Exempt-Bond Discount

					
					
						 

					(1,290,806)
				
	
					
						Tax Exempt-Bond Premium

					
					
						 

					400,780 
				
	
					
						Tax Exempt-Bond Discount

					
					
						 

					(196,143)
				
	
					
						Tax Exempt

					
					
						5.00%

					25,910,000 
				
	
					
						Tax Exempt

					
					
						5.00%

					19,270,000 
				
	
					
						Tax Exempt-Bond Discount

					
					
						 

					(80,102)
				
	
					
						Tax Exempt

					
					
						4.50%

					15,000,000 
				
	
					
						Tax Exempt-Bond Discount

					
					
						 

					(429,600)
				
	
					
						Tax Exempt

					
					
						5.00%

					81,205,000 
				
	
					
						Tax Exempt-Bond Premium

					
					
						 

					1,832,385 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total Tax Exempt Bonds

					
					
						 

					143,137,585 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						PennVest

					
					
						2.711%

					322,814 
				
	
					
						PennVest

					
					
						2.547%

					700,779 
				
	
					
						PennVest

					
					
						2.547%

					232,262 
				
	
					
						PennVest

					
					
						2.690%

					683,552 
				
	
					
						PennVest

					
					
						2.547%

					1,353,376 
				
	
					
						PennVest

					
					
						2.547%

					450,204 
				
	
					
						PennVest

					
					
						1.510%

					1,761,973 
				
	
					
						PennVest

					
					
						1.000%

					794,755 
				
	
					
						PennVest

					
					
						4.047%

					50,128 
				
	
					
						PennVest

					
					
						3.631%

					5,905 
				
	
					
						PennVest

					
					
						4.047%

					13,930 
				
	
					
						PennVest

					
					
						1.349%

					14,265 
				

		 

		

			Schedule 5.15(a)
(to Bond Purchase Agreement)

		

 

		

			 

		

			
					
						PennVest

					
					
						3.631%

					26,818 
				
	
					
						PennVest

					
					
						4.050%

					95,053 
				
	
					
						PennVest

					
					
						3.030%

					106,706 
				
	
					
						PennVest

					
					
						3.460%

					2,601,104 
				
	
					
						PennVest

					
					
						3.468%

					236,795 
				
	
					
						PennVest

					
					
						2.774%

					1,060,241 
				
	
					
						PennVest

					
					
						4.047%

					25,343 
				
	
					
						PennVest

					
					
						3.790%

					421,803 
				
	
					
						PennVest

					
					
						3.810%

					182,008 
				
	
					
						PennVest

					
					
						3.430%

					215,384 
				
	
					
						PennVest

					
					
						2.774%

					408,588 
				
	
					
						PennVest

					
					
						3.470%

					1,673,780 
				
	
					
						PennVest

					
					
						3.468%

					99,454 
				
	
					
						PennVest

					
					
						3.195%

					962,193 
				
	
					
						PennVest

					
					
						2.556%

					485,126 
				
	
					
						PennVest

					
					
						2.554%

					617,959 
				
	
					
						PennVest

					
					
						2.547%

					319,053 
				
	
					
						PennVest

					
					
						3.046%

					751,876 
				
	
					
						PennVest

					
					
						2.547%

					859,172 
				
	
					
						PennVest

					
					
						2.547%

					624,604 
				
	
					
						PennVest

					
					
						2.547%

					734,524 
				
	
					
						PennVest

					
					
						3.143%

					1,218,015 
				
	
					
						PennVest

					
					
						2.547%

					598,951 
				
	
					
						PennVest

					
					
						1.510%

					5,674,838 
				
	
					
						PennVest

					
					
						3.330%

					119,004 
				
	
					
						PennVest

					
					
						2.730%

					1,225,687 
				
	
					
						PennVest

					
					
						2.668%

					684,933 
				
	
					
						PennVest

					
					
						2.547%

					696,639 
				
	
					
						PennVest

					
					
						1.000%

					280,166 
				
	
					
						PennVest

					
					
						2.774%

					108,051 
				
	
					
						PennVest

					
					
						2.774%

					79,690 
				
	
					
						PennVest

					
					
						3.052%

					395,226 
				
	
					
						PennVest

					
					
						3.468%

					1,698,476 
				
	
					
						PennVest

					
					
						2.774%

					513,505 
				
	
					
