Document:

ex10p1agrement201124

                                                                               AGREEMENT OF SALE                       between      THE INDUSTRIAL DEVELOPMENT BOARD       OF THE CITY OF HOOVER (ALABAMA)                      as Issuer                         and       UNITED STATES STEEL CORPORATION                       $63,400,000   The Industrial Development Board of the City of Hoover  Environmental Improvement Revenue Bonds, Series 2020         (United States Steel Corporation Project)                                         Dated as of November 1, 2020                                                    

 

                             TABLE OF CONTENTS                                                                                                                      Page                                     ARTICLE I                                   DEFINITIONS  Section 1.01.  Use of Defined Terms ...................................................................................... 2  Section 1.02.  Definitions........................................................................................................ 2  Section 1.03.  Interpretation .................................................................................................... 5  Section 1.04.  Captions and Headings .................................................................................... 6                                    ARTICLE II                                REPRESENTATIONS  Section 2.01.  Representations and Covenants of Issuer ........................................................ 6  Section 2.02.  Representations and Covenants of Company .................................................. 7                                    ARTICLE III                  ISSUANCE OF BONDS; COMPLETION OF PROJECT                      FACILITIES; SALE OF PROJECT FACILITIES  Section 3.01.  Issuance of Bonds ............................................................................................ 8  Section 3.02.  Completion of Project Facilities ...................................................................... 8  Section 3.03.  Use of Proceeds ................................................................................................ 8  Section 3.04.  Investment of Fund Moneys ............................................................................ 9  Section 3.05.  Purchase and Sale of Project Facilities ............................................................ 9  Section 3.06.  Issuer’s Fees ................................................................................................... 10                                    ARTICLE IV                               PAYMENT PROVISIONS  Section 4.01.  Installment Payments; Payments of Purchase Price of Bonds ....................... 11  Section 4.02.  Additional Payments ...................................................................................... 11  Section 4.03.  Deposit of Moneys in Bond Fund; Moneys for Purchase and                 Redemption .................................................................................................... 12  Section 4.04.  Obligations Unconditional ............................................................................. 12  Section 4.05.  Assignment by Company ............................................................................... 12  Section 4.06.  Assignment by Issuer ..................................................................................... 13  Section 4.07.  Limitation of Issuer’s Liability ...................................................................... 13                                    ARTICLE V                    ADDITIONAL AGREEMENTS AND COVENANTS  Section 5.01.  Lease, Sale or Grant of Use by Company ...................................................... 14  Section 5.02.  Indemnification of Issuer and Trustee ........................................................... 14      

 

    Section 5.03.  Company Not to Adversely Affect Exclusion from Gross Income of                  Interest on Bonds ........................................................................................... 15  Section 5.04.  Company to Maintain its Existence; Mergers or Consolidations .................. 16  Section 5.05.  Reports and Audits ......................................................................................... 16  Section 5.06.  Insurance ........................................................................................................ 17  Section 5.07.  Green Bonds Certificate ................................................................................. 17  Section 5.08.  Company to Furnish Notices and Opinions Relating to Changes in                 Interest Rate Periods ...................................................................................... 17                                    ARTICLE VI                OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS  Section 6.01.  Options to Terminate Agreement ................................................................... 17  Section 6.02.  Optional and Extraordinary Optional Redemption; Option to Prepay                 Installment Payments under Indenture ........................................................... 18  Section 6.03.  Mandatory Prepayment of Installment Payments .......................................... 18  Section 6.04.  Actions by Issuer............................................................................................ 18  Section 6.05.  Release of Indenture in Event of Prepayment of Installment Payments ........ 18                                    ARTICLE VII                        EVENTS OF DEFAULT AND REMEDIES  Section 7.01.  Events of Default ........................................................................................... 18  Section 7.02.  Remedies on Default ...................................................................................... 19  Section 7.03.  No Remedy Exclusive.................................................................................... 20  Section 7.04.  Agreement to Pay Fees and Expenses ........................................................... 20  Section 7.05.  No Waiver ...................................................................................................... 20  Section 7.06.  Notice of Default ............................................................................................ 20                                   ARTICLE VIII                                 MISCELLANEOUS  Section 8.01.  Term of Agreement ........................................................................................ 20  Section 8.02.  Amounts Remaining in Funds ....................................................................... 21  Section 8.03.  Notices ........................................................................................................... 21  Section 8.04.  Extent of Covenants of Issuer; No Personal Liability ................................... 21  Section 8.05.  Binding Effect ................................................................................................ 21  Section 8.06.  Amendments and Supplements ...................................................................... 21  Section 8.07.  Execution Counterparts .................................................................................. 21  Section 8.08.  Severability .................................................................................................... 21                                          ii     

 

    Section 8.09.  Governing Law .............................................................................................. 22  Section 8.10.  Further Assurances and Corrective Instruments ............................................ 22  Section 8.11.  Issuer and Company Representatives ............................................................ 22  Section 8.12.  Immunity of Incorporators, Stockholders, Officers and Directors ................ 22  Section 8.13.  Section Headings ........................................................................................... 22  Section 8.14.  Concerning the Trustee .................................................................................. 22    EXHIBIT A      PROJECT FACILITIES  EXHIBIT B      FORM OF DISBURSEMENT REQUEST  EXHIBIT C      FORM OF COMPLETION CERTIFICATE                                               iii     

 

                                AGREEMENT OF SALE          THIS AGREEMENT      OF SALE   (this “Agreement”) made and entered into as of   November 1, 2020, by and between THE INDUSTRIAL DEVELOPMENT BOARD OF THE  CITY OF HOOVER      (ALABAMA)   (the “Issuer”), a public corporation created and existing   under the laws of the State of Alabama (the “State”), acting through its duly elected board, duly  organized and validly existing under and by virtue of Act No. 648 enacted at the 1949 Regular  Session of the Legislature of Alabama (Code of Alabama 1975 § 11-54-80, et seq., as amended)   (the “Act”), and UNITED STATES STEEL CORPORATION, a corporation duly organized   and existing under and pursuant to the laws of the State of Delaware, and duly qualified to own   property and transact business in the State (the “Company”), under the following circumstances   summarized in the following recitals (capitalized terms used herein and not defined in the recitals   have the meanings set forth in Article I hereof or elsewhere in this Agreement):                                  W I T N E S S E T H:          WHEREAS, by virtue of the Act and pursuant to its corporate authorization, the Issuer is   authorized to enter into this Agreement and to do or cause to be done all the acts and things herein   or in the Indenture, as defined herein, provided or required to be done by it, to issue the Bonds, as   defined herein, and to apply the proceeds of the sale of such Bonds to finance or refinance the   acquisition, construction, equipping and installation of certain Project Facilities consisting of solid   waste disposal facilities constituting pollution control facilities under the Act and described in   Exhibit A hereto, as Exhibit A may be amended as provided in Section 11.01 of the hereinafter   defined Indenture; and          WHEREAS,   in order to provide funds necessary to finance or refinance the Project   Facilities, the Issuer has determined, at the request of the Company, to issue and sell its   Environmental Improvement Revenue Bonds, Series 2020 (United States Steel Corporation   Project), in the aggregate principal amount of $63,400,000 (the “Bonds”), under the Trust  Indenture (the “Indenture”) dated as of November 1, 2020, between the Issuer and The Bank of  New York Mellon Trust Company, N.A., as trustee (the “Trustee”), for the purposes described  therein and herein and has determined to enter into this Agreement and to secure the Bonds by the  pledge and assignment of Installment Payments to be made by the Company hereunder; and         WHEREAS, the Company also has agreed under this Agreement to pay, or cause to be  paid, when due certain expenses and other costs incurred by the Issuer and the Trustee in  connection with this Agreement and the issuance of the Bonds; and         WHEREAS, the Bonds are special, limited obligations of the Issuer payable solely from  the Pledged Receipts, as defined in the Indenture, and neither the principal of the Bonds, nor the   interest accruing thereon, shall ever constitute a charge against the general credit of the Issuer or   an indebtedness of the City of Hoover, Alabama (the “City”), Jefferson County, Alabama (the   “County”), the State or any political subdivision thereof within the meaning of any State   constitutional or statutory provision nor constitute or give rise to a pecuniary liability of the City,   the County or the State or a charge against their general credit or taxing powers; and      

 

         WHEREAS, all acts and things have been done and performed which are necessary to  make the Bonds, when executed and delivered by the Issuer, the legal, valid and binding limited  obligations of the Issuer in accordance with the terms thereof.         NOW, THEREFORE, for and in consideration of the premises, the respective  representations and agreements contained herein, and other good and valuable consideration, the  receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto,  recognizing that under the Act this Agreement shall not in any way obligate the State or any agency  or political subdivision thereof, including, without limitation, the Issuer, to raise any money by  taxation or use other public moneys for any purpose in relation to the Project Facilities and that  neither the City, the County, the State nor any agency or political subdivision thereof, including,  without limitation, the Issuer, shall pay or promise to pay any debt or meet any financial obligation  to any Person at any time in relation to the Project Facilities, except from moneys received or to  be received under the provisions of this Agreement or derived from the exercise of the rights of  the Issuer hereunder, agree as follows:                                    ARTICLE I                                                                           DEFINITIONS         Section 1.01.  Use of Defined Terms.  In addition to the words and terms defined  elsewhere in this Agreement, or by reference to another document, the words and terms set forth  in Section 1.02 shall have the meanings set forth therein unless the content or use clearly indicates  another meaning or intent.  In addition, all capitalized terms used herein and not otherwise defined  shall have the meanings set forth in the Indenture.         Section 1.02.  Definitions.  The following terms shall have the following meanings:         “Act” means Act No. 648 enacted at the 1949 Regular Session of the Legislature of  Alabama, as amended.  The Act is codified as Code of Alabama, 1975, Title 11, Chapter 54, Article  4.         “Additional Payments” means payments due hereunder as described in Section 4.02 hereof  in addition to the Installment Payments and to payments of Purchase Price.         “Agreement” means this Agreement of Sale as amended or supplemented from time to  time.         “Bond Purchase Agreement” means the Bond Purchase Agreement among the Company,  the Issuer and the Underwriter with respect to the Bonds.         “Bonds” has the meaning set forth in the recitals to this Agreement.         “Code” means the Internal Revenue Code of 1986, as amended from time to time, the  regulations (whether proposed, temporary or final) under that Code or the statutory predecessor of  that Code, and any amendments of, or successor provisions to, the foregoing and any official  rulings, announcements, notices, procedures and judicial determinations regarding any of the  foregoing, all as and to the extent applicable.  Unless otherwise indicated, reference to a Section                                         2   

 

     of the Code means that Section of the Code, including such applicable regulations, rulings,   announcements, notices, procedures and determinations pertinent to that Section of the Code.          “Company Purchase Date” means, with respect to the related Bonds, any date on which  the Company purchases such Bonds in lieu of optional redemption under Section 4.07 of the  Indenture.         “Completion Certificate” means a certificate in substantially the form attached hereto as  Exhibit C.          “Continuing Disclosure Agreement” means the Continuing Disclosure Agreement, dated   the Date of Issuance, executed by the Company, as originally executed or as it may from time to   time be supplemented or amended.          “Conversion Date” means each Business Day, other than a Mandatory Purchase Date, on   which Bonds are subject to optional redemption under Section 4.02(b) or (c) of the Indenture and   are converted at the option of the Company in accordance with Section 2.04 of the Indenture   (1) from the Term Interest Rate Period then in effect for such Bonds to a Fixed Interest Rate Period   or vice versa, (2) from a Term Interest Rate Period then in effect for such Bonds to another Term   Interest Rate Period or (3) from a Fixed Interest Rate Period then in effect for such Bonds to   another Fixed Interest Rate Period and on which such Bonds are required to be tendered for   purchase in accordance with Section 4.08 of the Indenture.          “Event of Default” means any of the events described as an Event of Default in   Section 7.01.          “Indenture” means the Trust Indenture dated as of even date with this Agreement, between   the Issuer and the Trustee, as amended or supplemented from time to time.          “Installment Payments” means the amounts required to be paid by the Company to the   Trustee on behalf of the Issuer as described in, and pursuant to, Section 4.01(a) on each date on  which payment of principal or redemption price of or interest on the Bonds is due, as installments  for the purchase price of the Project Facilities, sufficient to enable the Trustee to make such  payment in full.         “Issuer” means The Industrial Development Board of the City of Hoover (Alabama), a  public corporation duly organized and existing under the laws of the State of Alabama, particularly  the Act.        “Mandatory Purchase Date” means November 1, 2030 for the Term Interest Rate Period  commencing on the Date of Issuance and, thereafter, means with respect to Bonds in a Term  Interest Rate Period, the Business Day next succeeding the last designated day of such Term  Interest Rate Period as specified by the Company in its notice described in Section 2.04(b)(i) of  the Indenture and on which such Bonds are required to be tendered for purchase in accordance  with Section 4.08 of the Indenture.                                           3    

 

         “Notice Address” means:              (a)   As to the Issuer:                    The Industrial Development Board of the City of Hoover                    Hoover City Hall                   100 Municipal Lane                   Hoover, AL 35216                   Attention: City Clerk                   Email: wendy.dickerson@hooveralabama.gov                    Facsimile No.: (205) 444-7572                                      With a copy to the Issuer at:                    Phillip D. Corley, Jr.                   Wallace, Jordan, Ratliff & Brandt, LLC                   800 Shades Creek Parkway, Suite 400                   Homewood, AL 35209                   Email: pcorley@wallacejordan.com                   Telephone: (205) 874-0335               (b)   As to the Company:                     United States Steel Corporation                    600 Grant Street, 61st Floor                    Pittsburgh, PA 15219-2800                    Attention: Vice President - Treasurer & Chief Risk Officer                   Facsimile No.: (412) 433-1167                    With a copy to the Company at:                    United States Steel Corporation                   600 Grant Street, 19th Floor                    Pittsburgh, PA 15219-2800                    Attention: Manager – Corporate Finance                     Facsimile No.: (412) 433-4567               (c)   As to the Trustee:                     The Bank of New York Mellon Trust Company, N.A.                    500 Ross Street, 12th Floor                    Pittsburgh, PA 15262                    Attention: Corporate Trust Administration                    Facsimile No.: (412) 236-0870   or such additional or different address, notice of which is given under Section 8.03.                                          4   

 

           “Permitted Encumbrances” means as of any particular time, (i) liens for taxes not then   delinquent, (ii) liens created by this Agreement and the Indenture, (iii) utility, access and other   easements and rights of way, restrictions and exceptions that, in the opinion of the Company, will   not materially interfere with or impair the Project Facilities or the operation thereof, (iv) any   mechanic's, laborer's, materialman's, supplier's or vendor's lien or right in respect thereof if   payment, not yet due and payable, is being contested in good faith or if such lien or right does not   materially adversely affect the operation of the Project Facilities, (v) defects, irregularities,   encumbrances, easements, rights of way and clouds on title (including zoning and other similar   restrictions and regulations) which do not, in the opinion of the Company, materially impair the   Project Facilities, and (vi) intercompany transfers.          “Person” (or words importing persons) means any individual, corporation, partnership,   joint venture, limited liability company, association, joint-stock company, trust, unincorporated   organization or government or any agency or political subdivision thereof.          “Project Facilities” means the solid waste disposal facilities constituting pollution control   facilities under the Act financed with the proceeds of the sale of the Bonds, as more fully described   in Exhibit A, as Exhibit A may be amended as provided in Section 11.01 of the Indenture.          “Purchase Price” means (a) with respect to Bonds to be purchased on a Company Purchase   Date pursuant to Section 4.07 of the Indenture or a Conversion Date pursuant to Section 4.08 of   the Indenture, an amount equal to the redemption price at which such Bonds would have been  redeemed under the Indenture if such Bonds were redeemed rather than purchased on such  Company Purchase Date or Conversion Date, and (b) with respect to Bonds to be purchased on a  Mandatory Purchase Date pursuant to Section 4.08 of the Indenture, an amount equal to the  principal amount of the Bonds to be purchased on such Mandatory Purchase Date.  Because each  Company Purchase Date, Conversion Date and Mandatory Purchase Date is an Interest Payment  Date, any accrued interest due on Bonds on such dates will be paid as interest due on such Bonds  on such dates and not as part of the Purchase Price.         “Tax Regulatory Agreement” means the Tax Regulatory Agreement with respect to the  Bonds, dated as of the Date of Issuance between the Issuer and the Company, and any permitted  amendments or supplements thereto.         “Underwriter” means BofA Securities, Inc., on behalf of itself and as representative of a  group of underwriters named in the Bond Purchase Agreement.         All other terms used in this Agreement that are not defined herein but are defined in the  Indenture have the same meanings assigned to them in the Indenture unless the context clearly  requires otherwise.         Section 1.03.  Interpretation.  Unless the context clearly indicates otherwise, the  capitalized terms defined in this Article I and in the Indenture shall, for all purposes of this  Agreement and all agreements supplemental hereto, have the meanings hereby ascribed to them.   Such terms, together with all other provisions of this Agreement, shall be read and understood in  a manner consistent with the provisions of the Act.  Words or phrases importing the masculine                                           5    

