Document:

Form of Senior Floating Rate Notes due 2022

 Exhibit 4.3 

[FORM OF SENIOR FLOATING RATE NOTES DUE 2022] 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERENCED AND REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE PROVISIONS OF THE INDENTURE AND THE TERMS OF THIS SECURITY, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE TO
NOMINEES OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE. TRANSFER OF A PORTION OF THIS SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE. IN THE EVENT THAT THIS GLOBAL SECURITY IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, ALL SUCH INDIVIDUAL SECURITIES IN THE FORM OF DEFINITIVE CERTIFICATES SHALL CONTAIN
THE BELOW LEGEND WITH RESPECT TO JAPANESE TAXATION. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, TO
SUMITOMO MITSUI FINANCIAL GROUP, INC. (THE “ISSUER”) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE OR ANY PORTION HEREOF IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

INTEREST PAYMENTS ON THE SECURITIES WILL BE SUBJECT TO JAPANESE WITHHOLDING TAX UNLESS IT IS ESTABLISHED THAT THIS SECURITY IS HELD BY OR FOR
THE ACCOUNT OF A BENEFICIAL OWNER THAT IS (I) FOR JAPANESE TAX PURPOSES, NEITHER AN INDIVIDUAL RESIDENT OF JAPAN OR A JAPANESE CORPORATION, NOR AN INDIVIDUAL NON-RESIDENT OF JAPAN OR A NON-JAPANESE CORPORATION THAT IN EITHER CASE IS A PERSON HAVING A SPECIAL RELATIONSHIP WITH THE ISSUER AS DESCRIBED IN ARTICLE 6, PARAGRAPH (4) OF THE ACT ON SPECIAL MEASURES CONCERNING TAXATION OF JAPAN (ACT
NO. 26 OF 1957, AS AMENDED) (THE “SPECIAL TAXATION MEASURES ACT” AND, EACH SUCH PERSON, A “SPECIALLY-RELATED PERSON OF THE ISSUER”), (II) A JAPANESE FINANCIAL INSTITUTION DESIGNATED IN ARTICLE 6, PARAGRAPH
(9) OF THE SPECIAL TAXATION MEASURES ACT WHICH COMPLIES WITH THE REQUIREMENT FOR TAX EXEMPTION UNDER THAT PARAGRAPH OR (III) A JAPANESE PUBLIC CORPORATION, FINANCIAL INSTITUTION OR FINANCIAL INSTRUMENTS BUSINESS OPERATOR DESCRIBED IN
ARTICLE 3-3, PARAGRAPH (6) OF THE SPECIAL TAXATION MEASURES ACT WHICH COMPLIES WITH THE REQUIREMENT FOR TAX EXEMPTION UNDER THAT PARAGRAPH. 

INTEREST PAYMENTS ON THIS SECURITY TO AN INDIVIDUAL RESIDENT OF JAPAN, TO A JAPANESE CORPORATION (EXCEPT AS DESCRIBED IN THE PRECEDING
PARAGRAPH), OR TO AN INDIVIDUAL NON-RESIDENT OF JAPAN OR A NON-JAPANESE CORPORATION THAT IN EITHER CASE IS A SPECIALLY-RELATED PERSON OF THE ISSUER WILL BE SUBJECT TO
DEDUCTION IN RESPECT OF JAPANESE INCOME TAX AT A RATE OF 15.315% OF THE AMOUNT OF SUCH INTEREST. 

 SUMITOMO MITSUI FINANCIAL GROUP, INC. 

GLOBAL SECURITY 
 Senior Floating
Rate Notes due 2022 
  

	 No. [    ] 
	 U.S.$[            ] 

CUSIP No. 86562M AP5 
 ISIN No. US86562MAP59 

Common Code 164289206 
 Sumitomo Mitsui Financial
Group, Inc., a joint stock company (kabushiki kaisha) incorporated under the laws of Japan (the “Issuer”, which term includes any successor under the Indenture referred to on the reverse of this Security) for value received,
hereby promises to pay to Cede & Co., or registered assigns, the principal sum of [        ] U.S. Dollars on July 12, 2022 (the “Maturity Date”) (subject to adjustment as set
forth below) and to pay interest thereon from July 12, 2017 or from the most recent interest payment date to which interest has been paid or duly provided for, quarterly in arrears on January 12, April 12, July 12 and
October 12 in each year (each, an “Interest Payment Date”) commencing October 12, 2017, subject to adjustments to make such date a Business Day as described below, at the Interest Rate as set forth below, until the
principal hereof is paid or made available for payment, all subject to and in accordance with the terms of the Indenture. 
 For the
purposes of this Security, the term “Business Day” means any day which is not a day on which banking institutions in The City of New York, London or Tokyo are authorized or required by law, regulation or executive order to close. If
any Interest Payment Date of the Securities (other than the Maturity Date) would otherwise fall on a day that is not a Business Day, the Interest Payment Date will be adjusted to be the next succeeding day that is a Business Day, unless such
Business Day is in the next succeeding month, in which case such Interest Payment Date will be the immediately preceding Business Day. 
 In
the event the Maturity Date is not a Business Day, the payment of interest and principal in respect of the Securities will be made on the next succeeding day that is a Business Day, and no interest on such payment shall accrue for the period from
and after July 12, 2022. 
 The “Interest Rate” for the Securities will accrue at a floating rate per annum,
reset quarterly, equal to the London interbank offered rate for three-month deposits in U.S. Dollars (the “Three-month U.S. Dollar LIBOR”) plus 0.78%, determined by the Calculation Agent (as defined below) for
this Security as described below. 
 Each period beginning on (and including) an Interest Payment Date (after any adjustments to make such
date a Business Day) and ending on (but excluding) the immediately succeeding Interest Payment Date (after any adjustments to make such date a Business Day) is referred to as an “Interest Period”. The first Interest Period will
begin on (and include) July 12, 2017 and will end on (but exclude) the first Interest Payment Date (after any adjustments to make such date a Business Day). 

