Document:

Exhibit 10.1

      

      
        Execution Version

      

       

      Elizabethtown Gas Company

       

      $250,000,000

      $75,000,000 3.28% First Mortgage Bonds, Series 2020A-1, Tranche A,

      due November 10, 2050

       

      $50,000,000 3.38% First Mortgage Bonds, Series 2020A-1, Tranche B,

      due November 10, 2060

       

      $50,000,000 2.26% First Mortgage Bonds, Series 2020A-2, Tranche A,

      due June 15, 2031

       

      $25,000,000 3.08% First Mortgage Bonds, Series 2020A-2, Tranche B,

      due June 15, 2041

       

      $50,000,000 3.36% First Mortgage Bonds, Series 2020A-2, Tranche C,

      due June 15, 2051

       
        

       

      

      Bond Purchase Agreement

       

      
        

       

      

      Dated as of November 10, 2020

      

      

      
        
          

      

      
      	
              

              

            	 	Table of Contents	 
	 
	
              Section

            	
              Heading

            	
              Page

            
	 	 	 
	
              Section 1.

            	
              Authorization of Bonds

            	
              1

            
	 	 	 
	 	
              Section 1.1.

            	 	
              Authorization of Bonds

            	
              2

              

            
	 	 	 	 	 
	
              Section 2.

            	
              Sale and Purchase of Bonds

            	
              3

            
	 	 	 
	
              Section 3.1.

            	
              Closings

            	
              4

              

            
	 	 	 
	 	
              Section 3.2.

            	 	
              Failure to Close the Series 2020A-2 Bonds

            	
              4

            
	 	 	 	 	 
	
              Section 4.

            	
              Conditions to each Closing

            	
              4

            
	 	 	 
	 	
              Section 4.1.

            	 	
              Representations and Warranties of the Company

            	5
	 	
              Section 4.2.

            	 	
              Performance; No Default

            	5
	 	
              Section 4.3.

            	 	
              Compliance Certificates

            	5
	 	
              Section 4.4.

            	 	
              Opinions of Counsel

            	5
	 	
              Section 4.5.

            	 	
              Purchase Permitted by Applicable Law, Etc

            	6
	 	
              Section 4.6.

            	 	
              Sale of Bonds

            	6
	 	
              Section 4.7.

            	 	
              Payment of Special Counsel Fees

            	6
	 	
              Section 4.8.

            	 	
              Private Placement Number

            	6
	 	
              Section 4.9.

            	 	
              Changes in Corporate Structure

            	6
	 	
              Section 4.10.

            	 	
              Funding Instructions

            	6
	 	
              Section 4.11.

            	 	
              Execution and Delivery of Supplements; Filing and Recording of UCC Financing Statements and the Supplements

            	
              7

              

            
	 	
              Section 4.12.

            	 	
              Title Policy

            	
              7

              

            
	 	
              Section 4.13.

            	 	
              Company Regulatory Approvals

            	
              7

              

            
	 	
              Section 4.14.

            	 	
              Proceedings and Documents

            	
              8

              

            
	 	
              Section 4.15.

            	 	
              Second Closing

            	
              8

              

            
	 	 	 	 	 
	
              Section 5.

            	
              Representations and Warranties of the Company

            	
              8

              

            
	 	 	 
	 	
              Section 5.1.

            	 	
              Organization; Power and Authority

            	
              8

              

            
	 	
              Section 5.2.

            	 	
              Authorization, Etc

            	
              8

            
	 	
              Section 5.3.

            	 	
              Disclosure

            	
              9

              

            
	 	
              Section 5.4

            	 	
              Subsidiaries

            	
              9

              

            
	 	
              Section 5.5.

            	 	
              Financial Statements; Material Liabilities

            	
              9

              

            
	 	
              Section 5.6.

            	 	
              Compliance with Laws, Other Instruments, Etc

            	
              9

            
	 	
              Section 5.7.

            	 	
              Governmental Authorizations, Etc

            	
              10

              

            
	 	
              Section 5.8.

            	 	
              Litigation; Observance of Statutes and Orders

            	
              10

              

            
	 	
              Section 5.9.

            	 	
              Taxes

            	
              10

            
	 	
              Section 5.10.

            	 	
              Title to Property; Leases

            	
              11

            
	 	
              Section 5.11.

            	 	
              Licenses, Permits, Etc

            	
              11

            
	 	
              Section 5.12.

            	 	
              Compliance with ERISA

            	
              11

            
	 	
              Section 5.13.

            	 	
              Private Offering by the Company

            	
              12

            
	 	
              Section 5.14.

            	 	
              Use of Proceeds; Margin Regulations

            	
              12

            

      

      

      
        - i -

        
          

      

      	 	
              Section 5.15.

            	 	
              Existing Indebtedness

            	
              13

            
	 	
              Section 5.16.

            	 	
              Foreign Assets Control Regulations, Etc

            	
              13

            
	 	
              Section 5.17.

            	 	
              Status under Certain Statutes

            	
              14

            
	 	
              Section 5.18.

            	 	
              Environmental Matters

            	
              14

            
	 	
              Section 5.19.

            	 	
              Lien of Indenture

            	
              15

            
	 	
              Section 5.20.

            	 	
              Filings under Indenture

            	
              15

            
	 	
              Section 5.21.

            	 	
              Status of Certain Material Agreements

            	
              15

            
	 	 	 	 	 
	
              Section 6.

            	
              Representations of the Purchasers

            	
              15

            
	 	 	 
	 	
              Section 6.1.

            	 	
              Purchase for Investment

            	
              15

            
	 	
              Section 6.2.

            	 	
              Source of Funds

            	
              16

            
	 	
              Section 6.3.

            	 	
              Purchaser Status; Experience

            	
              17

            
	 	
              Section 6.4.

            	 	
              Access to Information

            	
              17

            
	 	 	 	 	 
	
              Section 7.

            	
              Information as to Company

            	
              18

            
	 	 	 
	 	
              Section 7.1.

            	 	
              Financial and Business Information

            	
              18

            
	 	
              Section 7.2.

            	 	
              Officer’s Certificate

            	
              20

            
	 	
              Section 7.3.

            	 	
              Visitation

            	
              21

            
	 	 	 	 	 
	
              Section 8.

            	
              Payment and Prepayment of the Bonds

            	
              21

            
	 	 	 
	 	
              Section 8.1.

            	 	
              Maturity

            	
              21

            
	 	
              Section 8.2.

            	 	
              Optional Prepayments with Make‐Whole Amount

            	
              21

            
	 	
              Section 8.3.

            	 	
              Allocation of Partial Prepayments

            	
              22

            
	 	
              Section 8.4.

            	 	
              Maturity; Surrender, Etc

            	
              22

            
	 	
              Section 8.5.

            	 	
              Purchase of Bonds

            	
              22

            
	 	
              Section 8.6.

            	 	
              Make‐Whole Amount for the Bonds

            	
              23

              

            
	 	
              Section 8.7.

            	 	
              Change in Control

            	
              24

            
	 	 	 	 	 
	
              Section 9.

            	
              Affirmative Covenants

            	
              25

            
	 	 	 
	 	
              Section 9.1.

            	 	
              Compliance with Law

            	
              25

            
	 	
              Section 9.2.

            	 	
              Insurance

            	
              26

            
	 	
              Section 9.3.

            	 	
              Maintenance of Properties

            	
              26

            
	 	
              Section 9.4.

            	 	
              Payment of Taxes

            	
              26

            
	 	
              Section 9.5.

            	 	
              Corporate Existence, Etc

            	
              26

            
	 	
              Section 9.6.

            	 	
              Books and Records

            	
              26

            
	 	
              Section 9.7.

            	 	
              Compliance with Material Agreements

            	
              26

            
	 	 	 	 	 
	
              Section 10.

            	
              Negative Covenants

            	
              27

            
	 	 	 
	 	
              Section 10.1.

            	 	
              Transactions with Affiliates

            	
              27

            
	 	
              Section 10.2.

            	 	
              Line of Business

            	
              27

            
	 	
              Section 10.3.

            	 	
              Economic Sanctions Etc.

            	
              27

            
	 	
              Section 10.4.

            	 	
              Non-US Investors

            	
              27

            
	 	 	 	 	 
	
              Section 11.

            	
              Events of Default

            	
              27

            

      

      

      
        - ii -

        
          

      

      	
              Section 12.

            	
              Remedies on Default, Etc.

            	
              29

            
	 	 	 
	 	
              Section 12.1.

            	 	
              Acceleration

            	
              29

            
	 	
              Section 12.2.

            	 	
              Exercise of Remedies Under Indenture

            	
              30

            
	 	
              Section 12.3.

            	 	
              Other Remedies

            	
              30

            
	 	
              Section 12.4.

            	 	
              Rescission

            	
              30

            
	 	
              Section 12.5.

            	 	
              No Waivers or Election of Remedies, Expenses, Etc

            	
              31

            
	 	 	 	 	 
	
              Section 13.

            	
              Payments on Bonds

            	
              31

            
	 	 	 
	 	
              Section 13.1.

            	 	
              Home Office Payment

            	
              31

            
	 	
              Section 13.2.

            	 	
              FATCA Information

            	
              31

            
	 	 	 	 	 
	
              Section 14.

            	
               Registration; Exchange; Expenses, Etc

            	
              32

            
	 	 	 
	 	
              Section 14.1.

            	 	
              Registration of Bonds

            	
              32

            
	 	
              Section 14.2.

            	 	
              Transaction Expenses

            	
              32

            
	 	
              Section 14.3.

            	 	
              Survival

            	
              32

            
	 	 	 	 	 
	
              Section 15.