						PennVest

					
					
						1.156%

					138,922 
				
	
					
						PennVest

					
					
						2.774%

					799,699 
				
	
					
						PennVest

					
					
						3.365%

					928,256 
				
	
					
						PennVest

					
					
						2.547%

					1,062,352 
				
	
					
						PennVest

					
					
						1.000%

					322,814 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total PennVest

					
					
						 

					35,653,638 
				

		 

		

			5.15(a)-2

		

 

		

			 

		

			
					
						FMB

					
					
						5.980%

					3,000,000 
				
	
					
						FMB

					
					
						6.060%

					15,000,000 
				
	
					
						FMB

					
					
						6.06%

					5,000,000 
				
	
					
						FMB

					
					
						7.72%

					15,000,000 
				
	
					
						FMB

					
					
						9.17%

					800,000 
				
	
					
						FMB

					
					
						9.29%

					12,000,000 
				
	
					
						FMB

					
					
						3.79%

					40,000,000 
				
	
					
						FMB

					
					
						3.80%

					20,000,000 
				
	
					
						FMB

					
					
						3.85%

					20,000,000 
				
	
					
						FMB

					
					
						3.94%

					25,000,000 
				
	
					
						FMB

					
					
						4.61%

					25,000,000 
				
	
					
						FMB

					
					
						4.62%

					25,000,000 
				
	
					
						FMB

					
					
						3.64%

					25,000,000 
				
	
					
						FMB

					
					
						4.01%

					15,000,000 
				
	
					
						FMB

					
					
						4.06%

					13,000,000 
				
	
					
						FMB

					
					
						4.11%

					12,000,000 
				
	
					
						FMB

					
					
						3.77%

					65,000,000 
				
	
					
						FMB

					
					
						3.82%

					20,000,000 
				
	
					
						FMB

					
					
						3.85%

					25,000,000 
				
	
					
						FMB

					
					
						4.16%

					60,000,000 
				
	
					
						FMB

					
					
						4.18%

					20,000,000 
				
	
					
						FMB

					
					
						4.20%

					20,000,000 
				
	
					
						FMB

					
					
						3.85%

					25,000,000 
				
	
					
						FMB

					
					
						3.95%

					60,000,000 
				
	
					
						FMB

					
					
						3.65%

					10,000,000 
				
	
					
						FMB

					
					
						3.69%

					40,000,000 
				
	
					
						FMB

					
					
						4.04%

					40,000,000 
				
	
					
						FMB

					
					
						4.06%

					40,000,000 
				
	
					
						FMB

					
					
						4.06%

					35,000,000 
				
	
					
						FMB

					
					
						4.07%

					20,000,000 
				
	
					
						FMB

					
					
						4.09%

					20,000,000 
				
	
					
						FMB

					
					
						3.99%

					25,000,000 
				
	
					
						FMB

					
					
						4.04%

					10,000,000 
				
	
					
						FMB

					
					
						4.09%

					65,000,000 
				
	
					
						FMB

					
					
						4.44%

					65,000,000 
				
	
					
						FMB

					
					
						4.49%

					35,000,000 
				
	
					
						FMB

					
					
						4.51%

					25,000,000 
				
	
					
						FMB

					
					
						4.02%

					75,000,000 
				
	
					
						FMB

					
					
						4.07%

					25,000,000 
				
	
					
						FMB

					
					
						4.12%

					25,000,000 
				
	
					
						FMB

					
					
						4.09%

					50,000,000 
				
	
					
						FMB

					
					
						4.13%

					75,000,000 
				
	
					
						FMB

					
					
						4.14%

					50,000,000 
				
	
					
						FMB

					
					
						3.39%

					75,000,000 
				
	
					
						FMB

					
					
						3.41%

					50,000,000 
				
	
					
						FMB

					
					
						3.49%

					50,000,000 
				
	
					
						FMB

					
					
						3.54%

					50,000,000 
				
	
					
						FMB

					
					
						3.55%

					50,000,000 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total First Mortgage Bonds

					
					
						 

					1,595,800,000 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						PennVest - Aqua PA WW

					
					
						1.16%

					468,781 
				
	
					
						PennVest - Aqua PA WW

					
					
						1.00%

					488,708 
				
	
					
						PennVest - Aqua PA WW

					
					
						1.00%

					53,544 
				
	
					