 

     gender shall be read and understood to include the feminine and neuter genders and those  importing number shall include singular or plural, both as appropriate to the context.          Any reference herein to the Issuer, to its board or to officers thereof, includes entities or   officials succeeding to their respective functions, duties or responsibilities pursuant to or by   operation of law or lawfully performing their functions.          Any reference to a section, provision or chapter of the laws of the State or to any statute of   the United States of America includes that section, provision or chapter or statute as amended,   modified, revised, supplemented or superseded from time to time; provided, that no such   amendment, modification or similar change shall apply solely by reason of this provision, if it   constitutes in any way an impairment of the rights or obligations of the Issuer, the Bondholders,   the Trustee or the Company under this Agreement.          Section 1.04.  Captions and Headings.  The captions and headings in this Agreement are   solely for convenience of reference and in no way define, limit or describe the scope or intent of   any articles, sections, subsections, paragraphs, subparagraphs or clauses hereof.                                     ARTICLE II                                                                          REPRESENTATIONS          Section 2.01.  Representations and Covenants of Issuer.  The Issuer represents that (a) it   is a public corporation of the State duly organized and validly existing under the Constitution and   laws of the State, including the Act; (b) it has duly accomplished all conditions necessary to be   accomplished by it prior to the issuance and delivery of the Bonds and the execution and delivery   of this Agreement, the Indenture, the Tax Regulatory Agreement and the Bond Purchase   Agreement; (c) after reasonable inquiry, it has no knowledge that it is in violation of or in conflict  with any provisions of the laws of the State which would impair its ability to carry out its   obligations contained in this Agreement, the Indenture, the Tax Regulatory Agreement or the Bond  Purchase Agreement; (d) based upon information that the Project Facilities are located within 25  miles of the corporate limits of the City and are not within the corporate limits or police jurisdiction  of any other city or town of the State and as to the intended use of the Project Facilities submitted  by the Company to the Issuer, it is empowered to enter into the transactions contemplated by this  Agreement, the Indenture, the Tax Regulatory Agreement and the Bond Purchase Agreement; (e) it  has duly authorized the execution, delivery and performance of this Agreement, the Indenture, the  Tax Regulatory Agreement and the Bond Purchase Agreement; (f) to the best of its knowledge and  belief, based upon the State volume cap application submitted by the Company, and other  representations made, information presented and testimony given by the Company, without  independent verification by the Issuer, the Bonds will further the public purposes of the Act and  of the Issuer; (g) it will do all things in its power in order to maintain its existence or assure the  assumption of its obligations under this Agreement, the Indenture and the Tax Regulatory  Agreement by any successor public body; and (h) portions of the City are located within the   County.                                           6    

 

         Section 2.02.  Representations and Covenants of Company.  The Company represents  and covenants that:               (a)   It is a corporation duly organized and existing under and pursuant to the        laws of the State of Delaware.  The Company is qualified to do business in the State.               (b)   It has full power and authority to execute, deliver and perform its        obligations under this Agreement, the Tax Regulatory Agreement, the Bond Purchase        Agreement and the Continuing Disclosure Agreement and to enter into and carry out the        transactions contemplated by those documents; such execution, delivery and performance        does not, and will not, violate any provision of law applicable to the Company or the        Company’s articles of incorporation, code of regulations, bylaws or other corporate charter        or similar instrument each as may be amended, and does not, and will not, conflict with or        result in a default under any agreement or instrument to which the Company is a party or        by which it is bound; this Agreement, the Tax Regulatory Agreement, the Bond Purchase        Agreement and the Continuing Disclosure Agreement have, by proper action, been duly        authorized, executed and delivered by the Company and all steps necessary have been        taken to constitute this Agreement, the Tax Regulatory Agreement, the Bond Purchase        Agreement and the Continuing Disclosure Agreement legal, valid and binding obligations        of the Company.               (c)   No approval, consent or other action by, or filing with, any governmental        authority or agency is required to be obtained or accomplished by the Company in        connection with this Agreement or the Tax Regulatory Agreement that has not been        obtained or accomplished, or will not be obtained or accomplished by the date of issuance        of the Bonds, the failure of which will not have a materially adverse effect on the        Company’s ability to execute, deliver and perform this Agreement or the Tax Regulatory        Agreement or the transactions contemplated herein or therein.               (d)   Each of the Project Facilities will, at the time it is placed in service, be a        “pollution control facility” under the Act.               (e)   Each one and all of the representations and warranties of the Company        contained in the Tax Regulatory Agreement, as executed and delivered simultaneously        with this Agreement, are true and correct.               (f)   No part of the Project Facilities shall be located (i) more than 25 miles from        the corporate limits of the City; (ii) within the corporate limits or within the police        jurisdiction of any city or town in the State; and (iii) in any county within the State other        than the County.               (g)   The Company will comply with the applicable requirements of        Rule 15c2-12 as promulgated by the Securities and Exchange Commission and recognizes        that the Issuer is not an “obligated person” within the meaning of Rule 15c2-12.                                          7   

 

                                    ARTICLE III                                                              ISSUANCE OF BONDS; COMPLETION OF              PROJECT FACILITIES; SALE OF PROJECT FACILITIES         Section 3.01.  Issuance of Bonds.  To provide funds to finance or refinance the costs of  the acquisition, construction, equipping and installation of the Project Facilities, upon satisfaction  of the conditions set forth herein and in the Bond Resolution, the Issuer will issue, sell and deliver  the Bonds.  The Bonds will be issued in accordance with and pursuant to the Indenture in the  aggregate principal amount, will bear interest at the rate or rates, will mature and will be subject  to redemption as set forth therein.  The Company hereby approves the terms and conditions of the  Indenture, and the Bonds, and the terms and conditions under which the Bonds will be issued, sold  and delivered.         Section 3.02.  Completion of Project Facilities.  The Company represents that the  acquisition, construction, equipping and installation of the Project Facilities will be completed and  that the proceeds of the Bonds, including any investment thereof, will be expended in accordance  with the provisions of all bond authorizations, security and tax regulatory agreements and  certificates executed in respect of the Bonds and in respect of the installation, operation and use of  the Project Facilities, including the Tax Regulatory Agreement.  The Company acknowledges and  agrees that there is no implied or express warranty by the Issuer that the proceeds of the Bonds  will be sufficient to pay all costs of the acquisition, construction, equipping and installation of the  Project Facilities.  Upon completion of the acquisition, construction, equipping and installation of  the Project Facilities, and in any event not more than 90 days thereafter, the Company shall deliver  the Completion Certificate to the Trustee.         Section 3.03.  Use of Proceeds.  The proceeds from the sale of the Bonds shall be  deposited in the Project Fund and used to finance or refinance the costs of the acquisition,  construction, equipping and installation of the Project Facilities.  Each disbursement request shall  be on the form attached hereto as Exhibit B, executed by an Authorized Company Representative.   Subject to the provisions below, disbursements from the Project Fund shall be made only to  reimburse or pay the Company, or any person designated by the Company, for the following:               (a)   Costs incurred directly or indirectly for or in connection with the        acquisition, construction, equipping and installation of the Project Facilities, including        costs incurred in respect of the Project Facilities for preliminary planning and studies;        architectural, legal, engineering, surveying, accounting, consulting, supervisory and other        services; labor, services and materials; and recording of documents and title work;               (b)   Subject to the limitations set forth in the Code, financial, legal, accounting,        printing and engraving fees, charges and expenses, and all other such fees, charges and        expenses incurred in connection with the authorization, sale, issuance and delivery of the        Bonds; or               (c)   Any other costs, expenses, fees and charges properly chargeable to the cost        of the acquisition, construction, equipping or installation of the Project Facilities, including        interest on the Bonds prior to the time the Project Facilities are placed in service, and that                                         8   

 

           comply with the Company’s representations and warranties in Section 2.02 of this         Agreement.                (d)   All moneys remaining in the Project Fund after the completion of the         acquisition, construction, equipping and installation of the Project Facilities and after        payment or provision for payment thereof and all other items provided for in the preceding         subsections (a) to (c), inclusive, of this Section, shall, at the written direction of an         Authorized Company Representative, be used in accordance with Section 5.01(f) of the         Indenture.          Section 3.04.  Investment of Fund Moneys.  At the written direction of the Authorized   Company Representative, any moneys held as part of the Project Fund, the Bond Fund and the  Rebate Fund shall be invested or reinvested by the Trustee in Eligible Investments.  The Issuer has  no right to direct the investment of any moneys held in such Funds and the Company covenants  that it will not direct the investment or reinvestment of any moneys held in such Funds, or use or  direct the use of the proceeds of the Bonds, in a manner or to such an extent that the Bonds will  constitute arbitrage bonds under Section 148 of the Code.         The Company shall provide the Issuer with a certificate of an appropriate officer, employee  or agent of or consultant to the Company for inclusion in the transcript of proceedings for the  Bonds, setting forth the reasonable expectations of the Company on the date of delivery of and  payment for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts,  estimates and circumstances on which those expectations are based.         The Company agrees that at no time shall any funds constituting gross proceeds of the  Bonds be used in any manner to cause or result in a prohibited payment under applicable  regulations pertaining to, or in any other fashion as would constitute failure of compliance with,  Section 148 of the Code.         If there is any amount required to be paid to the United States pursuant to Section 148(f)  of the Code or Section 5.03 of the Indenture, the Company shall pay such amount to the Trustee  for deposit to the Rebate Fund created under Section 5.03 of the Indenture, who will, acting on  behalf of the Company, submit the payment to the United States.         Section 3.05.  Purchase and Sale of Project Facilities.  (a) In consideration of the  issuance and sale of the Bonds, the Company hereby, and by conveyance of even date herewith,  assigns, conveys and transfers to the Issuer all of its right, title, and interest in and to the portion  of the Project Facilities to which the Company has title at the time of issuance of the Bonds.  The  Company further hereby assigns, conveys and transfers to the Issuer all of its right, title and interest  in and to each discrete portion of the Project Facilities (except for portions of the Project Facilities  acquired from the Issuer) as such portion is acquired, constructed and installed in accordance with  this Agreement, with the result that title to each such portion of the Project Facilities automatically  shall vest in the Issuer as the same is in the process of being acquired, constructed and installed in  accordance with this Agreement.  Such transfer shall be made subject to Permitted Encumbrances.   Neither the Issuer nor the City shall be responsible or liable in any manner for any claims, losses,  damages, penalties, costs, taxes, assessments, charges or fines with respect to the acquisition,  construction, installation, improvement, operation, maintenance or ownership of the Project                                          9    

 

     Facilities or any portion thereof (including any environmental issues and matters) and the  Company shall indemnify the Issuer and pay all expenses applicable to or arising therefrom as   provided in Section 5.02.          (b) The Issuer does hereby, and by conveyance of even date herewith, sell and convey to   the Company and the Company does hereby purchase and reacquire from the Issuer all of its right,   title and interest in and to the portion of the Project Facilities to which the Issuer acquires title as   of the date of issuance of the Bonds.  The Issuer does further hereby sell and convey to the   Company, and the Company does hereby purchase and reacquire from the Issuer, all of its right,   title and interest in and to each discrete portion of the Project Facilities as such portion is acquired,   constructed and installed in accordance with this Agreement.  Upon completion of such   acquisition, construction and installation of each discrete portion of the Project Facilities in   accordance with this Agreement, all of the Issuer's right, title and interest of every nature   whatsoever in and to such portion of the Project Facilities automatically shall vest irrevocably in   the Company without the necessity of the execution of any conveyance by the Issuer, and such   transaction shall result in the automatic sale and delivery of such portion of the Project Facilities   by the Issuer to the Company, and the vesting of title to such portion of the Project Facilities in the   Company, in consideration for the agreement of the Company to make, or cause to be made, the   Installment Payments and other payments and indemnities required under this Agreement.  Such   transfer shall be made subject to Permitted Encumbrances.  Upon the transfer by the Issuer to the   Company of the Project Facilities, the Issuer shall have no further right, title or interest in or to the   Project Facilities.  The Issuer shall execute and deliver to the Company such deeds, assignments,   bills of sale or other evidence of the transfer of its interest in the Project Facilities to be transferred   pursuant hereto as the Company may from time to time reasonably request; all at the expense of  the Company,  provided, however, that irrespective of any failure to deliver such deeds,  assignments, bills of sale or other evidence, the Project Facilities shall be deemed transferred and  vested as herein provided without any further act required of the Company or the Issuer.  The  Company will pay all expenses applicable to or arising from said transfer of title.  The Company  shall be entitled to sole and exclusive possession of the Project Facilities from the date of vesting  of title thereto in the Company as herein provided.  In connection with all sales and conveyances  by the Issuer to the Company of the Project Facilities hereunder, the Company acknowledges that  the Issuer makes no warranty, either express or implied, nor offers any assurances that the Project  Facilities will be suitable for the Company’s purposes or needs.         (c) In the event that all of the principal of the Bonds shall be redeemed prior to scheduled  maturity or become due and payable pursuant to the provisions of the Indenture, because of the  acceleration of the scheduled maturity of such Bonds for any reason, and such event should occur  prior to the vesting of title to the Project Facilities in the Company, the Issuer shall, upon  redemption of such Bonds or full payment by the Company of all Installment Payments due  because of such acceleration of maturity and at the expense of the Company, deliver to the   Company such documents as will be reasonably required to convey to the Company of all of the   Issuer's right, title and interest in and to the Project Facilities or parts thereof which were acquired,   constructed or improved with funds from the proceeds from the sale and delivery of the Bonds so   redeemed or paid.          Section 3.06.  Issuer’s Fees.  The Company will pay the Issuer’s closing fee in the amount   of $25,000 and the Issuer’s counsel fee in the amount of $25,000, including documented out-of-                                         10    

 

     pocket disbursements and expenses related thereto, on the date of issuance of the Bonds.  The  Company will also pay any other administrative expenses incurred in connection with the  financing or refinancing of the acquisition, construction, equipping and installation of the Project  Facilities, and any such additional fees and expenses (including reasonable and documented out- of-pocket attorney’s fees) incurred by the Issuer in connection with inquiring into, or enforcing,  the performance of the Company’s obligations hereunder, within 30 days of receipt of a statement  from the Issuer requesting payment of such amount.                                     ARTICLE IV                                                                       PAYMENT PROVISIONS         Section 4.01.  Installment Payments; Payments of Purchase Price of Bonds.  (a)  As  and for the purchase price of the Project Facilities, on each date on which any payment of principal  or redemption price of, or interest on, the Bonds shall become due (whether at maturity, or upon  redemption or acceleration or otherwise), the Company will pay or cause to be paid to the Trustee,  for the account of the Issuer and in immediately available funds, as an installment of such purchase  price, an amount which, together with other moneys held by the Trustee under the Indenture and  available therefor, will enable the Trustee to make such payment of principal or redemption price  of, or interest on, the Bonds to the Bondholders in full in a timely manner (“Installment   Payments”).          In furtherance of the foregoing, so long as any Bonds are outstanding, the Company will   pay or cause to be paid all amounts required to prevent any deficiency or default in any payment   of principal or redemption price of, or interest on, the Bonds, including any deficiency caused by   an act or failure to act by the Trustee, the Company, the Issuer or any other Person.          The Issuer assigns all amounts payable under this subsection by the Company to the   Trustee pursuant to the Indenture for the benefit of the Bondholders.  The Company assents to   such assignment.  Accordingly, the Company will pay directly to the Trustee at its designated   office all payments payable by the Company pursuant to this subsection.          (b)   The Company will also pay or cause to be paid in immediately available funds to   the Trustee or the Tender Agent, as the case may be, by 4:00 p.m., New York City time, on each   day on which a payment of Purchase Price of a Bond which the Company has opted to purchase   in lieu of optional redemption pursuant to Section 4.07 of the Indenture shall become due and on   each Conversion Date and Mandatory Purchase Date on which a payment of Purchase Price of a   Bond which has been tendered (or deemed tendered) for purchase pursuant to Section 4.08 of the   Indenture shall become due, an amount which, together with other moneys held by the Trustee or   the Tender Agent under the Indenture and available therefor, will enable the Trustee or the Tender   Agent, as the case may be, to make such payment in full in a timely manner.          Section 4.02.  Additional Payments.  The Company will also pay the following upon   demand after receipt of a bill therefor:                (a)   The reasonable and documented out-of-pocket fees and expenses, including         reasonable attorneys’ fees, of the Issuer incurred in connection with this Agreement, the                                          11    

 

           Indenture, the Tax Regulatory Agreement and the Bonds, and the making of any        amendment or supplement thereto, including, but not limited to: (i) those described in         Section 3.06 (which includes the fees and expenses associated with the initial drafting,         execution and delivery of this Agreement, the Indenture, the Tax Regulatory Agreement,         the Bond Purchase Agreement and the Bonds), (ii) those described in Section 7.04 and         (iii) any other payments or indemnification required under Section 5.02; and                (b)   The reasonable and documented out-of-pocket fees and expenses of the         Trustee and any Tender Agent and Remarketing Agent under the Indenture, including         reasonable attorneys’ fees, for any services rendered by the Trustee and any Tender Agent         and Remarketing Agent under the Indenture, including those of the Trustee described in         Section 7.04 in connection with inquiring into or enforcing the performance of the         Company’s obligations hereunder, and any other payments or indemnification required         under Section 5.02, such fees, expenses and payments to be paid directly to the Trustee for         its own account as and when such fees and expenses become due and payable.          The Company further agrees to pay all reasonable and documented out-of-pocket costs and   expenses (including reasonable attorney’s fees and expenses) of the Issuer and the Trustee and any   Tender Agent and Remarketing Agent incurred after the initial issuance of the Bonds in the   preparation of any responses, reproduction of any documentation or participation in any inquiries,   investigations or audits from any Person solely or primarily in connection with the Bonds,   including without limitation, the Internal Revenue Service, the Securities Exchange Commission   or other governmental agency.          Section 4.03.  Deposit of Moneys in Bond Fund; Moneys for Purchase and   Redemption.  The Company may at any time deposit moneys in the Bond Fund, without premium   or penalty, to be held by the Trustee for application to Installment Payments not yet due and   payable, and the Issuer agrees that the Trustee shall accept such deposits when tendered by the   Company.  Such deposits shall be credited against the Installment Payments, or any portion   thereof, in the order of their due dates.  Such deposits shall not in any way alter or suspend the   obligations of the Company under this Agreement during the term hereof as provided in   Section 8.01.          In addition, the Company may deliver moneys to the Trustee for use for the optional   redemption of Bonds pursuant to Sections 6.01 and 6.02 and shall deliver moneys to the Trustee   for mandatory redemption of Bonds as required by Section 4.02(e) of the Indenture.          Section 4.04.  Obligations Unconditional.  The obligations of the Company to make   payments required by Sections 4.01, 4.02 and 4.03 and to perform its other agreements contained   herein shall be absolute and unconditional, and the Company shall make such payments without   abatement, diminution or deduction regardless of any cause or circumstance whatsoever,   including, without limitation, damage, destruction or condemnation of the Project Facilities (the   risk of which shall be borne exclusively by the Company).          Section 4.05.  Assignment by Company.  Rights granted to the Company under this  Agreement may be assigned in whole or in part by the Company without the necessity of obtaining  the consent of the Issuer or the Trustee, subject, however, to each of the following conditions:                                          12    