  
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 The Calculation Agent will reset the Interest Rate for each Interest Period on the first day of
each Interest Period (each an “Interest Reset Date”). The Interest Rate set on a particular Interest Reset Date will remain in effect during the Interest Period commencing on such Interest Reset Date. The Calculation Agent will
determine the applicable Interest Rate and calculate the amount of interest (the “Interest Amount”) payable on the Securities in any Interest Period on the second London Business Day (as defined below) immediately preceding the
Interest Reset Date for that Interest Period (the “Interest Determination Date”). The term “London Business Day” means any day which is not a day on which banking institutions in London are authorized or
required by law, regulation or executive order to close. 
 The Bank of New York Mellon, as calculation agent (in such capacity together
with any successor, the “Calculation Agent”) will determine the Three-month U.S. Dollar LIBOR for any Interest Period on the following basis: 

(i) The Calculation Agent will determine the Three-month U.S. Dollar LIBOR (expressed as a percentage per annum)
that appears on the Reuters Screen LIBOR01 display page (or such other page as may replace that page on that service (or any successor service) or such other service as may be nominated by ICE Benchmark Administration Limited
(“ICE”) or its successor, or such other entity assuming the responsibility of ICE or its successor in the event ICE or its successor no longer does so, as the successor service, for the purpose of displaying comparable rates to
LIBOR for U.S. dollar deposits) as of 11:00 a.m., London time, on the Interest Determination Date. 
 (ii) If the Three-month
U.S. Dollar LIBOR cannot be determined in this manner, the Calculation Agent will: 
 (A) request the principal London
office of each of four major banks selected by the Calculation Agent in the London interbank market to provide a quotation of the rate at which deposits in U.S. dollars are offered by it to prime banks in the London interbank market for a
three-month period commencing on the relevant Interest Reset Date and in a principal amount equal to an amount that in the judgment of the Calculation Agent is representative for a single transaction in U.S. dollars in such market at approximately
11:00 a.m., London time, on the Interest Determination Date; and 
 (B) if at least two such quotations are provided,
determine the arithmetic mean, rounded to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards, e.g., 9.876545% (or .09876545) being rounded
to 9.87655% (or .0987655) of such quotations. 

  
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 (iii) If fewer than two such quotations are provided, the Calculation Agent will
select at least two major banks in The City of New York. On the Interest Determination Date, the Calculation Agent will request those banks to provide their quotations of the rate for three-month loans in U.S. dollars commencing on the relevant
Interest Reset Date offered to leading European banks at approximately 11:00 a.m., New York City time in a principal amount that in the judgment of the Calculation Agent is representative for a single transaction in U.S. dollars in such market at
such time. The Calculation Agent will determine the arithmetic mean, rounded to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards, e.g.,
9.876545% (or .09876545) being rounded to 9.87655% (or .0987655) of such quotations. 
 (iv) If the Calculation Agent is
unable to determine the Three-month U.S. Dollar LIBOR as described above in relation to any Interest Period, then the Three-month U.S. Dollar LIBOR will be the same as for the immediately preceding Interest Period. 

(v) The Interest Rate payable on the Securities will not be higher than the maximum rate permitted by the law of the State of
New York as modified by United States law of general application or by Japanese law and as notified to the Trustee and the paying agent in writing five Business Days prior to each Interest Payment Date, if applicable. The Interest Rate payable on
the Securities will not be lower than zero. 
 The Calculation Agent will calculate the Interest Amount for such Interest Period by applying
the Interest Rate for such Interest Period to the principal amount of the Securities, multiplying the product by the actual number of days in such Interest Period, divided by 360 and rounding the resulting figure to the nearest cent (half a cent
being rounded upwards). Interest will be calculated per each $1,000 in nominal amount of the Securities and rounded to the nearest cent (half a cent being rounded upwards). 

All determinations, calculations and quotations made or obtained for the purposes of calculating the Interest Rate and the Interest Amount,
whether by the Calculation Agent or the relevant banks in the London interbank market or banks in The City of New York (or any of them) will, in the absence of negligence, bad faith or manifest error, be binding on the Issuer, the Calculation Agent,
the paying agent, the Trustee and the Holders of the Securities. 
 The Calculation Agent will cause the Interest Rate, the number of days
in the Interest Period, the Interest Amount for each Interest Period and the Interest Payment Date to be notified to the Issuer and the Trustee, and such information will be notified or published to The Depository Trust Company
(“DTC”). The Interest Payment Date so notified or published may subsequently be amended. 

  
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 The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date
will, as provided in the Indenture, be paid to the person in whose name this Security is registered as of the close of business on the fifteenth day before the Interest Payment Date (whether or not a Business Day). If and to the extent the Issuer
shall default in the payment of the interest due on such Interest Payment Date, such defaulted interest shall be paid to the person in whose name this Security is registered at the close of business on a subsequent record date (which date shall not
be less than five Business Days prior to the date of payment of such defaulted interest), established by notice given by mail by or on behalf of the Issuer to the Holder of this Security not less than 15 days preceding such subsequent record date.
Interest on this Security will accrue from the date of original issuance or, if interest has already been paid, from the date it was most recently paid. Interest will be computed on the basis of the actual number of days in the period from and
including the date on which interest begins to accrue to but excluding the date on which it falls due and a 360-day year. 

The principal of, and interest and Additional Amounts on, the Securities will be payable in U.S. dollars. The Issuer will cause the Trustee,
or the paying agent, if any, to pay such amounts, on the dates payment is to be made, directly to DTC. 
 The Issuer will pay the Holder
hereof Additional Amounts with respect to withholding taxes as are provided for, and subject to the conditions stated, on the reverse of this Security. 

This Security is being deposited with DTC acting as depository, and registered in the name of Cede & Co., a nominee of DTC. As Holder
of record of this Security, Cede & Co. shall be entitled to receive payments of principal and interest. Payments of principal and interest, including any Additional Amounts, on this Security shall be made in the manner specified on the
reverse hereof and, to the extent not inconsistent with the provisions set forth herein, in the Indenture referred herein. 
 The Securities
constitute the direct, unconditional, unsecured and unsubordinated general obligations of the Issuer and shall at all times rank pari passu without any preference among themselves and with all other unsecured obligations of the Issuer, other
than subordinated obligations of the Issuer and except for statutorily preferred obligations. The Securities are not redeemable prior to maturity, except as set forth on the reverse of this Security and will not be subject to any sinking fund. 

Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been manually executed
by or on behalf of the Trustee under the Indenture, this Security shall not be entitled to any benefits under the Indenture or be valid or obligatory for any purpose. 

  
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 IN WITNESS WHEREOF, the Issuer has caused this Security to be duly executed. 

Date: July     , 2017 
  

			
	 SUMITOMO MITSUI FINANCIAL
GROUP, INC.

		
	 By:
	 	  

		 	Name:  [                    ]
		 	Title:    [                    ]

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein and referred to in the within-mentioned Indenture. 

Date: July     , 2017 
  

			
	The Bank of New York Mellon, as Trustee
		
	 By:
	 	  

		 	Authorized Signatory

 [REVERSE OF SECURITY] 

Sumitomo Mitsui Financial Group, Inc. 