						PennVest - Aqua PA WW

					
					
						1.35%

					10,537 
				
	
					
						PennVest - Aqua PA WW

					
					
						2.77%

					126,616 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total PennVest LWWW

					
					
						 

					1,148,186 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total Long Term Debt

					
					
						 

					$1,826,666,409 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						PNC Revolver

					
					
						 

					15,000,000 
				
	
					
						﻿

					
					
						 

					
					
						 

				
	
					
						Total Debt Aqua Pennsylvania

					
					
						 

					$1,841,666,409 
				

		
			﻿
		

		
			 
		

		

		

		 

		

			5.15(a)-3

		

 

		

			 

		

		Schedule 5.15(b)
		

		
			﻿
		

		
			Aqua Pennsylvania, Inc. and Subsidiaries
		

		
			Debt Issuance Limitations
		

		
			﻿
		

		
			Indenture of Mortgage dated as of January 1, 1941 of Aqua Pennsylvania, Inc. as Supplemented and Amended
		

		
			﻿
		

		
			$100 million Amended and Restated Credit Agreement among Aqua Pennsylvania, Inc. and PNC Bank, National Association as Agent dated as of November 17, 2016, as amended
		

		
			﻿
		

		
			Aqua Pennsylvania, Inc. $40,000,000 5.95% Senior Notes dated March 31, 2006
		

		
			﻿
		

		
			Aqua Pennsylvania, Inc. $5,461,000 5.64% Senior Notes dated September 29, 2006
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Schedule 5.15(b)
(to Bond Purchase Agreement)

		

 

		

			 

		

		Form of Supplement
		

		
			[See Attached Fifty-ninth Supplemental Indenture]
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Exhibit A

		

		

			(to Bond Purchase Agreement)

		

 

		

			 

		

		Form of Opinion of General Counsel
to the Company
		

		
			[See attached]
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Exhibit 4.4(a)
(to Bond Purchase Agreement)

		

 

		

			 

		

		Form of Opinion of Special Counsel
to the Company
		

		
			[See attached]
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Exhibit 4.4(b)
(to Bond Purchase Agreement)

		

 

		

			 

		

		Form of Opinion of Special Counsel
to the Purchasers
		

		
			[Delivered to Purchasers only]
		

		
			﻿
		

		
			 
		

		

		

		 

		

			Exhibit 4.4(C)
(to Bond Purchase Agreement)

		

 

		

			 

		

		[FORM OF]
		

		
			U.S. TAX COMPLIANCE CERTIFICATE
		

		
			﻿
		

		
			    Reference is hereby made to the Bond Purchase Agreement dated as of October 13, 2020 (as amended, supplemented or otherwise modified from time to time, the “Bond Purchase Agreement”), among Aqua Pennsylvania, Inc., a corporation organized under the laws of the Commonwealth of Pennsylvania (the “Company”) and the Purchasers that are signatories thereto. 
		

		
			    Unless otherwise defined herein, capitalized terms defined in the Bond Purchase Agreement and used herein have the meanings given to them in the Bond Purchase Agreement.
		

		
			    Pursuant to the provisions of Section 12.4 (Tax Withholding) of the Bond Purchase Agreement, the undersigned hereby certifies that:
		

			
	
			
				 (i)
			

			
	
			
			it is the sole record and beneficial owner of the Bonds in respect of which it is providing this certificate;

			
	
			
				 (ii)
			

			
	
			
			it is not a bank within the meaning of Section 881(c)(3)(A) of the Code;

			
	
			
				 (iii)
			

			
	
			
			it is not a ten percent shareholder of the Company within the meaning of Section 871(h)(3)(B) of the Code; and 

			
	
			
				 (iv)
			

			
	
			
			it is not a controlled foreign corporation related to the Company as described in Section 881(c)(3)(C) of the Code.

		
			    The undersigned has furnished the Company with a certificate of its non-U.S. Person status on IRS W-8BEN-E.  
		

		
			﻿
		

			
					
						[Purchaser Name]

					
						 

					
						 

					
						 

				
	
					
						By:___________________________________

				
	
					
						﻿

					
					
						Name:  

				
	
					
						﻿

					
					
						Title:  

				

		
			﻿
		

		
			Date: ________ __, 20[__]
		

		 

		

			Exhibit 12.4
(to Bond Purchase Agreement)

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