            	
              Survival of Representations and Warranties; Entire Agreement

            	
              32

            
	 	 	 
	
              Section 16.

            	
              Amendment and Waiver

            	
              33

            
	 	 	 
	 	
              Section 16.1.

            	 	
              Requirements

            	
              33

            
	 	
              Section 16.2.

            	 	
              Solicitation of Holders of Bonds

            	
              33

            
	 	
              Section 16.3.

            	 	
              Binding Effect, Etc

            	
              34

            
	 	
              Section 16.4.

            	 	
              Bonds Held by Company, Etc

            	
              34

            
	 	 	 	 	 
	
              Section 17.

            	
              Notices

            	
              34

            
	 	 	 
	
              Section 18.

            	
              Indemnification

            	
              35

            
	 	 	 
	
              Section 19.

            	
              Reproduction of Documents

            	
              35

            
	 	 	 
	
              Section 20.

            	
              Confidential Information

            	
              36

            
	 	 	 
	
              Section 21.

            	
                Miscellaneous

            	
              36

            
	 	 	 
	 	
              Section 21.1.

            	 	
              Successors and Assigns

            	
              36

            
	 	
              Section 21.2.

            	 	
              Accounting Terms

            	
              37

            
	 	
              Section 21.3.

            	 	
              Severability

            	
              37

            
	 	
              Section 21.4.

            	 	
              Construction, Etc

            	
              37

            
	 	
              Section 21.5.

            	 	
              Counterparts

            	
              37

            
	 	
              Section 21.6.

            	 	
              Governing Law

            	
              37

            
	 	
              Section 21.7.

            	 	
              Jurisdiction and Process; Waiver of Jury Trial

            	
              37

            
	 	
              Section 21.8.

            	 	
              Payments Due on Non‐Business Days

            	
              38

            
	 	
              Section 21.9.

            	 	
              Purchasers

            	
              38

            

      

      

      
        - iii -

        
          

      

      	
              Schedule A

            	
              —

            	
              Information Relating to Purchasers

            
	
              Schedule B

            	
              —

            	
              Defined Terms

            
	
              Schedule 4.11

            	
              —

            	
              Collateral Filings

            
	
              Schedule 5.5

            	
              —

            	
              Financial Statements

            
	
              Schedule 5.15(a)

            	
              —

            	
              Existing Indebtedness

            
	
              Schedule 5.15(b)

            	
              —

            	
              Liens not permitted by Indenture

            
	
              Schedule 5.15(c)

            	
              —

            	
              Debt Instruments

            
	
              Exhibit A

            	
              —

            	
              Form of Third Supplemental Indenture

            
	
              Exhibit B

            	
              —

            	
              Form of Fourth Supplemental Indenture

            
	
              Exhibit 4.4(a)

            	
              —

            	
              Form of Opinion of Special Counsel for the Company

            
	
              Exhibit 10.4

            	
              —

            	
              U.S. Tax Compliance Certificate

            

      

      

      
        - iv -

        
          

      

      Elizabethtown Gas Company

      1 South Jersey Plaza, Route 54

      Folsom, New Jersey 08037

      $75,000,000 3.28% First Mortgage Bonds, Series 2020A-1, Tranche A,

      due November 10, 2050

       

      $50,000,000 3.38% First Mortgage Bonds, Series 2020A-1, Tranche B,

      due November 10, 2060

       

      $50,000,000 2.26% First Mortgage Bonds, Series 2020A-2, Tranche A,

      due June 15, 2031

       

      $25,000,000 3.08% First Mortgage Bonds, Series 2020A-2, Tranche B,

      due June 15, 2041

       

      $50,000,000 3.36% First Mortgage Bonds, Series 2020A-2, Tranche C,

      due June 15, 2051

       

      November 10, 2020 

       

      To Each of the Purchasers Listed in

      Schedule A Hereto:

       

      Ladies and Gentlemen:

       

      Elizabethtown Gas Company, a corporation organized and subsisting under the laws of the State of New Jersey (the “Company”), agrees with each of the purchasers whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as follows:

       

      Section 1.           Authorization of Bonds

      

      

      
        
          

      

      
      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 1.1.     Authorization of Bonds The Company has authorized and will create a series of its first
            mortgage bonds in an aggregate principal amount of $250,000,000 to be issued in five Tranches as follows: (a) 3.28% First Mortgage Bonds, Series 2020A-1, Tranche A due November 10, 2050 in the aggregate principal amount of $75,000,000 (the “Series 2020A-1, Tranche A Bonds”), (ii) 3.38% First Mortgage Bonds, Series 2020A-1, Tranche B due November 10, 2060 in the aggregate principal amount of $50,000,000 (the “Series 2020A-1, Tranche B Bonds” and, together with the Series 2020A-1, Tranche A Bonds, the “Series 2020A-1 Bonds”), (iii) 2.26% First Mortgage Bonds, Series 2020A-2,
            Tranche A due June 15, 2031 in the aggregate principal amount of $50,000,000 (the “Series 2020A-2, Tranche A Bonds”), (iv) 3.08% First Mortgage Bonds, Series 2020A-2,
            Tranche B due June 15, 2041 in the aggregate principal amount of $25,000,000 (the “Series 2020A-2, Tranche B Bonds”), and (5) 3.36% First Mortgage Bonds, Series 2020A-2,
            Tranche C due June 15, 2051 in the aggregate principal amount of $50,000,000 (the “Series 2020A-2, Tranche C Bonds” and, together with the Series 2020A-2, Tranche A Bonds
            and the Series 2020A-2, Tranche B Bonds, the “Series 2020A-2 Bonds” and the Series 2020A-1 Bonds and the Series 2020A-2 Bonds, the “Bonds”).  The Bonds will be issued under and secured by that certain First Mortgage Indenture dated as of July 2, 2018 (the “Original
              Indenture”), between the Company and Wilmington Trust, National Association, as Trustee (the “Trustee”), as supplemented by the First Supplemental Indenture
            dated as of December 20, 2018 (the “First Supplement”), by that certain Second Supplemental Indenture dated as of September 27, 2019 (the “Second Supplement”), and as further supplemented by that certain Third Supplemental Indenture dated as of November 10, 2020 (such Third Supplemental Indenture, which relates to the Series
            2020A-1 Bonds, being referred to herein as the “Third Supplement”) and that certain Fourth Supplemental Indenture to be dated as of June 15, 2021 (such Fourth
            Supplemental Indenture, which relates to the Series 2020A-2 Bonds, being referred to herein as the “Fourth Supplement” and, together with the Third Supplement, the “Supplements”), which will be substantially in the forms attached hereto as Exhibit A and Exhibit B, respectively.  The Original Indenture as so amended and supplemented, and as further supplemented and amended according to its terms, is herein called the “Indenture.”  A copy of the Original Indenture has been delivered to you.  The Bonds shall be issuable in fully registered form only.  The Series 2020A-1, Tranche A Bonds
            shall mature on November 10, 2050, shall bear interest at the rate of 3.28% per annum payable semiannually, on May 10 and on November 10 of each year and at maturity, commencing on May 10, 2021, shall be subject to redemption as provided in the
            Indenture or this Agreement, and shall be in the form established pursuant to the Indenture.  The Series 2020A-1, Tranche B Bonds shall mature on November 10, 2060, shall bear interest at the rate of 3.38% per annum payable semiannually, on May
            10 and on November 10 of each year and at maturity, commencing on May 10, 2021, shall be subject to redemption as provided in the Indenture or this Agreement, and shall be in the form established pursuant to the Indenture.  The Series 2020A-2,
            Tranche A Bonds shall mature on June 15, 2031, shall bear interest at the rate of 2.26% per annum payable semiannually, on June 15 and December 15 of each year and at maturity, commencing on December 15, 2021, shall be subject to redemption as
            provided in the Indenture or this Agreement, and shall be in the form established pursuant to the Indenture.  The Series 2020A-2, Tranche B Bonds shall mature on June 15, 2041, shall bear interest at the rate of 3.08% per annum payable
            semiannually, on June 15 and December 15 of each year and at maturity, commencing on December 15, 2021, shall be subject to redemption as provided in the Indenture or this Agreement, and shall be in the form established pursuant to the
            Indenture.  The Series 2020A-2, Tranche C Bonds shall mature on June 15, 2051, shall bear interest at the rate of 3.36% per annum payable semiannually, on June 15 and December 15 of each year and at maturity, commencing on December 15, 2021,
            shall be subject to redemption as provided in the Indenture or this Agreement, and shall be in the form established pursuant to the Indenture.  As permitted by the Indenture, the Bonds originally issued to you thereunder shall be dated, and
            bear interest from, the date of their original issue on the date of the applicable Closing.

       

          

      
        - 2 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

      Section 2.          
            Sale and Purchase of Bonds

       

      Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the
        Company, at the applicable Closing provided for in Section 3.1, Bonds in the principal amount(s) and in the Tranche(s) specified opposite such Purchaser’s name in Schedule A
        at the purchase price of 100% of the principal amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations, and no Purchaser shall have any liability to any Person for the performance or non‐performance of any
        obligation by any other Purchaser hereunder.