Senior Floating Rate Notes due 2022 

This Security is one of a duly authorized issue of unsecured bonds, debentures, notes or other evidences of indebtedness of Sumitomo Mitsui
Financial Group, Inc., a joint stock company (kabushiki kaisha) organized under the laws of Japan (herein called the “Issuer”, which term includes any successor person under the Indenture hereinafter referred) designated as
its Senior Floating Rate Notes due 2022 (herein called the “Securities”), issued under and pursuant to a senior indenture dated as of March 9, 2016 (hereinafter called the “Indenture”), between the Issuer and
The Bank of New York Mellon, as trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and any other indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee and any agent of the Trustee, any paying agent, the Issuer and the Holders of the Securities and of the terms upon which the
Securities are issued and are to be authenticated and delivered. 
 This Security is one of the series designated on the face hereof. By the
terms of the Indenture, additional Securities of this series and of other separate series, which may vary as to denomination, date, amount, stated maturity (if any), interest rate or method of calculating the interest rate and in other respects as
therein provided, may be issued in an unlimited amount. 
 The principal of and interest (and any Additional Amounts) on the Securities
shall be payable in U.S. Dollars or in such other coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts. So long as any of the Securities are held in global form,
payments of principal and interest on such Securities shall be made by wire transfer in immediately available funds in U.S. Dollars to a bank account in The City of New York designated by the Holder of this Registered Global Security. Otherwise,
(i) the principal amount of the Securities will be payable by check, drawn on a bank in The City of New York, upon the presentation and surrender of the Securities at the Corporate Trust Office of the Trustee or at any office or agency
maintained by the Issuer for such purpose and (ii) interest on the Securities will be payable by check, drawn on a bank in The City of New York, mailed to the persons in whose names the Securities are registered as of the close of business on
the record date immediately preceding the applicable Interest Payment Date (or the subsequent record date in the case of a defaulted interest payment) at the addresses of such persons as shall appear in the Security register of the Issuer; provided,
however, that at the option of a Holder in whose name at least U.S.$1,000,000 principal amount of Securities are registered, all payments in respect of the Securities may be received by wire transfer in immediately available funds to a bank account
in The City of New York designated by such Holder in a written notice received by the Trustee (a) in the case of an interest payment, prior to the record date immediately preceding the Interest Payment Date on which such payment is due and
(b) in the case of payment of principal, prior to the record date immediately preceding the date of redemption or maturity, as the case may be; provided, however, that in the case of such a payment of principal, the Securities shall have been
surrendered to the Trustee at the Corporate Trust Office of the Trustee or at any office or agency maintained by the Issuer for such purpose for payment together with such notice. 

  
 1 

 All payments of principal and interest in respect of the Securities will be made by the Issuer
without withholding or deduction for or on account of any present or future taxes, duties, assessments or other governmental charges of whatever nature imposed or levied by or on behalf of Japan, or any authority thereof or therein having power to
tax (“Taxes”) unless such withholding or deduction is required by law. In such event, the Issuer shall pay to a Holder such additional amounts (“Additional Amounts”) as will result in the receipt by the Holder of
such amounts as would have been received by it had no such withholding or deduction been required, except that no such Additional Amounts shall be payable with respect to any Securities under any of the following circumstances: 

 

	 	(i)	the Holder or beneficial owner of the Securities is an individual non-resident of Japan or a non-Japanese corporation and is liable for
such Taxes in respect of such Securities by reason of its (A) having some connection with Japan other than the mere holding of such Securities or (B) being a person having a special relationship with the Issuer as described in Article 6,
paragraph (4) of the Act on Special Measures Concerning Taxation of Japan (Act No. 26 of 1957, as amended) (the “Special Taxation Measures Act” and, each such person, a “specially-related person of the
Issuer”); 

  

	 	(ii)	the Holder or beneficial owner of the Securities would otherwise be exempt from any such withholding or deduction but fails to comply with any applicable requirement to provide Interest Recipient Information (as defined
below) or to submit a Tax Exemption Application (as defined below) to the relevant paying agent to whom the relevant Securities are presented (where presentation is required), or whose Interest Recipient Information is not duly communicated through
the relevant Participant (as defined below) and the relevant international Clearing Organization to such paying agent; 

  

	 	(iii)	the Holder or beneficial owner of the Securities is for Japanese tax purposes treated as an individual resident of Japan or a Japanese corporation (except for (A) a Designated Financial Institution (as defined
below) that complies with the requirement to provide Interest Recipient Information or to submit a Tax Exemption Application and (B) an individual resident of Japan or a Japanese corporation that duly notifies (directly or through the relevant
Participant or otherwise) the relevant paying agent of its status as not being subject to withholding or deduction by the Issuer by reason of receipt by such individual resident of Japan or Japanese corporation of interest on the relevant Securities
through a payment handling agent in Japan appointed by it); 

  
 2 

	 	(iv)	the withholding or deduction is imposed on a payment pursuant to the European Council Directive 2003/48/EC or any other directive amending, supplementing or implementing such Directive, or any law implementing such
directive; 

  

	 	(v)	the Securities are presented for payment (where presentation is required) more than 30 days after the day on which such payment on the Securities became due or after the full payment was provided for, whichever occurs
later, except to the extent that the Holder thereof would have been entitled to Additional Amounts on presenting the same for payment on the last day of such period of 30 days; 

 

	 	(vi)	the withholding or deduction is imposed on a Holder or beneficial owner who could have avoided such withholding or deduction by presenting its Securities (where presentation is required) to another paying agent
maintained by the Issuer; 

  

	 	(vii)	the Holder is a fiduciary or partnership or is not the sole beneficial owner of the payment of the principal of, or any interest on, any Security, and Japanese law requires the payment to be included for tax purposes in
the income of a beneficiary or settlor with respect to such fiduciary or a member of such partnership or a beneficial owner, in each case, who would not have been entitled to such Additional Amounts had it been the beneficial owner of such Security;
or 

  

	 	(viii)	any combination of the above. 

 No Additional Amounts will be payable for or on account of any
deduction or withholding imposed pursuant to Sections 1471-1474 of the U.S. Internal Revenue Code and the U.S. Treasury regulations thereunder (“FATCA”), any intergovernmental agreement entered into with respect to FATCA, or any
law, regulation or other official guidance enacted or published in any jurisdiction implementing, or relating to, FATCA or any intergovernmental agreement. 