 

                 (a)   unless waived by the Issuer or the Trustee, the Company shall notify the         Issuer and the Trustee in writing of the identity of any assignee at least 30 days prior to the         effective date of such assignment;                (b)   no assignment shall relieve the Company from primary liability hereunder        for its obligations hereunder, and the Company shall continue to remain primarily liable        for the payment of the Installment Payments and Additional Payments and for performance        and observance of the agreements on its part herein provided to be performed and observed        by it;               (c)   any assignment from the Company must retain for the Company such rights        and interests as will permit it to perform its obligations under this Agreement;               (d)   the Company shall, within 30 days after the execution thereof, furnish or        cause to be furnished to the Issuer and the Trustee a true and complete copy of each such        assignment; and               (e)   any assignment from the Company shall not materially impair fulfillment        of the purposes to be accomplished by operation of the Project Facilities as a project, the        financing of which is permitted under the Act.         Section 4.06.  Assignment by Issuer.  The Issuer will assign its rights under and interest  to this Agreement (except for the Unassigned Issuer’s Rights) to the Trustee pursuant to the  Indenture as security for the payment of the Bonds.  Otherwise, the Issuer will not sell, assign or  otherwise dispose of its rights under or interest in this Agreement nor create or permit to exist any  lien, encumbrance or security interest thereon.         Section 4.07.  Limitation of Issuer’s Liability.  The Bonds are special, limited  obligations of the Issuer and the Bond Service Charges thereon shall be paid equally and ratably  by the Issuer solely from the Pledged Receipts, including the Installment Payments to be made by  the Company under this Agreement.  THE BONDS SHALL NEVER CONSTITUTE A CHARGE  AGAINST THE GENERAL CREDIT OF THE ISSUER OR AN INDEBTEDNESS OF THE  CITY, THE COUNTY OR THE STATE OR ANY POLITICAL SUBDIVISION THEREOF  WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL OR STATUTORY  PROVISION NOR CONSTITUTE OR GIVE RISE TO A PECUNIARY LIABILITY OF THE  CITY, THE COUNTY OR THE STATE OR A CHARGE AGAINST THEIR GENERAL  CREDIT OR TAXING POWERS.  The Bonds shall not constitute or create any debt or liability  of the City, the County or the State or any other political subdivision thereof, or a loan of the credit  of the City, the County or the State or any other political subdivision.  The issuance of the Bonds  shall not directly, indirectly or contingently obligate the City, the County or the State or any  political subdivision thereof to levy or to pledge any form of taxation whatsoever therefor, or to  make any appropriation for the payment thereof.  The Issuer has no taxing power.                                           13    

 

                                      ARTICLE V                                                             ADDITIONAL AGREEMENTS AND COVENANTS          Section 5.01.  Lease, Sale or Grant of Use by Company.  Subject to the provisions of  Section 5.03, the Company may lease, sell or grant the right to occupy and use the Project  Facilities, in whole or in part, to others, provided that:               (a)   no such grant, sale or lease shall relieve the Company from its obligations        under this Agreement;               (b)   the Company shall retain such rights and interests as will permit it to comply        with its obligations under this Agreement;               (c)   no such grant, sale or lease shall impair the purposes of the Act; and               (d)   the Company shall receive an Opinion of Nationally Recognized Bond        Counsel to the effect that such grant, sale or lease does not have an adverse effect upon the        tax-exempt status of the interest on the Bonds.         Section 5.02.  Indemnification of Issuer and Trustee.  The Company will indemnify and  hold the Issuer and its members, directors, officers, elected officials, employees, agents and   representatives free and harmless from, and will indemnify and hold the Trustee and its officers,   employees and agents free and harmless from, any loss, claim, damage, tax, penalty, liability,   disbursement, litigation expenses, attorneys’ fees and expenses or court costs arising out of, or in   any way relating to, the execution or performance of the Indenture, this Agreement, the Bond   Purchase Agreement or any other documents in connection therewith, or any other cause and/or   matter whatsoever pertaining to the Project Facilities (including without limitation any loss, claim,   damage, tax penalty, liability, disbursement, litigation expenses, attorneys’ fees and expenses or   court costs asserted or arising under any federal, state or local statute, law, ordinance, code, rule,   regulation, order or decree regulating or relating to or imposing liability or standards of conduct   concerning any hazardous, toxic or dangerous waste, substance or material), or the Bonds,   including the issuance or sale of the Bonds, or the failure to issue or sell the Bonds, actions taken   under the Bonds, the Indenture, this Agreement, the Bond Purchase Agreement or any other   documents in connection therewith or any other cause whatsoever pertaining to the Project   Facilities, except in any case as a result of the gross negligence or willful misconduct of the Issuer   or any Issuer indemnified party or as a result of the negligence or willful misconduct of the Trustee   or any Trustee indemnified party.          The Company may, at its cost and in its name or in the name of the Issuer or the Trustee,   as the case may be, prosecute or take any other action involving third persons which the Company   deems necessary in order to ensure or protect the Company’s rights under this Agreement; in such   event, the Issuer or the Trustee, as the case may be, will reasonably cooperate with the Company,   but at the sole expense of the Company.          In case any actions or proceedings are brought against the Issuer or the Trustee in respect   of which indemnity may be sought hereunder, the party seeking indemnity shall promptly (but in   any event within 15 days of receipt of service by such party) give notice of that action or                                          14    

 

     proceeding to the Company enclosing copies of all papers served, and the Company, upon receipt   of that notice, shall have the obligation and the right to assume the defense of the action or  proceeding; provided, that failure of a party to give that notice shall not relieve the Company from   any of its obligations under this Section unless that failure materially prejudices the defense of the   action or proceeding by the Company.  Any such indemnified party shall have the right to employ   separate counsel in any such action or proceeding and participate in the defense thereof, but the   fees and expenses of such counsel shall be at the expense of such indemnified party, unless: (i) the   employment of such counsel has been specifically authorized by the Company, or (ii) the parties   to any such action or proceeding include both the indemnified party and the Company and   representation of both the indemnified party and the Company would not be appropriate due to   actual or potential conflicts of interest, as determined in good faith by the Company.  The Company   shall not be liable for any settlement of any such action or proceeding effected without its written   consent (which shall not be unreasonably withheld or delayed), but if settled with the consent of   the Company, or if there be a final judgment for the plaintiff in any such action, the Company   agrees to indemnify and hold harmless any such indemnified party from and against any loss or   liability by reason of such settlement or judgment.          Notwithstanding anything contained herein to the contrary, the Company shall not be   obligated to indemnify or hold harmless the Issuer or its members, directors, officers, elected   officials, employees, agents and representatives for their gross negligence or willful misconduct,   nor shall the Company be obligated to indemnify or hold harmless the Trustee or its officers,   employees and agents for their negligence or willful misconduct.           The foregoing indemnification of the Issuer is intended to be interpreted broadly and shall   include its members, directors, officers, elected officials, employees, agents and representatives,   shall be enforceable by the Issuer to the full extent permitted by law, shall survive beyond the   termination or discharge of the Indenture or payment of the Bonds and the limitation on   indemnification described above with respect to the gross negligence or willful misconduct of the   Issuer or any Issuer indemnified party shall apply only in cases in which any loss, claim, damage,   tax, penalty, liability, disbursement, litigation expense, attorneys’ fee or expenses or court cost of   the Issuer or any such Issuer indemnified party is adjudicated to have resulted from the gross   negligence or willful misconduct of the Issuer or such Issuer indemnified party.          The foregoing indemnification of the Trustee is intended to and shall include its officers,   employees and agents, shall be enforceable by the Trustee to the full extent permitted by law, and   shall survive beyond the termination or discharge of the Indenture or payment of the Bonds.          Section 5.03.  Company Not to Adversely Affect Exclusion from Gross Income of   Interest on Bonds.  The Company hereby represents that it has taken and caused to be taken, and   covenants that it will take and cause to be taken, all actions that may be required of it, alone or in   conjunction with the Issuer, for the interest on the Bonds to be and to remain excludable from   gross income for federal income tax purposes, and represents that it has not taken or permitted to   be taken on its behalf, and covenants that it will not take or permit to be taken on its behalf, any   action that would adversely affect such excludability under the provisions of the Code.                                           15    

 

           The Company also covenants that it will restrict the investment and reinvestment and the   use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary   so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.          The Company hereby covenants that on or before the 90th day following the date any of the   Project Facilities are no longer being operated as qualifying exempt facilities under the Code   (unless such facilities have simply ceased to be operated), or such later date as provided in the   Indenture, the Company shall cause a related amount of Bonds to be redeemed pursuant to the   Extraordinary Mandatory Redemption provision of the Bonds as provided in Section 4.02(e) of  the Indenture.         Section 5.04.  Company to Maintain its Existence; Mergers or Consolidations.  The   Company covenants that it will not merge or consolidate with any other legal entity or sell or  convey all or substantially all of its assets to any other legal entity, except that the Company may   merge or consolidate with, or sell or convey all or substantially all of its assets to any other legal   entity, provided that (a) the Company shall be the continuing legal entity or the successor legal  entity (if other than the Company) shall be a legal entity organized and existing under the laws of  the United States of America or a state thereof, qualified to do business in the State, and such legal   entity shall expressly assume the due and punctual payment of the Installment Payments and the   Additional Payments hereunder in order to ensure timely and proper payment of the principal of   and interest on all the Bonds, according to their tenor, and the due and punctual performance and   observance of all the covenants and conditions of this Agreement to be performed by the Company   (an “Assumption Agreement”) and (b) the Company or such successor legal entity, as the case may   be, shall not, immediately after such merger or consolidation, or such sale or conveyance, be in   default in the performance of any such covenant or condition and no event which with the lapse of   time, the giving of notice or both would constitute an Event of Default under Section 7.01 shall   have occurred and be continuing.          The Company shall, within 30 days after the execution of an Assumption Agreement,   furnish to the Issuer and the Trustee an executed copy of such Assumption Agreement and   appropriate documentation demonstrating that the successor legal entity (if other than the   Company) is organized and existing under the laws of the United States of America or a state   thereof and is qualified to do business in the State.          In the case of any such consolidation, merger, sale or conveyance and upon the assumption   by the successor legal entity of the obligations under this Agreement and on the Bonds in   accordance with the foregoing, such successor legal entity shall succeed to and be substituted for   the Company, with the same effect as if it had been named herein as a party hereto, and the  Company shall thereupon be relieved of any further obligations or liabilities hereunder and upon  the Bonds and the Company as the predecessor legal entity may thereupon or at any time thereafter  be dissolved, wound-up or liquidated.         Section 5.05.  Reports and Audits.  The Company shall as soon as practicable but in no  event later than six months after the end of each of its fiscal years, file with the Trustee and the  Issuer, audited financial statements of the Company prepared as of the end of such fiscal year;  provided that the Company may satisfy this requirement by its filing of such information with the  Securities and Exchange Commission (www.sec.gov) and the Municipal Securities Rulemaking                                          16    

 

     Board (emma.msrb.org) in accordance with their respective filing requirements.  Notwithstanding   the above provisions of this Section, the Company shall provide a written copy of the Company’s   most recent audited financial statements to the Issuer upon the written request of the Issuer.          Section 5.06.  Insurance.  The Company shall maintain, or cause to be maintained,   insurance covering the Project Facilities against such risks and in such amounts as is customarily   carried by similar industries as the Company, and which insurance may be, in whole or in part,   self-insurance.          Section 5.07.  Green Bonds Certificate.  The Company will annually, not later than 180   days after the close of the Company’s fiscal year commencing with the fiscal year ending  December 31, 2021, deliver a certificate to the Trustee that includes a description of the costs of  the Project Facilities funded with the Bonds and the amount of Bond proceeds so applied and   stating to the effect that no changes have been made to the Project Facilities that would reasonably   be expected to materially adversely affect the environmental benefits of the Project Facilities.    Such certificate also shall be posted in the same manner as information is posted for the obligations   of the Company under the Continuing Disclosure Agreement.  Once the Company has spent all of  the proceeds of the Bonds, it shall submit a final certificate to the Trustee (which shall be posted  in the same manner as information is posted for the obligations of the Company under the  Continuing Disclosure Agreement) that includes a statement that all of the proceeds of the Bonds  have been spent.  Thereafter, the Company will no longer be obligated to provide this certificate  to the Trustee.  The Trustee shall not have any obligation to review any such certificate provided  to the Trustee by the Company, nor shall the Trustee be deemed to have notice of any item  contained therein or default that may be disclosed therein in any manner.  The Trustee’s sole   responsibility with respect to such certificates shall be to act as the depository for such certificates   for Holders and to make such reports available for review by the Holders.  Notwithstanding any   other provision of this Agreement, failure of the Company to comply, or to cause compliance with,   the requirements of this Section, shall not be considered an Event of Default under Section 7.01   hereof.          Section 5.08.  Company to Furnish Notices and Opinions Relating to Changes in   Interest Rate Periods.  The Company is hereby granted the option to designate from time to time   changes in Interest Rate Periods in the manner and to the extent set forth in Section 2.04 of the   Indenture.  In the event the Company elects to exercise any such option, the Company agrees that   it shall cause notices of proposed changes in Interest Rate Periods to be given in accordance with   the provisions of Section 2.04 of the Indenture and to deliver any Opinions of Nationally   Recognized Bond Counsel required under the Indenture in connection therewith.                                     ARTICLE VI                                                        OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS          Section 6.01.  Options to Terminate Agreement.  The Company shall have, and is hereby   granted, an option to prepay the Installment Payments and terminate this Agreement, upon   satisfaction of the following conditions at any time prior to full payment of the Bonds (or provision   for payment thereof having been made in accordance with the provisions of the Indenture): (a) in   accordance with Article IX of the Indenture, by paying to the Trustee an amount which, when                                          17    

 

     added to the amount on deposit in the funds established under the Indenture and available therefor,   will be sufficient to pay, retire and, pursuant to the Indenture, redeem all the outstanding Bonds in   accordance with the provisions of the Indenture (including, without limiting the generality of the   foregoing, principal of and interest to maturity or the earliest applicable redemption date, as the   case may be, and expenses of redemption and the Trustee’s fees and expenses due hereunder or   under the Indenture), and, in case of redemption, making arrangements satisfactory to the Trustee   for the giving of the required notice of redemption, (b) by giving the Issuer notice in writing of  such termination and (c) by making full payment of Additional Payments due under Section 4.02;  thereafter such termination shall forthwith become effective.         Any prepayment pursuant to this Section 6.01 shall either comply with the provisions of  Article IX of the Indenture or result in redemption of the Bonds within 90 days of the date of  prepayment.  Nothing contained in this Section 6.01 shall prevent the payment of part of any of  the Bonds pursuant to Article IV or Section 9.02 of the Indenture.         Section 6.02.  Optional and Extraordinary Optional Redemption; Option to Prepay  Installment Payments under Indenture.  The Company has the option to redeem the Bonds, in  whole or in part, on the terms and conditions set forth in Section 4.02(a), (b) and (c) of the  Indenture by prepaying the Installment Payments due under Section 4.01(a).  The Company also  has the option to redeem the Bonds, in whole or in part, upon the occurrence of certain  extraordinary circumstances and on the terms and conditions described in Section 4.02(d) of the  Indenture by prepaying the Installment Payments due under Section 4.01(a).         Section 6.03.  Mandatory Prepayment of Installment Payments.  The Company shall  have and hereby accepts the obligation to prepay Installment Payments with respect to the Bonds  to the extent Extraordinary Mandatory Redemption of the Bonds is required pursuant to Section  4.02(e) of the Indenture.         Section 6.04.  Actions by Issuer.  At the request and direction of the Company or the  Trustee, the Issuer shall take all steps reasonably required of it under the applicable provisions of  the Indenture or the Bonds to effect the redemption of all or a portion of the Bonds pursuant to this  Article VI; provided that, in such event, the Company shall reimburse the Issuer for its reasonable  expenses, including attorneys’ fees, incurred in complying with such request.         Section 6.05.  Release of Indenture in Event of Prepayment of Installment Payments.   Upon the payment of all amounts due hereunder and under the Indenture pursuant to any option  or obligation to prepay the Installment Payments in full as provided in this Agreement, the Issuer  shall, upon receipt of the prepayment by the Trustee, deliver to the Company, if necessary, a release  from the Trustee of the lien of the Indenture.                                    ARTICLE VII                                                                EVENTS OF DEFAULT AND REMEDIES         Section 7.01.  Events of Default.  Each of the following shall be an Event of Default:               (a)   The Company shall fail to pay the amounts required to be paid under        Section 4.01 or 4.02 on each date specified therein;                                          18    

 