      

      

      
        - 3 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 3.1.        Closings

       

      The sale and purchase of (a) the Series 2020A-1 Bonds to be purchased by each Purchaser thereof shall occur at a closing on November 10, 2020 or on
        such other Business Day thereafter on or prior to November 30, 2020 as may be agreed upon by the Company and such Purchasers (the “First Closing”); and (b) the Series 2020A-2
        Bonds to be purchased by each Purchaser thereof shall occur at a closing on June 15, 2021 or on such other Business Day thereafter on or prior to June 30, 2021 as may be agreed upon by the Company and such Purchasers (the “Second Closing”), in each case at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois  60603, at 10:00 a.m., Central time, at the applicable Closing.  The First Closing
        and the Second Closing are each referred to herein as a “Closing.”  On the date of the applicable Closing, the Company will deliver to each Purchaser the Bonds of the
        applicable Tranche to be purchased by such Purchaser in the form of a single Bond (or such greater number of Bonds in denominations of at least $100,000 as such Purchaser may request) of such Tranche in the amount purchased, dated the date of such
        Closing and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire
        transfer of immediately available funds for the account of the Company to an account specified pursuant to Section 4.10 hereof.  If, on the date of the applicable Closing, the Company shall fail to tender such Bonds to any Purchaser as provided
        above in this Section 3.1, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s reasonable satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under
        this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.

       

      Section 3.2      Failure to Close the Series 2020A-2 Bonds If, on or before June 15, 2021, the Company is unable to satisfy the conditions for the authentication by the Trustee of all of the
            Series 2020A-2 Bonds or any of the conditions set forth in Section 4.13(b) below, the Company shall promptly notify in writing each Purchaser listed on Schedule A who is
            scheduled to purchase any Series 2020A-2 Bonds at the Second Closing (a “Second Closing Purchaser”) of such event.  Upon such Second Closing Purchaser’s receipt of such
            notice, the Company and such Second Closing Purchaser shall be relieved of all further obligations under this Agreement with respect to the Second Closing and the Series 2020A-2 Bonds.

       

      Section 4.           Conditions

            to each Closing 

       

      Each Purchaser’s obligation to purchase and pay for the Bonds to be sold to such Purchaser at the applicable Closing is subject to the fulfillment to such Purchaser’s reasonable satisfaction, prior to or at the
        applicable Closing, of the following conditions: 

       

      

      
        - 4 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 4.1.      Representations and Warranties of the Company. The representations and warranties of the Company in this Agreement shall be correct when made and at the time of the
            applicable Closing.

       

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

       

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

       

      (a)        Officer’s Certificates.  The Company shall have delivered to such Purchaser (i) an Officer’s Certificate, dated the date of the applicable Closing, certifying that the
            conditions specified in Section 4 of this Agreement with respect to such Closing have been fulfilled, (ii) copies of all certificates and opinions required to be delivered to the Trustee under the Indenture in connection with the issuance of
            the Bonds to be issued at the applicable Closing under the Indenture, in each case, dated the date of the applicable Closing, and (iii) copies of all certificates and opinions delivered to the Trustee under the Indenture with respect to the
            execution and delivery of the Third Supplement, with respect to the First Closing, or the Fourth Supplement, with respect to the Second Closing; and

       

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

       

      Section 4.4.      Opinions of Counsel. Such Purchaser shall have received opinions in form and substance reasonably satisfactory to such Purchaser, dated the date of each applicable Closing (a)
            from Cozen O’Connor, counsel for the Company, and, covering the matters set forth in Exhibit 4.4(a) and

            covering such other matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request and (b) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions,
            covering such matters incident to such transactions as such Purchaser may reasonably request.  The Company hereby directs its counsel to deliver such opinions and understands and agrees that each Purchaser will and hereby is authorized to rely
            on such opinions to the extent set forth therein.

       

          

      
        - 5 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 4.5.      Purchase Permitted by Applicable Law, On the date of the applicable Closing, such Purchaser’s purchase of the Bonds shall (a) be permitted by the laws and regulations of each
            jurisdiction to which such Purchaser is subject, without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the
            particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or
            liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such
            matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

       

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

       

      Section 4.7.      Payment of Special Counsel Fees.  Without limiting the provisions of Section 14.2, the Company shall have paid on or before the applicable Closing the reasonable fees, charges
            and disbursements of the Purchasers’ special counsel referred to in Section 4.4(b) to the extent reflected in a statement of such counsel rendered to the Company at least one (1) Business Day prior to the applicable Closing.

       

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

       

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

       

      Section 4.10.    Funding Instructions.  At least five (5) Business Days prior to the date of the applicable Closing, each Purchaser shall have received written instructions signed by a
            Responsible Officer on letterhead of the Company confirming the information specified in Section 3.1 including (a) the name and address of the transferee bank, (b) such transferee bank’s ABA number and (c) the account name and number into which
            the purchase price for the relevant series of Bonds is to be deposited.  Each Purchaser has the right, but not the obligation, upon written notice (which may be by email) to the Company, to elect to deliver a micro deposit (less than $51.00) to
            the account identified in the written instructions no later than two (2)  Business Days prior to the applicable Closing.  If a Purchaser delivers a micro deposit, a Responsible Officer must verbally verify the receipt and amount of the micro
            deposit to such Purchaser on a telephone call initiated by such Purchaser prior to Closing.  The Company shall not be obligated to return the amount of the micro deposit, nor will the amount of the micro deposit be netted against the
            Purchaser’s purchase price of the Bonds.

       

          

      
        - 6 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 4.11.    Execution and Delivery of Supplements; Filing and Recording of UCC Financing Statements and the Supplements.  Prior to the First Closing, the Third Supplement shall have been
            duly executed and delivered by the Company and the Trustee and, prior to the Second Closing, the Fourth Supplement shall have been duly executed and delivered by the Company and the Trustee.  On or prior to each Closing, all UCC Financing
            Statements, the Indenture (as in effect on such date of Closing), the respective Supplement or other instruments with respect thereto as may be necessary shall have been duly filed or recorded (or, in the case of the Third Supplement, duly
            submitted on or before the date of the First Closing for recording, and, in the case of the Fourth Supplement, duly submitted on or before the date of the Second Closing for recording) in such manner and in such places as is reasonably
            satisfactory to the Purchasers (and their special counsel) and the Company and as described in Schedule 4.11 (collectively, the “Collateral Filings”), and no other instruments shall be required to be filed to establish and perfect the Lien of the Trustee upon the Mortgaged Property created by the Indenture (including the respective
            Supplement), which can be perfected by filing the Indenture, the respective Supplement, or a UCC Financing Statement under the UCC, and the Company shall have delivered satisfactory evidence of such filings and recordings, except that the
            Company shall deliver to the Purchasers (and their special counsel) evidence of the recording of the Supplements promptly after such recordings are made.

       

      Section 4.12.   Title Policy.  On or prior to the date of each Closing, the Company shall have delivered a standard American Land Title Association 2006 Form mortgagee title policy issued by a title insurance company with an AM Best rating of A or better (or a reasonably comparable rating from another corporation providing similar ratings), naming the Trustee
              as the insured, insuring that the Indenture in effect on such date of Closing constitutes a Lien on each tract and parcel of land and improvements subject to the Lien of the Indenture having an assessed value of at least $1,000,000,
            subject to no Lien thereon prior to the Lien of the Indenture, except Permitted Liens and standard exceptions in an ALTA title insurance policy, and including typical and applicable endorsements.

       

      Section 4.13.    Company Regulatory Approvals.  (a) On the date
            of the First Closing, any approval or consent of any Governmental Authority, Federal, state or local, including without limitation, any approval or consent required by the New Jersey Board of Public Utilities (the “BPU”), required for the offer, issuance, sale and delivery of the Series 2020A-1 Bonds shall have been obtained, shall be in full force and effect, shall have not have been revoked or amended,
            shall not be the subject of a pending appeal, all appeal periods applicable to such order shall have expired, and shall be legally sufficient to authorize the offer, issue and sale and delivery of the Series 2020A-1 Bonds.

       

      (b)      On the date of the Second Closing, any
            approval or consent of any Governmental Authority, Federal, state or local, including without limitation, any approval or consent required by the BPU, required for the offer, issuance, sale and delivery of the 2020A-2 Bonds (the “Series 2020A-2 Public Order”) shall have been obtained, shall be in full force and effect, shall have not have been revoked or amended, shall not be the subject of a pending
            appeal, all appeal periods applicable to such order shall have expired, and shall be legally sufficient to authorize the offer, issue and sale and delivery of the Series 2020A-2 Bonds.

            

       

            

      
        - 7 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 4.14.    Proceedings and Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident
            to such transactions shall be reasonably satisfactory to each Purchaser and its special counsel, and each Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as
            such Purchaser or such special counsel may reasonably request.  With respect to the First Closing, each Purchaser that so requests shall have received a copy of the Indenture (together with all amendments and supplements thereto), certified by
            the Company as of the date of the First Closing, exclusive of property exhibits, recording information and the like (other than the Fourth Supplement).  With respect to the Second Closing, each Purchaser that so requests shall have received a
            copy of the Fourth Supplement, certified by the Company as of the date of the Second Closing, exclusive of property exhibits, recording information and the like.

       

      Section 4.15.    Second Closing.  The First Closing shall have occurred prior to the date of the Second Closing.

       

      Section 5.           Representations and
            Warranties of the Company. 

       

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

       

      Section 5.1.      Organization; Power and Authority.  The Company is a corporation duly organized and validly existing under the State of New Jersey and is in good standing under the laws of
            the State of New Jersey, and is duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in
            good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has the corporate power and authority to own or hold under lease the properties it purports to own or hold under
            lease, to transact the business it transacts and proposes to transact, to execute and deliver each Financing Agreement (and, in the case of the Indenture, had the corporate power and authority to execute and deliver the Indenture at the time of
            execution and delivery thereof) and to perform the provisions hereof and thereof.