Where Securities are held through a participant of an international Clearing Organization or a financial intermediary (each, a
“Participant”), in order to receive payments free of withholding or deduction by the Issuer for or on account of Taxes, if the relevant beneficial owner is (A) an individual non-resident
of Japan or a non-Japanese corporation (other than a specially-related person of the Issuer) or (B) a Japanese financial institution falling under certain categories prescribed by the Special Taxation
Measures Act (a “Designated Financial Institution”), each such beneficial owner shall, at the time of entrusting a Participant with the custody of the relevant Securities, provide certain information prescribed by the Special
Taxation Measures Act to enable the Participant to establish that such beneficial owner is exempted from the requirement for withholding or deduction of such Taxes (“Interest Recipient Information”), and advise the Participant if
the beneficial owner ceases to be so exempted (including the case in which a beneficial owner who is an individual non-resident of Japan or a non-Japanese corporation
becomes a specially-related person of the Issuer). 

  
 3 

 Where Securities are not held through a Participant, in order to receive payments free of
withholding or deduction by the Issuer for, or on account of, Taxes, if the relevant beneficial owner is (A) an individual non-resident of Japan or a non-Japanese
corporation (other than a specially-related person of the Issuer) or (B) a Designated Financial Institution, each such beneficial owner shall, prior to each time at which it receives interest, submit to the relevant paying agent a written
application for tax exemption (hikazei tekiyo shinkokusho) (a “Tax Exemption Application”), in a form obtainable from the paying agent stating, inter alia, the name and address (and, if applicable, the Japanese
individual or corporation ID number) of the beneficial owner, the title of the Securities, the relevant Interest Payment Date, the amount of interest and the fact that the beneficial owner is qualified to submit the Tax Exemption Application,
together with documentary evidence regarding its identity and residence. 
 By subscribing to the Securities as part of the distribution by
the underwriters under the applicable underwriting agreement, a Holder shall be deemed to have represented that it is a beneficial owner who is, (i) for Japanese tax purposes, neither an individual resident of Japan or a Japanese corporation,
nor an individual non-resident of Japan or a non-Japanese corporation that in either case is a specially-related person of the Issuer or (ii) a Japanese financial
institution, designated in Article 6, Paragraph (9) of the Special Taxation Measures Act. 
 The Issuer shall make any required
withholding or deduction and remit the full amount withheld or deducted to the Japanese taxing authority in accordance with applicable law. The Issuer shall use reasonable efforts to obtain certified copies of tax receipts evidencing the payment of
any tax, duty, assessment, fee or other governmental charge so withheld or deducted from the Japanese taxing authority imposing such tax, duty, assessment or other governmental charge, and if certified copies are not available, the Issuer shall use
reasonable efforts to obtain other evidence satisfactory to the Trustee, and the Trustee shall make such certified copies or other evidence available to the Holders upon reasonable request to the Trustee. 

If (i) subsequent to making a payment on this Security without withholding or deduction of Japanese taxes the Issuer is required to remit
to the Japanese taxing authority any amount in respect of Japanese taxes that should have been withheld or deducted from such payment (together with any interest and penalties) due to the failure of the beneficial owner to provide accurate Interest
Recipient Information or to otherwise properly claim an exemption from Japanese taxes imposed with respect to such payment, and (ii) such beneficial owner would not have been entitled to receive Additional Amounts with respect to such payment
had Japanese taxes been withheld from the payment when it was made, such beneficial owner (but not any subsequent beneficial owner of such Security) shall be required to reimburse the Issuer, in Japanese yen, for the amount remitted by the Issuer to
the Japanese taxing authority. 

  
 4 

 The obligation to pay Additional Amounts with respect to any taxes, duties, assessments or other
governmental charges shall not apply to (A) any estate, inheritance, gift, sales, transfer, personal property or any similar tax, duty, assessment, fee or other governmental charge or (B) any tax, duty, assessment, fee or other
governmental charge which is payable otherwise than by withholding or deduction from payments of principal of or interest on this Security; provided that, except as otherwise set forth herein and in the Indenture, the Issuer shall pay all stamp,
court or documentary taxes or any excise or property taxes, charges or similar levies and other duties, if any, which may be imposed by Japan, the United States or any political subdivision or any taxing authority thereof or therein, with respect to
the execution and enforcement of the Indenture or as a consequence of the initial issuance, execution, delivery or registration of this Security. 

The Securities may be redeemed at the option of the Issuer, in whole, but not in part, subject to prior confirmation of the FSA, if such
confirmation is required under applicable Japanese laws or regulations then in effect, at any time, on giving not less than 30 nor more than 60 days’ notice of redemption to the Holders of the series to be redeemed (which notice shall be
irrevocable and shall conform to all requirements with respect to such notice as set forth in the Indenture) at a redemption price equal to 100% of the principal amount of the Securities together with any accrued and unpaid interest (including
Additional Amounts with respect thereto, if any) to (but excluding) the date fixed for redemption, if the Issuer is or will be obliged to pay Additional Amounts as a result of any change in, or amendment to, the laws or regulations of Japan or any
political subdivision or any authority thereof or therein having power to tax, or any change in application or official interpretation of such laws or regulations, which change or amendment becomes effective on or after the date of the issuance of
the relevant series of Securities and such obligation cannot be avoided by the Issuer through the taking of reasonable measures available to the Issuer; provided, that no such notice of redemption shall be given sooner than 90 days prior to the
earliest date on which the Issuer would be obliged to pay such Additional Amounts were a payment then due in respect of the relevant Securities. 

Notwithstanding anything to the contrary in the Indenture or the Securities, each Holder and the Trustee acknowledge, consent and agree
(a) for a period of 30 days from and including the date upon which the Prime Minister of Japan confirms that Specified Item 2 Measures (tokutei dai nigo sochi) should be applied to the Issuer, not to initiate any action to attach any of
the Issuer’s assets, the attachment of which has been prohibited by designation of the Prime Minister of Japan pursuant to Article 126-16 of the Deposit Insurance Act, and (b) to any transfer of the
Issuer’s assets (including shares of the Issuer’s subsidiaries) or liabilities, or any portions thereof, with permission of a Japanese court in accordance with Article 126-13 of the Deposit Insurance
Act, including any such transfer made pursuant to the authority of the Deposit Insurance Corporation of Japan to represent and manage and dispose of the Issuer’s assets under Article 126-5 of the Deposit
Insurance Act, and that any such transfer shall not constitute a sale or disposal of the Issuer’s properties or assets for the purpose of Article 8 of the Indenture. 