               (b)   Failure by the Company to observe and perform any covenant, condition or        agreement on its part to be observed or performed under this Agreement, other than as       referred to in Section 7.01(a), (other than certain representations, warranties and covenants       regarding various matters relating to the tax status of the interest on the Bonds) for a period       of 60 days after written notice specifying such failure and requesting that it be remedied       shall have been given to the Company by the Issuer or the Trustee, unless the Issuer and       the Trustee shall agree in writing to an extension of such time prior to its expiration;       provided, however, if the failure stated in the notice cannot be corrected within the       applicable period, it shall not constitute an Event of Default if corrective action is instituted       by the Company within the applicable period and is being diligently pursued until the       default is corrected;              (c)   The dissolution or liquidation of the Company or the voluntary initiation by       the Company of any proceeding under any federal or state law relating to bankruptcy,       insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor       relief, or the initiation against the Company of any such proceeding which shall remain       undismissed for 60 days, or failure by the Company to promptly have discharged any       execution, garnishment or attachment of such consequence as would materially impair the       ability of the Company to carry on its operations, or assignment by the Company for the       benefit of creditors, or the entry by the Company into an agreement of composition with       creditors or the failure generally by the Company to pay its debts as they become due; or              (d)   The occurrence of an Event of Default as defined in the Indenture.         Any declaration of default under subparagraph (c) and the exercise of remedies upon any  such declaration will be subject to any applicable limitations of federal bankruptcy law affecting  or precluding that declaration or exercise during the pendency of or immediately following any  bankruptcy, liquidation or reorganization proceedings.         Section 7.02.  Remedies on Default.  Whenever an Event of Default shall have happened  and be existing, any one or more of the following remedial steps may be taken:               (a)   if acceleration of the principal amount of the Bonds has been declared        pursuant to Section 7.03 of the Indenture, the Issuer or the Trustee shall declare all        Installment Payments to be immediately due and payable, whereupon the same shall        become immediately due and payable; or               (b)   the Issuer or the Trustee may pursue all remedies now or hereafter existing        at law or in equity to collect all amounts then due and thereafter to become due under this        Agreement or to enforce the performance and observance of any other obligation or        agreement of the Company under this Agreement or the Indenture.         Notwithstanding the foregoing, the Trustee shall not be obligated to take any step that in  its reasonable opinion will or might cause it to expend time or money or otherwise incur liability  unless and until satisfactory indemnity has been furnished to the Trustee at no cost or expense to  it.  Any amounts collected pursuant to action taken under this Section (except for amounts payable  directly to the Issuer or the Trustee or any Tender Agent or Remarketing Agent pursuant to                                         19   

 

     Section 3.06, 4.02, 5.02 or 7.04) shall be paid into the Bond Fund and applied in accordance with   the provisions of the Indenture or, if the Outstanding Bonds have been paid and discharged in   accordance with the provisions of the Indenture, shall be paid as provided in Section 9.01 of the   Indenture for transfers of remaining amounts in the Bond Fund.          The provisions of this Section are subject to the further limitation that the rescission by the   Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute   an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and   a waiver and rescission of the consequences of that declaration and of the Event of Default with  respect to which that declaration has been made, provided that no such waiver or rescission shall  extend to or affect any subsequent or other default or impair any right consequent thereon.         Section 7.03.  No Remedy Exclusive.  No remedy conferred upon or reserved to the Issuer  or the Trustee by this Agreement is intended to be exclusive of any other available remedy or  remedies, but each and every remedy shall be cumulative and shall be in addition to every other  remedy given under this Agreement, now or hereafter existing at law, in equity or by statute.  No  delay or omission to exercise any right or power accruing upon any default shall impair that right  or power or shall be construed to be a waiver thereof, but any such right and power may be  exercised from time to time and as often as may be deemed expedient.  In order to entitle the Issuer  or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give  any notice, other than any notice required by law or for which express provision is made herein.         Section 7.04.  Agreement to Pay Fees and Expenses.  If an Event of Default should occur  and the Issuer or the Trustee should incur expenses, including attorneys’ fees, in connection with  the enforcement of this Agreement or the collection of sums due hereunder, the Company shall  reimburse the Issuer and the Trustee, as applicable, for their reasonable and documented out-of- pocket expenses so incurred upon demand.         Section 7.05.  No Waiver.  No failure by the Issuer or the Trustee to insist upon the  performance by the Company of any provision hereof shall constitute a waiver of their right to  performance and no express waiver shall be deemed to apply to any other existing or subsequent  right to remedy the failure by the Company to observe or comply with any provision hereof.         Section 7.06.  Notice of Default.  The Company shall notify a Responsible Officer the  Trustee immediately and in writing if it becomes aware of the occurrence of any Event of Default  hereunder or of any fact, condition or event which, with the giving of notice or passage of time or  both, would become an Event of Default.                                    ARTICLE VIII                                                                          MISCELLANEOUS         Section 8.01.  Term of Agreement.  This Agreement shall be and remain in full force and  effect from the date of issuance of the Bonds until such time as all of the Bonds shall have been  fully paid (or provision made for such payment) pursuant to the Indenture and all other sums  payable by the Company under this Agreement shall have been paid, except for obligations of the                                           20    

 

     Company under Sections 3.06, 4.02, 5.02 and 7.04, which shall survive any termination of this  Agreement.         Notwithstanding any termination of this Agreement, any payment of any or all of the Bonds  or any discharge of the Indenture, if Bonds are redeemed pursuant to the mandatory redemption  upon determination of taxability, the Company shall pay all additional amounts required to be paid,  if any, under Section 4.02 of the Indenture at the time provided therein.         Section 8.02.  Amounts Remaining in Funds.  Any amounts in the Bond Fund remaining  unclaimed by the Holders of Bonds (whether at stated maturity, by redemption or otherwise), shall  be deemed to belong, and shall be paid, to the proper party pursuant to applicable escheat laws.   Further, any other amounts remaining in the Bond Fund, the Project Fund and any other special  fund or account created under this Agreement or the Indenture after all of the outstanding Bonds  shall be deemed to have been paid and discharged under the provisions of the Indenture and all  other amounts required to be paid under this Agreement and the Indenture have been paid, shall  be paid to the Company to the extent that those moneys are in excess of the amounts necessary to  effect the payment and discharge of the outstanding Bonds.         Section 8.03.  Notices.  All notices, certificates, requests or other communications  hereunder shall be in writing and shall be deemed to be sufficiently given at the applicable Notice  Address as provided in Section 13.03 of the Indenture.         Section 8.04.  Extent of Covenants of Issuer; No Personal Liability.  All covenants,  obligations and agreements of the Issuer contained in this Agreement or the Indenture shall be  effective to the extent authorized and permitted by applicable law.  No such covenant, obligation  or agreement shall be deemed to be a covenant, obligation or agreement of any present or future  member, trustee, officer, agent or employee of the Issuer in other than his or her official capacity,  and no official executing the Bonds shall be liable personally on the Bonds or be subject to any  personal liability or accountability by reason of the issuance thereof or by reason of the covenants,  obligations or agreements of the Issuer contained in this Agreement or in the Indenture.         Section 8.05.  Binding Effect.  This Agreement shall inure to the benefit of and shall be  binding in accordance with its terms upon the Issuer, the Company and their respective permitted  successors and assigns.         Section 8.06.  Amendments and Supplements.  Except as otherwise expressly provided  in this Agreement or the Indenture, subsequent to the issuance of the Bonds and prior to all  conditions provided for in the Indenture for release of the Indenture having been met, this  Agreement may not be effectively amended, changed, modified, altered or terminated except in  accordance with the provisions of Article XI of the Indenture, as applicable.         Section 8.07.  Execution Counterparts.  This Agreement may be executed in any number  of counterparts, each of which shall be regarded as an original and all of which shall constitute but  one and the same instrument.         Section 8.08.  Severability.  If any provision of this Agreement, or any covenant,  obligation or agreement contained herein is determined by a court to be invalid or unenforceable,  that determination shall not affect any other provision, covenant, obligation or agreement, each of                                          21    

 

   which shall be construed and enforced as if the invalid or unenforceable portion were not contained  herein.  That invalidity or unenforceability shall not affect any valid and enforceable application  thereof, and each such provision, covenant, obligation or agreement shall be deemed to be  effective, operative, made, entered into or taken in the manner and to the full extent permitted by  law.         Section 8.09.  Governing Law.  This Agreement shall be deemed to be a contract made  under the laws of the State and for all purposes shall be governed by and construed in accordance  with the laws of the State.         Section 8.10.  Further Assurances and Corrective Instruments.  The Issuer and the  Company agree that they will, from time to time, execute, acknowledge and deliver, or cause to  be executed, acknowledged and delivered, such supplements hereto and such further instruments  as may reasonably be required for the further assurance, correction or performance of the expressed  intention of this Agreement.         Section 8.11.  Issuer and Company Representatives.  Whenever under the provisions of  this Agreement the approval of the Issuer or the Company is required or the Issuer or the Company  is required to take some action at the request of the other, such approval or such request shall be  given for the Issuer by a Designated Officer and for the Company by an Authorized Company  Representative.  The Trustee and any Tender Agent and Remarketing Agent shall be authorized to  act on any such approval or request.         Section 8.12.  Immunity of Incorporators, Stockholders, Officers and Directors.  No  recourse under or upon any obligation, covenant or agreement contained in this Agreement or in  any agreement supplemental hereto, or in the Bonds, or because of any indebtedness evidenced  thereby, shall be had against any incorporator, or against any stockholder, member, officer or  director, as such, past, present or future, of the Company or of any predecessor or, subject to  Section 5.04, successor legal entity, either directly or through the Company or any predecessor or  successor legal entity, under any rule of law, statute or constitutional provision or by the  enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such  liability being expressly waived and released by the acceptance of the Bonds by the Holders thereof  and as part of the consideration for the issuance of the Bonds.         Section 8.13.  Section Headings.  The table of contents and headings of the various  articles and sections of this Agreement are for convenience of reference only and shall not modify,  define or limit any of the terms or provisions hereof.  References to article and section numbers  are references to articles and sections in this Agreement unless otherwise indicated.         Section 8.14.  Concerning the Trustee.  The rights, privileges, protections, indemnities  and immunities of the Trustee under the Indenture are hereby incorporated herein as if set forth  herein in full and shall be extended to, and shall be enforceable by, the Trustee hereunder.                       [Remainder of Page Intentionally Left Blank.]                                          22   

 

           IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to be  duly executed in their respective names, all as of the date hereinbefore written.                                           THE INDUSTRIAL DEVELOPMENT                                         BOARD OF THE CITY OF HOOVER                                         (ALABAMA)                                           By:/s/ Brian Ethridge                                                Brian Ethridge                                                Chairman of the Board of Directors   [SEAL]    ATTEST:     /s/ Foster Ware                                   Foster Ware               Secretary                                            UNITED STATES STEEL CORPORATION                                             By:/s/ Arne Jahn                                                Arne S. Jahn                                                Vice President - Treasurer & Chief Risk                                               Officer                                                                         [Signature Page to Agreement of Sale] 

 

                                    EXHIBIT A                               PROJECT FACILITIES         The Project Facilities consist of certain solid waste disposal facilities financed or  refinanced with the proceeds of $63,400,000 Environmental Improvement Revenue Bonds,  Series 2020 (United States Steel Corporation Project) issued by The Industrial Development Board  of the City of Hoover (the “Issuer”), including an electric arc furnace and other equipment and  facilities, located and to be located at the Fairfield Works Mill of United States Steel Corporation  (the “Company”) at 5700 Valley Road in unincorporated Jefferson County, Alabama within 25  miles of the corporate limits of the City of Hoover, Alabama, all as more fully described in the  Tax Regulatory Agreement, dated as of the date of delivery of the Bonds, between the Issuer and  the Company.                                                  A-1   

 

                                       EXHIBIT B                           FORM OF DISBURSEMENT REQUEST            Statement No. ____ Requesting Disbursement of Funds from Project Fund       pursuant to Section 3.03 of Agreement of Sale between The Industrial Development               Board of the City of Hoover and United States Steel Corporation         Pursuant to Section 3.03 of the Agreement of Sale, dated as of November 1, 2020 (the  “Agreement”), between The Industrial Development Board of the City of Hoover (the “Issuer”)  and United States Steel Corporation (the “Company”), the undersigned Authorized Company  Representative hereby requests and authorizes The Bank of New York Mellon Trust  Company, N.A., as trustee (the “Trustee”) under the Trust Indenture, dated as of November 1,  2020 (the “Indenture”), by and between the Issuer and the Trustee, to pay to the Company or to  the person(s) listed on the Disbursement Schedule, if any, attached hereto out of the moneys  deposited in the Project Fund (as established pursuant to the Indenture) the aggregate sum of  $_____________, to reimburse the Company in full, or to pay such person(s) as indicated in any  Disbursement Schedule, for the advances, payments and expenditures made by it in connection  with the acquisition, construction, equipping and installation of the Project Facilities.  Capitalized  terms used but not defined herein shall have the meanings set forth in the Agreement.         In connection with the foregoing request and authorization, the undersigned hereby  certifies that:               (a)   Each item for which disbursement is requested hereunder is properly        payable out of the Project Fund in accordance with the terms and conditions of the        Agreement and none of those items has formed the basis for any disbursement heretofore        made from the Project Fund;               (b)   This statement and all exhibits hereto, including the Disbursement        Schedule, shall be conclusive evidence of the facts and statements set forth herein and shall        constitute full warrant, protection and authority to the Trustee for its actions taken pursuant        hereto; and               (c)   This statement constitutes the approval of the Company of each        disbursement hereby requested and authorized.         This _________ day of ________________, 20__.                                                                                                                               Authorized Company Representative                                                                       B-1    

 

                                   Disbursement Schedule                                              Payee                    Amount                    Purpose                                                                                                                                                                                                                                                                                                                                                                                     B-2                 

 

                                       EXHIBIT C                         FORM OF COMPLETION CERTIFICATE         Pursuant to Section 3.02 of the Agreement of Sale, dated as of November 1, 2020 (the  “Agreement”), between The Industrial Development Board of the City of Hoover (Alabama) (the  “Issuer”) and United States Steel Corporation (the “Company”), the undersigned hereby certifies  to the Trustee (all capitalized terms used and not otherwise defined herein having the meaning set  forth in the Agreement) the following:         (a)   the acquisition, construction, equipping and installation of the Project Facilities was              substantially completed on or about ____________, 20__;         (b)   all other facilities necessary in connection with the Project Facilities have been              acquired, constructed, equipped and installed;         (c)   the total amount disbursed as of the date hereof from the Project Fund for the              purposes described in Section 3.03 of the Agreement is $_______________;         (d)   $________________ shall be retained in the Project Fund for the payment of costs              of the Project Facilities not yet due or for liabilities which the Company is              contesting or which otherwise should be retained, because              __________________________________________________________________              [explain the reasons such amounts are being contested or should be retained]; and         (e)   other than the amount referred to in (d) above, the remaining balance in the Project              Fund of $________________ shall be transferred or disbursed     to              ______________________________________________________________ for              __________________________________________________________________             __________________________________________________________________             [explain the reasons such amounts are being transferred or disbursed and provide              the Trustee with an Opinion of Nationally Recognized Bond Counsel to the effect              that such transfer or disbursement will not cause the interest on the Bonds to be              included in the gross income of the Holders thereof for federal income tax purposes              in accordance with Section 5.01(f) of the Indenture].         This _________ day of ________________, 20__.                                                                                                                               Authorized Company Representative                                           C-1ex10p2ifabond201124

                                                                                                                                                                                                                   LOAN AGREEMENT                        between            INDIANA FINANCE AUTHORITY,                       as Issuer                          and        UNITED STATES STEEL CORPORATION                                                   $33,300,000               Indiana Finance Authority       Environmental Improvement Revenue Bonds,   Series 2020A (United States Steel Corporation Project)                          And                Indiana Finance Authority   Environmental Improvement Revenue Refunding Bonds,    Series 2020B (United States Steel Corporation Project)                                                                     Dated as of November 1, 2020                                           

 

                            TABLE OF CONTENTS                                                                             Page    ARTICLE I DEFINITIONS ........................................................................................................... 2    Section 1.01. Use of Defined Terms ......................................................................................... 2    Section 1.02. Definitions .......................................................................................................... 2    Section 1.03. Interpretation ....................................................................................................... 5    Section 1.04. Captions and Headings ....................................................................................... 5  ARTICLE II REPRESENTATIONS .............................................................................................. 6    Section 2.01. Representations and Covenants of Issuer ........................................................... 6    Section 2.02. Representations and Covenants of Company ..................................................... 6  ARTICLE III COMPLETION OF PROJECT FACILITIES; ISSUANCE OF BONDS ............... 7    Section 3.01. Completion of Project Facilities ......................................................................... 7    Section 3.02. Issuance of Bonds; Application of Proceeds ...................................................... 8    Section 3.03. Company Required to Provide Additional Moneys in Event Moneys                Insufficient to Redeem Refunded Bonds ............................................................ 9    Section 3.04. Investment of Fund Moneys ............................................................................... 9    Section 3.05. Issuer’s Fees ...................................................................................................... 10  ARTICLE IV LOAN BY ISSUER; REPAYMENT OF INSTALLMENT PAYMENTS AND  ADDITIONAL PAYMENTS ....................................................................................................... 10    Section 4.01. Loan of Proceeds; Installment Payments .......................................................... 10    Section 4.02. Additional Payments ......................................................................................... 11    Section 4.03. Deposit of Moneys in Bond Fund; Moneys for Purchase and                Redemption ....................................................................................................... 11    Section 4.04. Obligations Unconditional ................................................................................ 11    Section 4.05. Assignment by Company .................................................................................. 12    Section 4.06. Assignment by Issuer ........................................................................................ 12  ARTICLE V ADDITIONAL AGREEMENTS AND COVENANTS ......................................... 12    Section 5.01. Lease, Sale or Grant of Use by Company ......................................................... 12    Section 5.02. Indemnification of Issuer and Trustee .............................................................. 13    Section 5.03. Company Not to Adversely Affect Exclusion from Gross Income of                Interest on Bonds .............................................................................................. 14    Section 5.04. Company to Maintain its Existence; Mergers or Consolidations ..................... 14    Section 5.05. Reports and Audits ............................................................................................ 15    Section 5.06. Insurance ........................................................................................................... 15    Section 5.07. Company to Furnish Notices and Opinions Relating to Changes in                Interest Rate Periods ......................................................................................... 16  ARTICLE VI OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS ........................ 16    Section 6.01. Options to Terminate Agreement ..................................................................... 16    Section 6.02. Option to Prepay Installment Payments upon Extraordinary Optional                Redemption under Indenture ............................................................................ 16    Section 6.03. Mandatory Prepayment of Installment Payments ............................................. 16    Section 6.04. Actions by Issuer .............................................................................................. 17                                         i   

 