       

      Section 5.2.      Authorization, Etc.  (a) As of the First Closing, each First Closing Financing Agreement has been duly authorized by all necessary corporate action on the part of the Company,
            and each First Closing Financing Agreement constitutes, and upon execution and delivery thereof each Series 2020A-1 Bond will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with
            its respective terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles
            of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

       

      (b)      As of the Second Closing, each Second
            Closing Financing Agreement has been duly authorized by all necessary corporate action on the part of the Company, and each Second Closing Financing Agreement constitutes, and upon execution and delivery thereof each Series 2020A-2 Bond will
            constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its respective terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization,
            moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

       

          

      
        - 8 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

      

      

      Section 5.3.     Disclosure.  The Company, through its agents, JP Morgan Securities LLC and
            KeyBanc Capital Markets Inc., has delivered to you and each other Purchaser a copy of an Investor Presentation, dated October 2020 (the “Investor Presentation”), relating
            to the Company.  The Investor Presentation fairly describes, in all material respects, the general nature of the business and principal properties of the Company.  This Agreement, the Investor Presentation, the documents, certificates or other
            writings delivered to the Purchasers by or on behalf of the Company in connection with the transactions contemplated hereby and the financial statements listed in Schedule 5.5,
            in each case, delivered to the Purchasers prior to the date of this Agreement (this Agreement, the Investor Presentation and such documents, certificates or other writings and such financial statements being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein
            not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, since September 30, 2020, there has been no change in the financial condition, operations, business or properties of the
            Company except changes that individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect.  There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has
            not been set forth herein or in the Disclosure Documents.

       

      Section 5.4.       Subsidiaries.  The Company has no Subsidiaries.

       

      Section 5.5.      Financial Statements; Material Liabilities.  The Company has delivered to each Purchaser copies of the financial statements of the Company listed in Schedule 5.5.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the financial position of the Company as of the
            respective dates specified in such financial statements and the results of its operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved
            except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year‐end adjustments).  The Company does not have any Material liabilities that are not disclosed on such financial statements or
            otherwise disclosed in the Disclosure Documents or in Schedule 5.15.

       

      Section 5.6.      Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by the Company of each Financing Agreement will not (a) contravene, result in any breach
            of, or constitute a default under, or result in the creation of any Lien, other than the Lien created under the Indenture, in respect of any property of the Company, under, any indenture, mortgage, deed of trust, loan, purchase or credit
            agreement, lease, corporate charter or bylaws, or any other Material agreement or instrument to which the Company is bound or by which the Company or any of its properties may be bound or affected, (b) conflict with or result in a breach of any
            of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to the Company, including without limitation with respect to the First Closing, the Public Order
            (and, with respect to the Second Closing, the Series 2020A-2 Public Order), or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company.  For the avoidance of doubt and in
            accordance with Section 3.2, the Company will not execute or deliver the Fourth Supplement and will not execute or deliver the Series 2020A-2 Bonds unless the Series 2020A-2 Public Order has been obtained and is in effect.

       

          

      
        - 9 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 5.7.     Governmental Authorizations, Etc.  (a)  As of the date of the First Closing, no consent, approval or authorization of, or registration, filing or declaration with, any
            Governmental Authority is required in connection with the execution, delivery or performance by the Company of any First Closing Financing Agreement, except for any filing that has already been made or any approval that has already been
            obtained, including without limitation the Public Order, except for certain post‐Closing filing requirements with the BPU, as required by the Public Order.  The period of time for filing an appeal as of right to the Superior Court of New
            Jersey, Appellate Division with respect to the Public Order has expired.

       

      (b)      As of the date of the Second Closing, no
            consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority will be required in connection with the execution, delivery or performance by the Company of any Second Closing Financing Agreement,
            except for any filing that has already been made or any approval that has already been obtained, including without limitation the Series 2020A-2 Public Order, or for certain post‐Closing filing requirements with the BPU, as required by the
            Series 2020A-2 Public Order.  The period of time for filing an appeal as of right to the Superior Court of New Jersey, Appellate Division with respect to the Series 2020A-2 Public Order will have expired.

       

      Section 5.8.     Litigation; Observance of Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the knowledge of the Company, threatened against
            or affecting the Company or any property of the Company in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, would reasonably be expected to have a Material Adverse
            Effect.

       

      (b)      The Company is not (i) in default under
            any term of any agreement or instrument to which it is a party or by which it is bound, (ii) in violation of any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or (iii) in violation of any applicable law,
            ordinance, rule or regulation of any Governmental Authority (including without limitation Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which default or violation,
            individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

       

      Section 5.9.     Taxes.  The Company has filed all tax returns that are required to have been
            filed in any jurisdiction, and has paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon it or its properties, assets, income or franchises, to the extent such taxes and assessments have
            become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b) the amount, applicability or validity of which is currently
            being contested in good faith by appropriate proceedings and with respect to which the Company has established adequate reserves in accordance with GAAP.  The Company knows of no basis for any other tax or assessment that would reasonably be
            expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Company in respect of federal, state or other taxes for all fiscal periods are adequate.  The Company was incorporated in October 2017 and,
            accordingly, has not had any federal income tax liabilities finally determined (whether by reason of completed audits or the statute of limitations having run).

       

          

      
        - 10 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 5.10.    Title to Property; Leases.  The Company has good and sufficient title to its properties that individually or in the aggregate are Material, including all such properties
            reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Company after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and
            clear of Liens (other than the Lien created under the Indenture) prohibited by the Indenture.  To the Company’s knowledge, all Material leases are valid and subsisting and are in full force and effect in all material respects.

       

      Section 5.11.    Licenses, Permits, Etc.  The Company owns or possesses all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks
            and trade names, or rights thereto, that, individually or in the aggregate, are Material to its business as now being conducted, without known conflict with the rights of others, except for those conflicts that would not be reasonably expected
            to have a Material Adverse Effect.

       

      Section 5.12.    Compliance with ERISA.  (a) Each Plan, other than any Multiemployer Plan, operated and administered by the Company or any ERISA Affiliate and each Plan with which the Company
            or any ERISA Affiliate has a relationship has been operated and administered in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not reasonably be expected to result in a Material
            Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to “employee benefit plans” (as defined in section 3 of
            ERISA), which liability has resulted or would reasonably be expected to result in a Material Adverse Effect, and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such
            liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to section 430(k) of the
            Code or to any such penalty or excise tax provisions under the Code or federal law or section 4068 of ERISA or by the granting of a security interest in connection with the amendment of a Plan, other than such liabilities or Liens as would not
            be individually or in the aggregate Material.

       

      (b)      The present value of the aggregate
            benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most
            recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $5,000,000 in the aggregate for all Plans.  The term “benefit liabilities” has the
            meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meanings specified in section 3 of ERISA.

       

          

      
        - 11 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

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

       

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

       

      (f)       The Company does not have any Non-U.S.
            Plans.

       

      Section 5.13.    Private Offering by the Company.  Neither the Company nor anyone acting on
            the Company’s behalf has offered the Bonds or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not
            more than forty-five (45) other institutional accredited investors, each of which has been offered the Bonds in connection with a private sale for investment.  Neither the Company nor anyone acting on its behalf has
            taken, or will take, any action that would subject the issuance or sale of the Bonds to the registration requirements of section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable
            jurisdiction.

       

      Section 5.14.    Use of Proceeds; Margin Regulations.  The Company will use the proceeds of the sale of the Bonds for general corporate purposes, and in compliance with all laws referenced in
            Section 5.16.  No part of the proceeds from the sale of the Bonds hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal
            Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer
            in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 1% of the value of the assets of the Company, and the Company does not have any present intention that margin stock will constitute more than
            1% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

      

      

      
        - 12 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 5.15.    Existing Indebtedness.  (a) Except as described therein, Schedule 5.15(a) sets forth a complete and
            correct list of all outstanding Indebtedness of the Company as of September 30, 2020 (including a description of the obligors and obligees, principal amount outstanding and collateral therefor, if any, and guaranty thereof, if any), since which
            date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Indebtedness of the Company.  The Company is not in default and no waiver of default is currently in effect, in the
            payment of any principal or interest on any Indebtedness of the Company, and no event or condition exists with respect to any Indebtedness of the Company, that would permit (or that with notice or the lapse of time, or both, would permit) one
            or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

       

      (b)      Except as disclosed in Schedule 5.15(b), the Company has not agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now
            owned or hereafter acquired, to be subject to a Lien not permitted by the Indenture.

       

      (c)      The Company is not a party to, or
            otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which
            limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15(c).

       

      Section 5.16.   Foreign Assets Control Regulations, Etc.  (a)  Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in
            the future appear on a State Sanctions List, or (iii) has been notified that it is a target of sanctions that have been imposed by the United Nations or the European Union.

       

      (b)      Neither the Company nor any Controlled
            Entity (i) has, to the Company’s knowledge, violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws or Anti‐Corruption Laws or (ii) to the Company’s
            knowledge, is under investigation by any Governmental Authority for possible violation of any U.S. Economic Sanctions Laws, Anti‐Money Laundering Laws or Anti‐Corruption Laws.

       

      (c)       No part of the proceeds from the sale
            of the Bonds hereunder:

       

      (i)         constitutes or
            will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any
            Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any U.S. Economic Sanctions Laws, or (C) otherwise in violation of any U.S. Economic Sanctions Laws;

       

      (ii)          will be used,
            directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti‐Money Laundering Laws; or

       

      (iii)        will be used,
            directly or indirectly, for the purpose of making any improper payments, including bribes, to any official of a Governmental Authority or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in
            each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti‐Corruption Laws.

       

          

      
        - 13 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      (d)      The Company has established procedures
            and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable U.S. Economic Sanctions Laws,
            Anti‐Money Laundering Laws and Anti‐Corruption Laws.