  
 5 

 The Issuer shall, as soon as practicable after the Prime Minister of Japan has confirmed that
Specified Item 2 Measures (tokutei dai nigo sochi) should be applied to the Issuer or a Japanese court has publicly announced that it has granted permission to a transfer of the Issuer’s assets (including shares of the Issuer’s
subsidiaries) or liabilities, or any portions thereof, in accordance with Article 126-13 of the Deposit Insurance Act, deliver a written notice of such event to the Holders and beneficial owners of the
Securities through DTC and to the Trustee. Any failure or delay by the Issuer to provide such written notice shall not change or delay the effect of the acknowledgement, consent and agreement described in the preceding paragraph. 

A Holder of Securities issued in definitive form may transfer or exchange Securities in accordance with the Indenture. As described in the
legend on the face of this global Security, interest payments on such Securities issued in definitive form will be subject to Japanese income taxation unless the Holder establishes the matters set forth therein. Such legend concerning Japanese
taxation shall also be included on the face of any Securities issued in definitive form. The security registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents, and to pay any
taxes and fees required by law or permitted by the Indenture. The Issuer will treat the registered Holder of a Security as the owner of that Security for all purposes, except as described above. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Issuer and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Issuer and the Trustee with the consent of the Holders of not less than a majority in aggregate principal amount of
the Securities at the time Outstanding of all series to be affected (voting as one class). The Indenture also contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver
by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, whether or not
notation of such consent or waiver is made upon this Security. 
 As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable, upon surrender of this Security for registration of transfer at the office or agency of the Issuer in any place where the principal of and interest on this Security are payable, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer and the security registrar duly executed by, the Holder hereof or his attorney duly authorized in writing and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

  
 6 

 The Securities of this series are issuable only in registered form without coupons in
denominations of U.S.$2,000 and integral multiples of U.S.$1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount
of Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 

No service charge shall be made for any such registration of transfer or exchange; provided, however, the Issuer may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection therewith. 
 Prior to due presentment of this
Security for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may deem and treat the person in whose name this Security is registered upon the Security register as the owner hereof for all purposes,
whether or not this Security be overdue, and neither the Issuer nor the Trustee nor any such agent shall be affected by notice to the contrary. 

No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or currency, as herein prescribed. 

This Security is governed by and shall be construed in accordance with the laws of the State of New York. 

All capitalized terms used and not defined herein shall have the meanings assigned to them in the Indenture. 

  
 7Exhibit 10.1

 

FORBEARANCE AGREEMENT

 

This FORBEARANCE AGREEMENT (this “Forbearance Agreement”) is entered into as of July 7, 2017 by and among (i) U.S. Bank National Association, a national banking association, as Lease Indenture Trustee and as Pass Through Trustee; (ii) certain Holders (the “Consenting Certificateholders”) of the Pass Through Trust Certificates (the “Certificates”); and (iii) GenOn Mid-Atlantic LLC, a Delaware limited liability company, as successor to Southern Energy Mid-Atlantic (the “Facility Lessee”), under the seven separate Indentures of Trust, Mortgage and Security Agreements (the “Indentures”) related to the seven facility lease agreements with the Facility Lessee regarding the Morgantown facilities (collectively, the “Facility Leases” and together with the Indentures and the other Operative Documents (as defined in the Participation Agreements,) the “Facility Lease Agreements”).  Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in Appendix A to the Participation Agreements, the Pass Through Trust Agreements or the Indentures, as the context requires.

 

RECITALS

 

WHEREAS, there are outstanding disputes as to alleged breaches and/or defaults by and among the Owner Lessors, the Owner Participants, the Lease Indenture Trustee, the Consenting Certificateholders and the Facility Lessee as to one or more of the following, as applicable (collectively, the “Existing Disputes”):  (i) the matters subject to litigation prosecuted under Index No. 651181/2017 in the Supreme Court for the State of New York, County of New York (the “New York Action”); (ii) the matters subject to litigation prosecuted in the case captioned Morgantown OL1 LLC, et al. v. GenOn Energy, Inc., et al., Case No. 653146/2017 (N.Y. Sup. Ct.); and (iii) whether on June 30, 2017, the Periodic Lease Rent payment for the Morgantown facilities due in the amount of $127,582,652 (the “June Rent Payment”) was duly made by the Facility Lessee;

 

WHEREAS, as a result of the Existing Disputes related to the June Rent Payment, the Lease Indenture Trustee made a draw under those certain irrevocable letters of credit issued by Natixis, New York Branch in favor of the Lease Indenture Trustee as beneficiary in the aggregate amount of $124,865,624.88 (the “June 30 Draw Requests”);

 

WHEREAS, as a result of the Existing Disputes related to the June Rent Payment, the Consenting Certificateholders assert that they will have the immediate right (after giving effect to any applicable grace period and subject to any other conditions set forth in the Operative Documents) to direct the Pass Through Trustee to direct the Lease Indenture Trustee to exercise any and all remedies under the Lease Indentures, including, without limitation, (a) the initiation or continuation of any legal action against the Facility Lessee, (b) instructing the Lease Indenture Trustee to take any action permitted under the Operative Documents or applicable law, (c) taking any action with respect to the effects of a Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default, Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any), and (d) the preparation for or initiation of any legal process for payment or otherwise permitted under the Operative Documents or applicable law (including but not limited to, any enforcement action) (collectively, any or all such rights and remedies the “Rights and Remedies”);

 

 

WHEREAS, to facilitate negotiations for the amicable resolution and settlement of the Existing Disputes between the parties to the Operative Documents, including a potential restructuring or recapitalization transaction involving the Facility Lessee, Owner Lessors, Owner Participants, Consenting Certificateholders and/or the Operative Documents (the “Potential Transaction”), the Facility Lessee has requested that the Lease Indenture Trustee, the Pass Through Trustee and each of the Consenting Certificateholders agree to forbear, during the Forbearance Period (as defined below), from (i) exercising their Rights and Remedies and (ii) taking any action with respect to the effects of a Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default, Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any), in each case solely to the extent arising from the occurrence and continuation of the Existing Disputes to the extent it may result in the occurrence of a Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default, Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any), subject to the terms and conditions of this Forbearance Agreement; and

 

WHEREAS, the Lease Indenture Trustee, the Pass Through Trustee and the Consenting Certificateholders are willing to provide the foregoing limited forbearance on the terms and subject to the conditions set forth below.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants herein set forth, and intending to be legally bound, the parties hereto agree as follows:

 

1.                                      Acknowledgements.

 

(a)                                 The Facility Lessee hereby ratifies and affirms the Operative Documents and acknowledges that the Operative Documents are in full force and effect.  The Facility Lessee agrees that the Operative Documents to which it is a party constitute valid and binding obligations and agreements of the Facility Lessee enforceable against the Facility Lessee in accordance with their respective terms;