  Section 6.05. Release of Indenture in Event of Prepayment of Installment Payments ........... 17  ARTICLE VII EVENTS OF DEFAULT AND REMEDIES ....................................................... 17    Section 7.01. Events of Default .............................................................................................. 17    Section 7.02. Remedies on Default ......................................................................................... 18    Section 7.03. No Remedy Exclusive ...................................................................................... 18    Section 7.04. Agreement to Pay Fees and Expenses .............................................................. 18    Section 7.05. No Waiver ......................................................................................................... 19    Section 7.06. Notice of Default .............................................................................................. 19  ARTICLE VIII DISCLOSURES .................................................................................................. 19    Section 8.01. [Reserved]. ........................................................................................................ 19  ARTICLE IX MISCELLANEOUS .............................................................................................. 19    Section 9.01. Term of Agreement ........................................................................................... 19    Section 9.02. Amounts Remaining in Funds .......................................................................... 19    Section 9.03. Notices .............................................................................................................. 20    Section 9.04. Extent of Covenants of Issuer; No Personal Liability ...................................... 20    Section 9.05. Binding Effect ................................................................................................... 20    Section 9.06. Amendments and Supplements ......................................................................... 20    Section 9.07. Execution Counterparts ..................................................................................... 20    Section 9.08. Severability ....................................................................................................... 20    Section 9.09. Governing Law ................................................................................................. 20    Section 9.10. Further Assurances and Corrective Instruments ............................................... 20    Section 9.11. Issuer and Company Representatives ............................................................... 20    Section 9.12. Immunity of Incorporators, Stockholders, Officers and Directors ................... 21    Section 9.13. Section Headings .............................................................................................. 21    Section 9.14. Concerning the Trustee ..................................................................................... 21    Section 9.15. Limitation of Liability of the Issuer .................................................................. 21    Section 9.16. Disclosures ........................................................................................................ 23    Section 9.17. Purchase of Bonds ............................................................................................ 24      EXHIBIT A     PROJECT FACILITIES  EXHIBIT B     FORM OF DISBURSEMENT REQUEST  EXHIBIT C     FORM OF COMPLETION CERTIFICATE                                                    ii   

 

                             LOAN AGREEMENT         THIS LOAN AGREEMENT (this “Agreement”) made and entered into as of November 1,  2020, by and between the INDIANA FINANCE AUTHORITY (the “Issuer”), a body politic and  corporate, not a state agency but an independent instrumentality exercising essential public  functions, duly organized and validly existing under the laws of the State of Indiana (the “State”),  duly organized and validly existing under and by virtue of the Indiana Code Title 5, Article 1.2, as  amended (the “Act”), and UNITED STATES STEEL CORPORATION, a corporation duly  organized and existing under and pursuant to the laws of the State of Delaware, and duly qualified  to own property and transact business in the State (the “Company”), under the circumstances  summarized in the following recitals (capitalized terms used and not defined in the recitals being  used as defined in Article I):         WHEREAS, by virtue of the Act and pursuant to its corporate authorization, the Issuer is  authorized to enter into this Agreement and to do or cause to be done all the acts and things herein  or in the Indenture (as hereinafter defined) provided or required to be done by it, to issue the Bonds,  as defined herein, and to loan the proceeds of such Bonds to the Company for the purpose of (i)  financing a portion of the costs of acquiring, engineering, constructing, installing and equipping  certain solid waste disposal facilities at chemical and steel producing plants at the Company’s Gary  Complex located in the City of Gary, Indiana, including but not limited to a landfill, dust catcher  and integral components of these facilities (collectively, the “2020 Project”), and (ii) refunding the  remaining outstanding principal amount of the Issuer’s $88,810,000 Environmental Improvement  Revenue Refunding Bonds, Series 2010 (United States Steel Corporation Project) (the “Refunded  Bonds”), which Refunded Bonds were issued for the purpose of refunding two prior issues of the  Issuer’s bonds (the “Prior Bonds”), the proceeds of which were used to finance or refinance certain  pollution control facilities at the Company’s Gary Complex, which facilities are generally described  in Exhibit A to the Agreement (collectively, the “Refunding”); and         WHEREAS, the Issuer has determined to issue and sell, in the aggregate principal amount  of (i) $33,300,000 its Environmental Improvement Revenue Bonds, Series 2020A (United States  Steel Corporation Project) (the “Series 2020A Bonds”), and (ii) its Environmental Improvement  Revenue Bonds, Series 2020B (United States Steel Corporation Project) (the “Series 2020B Bonds,  and together with the Series 2020A Bonds, the “Bonds”), each pursuant to the terms of a Trust  Indenture (the “Indenture”) dated as of November 1, 2020, from the Issuer to The Bank of New  York Mellon Trust Company, N.A., as trustee (the “Trustee”), for the purposes heretofore described  and to enter into this Agreement and secure the Bonds by the pledge and assignment of Installment  Payments to be made by the Company hereunder; and         WHEREAS, the Company has also agreed under this Agreement to pay, or cause to be paid,  when due certain expenses and other costs incurred by the Issuer and the Trustee in connection  with this Agreement, the Indenture and the issuance of the Bonds; and         WHEREAS, the Bonds are special and limited obligations of the Issuer and the Issuer is  obligated to pay the principal of the Bonds and the interest accruing thereon only from the Pledged  Receipts (consisting primarily of the Installment Payments), as defined in the Indenture, as  authorized in the Act and neither the principal of the Bonds, nor the interest accruing thereon, shall  ever constitute a general indebtedness of the Issuer or an indebtedness of the State or any political    

 

subdivision or instrumentality thereof, within the meaning of any constitutional or statutory  provision whatsoever, or shall ever constitute or give rise to a pecuniary liability of the State or any  political subdivision or instrumentality thereof, nor will the Bonds be, or be deemed to be, an  obligation of the State or any political subdivision or instrumentality thereof; and         WHEREAS, all acts and conditions required to happen, exist and be performed precedent  to and in the issuance of the Bonds have happened, do exist and have been performed, or at the  delivery of the Bonds will exist, will have happened and will have been performed, (a) to make the  Bonds, when issued, delivered and authenticated, valid special and limited obligations of the Issuer  in accordance with the terms thereof, and (b) to make this Agreement a valid and binding agreement  of the parties hereto in accordance with its terms.         NOW, THEREFORE, for and in consideration of the premises, the respective  representations and agreements contained herein, and other good and valuable consideration, the  receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto, recognizing  that under the Act this Agreement shall not in any way obligate the State or any agency or political  subdivision thereof, including, without limitation, the Issuer, to raise any money by taxation (the  Issuer has no taxing power) or use other public moneys for any purpose in relation to the Project  Facilities and that neither the State nor any agency or political subdivision thereof, including,  without limitation, the Issuer, shall pay or promise to pay any debt or meet any financial obligation  to any Person at any time in relation to the Project Facilities, except from moneys received or to be  received under the provisions of this Agreement or derived from the exercise of the rights of the  Issuer hereunder, agree as follows:                                     ARTICLE I                                                                           DEFINITIONS         Section 1.01. Use of Defined Terms. In addition to the words and terms defined elsewhere  in this Agreement, or by reference to another document, the words and terms set forth in Section  1.02 shall have the meanings set forth therein unless the content or use clearly indicates another  meaning or intent. In addition, all capitalized terms used herein and not otherwise defined shall  have the meanings set forth in the Indenture.         Section 1.02. Definitions. The following terms shall have the following meanings:         “Additional Payments” means payments due hereunder as described in Section 4.02 in  addition to the Installment Payments.         “Agreement” means this Loan Agreement as amended or supplemented from time to time.         “Bonds” has the meaning set forth in the recitals to this Agreement.         “Code” means the Internal Revenue Code of 1986, as amended, the regulations (whether  proposed, temporary or final) under that Code or the statutory predecessor of that Code, and any  amendments of, or successor provisions to, the foregoing and any official rulings, announcements,  notices, procedures and judicial determinations regarding any of the foregoing, all as and to the  extent applicable. Unless otherwise indicated, reference to a Section of the Code means that Section                                         2   

 

 of the Code, including such applicable regulations, rulings, announcements, notices, procedures   and determinations pertinent to that Section of the Code.          “Company Purchase Date” means, with respect to the related Bonds, any date on which the   Company purchases such Bonds in lieu of optional redemption under Section 4.07 of the Indenture.          “Completion Certificate” means a certificate in substantially the form attached hereto as   Exhibit C.          “Continuing Disclosure Agreement” means the Continuing Disclosure Agreement, dated   the Date of Issuance, executed by the Company, as originally executed or as it may from time to   time be supplemented or amended.          “Conversion Date” means each Business Day, other than a Mandatory Purchase Date, on   which Bonds are subject to optional redemption under Section 2.03(f), (g) or (h) of Exhibit B of   the Indenture and are converted at the option of the Company in accordance with Section 2.03 (1)  of Exhibit B of the Indenture from the Term Interest Rate Period then in effect for such Bonds to a   Fixed Interest Rate Period or vice versa, (2) from a Term Interest Rate Period then in effect for   such Bonds to another Term Interest Rate Period or (3) from a Fixed Interest Rate Period then in   effect for such Bonds to another Fixed Interest Rate Period and on which such Bonds are required   to be tendered for purchase in accordance with Section 3.01 of Exhibit B of the Indenture.          “Event of Default” means any of the events described as an Event of Default in Section   7.01.          “Indenture” has the meaning set forth in the recitals to this Agreement.          “Installment Payments” means the amounts required to be paid by the Company to the   Trustee on behalf of the Issuer as described in, and pursuant to, Section 4.01(a) on each date on  which payment of principal or redemption price of or interest on the Bonds is due, as installments  for the purchase price of the Project Facilities, sufficient to enable the Trustee to make such  payment in full.         “Issuer” has the meaning set forth in the first paragraph of this Agreement.         “Loan” means the loan of the Bond proceeds from the Issuer to the Company as provided  in Section 4.01.         “1954 Code” means the Internal Revenue Code of 1954, as amended, the regulations  (whether proposed, temporary or final) under the Code, and any amendments of, or successor   provisions to, the foregoing and any official rulings, announcements, notices, procedures and   judicial determinations regarding any of the foregoing, all as and to the extent applicable.  Unless   otherwise indicated, references to a Section of the 1954 Code means that Section of the 1954 Code,   including such applicable regulations, rulings, announcements, notices, procedures and   determinations pertinent to that Section of the 1954 Code.                                                     3    

 

       “Notice Address” means:               (a)   As to the Issuer:                     Indiana Finance Authority                    One North Capital Avenue, Suite 900                    Indianapolis, IN 46204                    Attention: Public Finance Director of the State of Indiana                    Facsimile No.: (317) 232-6786                (b)   As to the Company:                     United States Steel Corporation                     600 Grant Street, 61st Floor                     Pittsburgh, PA 15219-2800                    Attention: Vice President - Treasurer & Chief Risk Officer                    Facsimile No.: (412)433-1167                                 With a copy to the Company at:                                      United States Steel Corporation                    600 Grant Street, 19th Floor                     Pittsburgh, PA 15219-2800                     Attention: Manager - Corporate Finance                     Facsimile No.: (412) 433-4567                                  (c)   As to the Trustee:                     The Bank of New York Mellon Trust Company, N.A.                    500 Ross Street, 12th Floor                     Pittsburgh, PA 15259                     Attention: Corporate Trust Administration                     Facsimile No.: (412) 236-0870                      or such additional or different address, notice of which is given under Section 10.03.         “Person” or words importing persons mean any individual, corporation, partnership, joint  venture, limited liability company, association, joint-stock company, trust, unincorporated  organization or government or any agency or political subdivision thereof.         “Project” means the acquisition, construction, installation and equipping of a portion of the  Project Facilities.          “Project Facilities” means, generally, the pollution control facilities financed in part from  the proceeds of earlier issues of the Issuer’s bonds that were refunded from the proceeds of the  Refunded Bonds and in part from the proceeds of the Series 2020A Bonds, as such Project Facilities  are listed and described in Exhibit A hereto, and may also be limited, when appropriate in the  context, to those specific capital assets and equipment remaining in the ownership of the Company                                         4   

 

 and in the physical state, condition and manner of operation existing on the date of issuance of a   relevant series of Bonds.         “Purchase Price” means (a) with respect to Bonds to be purchased on a Company Purchase  Date pursuant to Section 4.07 of the Indenture or a Conversion Date pursuant to Section 3.01 of  Exhibit B of the Indenture, an amount equal to the redemption price at which such Bonds would   have been redeemed under the Indenture if such Bonds were redeemed rather than purchased on   such Company Purchase Date or Conversion Date, and (b) with respect to Bonds to be purchased   on a Mandatory Purchase Date pursuant to Section 3.01 of Exhibit B of the Indenture, an amount   equal to the principal amount of the Bonds to be purchased on such Mandatory Purchase Date.    Because each Company Purchase Date, Conversion Date and Mandatory Purchase Date is an   Interest Payment Date, any accrued interest due on Bonds on such dates will be paid as interest due   on such Bonds on such dates and not as part of the Purchase Price.          “Refunded Bonds Indenture” means the Trust Indenture dated as of May 1, 2010, as   supplemented and amended to the date hereof, between the Issuer and the Refunded Bonds Trustee   pursuant to which the Refunded Bonds were issued.          “Refunded Bonds Trustee” means The Bank of New York Mellon Trust Company, N.A.,   in its capacity as trustee for the Refunded Bonds.          “Tax Regulatory Agreement” means the Tax Regulatory Agreement and No Arbitrage   Certificate in respect of the Bonds and dated as of the date of delivery of the Bonds, and any   permitted amendments or supplements thereto.           Section 1.03. Interpretation. Unless the context clearly indicates otherwise, the terms   defined in this Article I (and elsewhere in this Agreement) and in the Indenture shall, for all   purposes of this Agreement and all agreements supplemental hereto, have the meanings hereby   ascribed to them. Such terms, together with all other provisions of this Agreement, shall be read   and understood in a manner consistent with the provisions of the Act. Words or phrases importing   the masculine gender shall be read and understood to include the feminine and neuter genders and   those importing number shall include singular or plural, both as appropriate to the context.          Any reference herein to the Issuer, to its board or to any designated officer, includes entities   or officials succeeding to their respective functions, duties or responsibilities pursuant to or by   operation of law or lawfully performing their functions.         Any reference to a section, provision or chapter of the laws of the State or to any statute of   the United States of America includes that section, provision or chapter or statute as amended,   modified, revised, supplemented or superseded from time to time; provided, that no such   amendment, modification or similar change shall apply solely by reason of this provision, if it   constitutes in any way an impairment of the rights or obligations of the Issuer, the Holders, the   Trustee or the Company under this Agreement.          Section 1.04. Captions and Headings. The captions and headings in this Agreement are   solely for convenience of reference and in no way define, limit or describe the scope or intent of   any Articles, Sections, subsections, paragraphs, subparagraphs or clauses hereof.                                           5    

 

                                 ARTICLE II                                                                        REPRESENTATIONS         Section 2.01. Representations and Covenants of Issuer. The Issuer represents that (a) it  is duly organized and validly existing under the Constitution and laws of the State, including the  Act; (b) it has duly accomplished all conditions necessary to be accomplished by it prior to the  issuance and delivery of the Bonds and the execution and delivery of this Agreement, the Indenture,  the Tax Regulatory Agreement and the Bond Purchase Agreement; (c) it is not in violation of or in  conflict with any provisions of the laws of the State which would impair its ability to carry out its  obligations contained in this Agreement, the Indenture, the Tax Regulatory Agreement or the Bond  Purchase Agreement; (d) it is empowered to enter into the transactions contemplated by this  Agreement, the Indenture, the Tax Regulatory Agreement and the Bond Purchase Agreement; (e)  it has duly authorized the execution, delivery and performance of this Agreement, the Indenture,  the Tax Regulatory Agreement and the Bond Purchase Agreement; (f) to the best of its knowledge  and belief, based solely upon the application submitted by the Company and upon other  representations made, information presented and testimony given by the Company, the Bonds will  further the public purposes of the Act and of the Issuer; and (g) it will do all things in its power in  order to maintain its existence or assure the assumption of its obligations under this Agreement, the  Indenture, the Tax Regulatory Agreement and the Bond Purchase Agreement by any successor  public body.         Section 2.02. Representations and Covenants of Company. The Company represents  and covenants that:               (a)   It is a corporation duly organized and existing under and pursuant to the laws        of the State of Delaware. The Company is qualified to do business in the State.               (b)   It has full power and authority to execute, deliver and perform its obligations        under this Agreement, the Tax Regulatory Agreement, the Continuing Disclosure        Agreement[, the Remarketing Agreement] and the Bond Purchase Agreement and to enter        into and carry out the transactions contemplated by those documents; such execution,        delivery and performance does not, and will not, violate any provision of law applicable to        the Company or the Company’s articles of incorporation, code of regulations, bylaws or        other corporate charter or similar instrument each as may be amended, and does not, and        will not, conflict with or result in a default under any agreement or instrument to which the        Company is a party or by which it is bound; this Agreement, the Tax Regulatory Agreement        and the Bond Purchase Agreement have, by proper action, been duly authorized, executed        and delivered by the Company and all steps necessary have been taken to constitute this        Agreement, the Tax Regulatory Agreement and the Bond Purchase Agreement legal, valid        and binding obligations of the Company.               (c)   Each of the Project Facilities was, at the time originally placed in service, or        will be, at the time it is placed in service, a “pollution control facility” used in whole or in        part to control, reduce, abate or prevent, air, noise, water or general environmental pollution,        and was designed to meet applicable federal, state and local requirements for the control of        air or water pollution in effect at or about the time the respective series of the Issuer’s bonds                                         6   