       

      Section 5.17.    Status under Certain Statutes.  The Company is not subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility Holding Company Act of 2005,
            as amended, the ICC Termination Act of 1995, as amended, nor is the Company subject to rate regulation under the Federal Power Act, as amended.  The Company is a “transmitting utility” as such term is defined in Section 9-102(a)(80) of the
            Uniform Commercial Code adopted in the State of New Jersey (N.J.S.A. 12A:9-102(a)(80)).

       

      Section 5.18.    Environmental Matters.  (a) The Company has no knowledge of any liability, has not received any notice of any liability, and no proceeding has been instituted raising any
            liability against the Company or any of its real properties or other assets now or formerly owned, leased or operated by the Company, alleging any damage to the environment or violation of any Environmental Laws, except, in each case, such as
            would not reasonably be expected to result in a Material Adverse Effect.

       

      (b)      The Company has no knowledge of any
            facts which would give rise to any liability, public or private, for violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties now or formerly owned, leased or operated by
            the Company or to other assets or their use, except, in each case, such as would not reasonably be expected to result in a Material Adverse Effect.

       

      (c)      The Company has not stored any Hazardous
            Materials on real properties now or formerly owned, leased or operated by it nor has it disposed of any Hazardous Materials in each case in a manner contrary to any Environmental Laws that would reasonably be expected to result in a Material
            Adverse Effect.

       

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

      

      

      
        - 14 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 5.19.   Lien of Indenture.  The Indenture (including for the First Closing, the Third Supplement when duly recorded, and for the Second Closing, the Fourth Supplement when duly
            recorded) constitutes a direct and valid Lien upon all of the properties and assets of the Company specifically or generally described or referred to in the Indenture as being subject to the Lien thereof, subject only to Permitted Liens, and
            will create a similar Lien upon all properties and assets acquired by the Company after the date hereof which are required to be subjected to the Lien of the Indenture, when acquired by the Company, subject only to the exceptions referred to in
            the Indenture and Permitted Liens, and subject, further, as to the real property, to the recordation of a supplement to the Indenture describing such after-acquired property and, as to personal property, the filing of a financing statement if
            necessary with respect to the after-acquired collateral; the descriptions of all such properties and assets contained in the granting clauses of the Indenture are correct and adequate for the purposes of the Indenture; and the Original
            Indenture has been duly recorded, and, as of the date of the First Closing, the Third Supplement has been duly submitted for recording prior to or as of the date of First Closing, and, as of the date of the Second Closing, the Fourth Supplement
            will have been duly submitted for recording prior to or as of the date of the Second Closing, as a mortgage of real estate in the real estate recording office in each county listed on Schedule 4.11, which counties collectively include all counties where the Company owns property subject to the Lien of the Indenture, and any required filings with respect to personal property and fixtures subject to the Lien
            of the Indenture have been duly made in each place in which such recording or filing is required to protect, preserve and perfect the Lien of the Indenture; and all taxes and recording and filing fees required to be paid with respect to the
            execution, recording or filing of the Indenture (including the respective Supplements), the filing of any financing statements related thereto and similar documents and the issuance of the Bonds have been paid, except that all recording and
            filing fees required to be paid with respect to the execution, recording or filing of the Supplements will have been paid no later than the date of the applicable Closing.

       

      Section 5.20.    Filings under Indenture.  No action that has not already been taken, including any filing, registration, notice or approval, is necessary or advisable in New Jersey, New York
            or any other jurisdiction to establish or protect for the benefit of the Trustee and the Holders of Bonds secured by the Lien of the Indenture, other than recording the Supplements in the counties in New Jersey referred to therein and the
            filing of the UCC Financing Statements.

       

      Section 5.21.    Status of Certain Material Agreements.  No amendment, modification, supplement or other change has been made to the Indenture other than the First Supplement, the Second
            Supplement, the Third Supplement and, in connection with the Second Closing, the Fourth Supplement.

       

      Section 6.          
            Representations of the Purchasers.

       

      Section 6.1.      Purchase for Investment.  Each Purchaser severally represents that it is purchasing the Bonds for its own account or for one or more separate accounts maintained by such
            Purchaser or for the account of one or more pension or trust funds and not with a view to the distribution thereof, provided that the disposition of the property of such Purchaser or such pension or trust fund shall at all times be within the
            control of such Purchaser or such pension or trust fund.  Each Purchaser understands that the Bonds have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an
            exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Bonds.  Each Purchaser understands that the
            Bonds are being offered and sold in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of the representations,
            warranties, agreements, acknowledgements and understandings set forth herein in order to determine the applicability of such exemptions and the suitability of such Purchaser to acquire the Bonds.

      

      

      
        - 15 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

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

       

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

       

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

       

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

       

          

      
        - 16 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

      (f)           the Source is a
            governmental plan; or

       

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

       

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

       

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

       

      Section 6.3.      Purchaser Status; Experience. Each Purchaser separately represents that such Purchaser is, and on the date of the applicable Closing will be, an “accredited investor” as
            defined in Rule 501(a) under the Securities Act.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the
            merits and risks of the prospective investment in the Bonds, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Bonds and is able to afford a complete loss of
            such investment.

       

      Section 6.4.       Access to Information.  Each Purchaser separately acknowledges that such Purchaser has reviewed the Disclosure Documents and has been afforded (a) the opportunity to ask such
            questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Bonds and the risks of investing in the Bonds; (b) access to information about the
            Company and its financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment; and (c) the opportunity to obtain such additional information that the Company
            possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment decision with respect to the investment.

       

          

      
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              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 7.          
            Information as to Company.

       

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

       

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

       

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

       

      (ii)     consolidated
            statements of income and changes in cash flows of the Company and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter, setting forth in each case in
            comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial
            Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year‐end adjustments;  provided that delivery within the time period specified above of copies of the Company’s Form 10‐Q prepared in compliance with the requirements therefor and filed with the SEC
            shall be deemed to satisfy the requirements of this Section 7.1(a); and provided, further, that the Company shall be deemed to have made such delivery of such Form 10‐Q
            if it shall have timely made such Form 10‐Q available on “EDGAR” or on, or through a link on, the website of the Company or Parent and shall have given each Institutional Investor prior notice of such availability on EDGAR or on or through the
            website of the Company or Parent in connection with each delivery (such availability and notice thereof being referred to as “Electronic Delivery”);

       

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

       

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

       

          

      
        - 18 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      (ii)    consolidated
            statements of income and changes in cash flows and of the Company and its Subsidiaries for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with
            GAAP, and accompanied by an opinion thereon of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the
            companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance
            with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the
            time period specified above of the Company’s Annual Report on Form 10‐K for such fiscal year (together with the Company’s annual report to shareholders, if any, prepared pursuant to Rule 14a‐3 under the Exchange Act) prepared in accordance with
            the requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of this Section 7.1(b), and provided, further, that the Company shall be
            deemed to have made such delivery of such Form 10‐K if it shall have timely made Electronic Delivery thereof;

       

      (c)          SEC and Other Reports — except for the filings referred to in Section 7.1(a) and (b) above, promptly upon their becoming available and, to the extent applicable, one copy of
            (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as
            expressly requested by such Institutional Investor), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC and of all press releases and other statements made available generally by the Company or
            any Subsidiary to the public concerning developments that are Material, provided that the Company shall be deemed to have made such delivery of such information if it
            shall have timely made Electronic Delivery thereof;

       

      (d)          Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer becomes aware of the existence of any Default or Event
            of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section
            11(f) hereof, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

       

      (e)          ERISA Matters — promptly, and in any event within ten Business Days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the
            nature thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with respect thereto:

       

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

       

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

       

          

      
        - 19 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

      (f)         Supplemental Indentures — promptly, and in any event within five days after the execution and delivery thereof, a copy of any supplement to the Indenture that the Company from
            time to time may hereafter execute and deliver which amends the Indenture in any material respect; and

       

      (g)        Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or properties of
            the Company or any of its Subsidiaries or relating to the ability of the Company to perform its obligations hereunder and under the Bonds as from time to time may be reasonably requested by any Holder of a Bond that is an Institutional Investor
            or such information regarding the Company required to satisfy the requirements of 17 CFR §230.144A, as amended from time to time, in connection with any contemplated transfer of the Bonds.

       

      Section 7.2.      Officer’s Certificate.  Each set of financial statements delivered to a Purchaser or a Holder of a Bond that is an Institutional Investor pursuant to Section 7.1(a) or Section
            7.1(b) shall be accompanied by a certificate of a Senior Financial Officer setting forth:

       

      (a)         Covenant Compliance — (i) the information (including detailed calculations) required in order to establish whether the Company was in compliance with the requirements of the
            Indenture during the quarterly or annual period covered by the statements then being furnished to the extent required to be provided under the Indenture; and (ii) to the extent the Company issued additional Securities under the Indenture during
            the period covered by the statements being furnished, any calculations that the Company provided to the Trustee to show compliance with the Indenture in connection with the issuance of such additional Securities.

       

      (b)         Event of Default – a statement that such Senior Financial Officer has reviewed the relevant terms hereof and of the Indenture and has made, or caused to be made, under his or
            her supervision, a review of the transactions and conditions of the Company and its Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such
            review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default under either the Indenture or this Agreement, if any such condition or event existed or exists,
            specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto.

       

          

      
        - 20 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

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

       

      (a)        No Default – if no Default or Event of Default then exists, at the expense of such Institutional Investor and upon reasonable prior notice to the Company, to visit the
            principal executive office of the Company, to discuss the affairs, finances and accounts of the Company and its Subsidiaries with the Company’s officers to the extent they are reasonably available, and, with the consent of the Company (which
            consent will not be unreasonably withheld), to visit the other offices and properties of the Company and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

       

      (b)         Default – if a Default or Event of Default then exists and is continuing, at the expense of the Company to visit and inspect any of the offices or properties of the Company or
            any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and
            independent public accountants (and by this provision the Company authorizes said accountants to discuss the affairs, finances and accounts of the Company and its Subsidiaries), all at such times and as often as may be reasonably requested.