 

(b)                                 Neither the Facility Lessee, on the one hand, nor the Lease Indenture Trustee, the Pass Through Trustee and the Consenting Certificateholders on the other hand, have otherwise waived, released or compromised, and do not hereby waive, release or compromise, and may never waive, release or compromise any events, occurrences, acts, or omissions that may constitute or give rise to any breaches, Lease Events of Default, Lease Indenture Events of Default or Significant Lease Defaults, including without limitation the Existing Disputes related to the June Rent Payment, that existed or may have existed, exist or may currently exist, or may arise in the future, nor does the Lease Indenture Trustee, the Pass Through Trustee or any Consenting Certificateholder waive any Rights and Remedies, including without limitation, the right to charge default interest or to direct the Lease Indenture Trustee to commence to exercise the remedy of foreclosure as to any property pledged as collateral in connection with the Operative Documents, nor does the Facility Lessee waive any rights, remedies or claims to which it may be entitled as a result of the Existing Disputes;

 

(c)                                  The execution and delivery of this Forbearance Agreement shall not:  (i) constitute an extension, modification, amendment, or waiver of any aspect of any of the

 

2

 

Operative  Documents; (ii) extend the terms of the Facility Leases, the Lessor Notes, Pass Through Certificates or the due date of any of the foregoing; (iii) give rise to any obligation on the part of the Lease Indenture Trustee, the Pass Through Trustee, the Consenting Certificateholders or the Facility Lessee to extend, modify, amend, or waive any term or condition of the Facility Leases, the Lessor Notes or Pass Through Certificates; (iv) establish any course of dealing with respect to the Facility Leases, the Lessor Notes or Pass Through Certificates; or (v) give rise to any defenses or counterclaims to the right of the Consenting Certificateholders to compel payment of or under the Facility Leases, the Lessor Notes or Pass Through Certificates or otherwise enforce their rights and remedies set forth in the Operative Documents;

 

(d)                                 Except as expressly provided herein (including Section 2 hereof), the Lease Indenture Trustee’s, the Pass Through Trustee’s and the Consenting Certificateholders’ agreement to forbear in the exercise of their Rights and Remedies and to forbear from taking any action with respect to the effects of a Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default, Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any), and to perform as provided herein shall not invalidate, impair, negate or otherwise affect the Lease Indenture Trustee’s or the Pass Through Trustee’s ability to exercise (or the Consenting Certificateholders’ ability to direct the Pass Through Trustee to direct the Lease Indenture Trustee to exercise) their respective Rights and Remedies under the Operative Documents, or affect the ability of the Facility Lessee to exercise any rights or remedies in respect of the Existing Disputes and otherwise.

 

(e)                                  The Forbearance (as defined below) and this Forbearance Agreement shall not be deemed to be, or construed as, an admission on the part of the Facility Lessee as to the existence of any Lease Events of Default, Lease Indenture Events of Default, Significant Lease Defaults or any other breach of the terms and conditions of, any Facility Lease Agreement.

 

(f)                                   For the avoidance of doubt, this Forbearance Agreement shall not be deemed to be, or construed as, or have the effect of modifying or adversely impacting the rights of any party to the Operative Documents not a party to this Forbearance Agreement including, but not limited to, the Owner Lessors and Owner Participants, as well as any claims, rights, or remedies the Facility Lessee or any of its affiliates have or may pursue in any proceeding against any party to the Operative Documents not a party to this Forbearance Agreement.

 

2.                                      Forbearance.

 

(a)                                 Forbearance.  In consideration of the Facility Lessee’s agreement of timely and strict compliance with the terms of this Forbearance Agreement, and in reliance upon the representations, warranties, agreements and covenants of Facility Lessee set forth herein, subject to the satisfaction of each of the conditions precedent to the effectiveness of this Forbearance Agreement, from the Agreement Effective Date (as defined below) until the Termination Date (as defined below), the Lease Indenture Trustee, the Pass Through Trustee and each Consenting Certificateholder (severally and not jointly) hereby agrees to forbear (the “Forbearance”) (i) from exercising any of the Rights and Remedies under the Operative Documents or applicable law solely with respect to the Existing Disputes, and (ii) from taking any action with respect to the effects of a Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default,

 

3

 

Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any), in each case with respect to the Existing Disputes.

 

(b)                                 Forbearance Period.  The Forbearance shall commence on the Agreement Effective Date (as defined below) and continue until the earlier of (a) August 15, 2017 at 12:01 a.m. New York City time and (b) the date on which any Event of Termination (as defined below) shall have occurred (the earlier of (a) and (b), the “Termination Date” and the period commencing on the Agreement Effective Date and ending on the Termination Date, the “Forbearance Period”).  On the Termination Date, the Forbearance shall immediately and automatically terminate and shall thereafter have no further force or effect, and the Facility Lessee, Pass Through Trustee, Lease Indenture Trustee and each Consenting Certificateholder shall be immediately and automatically released from any and all obligations and agreements under this Forbearance Agreement.  From and after the Termination Date, and subject to the Facility Lessee’s rights to contest whether any of the Existing Disputes give rise to the ability of the Pass Through Trustee or the Lease Indenture Trustee to exercise any rights and remedies, the Pass Through Trustee and the Lease Indenture Trustee shall be entitled to exercise (and the Consenting Certificateholders shall be entitled to direct the Pass Through Trustee to direct the Lease Indenture Trustee to exercise) any of the Rights and Remedies as if this Forbearance Agreement had never existed, and all of the Rights and Remedies under the Operative Documents and in law and in equity shall be available without restriction or modification, as if the Forbearance had not occurred.

 

(c)                                  Notwithstanding anything to the contrary herein, during the Forbearance Period the Facility Lessee may take any action it is permitted or required to take under the Operative Documents, in the ordinary course of operating and maintaining its business, as though no Lease Event of Default, Lease Indenture Event of Default, Significant Lease Default, Event of Default, Lease Indenture Default, or any other breach and/or default or event of default under the Operative Documents (if any) with respect to the Existing Disputes has occurred or is continuing and, notwithstanding any termination of this Forbearance Agreement in accordance with the terms hereof, the Consenting Certificateholders hereby direct the Pass Through Trustee not to direct the Lease Indenture Trustee to assert liability on the part of or seek damages from the Facility Lessee for any such action taken during the Forbearance Period; provided, however, that the provisions of this subsection 2(c) shall not apply to any of the negative covenants set forth in Section VI of the Participation Agreement.