 

       used to finance the Project Facilities were issued. The Project Facilities were constructed         for no significant purpose other than the control of air or water pollution, and not principally         designed to result in any increase in production or capacity, or in a material extension of         the useful life of a manufacturing or production facility or a part thereof that is owned,         operated or used by the Company.                (d)   At the time of issuance of the earlier issues of the Issuer’s bonds used to         finance the Project Facilities, at the time of issuance of the Refunded Bonds and at all times         subsequent thereto, the Company has complied with all applicable requirements of the 1954         Code and the Code necessary to ensure the continuing tax-exempt status of such earlier        issues and of the Refunded Bonds.               (e)   At the time of issuance of the Bonds and at all times subsequent thereto, the        Company has complied with and will comply with all applicable requirements of the Code        necessary to ensure that the interest on the Bonds is and will remain excludable from gross        income for federal income tax purposes.                (f)   All of the proceeds of the Series 2020B Bonds will be used exclusively to        retire the Refunded Bonds within 90 days of the date of issuance of the Series 2020B Bonds.        None of the proceeds of the Series 2020B Bonds will be used to provide working capital or         pay costs of issuance of the Bonds.                (g)   Each one and all of the representations and warranties of the Company         contained in the Tax Regulatory Agreement, as executed and delivered simultaneously with         this Agreement, are true and correct.                (h)   The Company will comply with the applicable requirements of Rule 15c2-        12 as promulgated by the Securities and Exchange Commission and recognizes that the         Issuer is not an “obligated person” within the meaning of said Rule.                                     ARTICLE III                                                     COMPLETION OF PROJECT FACILITIES; ISSUANCE OF BONDS          Section 3.01. Completion of Project Facilities. The Company represents that the  acquisition and/or construction of the Project Facilities financed with the earlier issues of the  Issuer’s bonds have been completed and that the proceeds derived from the sale of the earlier issues  of the Issuer’s bonds used to finance or refinance the Project Facilities and the refunding of the  Prior Bonds, including any investment thereof, were expended in accordance with the provisions  of all bond authorization, security and tax regulatory agreements executed in respect of all such  bonds and the Refunded Bonds and in respect of the installation, operation or use of the Project  Facilities and the refunding of the Prior Bonds.  The Company represents that the Project Facilities  financed with proceeds of the Series 2020A Bonds will be completed and that the proceeds of the  Series 2020A Bonds, including any investment thereof, will be expended in accordance with the  provisions of all bond authorizations, security and tax regulatory agreements and certificates  executed in respect of the Bonds and in respect of the installation, operation and use of the Project  Facilities. Upon completion of the Project Facilities financed with the Series 2020A Bonds, the  Company shall deliver to the Trustee a Completion Certificate.                                          7    

 

       Section 3.02. Issuance of Bonds; Application of Proceeds. (a) To provide funds to make   the Loan for the purpose of financing the Project, upon satisfaction of the conditions set forth herein   and in the Bond Resolution, the Issuer will issue, sell and deliver the Series 2020A Bonds.  To   provide funds for the purpose of refunding the Refunded Bonds, the Issuer will issue, sell and   deliver the Series 2020B Bonds. The Bonds will be issued in accordance with and pursuant to the  Indenture in the aggregate principal amount, will bear interest at the rate or rates, will mature and  will be subject to redemption as set forth therein. The Company hereby approves the terms and  conditions of the Indenture, and the Bonds, and the terms and conditions under which the Bonds  will be issued, sold and delivered.         (b)   The proceeds from the sale of the Bonds shall be loaned to the Company and paid  to the Trustee and deposited as follows (a) a sum equal to accrued interest, if any, shall be deposited  in the Bond Fund (b) the balance shall be deposited in the accounts of the Project Fund as set forth  in the Indenture.               (i)   Each disbursement request from the Series 2020A Project Account of the  Indenture shall be on the form attached hereto as Exhibit B, executed by an Authorized Company   Representative. Subject to the provisions below, disbursements from the Series 2020A Project   Account shall be made only to reimburse or pay the Company, or any person designated by the   Company, for the following:                   i. Costs incurred directly or indirectly for or in connection with the acquisition,                     construction, installation or equipment of the related Project Facilities,                     including costs incurred in respect of the Project for preliminary planning                     and studies; architectural, legal, engineering, surveying, accounting,                     consulting, supervisory and other services; labor, services and materials; and                     recording of documents and title work;                  ii. Subject to the limitations set forth in the Act, financial, legal, accounting,                     printing and engraving fees, charges and expenses, and all other such fees,                     charges and expenses incurred in connection with the authorization, sale,                     issuance and delivery of the Bonds; or                  iii. Payment of interest and carrying charges with regard to the Series 2020A                     Bonds incurred before the related Project Facilities were placed in service.                   iv. Any other costs, expenses, fees and charges properly chargeable to the cost                     of the acquisition, construction, installation or equipping of the Project                     Facilities and that comply with the Company’s representations and                     warranties in Section 2.02 of this Agreement.                (ii)  Disbursements of moneys in the Series 2020B Clearing Account shall be   made by the Trustee in order to defease and/or redeem the Refunded Bonds, pursuant to written   instructions delivered by the Company to the Trustee and to the Refunded Bonds Trustee; provided,   in all events, all moneys in the Clearing Fund shall be fully disbursed for the redemption of the   Refunded Bonds on or before 90 days following the date of issuance of the Bonds. Upon the deposit   with the Refunded Bonds Trustee of adequate funds, or Government Obligations (as defined in the   Refunded Bonds Indenture) which would produce adequate funds, for the payment of all Bond                                          8    

 

 Service Charges (as defined in the Refunded Bonds Indenture) due on the Refunded Bonds on the   date of their redemption and provided the other provisions of Article IX of the Refunded Bonds   Indenture have been met, the Company shall be permitted to seek a release of the lien of any and   all documents providing for the payment of the Refunded Bonds, including particularly the   Refunded Bonds Indenture and the related Loan Agreement, and may seek repayment of any   unrequired funds on deposit in the Series 2020B Clearing Account, pursuant to Section 5.07 of the   Indenture.          Section 3.03. Company Required to Provide Additional Moneys in Event Moneys   Insufficient to Redeem Refunded Bonds. If moneys disbursed from the Series 2020B Clearing   Account to the Refunded Bonds Trustee are not sufficient to defease or redeem the Refunded   Bonds, the Company shall, nonetheless, not later than the date fixed for redemption of the Refunded   Bonds, pay to the Refunded Bonds Trustee, in immediately available funds, any such additional   moneys as shall be needed, including, without limitation, amounts for interest accrued to that date,   from its own funds to defease or redeem the Refunded Bonds. The Company shall not be entitled   to any reimbursement therefor from the Issuer, the Trustee or any Holder; nor shall it be entitled to   any abatement, diminution or postponement of the Installment Payments as a consequence of such   payment. The Company acknowledges and agrees that there is no implied or express warranty by   the Issuer that the proceeds of the Bonds will be sufficient to redeem the Refunded Bonds.          Section 3.04. Investment of Fund Moneys. At the written direction of the Authorized  Company Representative, any moneys held as part of the Bond Fund, the Rebate Fund and the  Clearing Fund shall be invested or reinvested by the Trustee in Eligible Investments; provided that,  if the Refunded Bonds are to be defeased in accordance with the provisions of Section 9.02 of the  Refunded Bonds Indenture, any moneys in the Clearing Fund shall be invested in Eligible  Investments constituting Government Obligations as provided in Section 9.02 of the Refunded  Bonds Indenture. Each of the Issuer and the Company hereby covenants that it will restrict any  investment and reinvestment and the use of the proceeds of the Bonds in such manner and to such  extent, if any, as may be necessary so that the Bonds will not constitute arbitrage bonds under  Section 148 of the Code.         The Company shall provide the Issuer with a certificate of an appropriate officer, employee  or agent of or consultant to the Company for inclusion in the transcript of proceedings for the  Bonds, setting forth the reasonable expectations of the Company on the date of delivery of and  payment for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts,  estimates and circumstances on which those expectations are based.         The Company agrees that at no time shall any funds constituting gross proceeds of the  Bonds be used in any manner to cause or result in a prohibited payment under applicable regulations  pertaining to, or in any other fashion as would constitute failure of compliance with, Section 148  of the Code.         If there is any amount required to be paid to the United States pursuant to Section 148(f) of  the Code or Section 5.03 of the Indenture, the Company shall pay such amount to the Trustee for  deposit to the Rebate Fund created under Section 5.03 of the Indenture, who will, acting on behalf  of the Company, submit the payment to the United States.                                           9    

 

       Section 3.05. Issuer’s Fees. The Company will pay the Issuer’s closing fee in the amount  of $40,000 and the legal fee in the amount of $15,000 on the date of issuance of the Series 2020A  Bonds, and the Company will pay the Issuer’s closing fee and legal fee with respect to the Series  2020B Bonds on the date of issuance of such Series 2020B Bonds. The Company will also pay any  other administrative expenses incurred in connection with the financing of the Project, and any  such additional fees and expenses (including reasonable attorney’s fees) incurred by the Issuer or  the Trustee in connection with inquiring into, or enforcing, the performance of the Company’s  obligations hereunder, within 30 days of receipt of a statement from the Issuer requesting payment  of such amount.                                     ARTICLE IV                                                           LOAN BY ISSUER; REPAYMENT OF INSTALLMENT                     PAYMENTS AND ADDITIONAL PAYMENTS         Section 4.01. Loan of Proceeds; Installment Payments. The Issuer agrees, upon the  terms and conditions contained in this Agreement, to lend to the Company the proceeds received  by the Issuer from the sale of the Bonds. Such proceeds shall be disbursed to or on behalf of the  Company as provided in Section 3.02.         On each date on which any payment of principal or redemption price of, or interest on, the  Bonds shall become due (whether at maturity, or upon redemption or acceleration or otherwise),  the Company will pay or cause to be paid to the Trustee, in immediately available funds, an amount  which, together with other moneys held by the Trustee under the Indenture and available therefor,  will enable the Trustee to make such payment of principal or redemption price of, of or interest on,  the Bonds to the Bondholders in full in a timely manner (“Installment Payments”).         In furtherance of the foregoing, so long as any Bonds are outstanding, the Company will  pay or cause to be paid all amounts required to prevent any deficiency or default in any payment of  principal or redemption price of, or interest on, the Bonds, including any deficiency caused by an  act or failure to act by the Trustee, the Company, the Issuer or any other Person.         The Issuer assigns all amounts payable under this Section by the Company to the Trustee  pursuant to the Indenture for the benefit of the Bondholders. The Company assents to such  assignment. Accordingly, the Company will pay directly to the Trustee at its designated office all  payments payable by the Company pursuant to this Section.         The obligation of the Company to make any Installment Payments shall be deemed to have  been satisfied to the extent of any corresponding payment made by a Bank to the Trustee pursuant  to a Letter of Credit then in effect with respect to the Bonds.         The  Company further covenants that it will make any payments required to be made  pursuant to Sections 2.04 (including Article III of Exhibit B hereto) and 4.06 of the Indenture at  the applicable Purchase Price thereof by 4:00 p.m. New York City time; provided however the  obligation to make such payments shall have been deemed satisfied to the extent that such Purchase  Price shall have been paid from remarketing proceeds, from a draw under a Letter of Credit or  Alternate Credit Facility or from payment by the Company pursuant to Section 3.02(a)(2) of Exhibit  B hereto.                                          10    

 

      Section 4.02. Additional Payments. The Company will also pay the following upon  demand after receipt of a bill therefor:               (a)   The reasonable and documented out-of-pocket fees and expenses, including        reasonable attorneys’ fees, of the Issuer incurred in connection with this Agreement, the        Indenture, the Tax Regulatory Agreement and the Bonds, the Continuing Disclosure        Agreement and the making of any amendment or supplement thereto, including, but not        limited to: (i) those described in Section 3.05 (which includes, among other fees and        expenses, the fees and expenses associated with the initial drafting, execution and delivery        of this Agreement, the Indenture, the Tax Regulatory Agreement, the Continuing Disclosure        Agreement and the Bonds), (ii) those described in Section 7.04 and (iii) any other payments        or indemnification required under Section 5.02.               (b)   The reasonable and documented out-of-pocket fees and expenses of the        Trustee[, the Tender Agent, if any, and the Remarketing Agent, if any], including        reasonable attorneys’ fees, for any services rendered by it under the Indenture, including        those described in Section 7.04 in connection with inquiring into or enforcing the        performance of the Company’s obligations hereunder, and any other payments or        indemnification required under Section 5.02, such fees, expenses and payments to be paid        directly to the Trustee[, the Tender Agent, if any, and the Remarketing Agent, if any.] for        its own account as and when such fees and expenses become due and payable.         The Company further agrees to pay all reasonable and documented out-of-pocket costs and  expenses (including reasonable attorney’s fees and expenses) of the Issuer and the Trustee[, the  Tender Agent, if any, and the Remarketing Agent, if any] incurred after the initial issuance of the  Bonds in the preparation of any responses, reproduction of any documentation or participation in  any inquiries, investigations or audits from any Person solely or primarily in connection with the  Bonds, including without limitation, the Internal Revenue Service, the Securities Exchange  Commission or other governmental agency.         Section 4.03. Deposit of Moneys in Bond Fund; Moneys for Purchase and  Redemption. The Company may at any time deposit moneys in the Bond Fund, without premium  or penalty, to be held by the Trustee for application to Installment Payments not yet due and  payable, and the Issuer agrees that the Trustee shall accept such deposits when tendered by the  Company. Such deposits shall be credited against the Installment Payments, or any portion thereof,  in the order of their due dates. Such deposits shall not in any way alter or suspend the obligations  of the Company under this Agreement during the term hereof as provided in Section 10.01.         In addition, the Company may deliver moneys to the Trustee for use for optional redemption  of Bonds pursuant to Sections 6,01 and 6.02 and shall deliver moneys to the Trustee for mandatory  redemption of Bonds as required by Section 4.02(b)(ii) of the Indenture.         Section 4.04. Obligations Unconditional. The obligations of the Company to make  payments required by Sections 4.01, 4.02 and 4.03 and to perform its other agreements contained  herein shall be absolute and unconditional, and the Company shall make such payments without  abatement, diminution or deduction regardless of any cause or circumstance whatsoever, including,                                          11   

 

 without limitation, any defense (other than payment), setoff, recoupment or counterclaim which the   Company may have or assert against the Issuer, the Trustee or any other Person.          Section 4.05. Assignment by Company. Rights granted to the Company under this   Agreement may be assigned in whole or in part by the Company without the necessity of obtaining   the consent of the Issuer or the Trustee, subject, however, to each of the following conditions:               (a)   unless waived by the Issuer or the Trustee, the Company shall notify the        Issuer and the Trustee in writing of the identity of any assignee at least 30 days prior to the        effective date of such assignment;               (b)   no assignment shall relieve the Company from primary liability hereunder        for its obligations hereunder, and the Company shall continue to remain primarily liable for        the payment of the Installment Payments and Additional Payments and for performance and        observance of the agreements on its part herein provided to be performed and observed by        it;               (c)   any assignment from the Company must retain for the Company such rights        and interests as will permit it to perform its obligations under this Agreement;               (d)   the Company shall, within 30 days after the execution thereof, furnish or        cause to be furnished to the Issuer and the Trustee a true and complete copy of each such        assignment; and               (e)   any assignment from the Company shall not materially impair fulfillment of        the purposes to be accomplished by operation of the Project Facilities as a project, the        refinancing of which is permitted under the Act.         Section 4.06. Assignment by Issuer. The Issuer will assign its rights under and interest to  this Agreement (except for the Unassigned Issuer Rights) to the Trustee pursuant to the Indenture  as security for the payment of the Bonds. Otherwise, the Issuer will not sell, assign or otherwise  dispose of its rights under or interest in this Agreement nor create or permit to exist any lien,  encumbrance or security interest thereon.                                     ARTICLE V                                                             ADDITIONAL AGREEMENTS AND COVENANTS         Section 5.01. Lease, Sale or Grant of Use by Company. Subject to the provisions of  Section 5.03, the Company may lease, sell or grant the right to occupy and use the Project Facilities,  in whole or in part, to others, provided that:               (a)   no such grant, sale or lease shall relieve the Company from its obligations        under this Agreement;               (b)   the Company shall retain such rights and interests as will permit it to comply        with its obligations under this Agreement;                                            12    

 

             (c)   no such grant, sale or lease shall impair the purposes of the Act; and                (d)   the Company shall receive an Opinion of Nationally Recognized Bond         Counsel that such grant, sale or lease does not have an adverse effect upon the tax-exempt        status of the Bonds.          Section 5.02. Indemnification of Issuer and Trustee. The Company agrees that the  Issuer, the State and their respective members, officers, employees and agents, and the Trustee and  the Tender Agent and each of its officers, employees and agents, shall not be liable for, and the  Company covenants and agrees to protect, exonerate, defend, indemnify and save the Issuer, the  State and their respective members, officers, employees and agents, and the Trustee and its officers,  employees and agents, harmless from and against (a) any and all costs, damages or liabilities which  may arise out of the issuance of the Bonds, the refinancing of the Project Facilities or any breach  or default on the part of the Company to be performed pursuant to the terms of this Agreement and  (b) all reasonable costs, counsel fees, expenses and liabilities incurred in or about the defense of  any such claims or actions or proceedings brought thereon; except in any case with respect to (1)  the Issuer, the State and their respective members, officers, employees and agents as a result of the  gross negligence or willful misconduct of the Issuer, the State and such respective members,  officers, employees and agents and (2) the Trustee and its officers, employees and agents as a result  of the negligence or willful misconduct of the Trustee or such officers, employees or agents. The  Company may, at its cost and in its name or in the name of the Issuer or the Trustee, as the case  may be, prosecute or take any other action involving third persons which the Company deems  necessary in order to ensure or protect the Company’s rights under this Agreement; in such event,  the Issuer or the Trustee, as the case may be, will reasonably cooperate with the Company, but at   the sole expense of the Company.          The Company agrees to indemnify the Trustee and the Issuer for and to hold each of them   harmless against all liabilities, claims, court costs and reasonable and documented out-of-pocket   expenses (including reasonable and documented fees and expenses of counsel necessary in   defending against the same) incurred without gross negligence or willful misconduct on the part of   the Issuer or incurred without negligence or willful misconduct on the part of the Trustee, as   applicable, on account of any action taken or omitted to be taken by the Issuer or the Trustee, as   applicable, in accordance with the terms of this Agreement, the Bonds or the Indenture or any action   taken at the request of or with the consent of the Company, including the costs and expenses of the   Issuer and the Trustee, as applicable, in defending itself against any such claim, action or   proceeding brought in connection with the exercise or performance of any of its powers or duties   under this Agreement, the Bonds or the Indenture.          In case any actions or proceeding is brought against the Issuer or the Trustee in respect of   which indemnity may be sought hereunder, the party seeking indemnity shall promptly (but in any   event within 15 days of receipt of service) give notice of that action or proceeding to the Company   enclosing copies of all papers served, and the Company upon receipt of that notice shall have the   obligation and the right to assume the defense of the action or proceeding; provided, that failure of   a party to give that notice shall not relieve the Company from any of its obligations under this   Section unless that failure materially prejudices the defense of the action or proceeding by the   Company. An indemnified party may employ separate counsel and participate in the defense   thereof, and the Company shall pay the reasonable fees and expenses of such separate counsel;                                          13    