       

      Section 8.           Payment and Prepayment of the Bonds.

       

      Section 8.1.      Maturity.  As provided therein, the entire unpaid principal balance of each Bond shall be due and payable on the respective stated maturity date thereof.

       

      Section 8.2.      Optional Prepayments with Make‐Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the
            Bonds, in an amount not less than 5% of the aggregate principal amount of the Bonds then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such
            prepayment, plus the Make‐Whole Amount determined for the prepayment date with respect to such principal amount of each Bond that is then being so prepaid.  The Company will give each Holder of Bonds written notice of each optional prepayment
            under this Section 8.2 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment, unless the Company and the Required Holders agree to another time period pursuant to Section 16.  Each such notice shall specify
            such date (which shall be a Business Day), the aggregate principal amount of the Bonds to be prepaid on such date, the principal amount of each Bond held by such Holder to be prepaid (determined in accordance with Section 8.3), and any other
            information required to be delivered under the terms of the Indenture, and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial
            Officer as to the estimated Make‐Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such
            prepayment, the Company shall deliver to each Holder of Bonds a certificate of a Senior Financial Officer specifying the calculation of such Make‐Whole Amount as of the specified prepayment date.

       

          

      
        - 21 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Notwithstanding the foregoing, (a) the aggregate principal amount of the Series 2020A-1, Tranche A Bonds may be prepaid without paying any Make-Whole Amount, at the
        Company’s option, beginning on May 10, 2050, (b) the aggregate principal amount of the Series 2020A-1, Tranche B Bonds may be prepaid without paying any Make-Whole Amount, at the Company’s option, beginning on May 10, 2060, (c) the aggregate
        principal amount of the Series 2020A-2, Tranche A Bonds may be prepaid without paying any Make-Whole Amount, at the Company’s option, beginning on March 15, 2031, (d) the aggregate principal amount of the Series 2020A-2, Tranche B Bonds may be
        prepaid without paying any Make-Whole Amount, at the Company’s option, beginning on December 15, 2040 and (e) the aggregate principal amount of the Series 2020A-2, Tranche C Bonds may be prepaid without paying any Make-Whole Amount, at the
        Company’s option, beginning on December 15, 2050.

       

      Section 8.3.     Allocation of Partial Prepayments.  In the case of each partial prepayment of the Bonds pursuant to the provisions of Section 8.2, the principal amount of the Bonds to be
            prepaid shall be allocated among all of the Bonds at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof.

       

      Section 8.4.      Maturity; Surrender, Etc.  In the case of each prepayment of Bonds pursuant to this Section 8, the principal amount of each Bond to be prepaid shall mature and become due and
            payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make‐Whole Amount, if any.  From and after such date, unless the Company
            shall fail to pay such principal amount when so due and payable, together with the interest and Make‐Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any Bond paid or prepaid in full shall be
            surrendered to the Company and cancelled and shall not be reissued, and no Bond shall be issued in lieu of any prepaid principal amount of any Bond.

       

      Section 8.5.      Purchase of Bonds.  The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding
            Bonds except (a) upon the payment or prepayment of the Bonds in accordance with the terms of this Agreement and the Bonds or (b) pursuant to a written offer to purchase all outstanding Bonds made by the Company or an Affiliate pro rata to the Holders of the Bonds upon the same terms and conditions.  The Company will promptly cancel all Bonds acquired by it or any Affiliate pursuant to any payment,
            prepayment or purchase of Bonds pursuant to any provision of this Agreement and no Bonds may be issued in substitution or exchange for any such Bonds (other than with respect to any principal amount of any such Bond that was not so purchased,
            redeemed, prepaid or otherwise acquired).

       

          

      
        - 22 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 8.6.      Make‐Whole Amount for the Bonds.  The term “Make‐Whole Amount” means, with respect to any Bond, an
            amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Bond over the amount of such Called Principal, provided that the Make‐Whole Amount may in no event be less than zero.  For the purposes of determining the Make‐Whole Amount, the following terms have the following meanings:

       

      “Called Principal” means,
          with respect to any Bond of any Tranche, the principal of such Bond that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1 or any other Financing Agreement, as the
          context requires.

       

      “Discounted Value” means,
          with respect to the Called Principal of any Bond, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such
          Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the Bonds of such Tranche is payable) equal to the Reinvestment Yield with respect to such
          Called Principal.

       

      “Reinvestment Yield” means,
          with respect to the Called Principal of any Bond, 0.50% plus the yield to maturity implied by the yield(s) reported as of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called
          Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on‐the‐run U.S. Treasury securities (“Reported”) having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity equal to
          such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between
          the yields Reported for the applicable most recently issued actively traded on‐the‐run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining
          Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the Bond.

       

      If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any Bond, 0.50% plus the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for
        the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for
        the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such
        implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so
        reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the Bond.

       

      

      
        - 23 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

       “Remaining Average Life”
          means, with respect to any Called Principal, the number of years obtained by dividing (a) such Called Principal into (b) the sum of the products obtained by multiplying (i) the principal component of each Remaining Scheduled Payment with respect
          to such Called Principal by (ii) the number of years, computed on the basis of a 360‐day year composed of twelve 30‐day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called
          Principal and the scheduled due date of such Remaining Scheduled Payment.

       

      “Remaining Scheduled Payments” means, with respect to the Called Principal of any Bond, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal
          were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the Bond, then the amount
          of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or Section 12.1, as the context requires.

       

      “Settlement Date” means,
          with respect to the Called Principal of any Bond, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

       

      Section 8.7.      Change in Control.

       

      (a)      Notice of Change in Control.  The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control, give written notice of such Change in Control
            to each Holder of Bonds.  If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay the Bonds as described in subparagraph (b) of this Section 8.7 and shall be accompanied by the certificate described in
            subparagraph (e) of this Section 8.7.

       

      (b)      Offer to Prepay Bonds.  The offer to prepay Bonds contemplated by subparagraph (a) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this Section 8.7, all, but not less than
            all, of the Bonds held by each holder (in this case only, “holder” in respect of any Bond registered in the name of a nominee for a disclosed beneficial owner shall mean
            such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”).  If such Proposed Prepayment Date is in connection with an offer contemplated
            by subparagraph (a) of this Section 8.7, such date shall be not less than 20 days and not more than 45 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall
            be the 30th day after the date of such offer).

       

      (c)     Acceptance; Rejection.  A Holder of Bonds may accept the offer to prepay made pursuant to this Section 8.7 by causing a notice of such acceptance or rejection to be delivered to the Company at least five
            Business Days prior to the Proposed Prepayment Date.  A failure by a Holder of Bonds to respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to constitute a
            rejection of such offer by such Holder.

       

          

      
        - 24 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

       (d)     Prepayment.  Prepayment of the Bonds to be prepaid pursuant to this Section 8.7 shall be at 100% of the principal amount of such Bonds, together with interest on such Bonds accrued to the date of
            prepayment.  The prepayment shall be made on the Proposed Prepayment Date.

       

      (e)       Officer’s Certificate.  Each offer to prepay the Bonds pursuant to this Section 8.7 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such
            offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.7; (iii) the principal amount of each Bond offered to be prepaid; (iv) the interest that would be due on each Bond offered to be
            prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.7 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.

       

      (f)       Effect on Required Payments.  The amount of each payment of the principal of the Bonds made pursuant to this Section 8.7 shall be applied against and reduce each of the then remaining principal payments due
            on such Bonds pursuant to Section 8.1 by a percentage equal to the aggregate principal amount of such Bonds so paid divided by the aggregate principal amount of such Bonds outstanding immediately prior to such payment.

       

      (g)      “Change in Control” Defined.  “Change in Control” means the occurrence of one or more of the following events:

       

       (i)        any sale, lease,
            exchange or other transfer (in a single transaction or a series of related transactions) of all or substantially all of the assets of the Company to any Person or “group” (within the meaning of the Exchange Act and the rules of the SEC
            thereunder in effect on the date of the First Closing), or

       

      (ii)          the acquisition
            of ownership, directly or indirectly, beneficially or of record, by any Person or “group” (within the meaning of the Exchange Act and the rules of the SEC thereunder as in effect on the date of the First Closing) of 50% or more of the
            outstanding ownership interests of the Company, other than an acquisition by Parent or any direct or indirect wholly-owned Subsidiary of Parent of such outstanding ownership interests of the Company.

       

      Section 9.           Affirmative Covenants.

       

      The Company covenants that so long as any of the Bonds are outstanding:

       

      Section 9.1.      Compliance with Law.  Without limiting Section 10.3, the Company will, and will cause each of its
              Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, ERISA, Environmental Laws, the USA PATRIOT Act and the
            other laws and regulations that are referred to in Section 5.16, and will
              obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to
              the extent necessary to ensure that non‐compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental
              authorizations would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

       

          

      
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              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 9.2.     Insurance.  The Company will and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective
            properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co‐insurance and self‐insurance, if adequate reserves are maintained with respect thereto) as is
            customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated.

       

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

       

      Section 9.4.      Payment of Taxes.  The Company will and will cause each of its Subsidiaries to, file all income tax or similar tax returns required to be filed in any jurisdiction and to pay
            and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies payable by any of them, to the extent the same have become due and payable and before they have become
            delinquent, provided that neither the Company nor any Subsidiary need pay any such tax, assessment, charge or levy if (a) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good
            faith and in appropriate proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (b) the nonpayment of all such taxes, assessments,
            charges and levies in the aggregate would not reasonably be expected to have a Material Adverse Effect.