 

3.                                      Conditions Precedent to Effectiveness of this Forbearance Agreement.  This Forbearance Agreement and the Forbearance shall become effective only upon satisfaction in full of the following conditions precedent, unless waived in writing by each of the Consenting Certificateholders (the date on which such conditions are satisfied or waived, the “Agreement Effective Date”).

 

(a)                                 The Lease Indenture Trustee and the Pass Through Trustee will have received a counterpart of this Forbearance Agreement, executed by the Facility Lessee, on the one hand, and by the Consenting Certificateholders, on the other hand.

 

(b)                                 The Facility Lessee shall have paid to the Lease Indenture Trustee and the Pass Through Trustee all accrued and unpaid fees, costs and expenses of the Lease Indenture Trustee

 

4

 

and the Pass Through Trustee through July 1, 2017, pursuant to invoices presented for payment on  or prior to the date hereof, including, without limitation, reasonable and documented fees and out-of-pocket costs and expenses of Lease Indenture Trustee’s counsel.

 

(c)                                  The Facility Lessee shall have paid to Paul, Weiss, Rifkind, Wharton & Garrison LLP (“Paul, Weiss”), as counsel to the Consenting Certificateholders, all accrued and unpaid reasonable and documented fees and out-of-pocket costs and expenses of Paul, Weiss through July 1, 2017, pursuant to invoices presented for payment on or prior to the date hereof.

 

4.                                      Representations and Warranties.  In consideration of the foregoing agreements, the Facility Lessee represents and warrants to each Consenting Certificateholder, and each Consenting Certificateholder severally but not jointly hereby represents and warrants to the Facility Lessee, as follows.

 

(a)                                 Such party is duly organized, is validly existing and is not in violation in any respect of any term of its charter, bylaws or other constitutive documents; the execution, delivery and performance of this Forbearance Agreement are within such party’s power and have been duly authorized by all necessary action; and such party is voluntarily entering into this Forbearance Agreement.

 

(b)                                 This Forbearance Agreement constitutes a valid and legally binding agreement, enforceable against such party in accordance with its terms.

 

(c)                                  No consent or authorization of, filing with, notice to or other act by or in respect of, any governmental or regulatory authority or any other person is required in connection with such party’s entry into, and performance of, this Forbearance Agreement, except for consents, authorizations, filings and notices which have been obtained or made and are in full force and effect or which are immaterial in nature; and the entry into and performance of this Forbearance Agreement by such party does and will not conflict with, or result in the default under, any material agreement or document of such party, its constituent documents or any applicable law, regulation or court order, consent or ruling.

 

(d)                                 Each Consenting Certificateholder represents and warrants that, as of the date hereof, it beneficially holds, or advises or manages for a beneficial holder, the principal amount of Certificates set forth on the signature page attached hereto; and to that extent it advises or manages the Certificates for any beneficial holder, it has the authority to enter into this Forbearance Agreement on behalf of any such beneficial holder and that this Forbearance Agreement is a valid and legally binding agreement, enforceable against that holder and such party.

 

(e)                                  The Facility Lessee represents that, as of the date of this Forbearance Agreement, there are no Events of Default that have occurred and are continuing under the Operative Documents other than any defaults or alleged defaults related to the Existing Disputes (if any).

 

(f)                                   The parties to this Forbearance Agreement acknowledge that nothing in this Forbearance Agreement, including the presentation of drafts from one party to another, constitutes the making of an offer to sell or the solicitation of an offer to buy securities or loans of any kind or the solicitation of a consent or waiver of any rights under any of the Operative

 

5

 

Documents and the entry into this Forbearance Agreement shall not constitute, directly or indirectly, an incurrence,  a refinancing, an extension or a modification in any way of any debt or a recapitalization or restructuring in any way of the obligations of the Facility Lessee.

 

(g)                                  Neither the Pass Through Trustee, the Lease Indenture Trustee nor the Consenting Certificateholders have made any assurances concerning (i) the manner in which or whether the Existing Disputes may be resolved or (ii) any additional forbearance, waiver, restructuring or other accommodations.

 

5.                                      Other Agreements.

 

(a)                                 Reimbursement of Consenting Certificateholder Expenses.  The Facility Lessee shall pay the reasonable and documented fees and out-of-pocket expenses accrued from July 1, 2017 through the Termination Date, of (a) the Lease Indenture Trustee, (b) the Pass Through Trustee, (c) Paul, Weiss, and (d) one financial advisor to be retained by the Consenting Certificateholders directly or through Paul, Weiss.  The Facility Lessee’s obligations under this Section 5(a) to pay fees and expenses incurred during the Forbearance Period shall survive any termination of this Forbearance Agreement.  The Facility Lessee shall use commercially reasonable efforts to pay such fees and expenses within ten (10) Business Days after receipt, but in no event shall pay such fees and expenses later than thirty (30) days after receipt.

 

(b)                                 Standstill.  The Facility Lessee, the Lease Indenture Trustee, the Pass Through Trustee and the Consenting Certificateholders hereby acknowledge and agree that, during the Forbearance Period, neither party shall, directly or indirectly, institute any legal action against any of the Facility Lessee, the Lease Indenture Trustee, the Pass Through Trustee or the Consenting Certificateholders or any of their affiliates, subsidiaries, managed accounts, or any of their respective officers, directors, employees, members, representative agents, consultants, attorneys or advisors, arising out of or relating to the Existing Disputes or the June 30 Draw Requests; provided, however, that the Lease Indenture Trustee will be permitted to pursue a trustee instruction procedure pursuant to Minnesota law with respect to the application of Section 3.1 or Section 3.3 of the Indentures.  Within three (3) Business Days of the Agreement Effective Date, the Facility Lessee shall seek a stay of the New York Action during the Forbearance Period.  If no such stay shall be entered, nothing herein shall prevent the Lease Indenture Trustee or Pass Through Trustee from taking any permitted or required action related to the New York Action.

 

(c)                                  Estimation Motion.  Neither the Facility Lessee nor any of its affiliates shall  directly or indirectly object to, impede, or take any other action to interfere with or delay any attempt by the Lease Indenture Trustee to appear in connection with the Debtors’ Motion to Estimate the Owner Lessor Plaintiffs’ Claims and Expedited Motion to Establish Related Schedule [Docket No. 128] (the “Estimation Motion”), filed in the chapter 11 cases of GenOn Energy, Inc., and certain of its affiliates, Case No. 17-33695 (Bankr. S.D. Tex.).  The Facility Lessee and its affiliates shall cooperate in good faith with the Lease Indenture Trustee if it elects to join the Estimation Motion as a party in interest.