 

 provided, however, that an indemnified party may only employ separate counsel at the expense of   the Company if in the reasonable, good faith judgment of such indemnified party (i) a conflict of   interest exists by reason of common representation or (ii) there are legal defenses available to such   indemnified party that are different from or are in addition to those available to the Company or   another indemnified party or if all parties commonly represented do not agree as to the action (or   inaction) of counsel. Such indemnified party agrees to give the Company prior written notice of   any determination that such a conflict exists and that it intends to retain separate counsel. The   Company shall not be liable for any settlement of any such action or proceeding effected without   its written consent (which shall not be unreasonably withheld or delayed), but if settled with the   consent of the Company, or if there be a final judgment for the plaintiff in any such action, the   Company agrees to indemnify and hold harmless any such indemnified party from and against any   loss or liability by reason of such settlement or judgment.          Notwithstanding anything contained herein to the contrary, the Company shall not be   obligated to indemnify or hold harmless the Issuer, the State or their respective members, officers,   employees and agents for their gross negligence or willful misconduct (as finally determined by a   court of competent jurisdiction) or the Trustee or its officers, employees and agents for their   negligence or willful misconduct.          The foregoing indemnification is intended to and shall include the indemnification of all   affected officials, directors, trustees, officers, employees and agents of the Issuer and the Trustee,   respectively. That indemnification is intended to and shall be enforceable by the Issuer and the   Trustee, respectively, to the full extent permitted by law, and the foregoing indemnification shall   survive beyond the termination or discharge of the Indenture or payment of the Bonds.          Section 5.03. Company Not to Adversely Affect Exclusion from Gross Income of   Interest on Bonds. The Company hereby represents that it has taken and caused to be taken, and  covenants that it will take and cause to be taken, all actions that may be required of it, alone or in  conjunction with the Issuer, for the interest on the Bonds to be and to remain excludable from gross  income for federal income tax purposes, and represents that it has not taken or permitted to be taken   on its behalf, and covenants that it will not take or permit to be taken on its behalf, any action that   would adversely affect such excludability under the provisions of the 1954 Code or the Code, as   applicable.          The Company also covenants that it will restrict the investment and reinvestment and the   use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary so   that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.         The Company hereby covenants that on or before the 90th day following the date any of the  Project Facilities are no longer being operated as qualifying exempt facilities under the Code  (unless such facilities have simply ceased to be operated), or such later date as provided in the  Indenture, the Company shall cause a related amount of Bonds to be redeemed pursuant to the  Extraordinary Mandatory Redemption provision of the Bonds as provided in Section 4.02(b)(ii) of  the Indenture.         Section 5.04. Company to Maintain its Existence; Mergers or Consolidations. The   Company covenants that it will not merge or consolidate with any other legal entity or sell or                                          14    

 

convey all or substantially all of its assets to any other legal entity, except that the Company may  merge or consolidate with, or sell or convey all or substantially all of its assets to any other legal  entity, provided that (a) the Company shall be the continuing legal entity or the successor legal  entity (if other than the Company) shall be a legal entity organized and existing under the laws of  the United States of America or a state thereof, qualified to do business in the State, and such legal  entity shall expressly assume the due and punctual payment of the Installment Payments and the  Additional Payments hereunder in order to ensure timely and proper payment of the principal of  and interest on all the Bonds, according to their tenor, and the due and punctual performance and  observance of all the covenants and conditions of this Agreement to be performed by the Company  (an “Assumption Agreement”) and (b) the Company or such successor legal entity, as the case may  be, shall not, immediately after such merger or consolidation, or such sale or conveyance, be in  default in the performance of any such covenant or condition and no event which with the lapse of  time, the giving of notice or both would constitute an Event of Default under Section 7.01 shall  have occurred and be continuing.         The Company shall, within 30 days after the execution of an Assumption Agreement,  furnish to the Issuer and the Trustee an executed copy of such Assumption Agreement and  appropriate documentation demonstrating that the successor legal entity (if other than the  Company) is organized and existing under the laws of the United States of America or a state  thereof and is qualified to do business in the State.         In the case of any such consolidation, merger, sale or conveyance and upon the assumption  by the successor legal entity of the obligations under this Agreement and on the Bonds in  accordance with the foregoing, such successor legal entity shall succeed to and be substituted for  the Company, with the same effect as if it had been named herein as a party hereto, and the  Company shall thereupon be relieved of any further obligations or liabilities hereunder and upon  the Bonds and the Company as the predecessor legal entity may thereupon or at any time thereafter  be dissolved, wound-up or liquidated.         Section 5.05. Reports and Audits. The Company shall as soon as practicable but in no  event later than six months after the end of each of its fiscal years, file with the Trustee and the  Issuer, audited financial statements of the Company prepared as of the end of such fiscal year;  provided that the Company may satisfy this requirement by its filing of such information with the  Securities and Exchange Commission (www.sec.gov) and the Municipal Securities Rulemaking  Board (www.emma.msrb.org) in accordance with their respective filing requirements, and the  Trustee's receipt of such shall not constitute actual or constructive notice or knowledge of any  information contained therein or determinable from information contained therein, including the  Company's compliance with any of its covenants hereunder.  The Trustee shall have no duty to  review such financial statements, shall be deemed to have actual or constructive notice or  knowledge of any information contained therein or determinable from information contained  therein, including the Company’s compliance with any of its covenants hereunder or whether any  default or Event of Default may have occurred, and the Trustee shall not have any duty to verify  the accuracy of such financial statements or any portion thereof.         Section 5.06. Insurance. The Company shall maintain, or cause to be maintained,  insurance covering the Project Facilities against such risks and in such amounts as is customarily                                          15   

 

 carried by similar industries as the Company, and which insurance may be, in whole or in part, self- insurance.          Section 5.07. Company to Furnish Notices and Opinions Relating to Changes in   Interest Rate Periods.  The Company is hereby granted the option to designate from time to time   changes in Interest Rate Periods in the manner and to the extent set forth in Section 2.03 of Exhibit   B of the Indenture.  In the event the Company elects to exercise any such option, the Company   agrees that it shall cause notices of proposed changes in Interest Rate Periods to be given in   accordance with the provisions of Section 2.03 of Exhibit B of the Indenture and to deliver any   Opinions of Nationally Recognized Bond Counsel required under the Indenture in connection   therewith.                                     ARTICLE VI                                                         OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS          Section 6.01. Options to Terminate Agreement. The Company shall have, and is hereby   granted, an option to prepay the Installment Payments and terminate this Agreement, upon   satisfaction of the following conditions at any time prior to full payment of the Bonds (or provision   for payment thereof having been made in accordance with the provisions of the Indenture): (a) in   accordance with Article IX of the Indenture, by paying to the Trustee an amount which, when added   to the amount on deposit in the funds established under the Indenture and available therefor, will   be sufficient to pay, retire and, pursuant to the Indenture, redeem all the outstanding Bonds in   accordance with the provisions of the Indenture (including, without limiting the generality of the   foregoing, principal of and interest to maturity or the earliest applicable redemption date, as the   case may be, and expenses of redemption and the Trustee’s fees and expenses due hereunder or   under the Indenture), and, in case of redemption, making arrangements satisfactory to the Trustee   for the giving of the required notice of redemption, (b) by giving the Issuer notice in writing of   such termination and (c) by making full payment of Additional Payments due under Section 4.02;   thereafter such termination shall forthwith become effective.          Any prepayment pursuant to this Section shall either comply with the provisions of Article   IX of the Indenture or result in redemption of the Bonds within 90 days of the date of prepayment.   Nothing contained in this Section shall prevent the payment of part of any of the Bonds pursuant   to Article IV or Section 9.02 of the Indenture.         Section 6.02. Option to Prepay Installment Payments upon Extraordinary Optional  Redemption under Indenture. The Company has the option to prepay the Loan, in whole or in  part, and thereby cause the redemption of the Bonds on the terms and conditions set forth in Section  4.02(a) of the Indenture.  The Company shall also have the option, upon the occurrence of certain  extraordinary circumstances described therein, to prepay the Loan in whole or in part upon the  terms and conditions set forth in Section 4.02(b)(i) of the Indenture.         Section 6.03. Mandatory Prepayment of Installment Payments. The Company shall  have and hereby accepts the obligation to prepay Installment Payments with respect to the Bonds  to the extent Extraordinary Mandatory Redemption of the Bonds is required pursuant to Section  4.02(b)(ii) of the Indenture.                                          16    

 

      Section 6.04. Actions by Issuer. At the request of the Company or the Trustee, the Issuer  shall take all steps required of it under the applicable provisions of the Indenture or the Bonds to  effect the redemption of all or a portion of the Bonds pursuant to this Article VI; provided that, in  such event, the Company shall reimburse the Issuer for its reasonable expenses, including  attorneys’ fees, incurred in complying with such request.         Section 6.05. Release of Indenture in Event of Prepayment of Installment Payments.   Upon the payment of all amounts due hereunder and under the Indenture pursuant to any option or  obligation to prepay the Installment Payments in full as provided in this Agreement, the Issuer  shall, upon receipt of the prepayment by the Trustee, deliver to the Company, if necessary, a release  from the Trustee of the lien of the Indenture.                                   ARTICLE VII                                                               EVENTS OF DEFAULT AND REMEDIES          Section 7.01. Events of Default. Each of the following shall be an Event of Default:               (a)   The Company shall fail to pay the amounts required to be paid under Section        4.01 or 4.02 on the date specified therein.               (b)   Failure by the Company to observe and perform any covenant, condition or        agreement on its part to be observed or performed under this Agreement, other than as        referred to in Section 7.01(a), (other than certain representations, warranties and covenants        regarding various matters relating to the tax status of the interest on the applicable series of        Bonds) for a period of 60 days after written notice specifying such failure and requesting        that it be remedied shall have been given to the Company by the Issuer or the Trustee, unless        the Issuer and the Trustee (acting at the written direction of the holders of a majority in        aggregate principal amount of the Outstanding Bonds) shall agree in writing to an extension        of such time prior to its expiration; provided, however, if the failure stated in the notice        cannot be corrected within the applicable period, it shall not constitute an Event of Default        if corrective action is instituted by the Company within the applicable period and is being        diligently pursued until the default is corrected.               (c)   The dissolution or liquidation of the Company or the voluntary initiation by        the Company of any proceeding under any federal or state law relating to bankruptcy,        insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor        relief, or the initiation against the Company of any such proceeding which shall remain        undismissed for 60 days, or failure by the Company to promptly have discharged any        execution, garnishment or attachment of such consequence as would materially impair the        ability of the Company to carry on its operations, or assignment by the Company for the        benefit of creditors, or the entry by the Company into an agreement of composition with        creditors or the failure generally by the Company to pay its debts as they become due.               (d)   The occurrence of an Event of Default as defined in the Indenture.         Any declaration of default under subparagraph (c) and the exercise of remedies upon any  such declaration will be subject to any applicable limitations of federal bankruptcy law affecting or                                         17   

 

 precluding that declaration or exercise during the pendency of or immediately following any   bankruptcy, liquidation or reorganization proceedings.          Section 7.02. Remedies on Default. Whenever an Event of Default shall have happened   and be existing, any one or more of the following remedial steps may be taken:                (a)   if acceleration of the principal amount of a series of Bonds has been declared        pursuant to Section 7.03 of the Indenture, the Issuer or the Trustee shall declare all        Installment Payments to be immediately due and payable, whereupon the same shall        become immediately due and payable; or               (b)   the Issuer or the Trustee may pursue all remedies now or hereafter existing        at law or in equity to collect all amounts then due and thereafter to become due under this        Agreement or to enforce the performance and observance of any other obligation or        agreement of the Company under those instruments.         Notwithstanding the foregoing, the Trustee shall not be obligated to take any step that in its  reasonable opinion will or might cause it to expend time or money or otherwise incur liability unless  and until satisfactory indemnity has been furnished to the Trustee at no cost or expense to it. Any  amounts collected pursuant to action taken under this Section (except for amounts payable directly  to the Issuer or the Trustee pursuant to Section 3.05, 4.02, 5.02 or 7.04) shall be paid into the Bond  Fund and applied in accordance with the provisions of the Indenture or, if the Outstanding Bonds  have been paid and discharged in accordance with the provisions of the Indenture, shall be paid as  provided in Section 9.01 of the Indenture for transfers of remaining amounts in the Bond Fund.         The provisions of this Section are subject to the further limitation that the rescission by the  Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute  an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and  a waiver and rescission of the consequences of that declaration and of the Event of Default with  respect to which that declaration has been made, provided that no such waiver or rescission shall  extend to or affect any subsequent or other default or impair any right consequent thereon.         Section 7.03. No Remedy Exclusive. No remedy conferred upon or reserved to the Issuer  or the Trustee by this Agreement is intended to be exclusive of any other available remedy or  remedies, but each and every remedy shall be cumulative and shall be in addition to every other  remedy given under this Agreement, now or hereafter existing at law, in equity or by statute. No  delay or omission to exercise any right or power accruing upon any default shall impair that right  or power or shall be construed to be a waiver thereof, but any such right and power may be exercised  from time to time and as often as may be deemed expedient. In order to entitle the Issuer or the  Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give any  notice, other than any notice required by law or for which express provision is made herein.         Section 7.04. Agreement to Pay Fees and Expenses. If an Event of Default should occur  and the Issuer or the Trustee should incur expenses, including attorneys’ fees, in connection with  the enforcement of this Agreement or the collection of sums due hereunder, the Company shall  reimburse the Issuer and the Trustee, as applicable, for their reasonable and documented out-of-  pocket expenses so incurred upon demand.                                           18    

 

      Section 7.05. No Waiver. No failure by the Issuer or the Trustee to insist upon the  performance by the Company of any provision hereof shall constitute a waiver of their right to  performance and no express waiver shall be deemed to apply to any other existing or subsequent  right to remedy the failure by the Company to observe or comply with any provision hereof.         Section 7.06. Notice of Default. The Company shall notify a Responsible Officer of the  Trustee immediately and in writing if it becomes aware of the occurrence of any Event of Default  hereunder or of any fact, condition or event which, with the giving of notice or passage of time or  both, would become an Event of Default.                                      ARTICLE VIII                                                                           DISCLOSURES         Section 8.01. [Reserved].                                       ARTICLE IX                                                                         MISCELLANEOUS         Section 9.01. Term of Agreement. This Agreement shall be and remain in full force and  effect from the date of issuance of the Bonds until such time as all of the Bonds shall have been  fully paid (or provision made for such payment) pursuant to the Indenture and all other sums  payable by the Company under this Agreement shall have been paid, except for obligations of the  Company under Sections 3.05, 4.02, 5.02 and 7,04, which shall survive any termination of this  Agreement.         Notwithstanding any termination of this Agreement, any payment of any or all of the Bonds  or any discharge of the Indenture, if Bonds are redeemed pursuant to the Extraordinary Mandatory  Redemption provisions of Section 4.02(b)(ii) of the Indenture, the Company shall pay all additional  amounts required to be paid under Article IV of the Indenture at the time provided therein.         Section 9.02. Amounts Remaining in Funds. Any amounts in the Bond Fund remaining  unclaimed by the Holders of Bonds (whether at stated maturity, by redemption or pursuant to any  mandatory sinking fund requirements or otherwise), shall be deemed to belong, and shall be paid,  to the proper party pursuant to applicable escheat laws. Further, any other amounts remaining in  the Bond Fund, the Project Fund and any other special fund or account created under this  Agreement or the Indenture after all of the outstanding Bonds shall be deemed to have been paid  and discharged under the provisions of the Indenture and all other amounts required to be paid  under this Agreement and the Indenture have been paid, shall be paid to the Company to the extent  that those moneys are in excess of the amounts necessary to effect the payment and discharge of  the outstanding Bonds. Notwithstanding any other provision of this Agreement or the Indenture,  under no circumstances shall proceeds of a draw on a Letter of Credit, any Alternate Credit Facility  or remarketing proceeds be paid to the Issuer or the Company.                                          19   

 

      Section 9.03. Notices. All notices, certificates, requests or other communications  hereunder shall be in writing and shall be deemed to be sufficiently given at the applicable Notice  Address as provided in Section 13.03 of the Indenture.         Section 9.04. Extent of Covenants of Issuer; No Personal Liability. All covenants,  obligations and agreements of the Issuer contained in this Agreement or the Indenture shall be  effective to the extent authorized and permitted by applicable law. No such covenant, obligation or  agreement shall be deemed to be a covenant, obligation or agreement of any present or future  member, trustee, officer, agent or employee of the Issuer in other than his or her official capacity,  and no official executing the Bonds shall be liable personally on the Bonds or be subject to any  personal liability or accountability by reason of the issuance thereof or by reason of the covenants,  obligations or agreements of the Issuer contained in this Agreement or in the Indenture.         Section 9.05. Binding Effect. This Agreement shall inure to the benefit of and shall be  binding in accordance with its terms upon the Issuer, the Company and their respective permitted  successors and assigns.         Section 9.06. Amendments and Supplements. Except as otherwise expressly provided in  this Agreement or the Indenture, subsequent to the issuance of the Bonds and prior to all conditions  provided for in the Indenture for release of the Indenture having been met, this Agreement may not  be effectively amended, changed, modified, altered or terminated except in accordance with the  provisions of Article XI of the Indenture, as applicable.         Section 9.07. Execution Counterparts. This Agreement may be executed in any number  of counterparts, each of which shall be regarded as an original and all of which shall constitute but  one and the same instrument.         Section 9.08. Severability. If any provision of this Agreement, or any covenant,  obligation or agreement contained herein is determined by a court to be invalid or unenforceable,  that determination shall not affect any other provision, covenant, obligation or agreement, each of  which shall be construed and enforced as if the invalid or unenforceable portion were not contained  herein. That invalidity or unenforceability shall not affect any valid and enforceable application  thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective,  operative, made, entered into or taken in the manner and to the full extent permitted by law.         Section 9.09. Governing Law. This Agreement shall be deemed to be a contract made  under the laws of the State and for all purposes shall be governed by and construed in accordance  with the laws of the State.         Section 9.10. Further Assurances and Corrective Instruments. The Issuer and the  Company agree that they will, from time to time, execute, acknowledge and deliver, or cause to be  executed, acknowledged and delivered, such supplements hereto and such further instruments as  may reasonably be required for the further assurance, correction or performance of the expressed  intention of this Agreement.         Section 9.11. Issuer and Company Representatives. Whenever under the provisions of  this Agreement the approval of the Issuer or the Company is required or the Issuer or the Company  is required to take some action at the request of the other, such approval or such request shall be                                         20   