       

      Section 9.5.      Corporate Existence, Etc.  The Company will at all times preserve and keep in full force and effect the corporate existence of each of its Subsidiaries (unless merged into the
            Company or a wholly‐owned Subsidiary) and all rights and franchises of its Subsidiaries unless, in the good faith judgment of the Company or such Subsidiary, the termination of or failure to preserve and keep in full force and effect such
            corporate existence, right or franchise would not, individually or in the aggregate, have a Material Adverse Effect.

       

      Section 9.6.      Books and Records.  The Company will, and will cause each of its Subsidiaries to, maintain proper books of record and account in conformity with GAAP and all applicable
            requirements of any Governmental Authority having legal or regulatory jurisdiction over the Company or such Subsidiary, except where any such nonconformity would not reasonably be expected to have a Material Adverse Effect.

       

      Section 9.7.      Compliance with Material Agreements.  The Company will comply in all material respects with the material terms, conditions and provisions of all Material agreements, except
            where such noncompliance would not reasonably be expected to have a Material Adverse Effect.

       

          

      
        - 26 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 10.         Negative

            Covenants.

       

      The Company covenants that so long as any of the Bonds are outstanding:

       

      Section 10.1.    Transactions with Affiliates.  The Company will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of
            related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than the Company or another Subsidiary), except pursuant to the
            reasonable requirements of the Company’s or such Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such Subsidiary than would be obtainable in a comparable arm’s‐length transaction with a Person not an
            Affiliate.

       

      Section 10.2.    Line of Business.  The Company will not engage in any business if, as a result, the general nature of the business in which the Company and its Subsidiaries, taken as a whole,
            would then be engaged would be substantially changed from the general nature of the business in which the Company is engaged on the date of this Agreement.

       

      Section 10.3.    Economic Sanctions Etc.  The Company will not, and will not permit any Controlled Entity to, (a) become (including by virtue of being owned or controlled by a Blocked Person),
            own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Bonds) with any Person if such
            investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to
            sanctions under any U.S. Economic Sanctions Laws.

       

      Section 10.4     Non-US Investors.  Except as otherwise required by applicable law, the Company agrees that it will not withhold from any applicable payment to be made to a holder of a Bond
            that is not a United States Person any tax so long as such holder shall have delivered to the Company (in such number of copies as shall be requested) on or about the date on which such holder becomes a holder under this Agreement (and from
            time to time thereafter upon the reasonable request of the Company), executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E (or any successor form), as applicable, as well as the applicable U.S. Tax Compliance Certificate substantially in the
            form attached as Exhibit 10.4, in both cases correctly completed and executed.

       

      Section 11.         Events

            of Default.

       

      An “Event of Default” shall exist if any of the following conditions or
        events shall occur and be continuing:

       

      

      
        - 27 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      (a)        the Company
            defaults in the payment of any principal or Make‐Whole Amount, if any, on any Bond when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or;

       

      (b)          the Company
            defaults in the payment of any interest on any Bond for more than five (5) Business Days after the same becomes due and payable; or

       

      (c)          the occurrence of
            any “Event of Default” under the Indenture (other than defaults described in Sections 10.1(a) and 10.1(b) of the Indenture); or

       

      (d)          any
            representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement, the Indenture, or in any writing furnished in connection with the transactions contemplated hereby, proves to have
            been false, incorrect or misleading in any material respect on the date as of which made; or

       

      (e)          the Company
            defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b), and (c) of this Section 11) and such default is not remedied, in the case of defaults hereunder, within 30 days
            after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default and (ii) the Company receiving written notice of such default from any Holder of a Bond (any such written notice to be identified as a “notice of default”
            and to refer specifically to this paragraph (e) of Section 11); or

       

      (f)        (i) the Company or
            any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make‐whole amount or interest on any Indebtedness (other than the Bonds and any other Securities authenticated under
            the Indenture) that is outstanding in an aggregate principal amount of at least $50,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or any Subsidiary is in default in the performance of or compliance with
            any term of any instrument, mortgage, indenture or other agreement relating to any Indebtedness (other than the Bonds and any other Securities authenticated under the Indenture) in an aggregate principal amount of at least $50,000,000 or any
            other condition exists, and as a consequence of such default or condition such Indebtedness has become, or has been declared, due and payable, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the
            passage of time or the right of the holder of Indebtedness to convert such Indebtedness into equity interests), the Company or any Subsidiary has become obligated to purchase or repay Indebtedness (other than the Bonds and any other Securities
            authenticated under the Indenture) before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $50,000,000; or

       

      (g)        a final judgment or
            judgments at any one time outstanding for the payment of money aggregating in excess of $50,000,000 (except to the extent covered by independent third‐party insurance as to which the insurer acknowledges in writing that such judgment or
            judgments are covered by such insurance) are rendered against one or more of the Company or any Subsidiary and which judgments are not, within 30 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged
            within 30 days after the expiration of such stay; or

       

          

      
        - 28 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      (h)         if (i) any Plan
            shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under section 412 of the Code, (ii) a notice
            of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under section 4042 of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC
            shall have notified the Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) for which the
            Company or any ERISA Affiliate is obligated under all Plans, determined in accordance with Title IV of ERISA, shall exceed $50,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability
            (other than for premium payments due to the PBGC) pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws from any Multiemployer
            Plan, or (vi) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post‐employment welfare benefits in a manner that could increase the liability of the Company or any Subsidiary thereunder; provided that any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, would reasonably be
            expected to have a Material Adverse Effect.

       

      As used in Section 11(h), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such
        terms in section 3 of ERISA.

       

      Section 12.         Remedies on Default, Etc.

       

      Section 12.1.   Acceleration.  (a) If an Event of Default has occurred with respect to the Company in connection with an “Event of Default” under Sections 10.1(d) or 10.1(e) of the Indenture,
            all of the Bonds then outstanding shall automatically become immediately due and payable.

       

      (b)      If any other Event of Default has
            occurred and is continuing, any Holder or Holders of more than 50% in aggregate principal amount of the Bonds at the time outstanding may at any time during the continuation of such Event of Default, at its or their option, by notice or notices
            to the Company, declare all of the Bonds then outstanding to be immediately due and payable.

       

      (c)      If any Event of Default described in
            paragraph (a) or (b) of Section 11 has occurred and is continuing with respect to any Bonds, any Holder or Holders of Bonds at the time outstanding affected by such Event of Default may at any time during the continuation of such Event of
            Default, at its or their option, by notice or notices to the Company, declare all of the Bonds held by such Holder or Holders to be immediately due and payable.

      

      

      
        - 29 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Upon any Bond’s becoming due and payable under this Section 12.1 or Section 10.2 of the Indenture, whether automatically or by declaration, such Bond will forthwith
        mature and the entire unpaid principal amount of such Bond, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (ii) the Make‐Whole Amount determined in respect of such
        principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges,
        and the parties hereto agree, that each Holder of a Bond has the right to maintain its investment in the Bonds free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make‐Whole Amount
        by the Company in the event that the Bonds are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

       

      Section 12.2.    Exercise of Remedies Under Indenture.  The Bonds are Outstanding (as defined in the Indenture) Securities under the Indenture, secured equally and ratably by the Lien of the
            Indenture without preference or priority over any other series of Outstanding Securities.  All rights and remedies against the Mortgaged Property under the Indenture shall be enforced as provided under the terms of the Indenture.

       

      Section 12.3.    Other Remedies.  Subject to Section 12.2 hereof, if any Default or Event of Default has occurred and is continuing, and irrespective of whether any Bonds have become or have
            been declared immediately due and payable under Section 12.1, the Holder of any Bond at the time outstanding may proceed to protect and enforce the rights of such Holder by an action at law, suit in equity or other appropriate proceeding,
            whether for the specific performance of any agreement contained herein or in any Bond, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or
            otherwise.

       

      Section 12.4.    Rescission.  At any time after any the Bonds have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the Holders of more than 50% in aggregate
            principal amount of the Bonds then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Bonds, all principal of and Make‐Whole
            Amount, if any, on any Bonds that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make‐Whole Amount, if any, and (to the extent permitted by applicable law) any overdue
            interest in respect of the Bonds, at the Default Rate, (b) neither the Company nor any other Person shall have paid any amounts which have become due solely by reason of such declaration, (c) all Events of Default and Defaults, other than
            non‐payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 16, and (d) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to
            any Bonds.  No rescission and annulment under this Section 12.4 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

       

          

      
        - 30 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 12.5.    No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any Holder of any Bond in exercising any right, power or remedy shall
            operate as a waiver thereof or otherwise prejudice such Holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Bond upon any Holder thereof shall be exclusive of any other right, power or remedy
            referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 14, the Company will pay to the Holder of each Bond on demand such further
            amount as shall be sufficient to cover all reasonable costs and expenses of such Holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.

       

      Section 13.         Payments

            on Bonds.

       

      Section 13.1.   Home Office Payment.  So long as any Purchaser or its nominee shall be the Holder of any Bond, and notwithstanding anything contained in the Indenture or in such Bond to the
            contrary, the Company will pay all sums becoming due on such Bond for principal, Make‐Whole Amount or premium, if any, and interest by the method and at the address specified for such purpose below such Purchaser’s name in Schedule A, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the
            presentation or surrender of such Bond or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Bond, such Purchaser shall
            surrender such Bond for cancellation, reasonably promptly after any such request, to the Trustee at its principal executive office or at the place of payment most recently designated by the Trustee pursuant to the Indenture.  Prior to any sale
            or other disposition of any Bond held by a Purchaser or its nominee, such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such
            Bond to the Company in exchange for a new Bond or Bonds pursuant to Section 3.5 of the Indenture.  The Company will afford the benefits of this Section 13.1 to any Institutional Investor that is the direct or indirect transferee of any Bond
            purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Bond as the Purchasers have made in this Section 13.1.