 

(d)                                 Disclosure; Confidentiality.  The Facility Lessee shall, as soon as practicable but no later than two Business Days after the Agreement Effective Date, publicly file an

 

6

 

announcement of its entry into this Forbearance Agreement along with a copy of this Forbearance Agreement.  The Facility Lessee agrees that all information provided by the Consenting Certificateholders  hereunder, including the identity of each Consenting Certificateholder, will be maintained in confidence and will not be disclosed publicly or to third parties other than the Facility Lessee’s advisors and agents, except as may be required by applicable law or regulation, a court or other governmental agency.  When the Facility Lessee publicly files a copy of this Forbearance Agreement with the SEC or otherwise it shall redact each Consenting Certificateholder’s signature page in any such filing so as to not disclose such Consenting Certificateholder’s identity or holdings information.

 

(e)                                  Consenting Certificateholder Holdings; Direction.

 

(i)                                     By its signature below, each Consenting Certificateholder hereby directs (1) the Pass Through Trustee to enter into this Forbearance Agreement and (2) the Pass Through Trustee to direct the Lease Indenture Trustee to enter into this Forbearance Agreement.

 

(ii)                                  By its signature below, each Consenting Certificateholder hereby certifies to the Pass Through Trustee and Lease Indenture Trustee that the information set forth on its respective signature block and the related schedules accurately reflects such Consenting Certificateholder’s holdings of Certificates.

 

(iii)                               The Pass Through Trustee represents and warrants that it is the sole holder of the currently outstanding Lessor Notes under each Indenture.  The Pass Through Trustee, in reliance on representations and warranties made by each of the Consenting Certificateholders certifying as to each such Consenting Certificateholder’s individual holdings, also represents and warrants that the Consenting Certificateholders in the aggregate constitute the Required Holders under each of the Pass Through Trust Agreements for the purpose of directing the Pass Through Trustee to direct the Lease Indenture Trustee to execute this Forbearance Agreement.

 

(iv)                              The Lease Indenture Trustee, based on the representations and warranties of the Pass Through Trustee, represents and warrants that the Pass Through Trustee constitutes the sole holder and the Required Holders under each of the Indentures for the purpose of directing the Lease Indenture Trustee to execute this Forbearance Agreement.

 

6.                                      Revocation and Termination.  The Forbearance Period shall automatically terminate if any of the following events shall occur (each, an “Event of Termination”):

 

(a)                                 the failure of the Facility Lessee to comply with any term, condition or covenant set forth in this Forbearance Agreement, and upon five (5) Business Days written notice to the Facility Lessee and subject to the ability of the Facility Lessee to cure;

 

(b)                                 other than the alleged defaults related to the Existing Disputes, there occurs and is continuing any (i) Lease Event of Default or (ii) Lease Indenture Event of Default;

 

(c)                                  the Facility Lessee commences a case under title 11 of the United States Code or any equivalent; or

 

7

 

(d)                                 the Facility Lessee provides written notice to the Consenting Certificateholders or Paul, Weiss that it is terminating discussions with the Consenting Certificateholders regarding a Potential Transaction.

 

7.                                      Miscellaneous.

 

(a)                                 Interpretive Matters.

 

(i)                                     Unless the context of this Forbearance Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, and the term “including” is not limiting.  The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Forbearance Agreement refer to this Forbearance Agreement as a whole and not to any particular provision of this Forbearance Agreement.  Section, subsection and clause references herein are to this Forbearance Agreement unless otherwise specified.

 

(ii)                                  The term “person” as used in this Forbearance Agreement shall be broadly interpreted to include, without limitation, any individual, corporation, company, partnership or other entity.

 

(b)                                 Headings.  Section and subsection headings in this Forbearance Agreement are included herein for convenience of reference only and will not constitute a part of this Forbearance Agreement for any other purpose or be given any substantive effect.

 

(c)                                  Applicable Law.  Except as otherwise expressly provided in any of the Operative Documents, in all respects, including all matters of construction, validity and performance, this Forbearance Agreement will be governed by and construed in accordance with, the laws of the State of New York.

 

(d)                                 Successors and Assigns.  The provisions of this Forbearance Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

(e)                                  Counterparts.  This Forbearance Agreement may be executed in counterparts, each of which when so executed will be deemed an original, but all such counterparts together will constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Forbearance Agreement by facsimile or other similar method of electronic transmission shall be effective as delivery of a manually executed counterpart of this Forbearance Agreement.

 

(f)                                   Amendment.  This Forbearance Agreement may only be amended or modified in writing by the Facility Lessee, the Lease Indenture Trustee, the Pass Through Trustee and each Consenting Certificateholder.

 

8.                                      Venue; Jury Trial Waiver. THIS FORBEARANCE AGREEMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING VENUE AND JURY TRIAL WAIVER SET FORTH IN FACILITY LEASE AGREEMENTS, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY THIS REFERENCE, MUTATIS MUTANDIS.

 

8

 

[Remainder of page intentionally left blank; signature pages follow]

 

9

 

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

 

[Signature Page to Forbearance Agreement]

 

 

	
GenOn   Mid-Atlantic LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
/s/   Gaetan Frotte
    	
 
    
	
By:   Gaetan Frotte
    	
 
    
	
Its:   Treasurer
    	
 
    

 

[Signature Page to Forbearance Agreement]

 

 

U.S. Bank National Association,

not in its individual capacity, but solely as Lease

Indenture Trustee for each of Morgantown OL1,

Morgantown OL2, Morgantown OL3, Morgantown

OL4, Morgantown OL5, Morgantown OL6, and

Morgantown OL7

 

 

	
/s/   Deborah A. Ibrahim
    	
 
    
	
By:   Deborah A. Ibrahim
    	
 
    
	
Its:   Vice President
    	
 
    

 

[Signature Page to Forbearance Agreement]

 

 

U.S. Bank National Association,

not in its individual capacity, but solely as Pass

Through Trustee for the Southern Energy Mid-

Atlantic Series B Pass Through Trust

 

 

	
/s/   Deborah A. Ibrahim
    	
 
    
	
By:   Deborah A. Ibrahim
    	
 
    
	
Its:   Vice President
    	
 
    

 

 

U.S. Bank National Association,

not in its individual capacity, but solely as Pass

Through Trustee for the Southern Energy Mid-

Atlantic Series C Pass Through Trust

 

 

	
/s/   Deborah A. Ibrahim
    	
 
    
	
By:   Deborah A. Ibrahim
    	
 
    
	
Its:   Vice President
    	
 
    

 

[Signature Page to Forbearance Agreement]

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