 

given for the Issuer by a Designated Officer and for the Company by an Authorized Company  Representative. The Trustee shall be authorized to act on any such approval or request.         Section 9.12. Immunity of Incorporators, Stockholders, Officers and Directors. No  recourse under or upon any obligation, covenant or agreement contained in this Agreement or in  any agreement supplemental hereto, or in the Bonds, or because of any indebtedness evidenced  thereby, shall be had against any incorporator, or against any stockholder, member, officer or  director, as such, past, present or future, of the Company or of any predecessor or, subject to Section  5.04, successor legal entity, either directly or through the Company or any predecessor or successor  legal entity, under any rule of law, statute or constitutional provision or by the enforcement of any  assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly  waived and released by the acceptance of the Bonds by the Holders thereof and as part of the  consideration for the issuance of the Bonds.         Section 9.13. Section Headings. The table of contents and headings of the various articles  and sections of this Agreement are for convenience of reference only and shall not modify, define  or limit any of the terms or provisions hereof. References to article and section numbers are  references to sections in this Agreement unless otherwise indicated.         Section 9.14. Concerning the Trustee. The rights, privileges, protections, indemnities  and immunities of the Trustee under the Indenture are hereby incorporated herein as if set forth  herein in full and shall be extended to, and shall be enforceable by, the Trustee hereunder.         Section 9.15.  Limitation of Liability of the Issuer.  (a)  Notwithstanding any provision  of the Indenture, this Agreement or the Bonds to the contrary:                (i)   The Bonds are special, limited obligations of the Authority, payable solely        from and secured by the revenues pledged for the payment thereof pursuant to the Indenture        and this Agreement.  The Bonds are not and never shall become general obligations of the        Authority.               (ii)  Neither the Authority, the State, nor any of its political subdivisions shall be        directly, indirectly, contingently or morally obligated to use any other moneys or assets to        pay all or any portion of the debt service due on the Bonds, to levy or to pledge any form        of taxation whatever therefor or to make any appropriation for their payment.                 (iii) The State shall not in any event be liable for the performance of any pledge,        obligation or agreement of any kind whatsoever that may be undertaken or made by the        Authority or the Obligor.  The Authority shall not in any event be liable for the performance        of any pledge, obligation or agreement of any kind whatsoever undertaken or made by the        Obligor.               (iv)  The Bonds are not a pledge of the faith and credit of the Authority, the State        or any of its political subdivisions nor do they constitute indebtedness within the meaning        of any constitutional or statutory debt limitation.  Neither the Bonds, this Agreement, nor        any of the agreements or obligations of the Authority or the Obligor shall be construed to        (i) constitute an indebtedness or obligation, general, moral or otherwise, of the State or the        Authority within the meaning of any constitutional or statutory provisions or (ii) give rise                                         21   

 

      to any pecuniary liability on, or be a charge against, the general credit or taxing powers of        the State or the Authority.               (v)   The Authority shall not be liable for payment of the principal of, premium,        if any, or interest on the Bonds or any other costs, expenses, losses, damages, claims or        actions of any conceivable kind on any conceivable theory, under or by reason of or in        connection with the Indenture, the Bonds or any other documents, except only to the extent        amounts are received for bond payments or loan payments from the Obligor under the        Indenture or this Agreement.               (vi)  It is hereby understood and agreed that all of the representations and        warranties of the Authority contained in the Bond Indenture and this Agreement are subject        to the limitations set forth in this Section 9.15 and are not intended to and do not create a        general obligation of the Authority.         (b)   Notwithstanding any provision of the Indenture, this Agreement or the Bonds to the  contrary, the Authority shall be entitled to refrain from taking any action otherwise required of it  under the Indenture, the Tax Regulatory Agreement or this Agreement unless and until the  Company shall have caused adequate provision for the payment of any and all reasonable costs and  expenses, outlays, and counsel fees and other disbursements, and against all liability, to provide for  the account of the Authority in advance of taking such action. Notwithstanding any provision of  the Indenture, this Agreement or the Bonds to the contrary, the Authority may consult with  independent counsel, chosen by it with reasonable care, and shall not be liable for action taken or  not taken in good faith in reliance upon the written advice or opinion of such counsel.         (c)   Notwithstanding any provision of the Indenture, this Agreement or the Bonds to the  contrary:                (i)   No person executing the Indenture, the Bonds, this Agreement, any        certificate, or any other agreement or instrument of Authority (each an “Authority        Delivery”), is liable personally on or with respect to such Authority Delivery or otherwise        subject to any personal liability or accountability by reason thereof.                 (ii)  No recourse shall be had for the payment of the principal of, premium, if        any, or the interest on the Bonds or for any claim based thereon or any certification,        obligation, covenant or agreement in any Authority Delivery against any past, present or        future member, officer, agent, attorney, employee, director, trustee or other official of the        Authority or any incorporator, member, officer, agent, attorney, employee, director, trustee,        other official or independent contractor of any successor corporation of the Authority or        any person executing the Bonds or any other Authority Delivery.                (iii) No covenant, stipulation, promise, certification, agreement or obligation        contained in the Bonds, the Bond Indenture, this Agreement or any other Authority Delivery        executed in connection therewith shall be deemed to be the covenant, stipulation, promise,        agreement or obligation of any present or future member, director, trustee, officer, agent,        attorney, employee or other official of the Authority in his or her individual capacity, and        neither any official of the Authority, nor any officers executing the Bonds, shall be liable        personally on the Bonds or be subject to any personal liability or accountability by reason                                         22   

 

       of the issuance of the Bonds unless such claim is based upon the willful dishonesty of or         intentionally violation of law by such person.          (d)   By their purchase of each Bond, each Bondholder shall be deemed to have   acknowledged and agreed to the provisions of this Section 9.15 and that the Authority has no taxing   power.          Section 9.16. Disclosures.  (a)  Pursuant to Securities and Exchange Commission (the  "SEC") Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended, the   Company hereby covenants and agrees to comply, or to cause compliance with, when and if   applicable, the continuing disclosure requirements promulgated thereunder, as such rule may from   time to time hereafter be amended or supplemented.  Notwithstanding any other provision of this   Agreement, failure of the Company to comply, or to cause compliance with, the requirements of   SEC Rule 15c2-12, as it may from time to time hereafter be amended or supplemented, shall not   be considered a default hereunder; however, the Trustee, at the written request of [the Remarketing   Agent or] any Holder of Outstanding Bonds, shall, but only to the extent indemnified to its   satisfaction from and against any cost, liability or expense related thereto, including, without   limitation, fees and expenses of its attorneys and advisors and additional fees and expenses of the   Trustee or any Bondholder or beneficial owner of the Bonds, take such actions as may be necessary   and appropriate, including seeking mandamus or specific performance by court order, to cause the   Company to comply with its obligations pursuant to this Section 9.16.          (b)   The Company acknowledges, represents and warrants to the Issuer and other parties   in interest that the official statement or any other offering document used in connection with the   issuance of the Bonds (i) were prepared solely by the Company without any representation or   guidance by or from the Issuer as to any matters of law or fact (other than under the captions "THE   ISSUER" and “NO LITIGATION” (as it relates to the Issuer) (the “Issuer Portion”), whether   expressed therein or otherwise applicable thereto (or omitted therefrom), (ii) solely reflect and sets   forth the Company's understandings, judgments and determinations as to all relevant matters of law   or fact, whether expressed therein or otherwise applicable thereto (or omitted therefrom), and (iii)   solely reflect and sets forth the Company's expectations as to any such matters as may be set forth   therein.  The Company acknowledges, represents and warrants to the Issuer and other parties in   interest that any continuing disclosure document hereafter used in connection with the Bonds (i)   will be prepared solely by the Company without any representation or guidance by or from the   Issuer as to any matters of law or fact (except for facts pertaining to the Issuer's approval of the   Bonds and authorization thereof), whether expressed therein or otherwise applicable thereto (or   omitted therefrom), (ii) will solely reflect and sets forth the Company's understandings, judgments   and determinations as to all relevant matters of law or fact, whether expressed therein or otherwise   applicable thereto (or omitted therefrom), and (iii) will solely reflect and sets forth the Company's   expectations as to any such matters as may be set forth therein.          (c)   The Company acknowledges and agrees that the Issuer has no initial or continuing   disclosure related obligation in connection with the Bonds, provided that the information set forth   in the Issuer Portion in the official statement used in connection with the original issuance of the   Bonds has been obtained from Issuer.                                           23    

 

       Section 9.17.  Purchase of Bonds. For so long as a Letter of Credit or Alternate Credit  Facility is in effect, the Company agrees that it shall not use its own funds to purchase Bonds from  any Person and that it shall cause any affiliate and any shareholder, member or other owner of the  Company not to use its own funds to purchase Bonds from any Person; provided, however, that the  foregoing shall not apply to a purchase of Bonds from the Remarketing Agent if the Remarketing  Agent has used its own funds to purchase the Bonds.                         [Remainder of page intentionally left blank]                                                          24    

 

          IN WITNESS WHEREOF, the Issuer and the Company have caused this Agreement to be  duly executed in their respective names, all as of the date hereinbefore written.                                          INDIANA FINANCE AUTHORITY                                                                                                                           By:  /s/ Cristopher R. Johnston                                              Cristopher R. Johnston, Chair                                                                                    [SEAL]                                                                            Attest:                                      By: /s/ Dan Huge     Dan Huge, Public Finance Director of the     State of Indiana                                                                                    UNITED STATES STEEL CORPORATION                                                                                                                           By:/s/ Arne Jahn                                                                    Arne Jahn                                               Vice President – Treasurer & Chief Risk                                               Officer                                                      [Signature Page to Loan Agreement]  [Indiana Finance Authority Environmental Improvement Revenue Bonds, Series 2020A (United  States Steel Corporation Project)][Indiana Finance Authority Environmental Improvement  Revenue Refunding Bonds, Series 2020B (United States Steel Project)]     

 

                                       EXHIBIT A                                PROJECT FACILITIES          The Series 2020A Bonds are being issued to finance all or a portion of Solid waste disposal   facilities, including but not limited to a landfill, dust catcher and integral components of these   facilities, located at the United States Steel Corporation Gary Works, One North Broadway, Gary,   Indiana.          The remaining outstanding principal amount of the Indiana Finance Authority   Environmental Improvement Revenue Refunding Bonds, Series 2010 (United States Steel  Corporation Project) to be refunded with the proceeds of the sale of the Series 2020B Bonds,  refunded the following two series of bonds (the “Prior Bonds”) issued by the Indiana Development  Finance Authority (predecessor to Indiana Finance Authority (the “Issuer”)) for which United  States Steel Corporation was the obligor at the time of issuance of the Refunded Bonds:         (1)   Environmental Improvement Revenue Bonds (USX Corporation Projects)  Refunding Series of 1996 (the “1996 Bonds”); and         (2)   Environmental Improvement Revenue Bonds (USX Corporation Project)  Refunding Series of 1998 (the “1998 Bonds”).         Each series of the Prior Bonds, in turn, refunded other series of bonds issued by the Issuer  (which may have refunded other series of the Issuer’s bonds).                                                                                  A-1    

 

    Project Facilities refinanced with proceeds of 1996 Bonds and 1998 Bonds were located at  the United States Steel Corporation Gary Works, One North Broadway, Gary, Indiana and  include the following:     No. 1 BOP Shop Air Pollution Control Facilities     Blast Furnace Division Water - Recycle System     No. 1 Coke Battery Air Quality Control Facilities     No. 3 - Sinter Plant Air Quality Control Facilities     Blast Furnace Division Blowdown Treatment System    Nos. 5 and 7 Coke Battery Air Quality Control Facilities     Nos. 13 and 15 Coke Battery Air Quality Control Facilities     No. 16 Coke Battery Air Quality Control Facilities     No. 3 Sinter Plant Air Quality Control Facilities     Coke Plant Boilerhouse Water Quality Control Facilities     Hot Strip Mill Water Quality Control Facilities     USS Tubing Specialties Process Water Recycle System                                      A-2   

 

                                          EXHIBIT B                         FORM OF DISBURSEMENT REQUEST             Statement No. ____ Requesting Disbursement of Funds from Project Fund                     pursuant to Section 3.02 of Loan Agreement between                 Indiana Finance Authority and United States Steel Corporation            Pursuant to Section 3.02 of the Loan Agreement, dated as of November 1, 2020 (the   “Agreement”), between the Indiana Finance Authority (the “Issuer”) and United States Steel   Corporation (the “Company”), the undersigned Authorized Company Representative hereby   requests and authorizes The Bank of New York Mellon Trust Company, N.A., as trustee (the   “Trustee”) under the Trust Indenture, dated as of November 1, 2020 (the “Indenture”), by and  between the Issuer and the Trustee, to pay to the Company or to the person(s) listed on the  Disbursement Schedule, if any, attached hereto out of the moneys deposited in Series 2020A  Project Account of the Project Fund (as established pursuant to the Indenture) the  aggregate sum  of $__________, to reimburse the Company in full, or to pay such person(s) as indicated in any  Disbursement Schedule, for the advances, payments and expenditures made by it in connection  with the Project. Capitalized terms used but not defined herein shall have the meanings set forth  in the Agreement.         In connection with the foregoing request and authorization, the undersigned hereby  certifies that:        i.  Each item for which disbursement is requested hereunder is properly payable out of the           Project Fund in accordance with the terms and conditions of the Agreement and none           of those items has formed the basis or any disbursement heretofore made from the           Project Fund;        ii. This statement and all exhibits hereto, including the Disbursement Schedule, shall be           conclusive evidence of the facts and statements set forth herein and shall constitute full            warrant, protection and authority to the Trustee for its actions taken pursuant hereto;            and       iii.  This statement constitutes the approval of the Company of each disbursement hereby            requested and authorized.          This _________ day of ________________, 20__.                                                                                                                             Authorized Company Representative                                                                           B-1    

 

                                    Disbursement Schedule                                              Payee                    Amount                    Purpose                                                                                                                                                                                                                                                                                                       B-2                

 

                                       EXHIBIT C                       FORM OF COMPLETION CERTIFICATE         Pursuant to Section 3.01 of the Loan Agreement, dated as of November 1, 2020 (the  “Agreement”), between Indiana Finance Authority (the “Issuer”) and United States Steel  Corporation (the “Company”), the undersigned hereby certifies to the Trustee (all capitalized terms  used and not otherwise defined herein having the meaning set forth in the Agreement) the  following:            a) the Project was substantially completed on or about ____________, 20__;                         b) all other facilities necessary in connection with the Project have been acquired,              constructed, installed and equipped;                         c) $______________ shall be retained in the Project Fund for the payment of costs of              the Project not yet due or for liabilities which the Company is contesting or which              otherwise should be retained, because _______________________              _______________________________ [explain the reasons such amounts are being              contested or should be retained]; and                         d) other than the amounts referred to in (c) above, of the remaining balance in the              Project Fund:               $________________ is being used to acquire, construct, install or equip additional                    personal property in connection with the Project Facilities; and/or               $________________ shall be paid into the Bond Fund to be applied to pay the                    interest component of Bond Service Charges on the next Interest Payment                    Date (for which the Company shall receive a credit against its obligations                    to make Installment Payments equal to the amount of moneys so transferred                    from the Project Fund).         Attached hereto is such evidence and the Opinion of Nationally Recognized Bond Counsel  as are required by the Indenture, if any.         This _________ day of ________________, 20__.                                                                                                                            Authorized Company Representative                                                C-1    

 

                                      ASSIGNMENT          KNOW ALL PERSONS BY THESE PRESENTS that the INDIANA FINANCE   AUTHORITY, a body politic and corporate of the State of Indiana (the “Issuer”), for value   received, hereby does assign, transfer and pledge unto THE BANK OF NEW YORK MELLON   TRUST COMPANY, N.A., as trustee (the “Trustee”) under the Trust Indenture, dated as of   November 1, 2020 (the “Indenture”), between the Issuer and the Trustee, and to the Trustee’s  successors in the trust and its assigns, forever, all right, title and interest of the Issuer in the Loan  Agreement, dated as of November 1, 2020 (the “Agreement”), between the Issuer and UNITED   STATES STEEL CORPORATION (the “Company”), including, but not limited to, the Pledged   Receipts (as defined in the Indenture) (but not including the Unassigned Issuer’s Rights (as defined   in the Indenture)), all as provided in the Indenture and in the Agreement, and to have, hold and   apply such income, payments, receipts, revenues and moneys in accordance with the Indenture;   and the Issuer directs that such funds shall be paid by the Company directly to the Trustee,   according to the terms of the Indenture.          IN WITNESS WHEREOF, the INDIANA FINANCE AUTHORITY has caused this   Assignment to be duly executed in its name and on its behalf by its Chair, and its corporate seal to   be affixed hereunto and attested by the Public Finance Director of the State of Indiana, all as of   this 24th day of November, 2020.                                            INDIANA FINANCE AUTHORITY                                                                                                                                 By:                                                                                  Cristopher R. Johnston, Chair   [SEAL]                                        Attest:                                                                                  Dan Huge, Public Finance Director   of the State of Indiana

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