       

      Section 13.2.    FATCA Information.  By acceptance of any Bond, the holder of such Bond agrees that such holder will with reasonable promptness duly complete and deliver to the Company, or to
            such other Person as may be reasonably requested by the Company, from time to time (a) in the case of any such holder that is a United States Person, such holder’s United States tax identification number or other Forms reasonably requested by
            the Company necessary to establish such holder’s status as a United States Person under FATCA and as may otherwise be necessary for the Company to comply with its obligations under FATCA and (b) in the case of any such holder that is not a
            United States Person, such documentation prescribed by applicable law (including as prescribed by section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be necessary for the Company to comply with its obligations under
            FATCA and to determine that such holder has complied with such holder’s obligations under FATCA or to determine the amount (if any) to deduct and withhold from any such payment made to such holder.  Nothing in this Section 13.2 shall require
            any holder to provide information that is confidential or proprietary to such holder unless the Company is required to obtain such information under FATCA and, in such event, the Company shall treat any such information it receives as
            confidential.

       

          

      
        - 31 -

        
          

      

      	
              Elizabethtown Gas Company

            	
              Bond Purchase Agreement

            

       

      Section 14.         Registration;

            Exchange; Expenses, Etc.

       

      Section 14.1.    Registration of Bonds.  The Company shall cause the Trustee to keep a register for the registration of Bonds and registration of transfers of Bonds in accordance with Section
            3.5 of the Indenture.

       

      Section 14.2.    Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable
            attorneys’ fees of one special counsel and, if reasonably required by the Required Holders, one local or other counsel) incurred (a) by the Purchasers in connection with such transactions, and (b) by the Holders of the Bonds in connection with
            any amendments, waivers or consents under or in respect of any Financing Agreement (whether or not such amendment, waiver or consent becomes effective), including, without limitation:  (i) the reasonable costs and expenses incurred in enforcing
            or defending (or determining whether or how to enforce or defend) any rights under any Financing Agreement or in responding to any subpoena or other legal process or informal investigative demand issued in connection with any Financing
            Agreement, or by reason of being a Holder of Bonds, (ii) the reasonable costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any Subsidiary or in connection with any
            work‐out or restructuring of the transactions contemplated  by any Financing Agreement and (iii) the reasonable costs and expenses incurred in connection with the initial filing of any Financing Agreement and all related documents and financial
            information with the SVO, provided that such costs and expenses under this clause (iii) shall not exceed $5,000 for each Tranche of the Bonds.  The Company will pay, and will save each Purchaser and each other Holder of a Bond harmless from,
            all claims in respect of any fees, costs or expenses if any, of brokers and finders (other than those, if any, retained by a Purchaser or other Holder in connection with its purchase of the Bonds).

       

      Section 14.3.     Survival.  The obligations of the Company under this Section 14 will survive the payment or transfer of any Bond, the enforcement, amendment or waiver of any provision of any
            Financing Agreement, and the termination of any Financing Agreement.

       

      Section 15.         Survival

            of Representations and Warranties; Entire Agreement.

       

      All representations and warranties contained herein shall survive the execution and delivery of the Financing Agreements, the purchase or transfer
        by any Purchaser of any Bond or portion thereof or interest therein and the payment of any Bond, and may be relied upon by any subsequent Holder of a Bond, regardless of any investigation made at any time by or on behalf of such Purchaser or any
        other Holder of a Bond.  All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. 
        Subject to the preceding sentence, the Financing Agreements embody the entire agreement and understanding between each Purchaser and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

      

      

      
        - 32 -

        
          

      

      
        
          
            	
                    Elizabethtown Gas Company

                  	
                    Bond Purchase Agreement

                  

          

           

          Section 16.         Amendment and Waiver.

           

          Section 16.1.    Requirements.  The Company will not cause or permit the Indenture to change the amount or
            time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make‐Whole Amount, if any, on the Bonds as set forth in the Indenture and the Bonds, without the
            written consent of the Holder of each Bond at the time outstanding affected thereby.  This Agreement and the Bonds may be amended, and the observance of any term hereof or of the Bonds may be waived (either retroactively or prospectively), with
            (and only with) the written consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term, will be effective as to any Purchaser or
            any Holder of Bonds unless consented to by such Purchaser or such Holder of Bonds in writing, and (b) no such amendment or waiver may, without the written consent of all of the Holders of Bonds at the time outstanding affected thereby, (i)
            subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest (if
            such change results in a decrease in the interest rate) or of the Make‐Whole Amount, if any, on, the Bonds, (ii) change the percentage of the principal amount of the Bonds the Holders of which are required to consent to any amendment or waiver
            or the principal amount of the Bonds that the Purchasers are to purchase pursuant to Section 2 upon the satisfaction of the conditions to Closing that appear in Section 4, or (iii) amend any of Sections 8, 10.4, 11(a), 11(b), 12, 16 or 20.

           

          Section 16.2.    Solicitation of Holders of Bonds.

           

          (a)     Solicitation.  The Company will provide each Purchaser and each Holder of Bonds (irrespective of the amount of Bonds then owned by it) with
            sufficient information, sufficiently far in advance of the date a decision is required, to enable such Purchaser and such Holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of
            any of the provisions hereof or of the Bonds.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 16 to each Purchaser and each Holder of
            outstanding Bonds promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite Purchasers and Holders of Bonds.

           

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

           

          

          
            - 33 -

            
              

          

          
            
              	
                      Elizabethtown Gas Company

                    	
                      Bond Purchase Agreement

                    

            

          

           

          

          (c)      Consent in Contemplation of Transfer.  Any consent given pursuant to this Section 16 by a Holder of a Bond that has transferred or has agreed
            to transfer its Bond to (i) the Company, (ii) any Subsidiary or any other Affiliate of the Company, or (iii) any other Person in connection with, or in anticipation of, such other Person acquiring, making a tender offer for or merging with the
            Company and/or any of its Affiliates (either pursuant to a waiver under Section 16.1(b)(iii) or subsequent to Section 8.5 having been amended pursuant to Section 16.1(b)(iii)), in each case in connection with such consent, shall be void and of
            no force or effect except solely as to such Holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other
            Holders of Bonds that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such Holder.

           

          Section 16.3.    Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 16
            applies equally to all Purchasers and Holders of Bonds and is binding upon them and upon each future Holder of any Bond and upon the Company without regard to whether such Bond has been marked to indicate such amendment or waiver.  No such
            amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and any Purchaser or
            Holder of a Bond nor any delay in exercising any rights hereunder or under any Bond shall operate as a waiver of any rights of any Purchaser or Holder of such Bond.  As used herein, the term “this Agreement”
            and references thereto shall mean this Bond Purchase Agreement as it may from time to time be amended or supplemented.

           

          Section 16.4.   Bonds Held by Company, Etc.  Solely for the purpose of determining whether the Holders of the
            requisite percentage of the aggregate principal amount of Bonds then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Bonds, or have directed the taking of any action provided herein
            or in the Bonds to be taken upon the direction of the Holders of a specified percentage of the aggregate principal amount of Bonds then outstanding, Bonds directly or indirectly owned by the Company or any of its Affiliates shall be deemed not
            to be outstanding.

           

          
            Section 17.         Notices.

          

           

          Except for Electronic Deliveries, all notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of
            such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with charges prepaid).  Any
            such notice must be sent:

           

          (i)          if to any Purchaser or its nominee, to such Purchaser or nominee at the address specified for such communications in Schedule
              A, or at such other address as such Purchaser or nominee shall have specified to the Company in writing;

           

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

           

          

          
            - 34 -

            
              

          

          
            
              	
                      Elizabethtown Gas Company

                    	
                      Bond Purchase Agreement

                    

            

          

           

          

          (iii)       if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Treasurer, or at such other address as the Company shall
            have specified to the Holder of each Bond in writing; or

           

          (iv)         if to the Trustee, to Wilmington Trust, National Association, 1100 North Market Street, Wilmington, Delaware 19890 or at such other address as the Trustee shall
            have specified to the Company and each other party hereto in writing.

           

          Notices under this Section 17 will be deemed given only when actually received.

           

          
            Section 18.         Indemnification.

          

           

          The Company hereby agrees to indemnify and hold the Purchasers harmless from, against and in respect of any and all loss, liability and reasonable expense (including reasonable attorneys’ fees)
            arising from any misrepresentation or nonfulfillment of any undertaking on the part of the Company under this Agreement.  The indemnification obligations of the Company under this Section 18 shall survive the execution and delivery of this
            Agreement, the delivery of the Bonds to the Purchasers and the consummation of the transactions contemplated herein.

           

          
            Section 19. Reproduction of Documents.

          

           

          This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by any Purchaser
            at the Closing (except the Bonds themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to any Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic,
            digital, or other similar process and such Purchaser may destroy any original document so reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as
            the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or
            further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 19 shall not prohibit the Company or any other Holder of Bonds from contesting any such reproduction to the same extent that it could contest the
            original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

           

          
            - 35 -

            
              

          

          
            
              
                
                  	
                          Elizabethtown Gas Company

                        	
                          Bond Purchase Agreement

                        

                

              

            

             

            

            Section 20.         Confidential Information.

          

           

          For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser or Holder of a Bond by or on behalf of the
            Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement or the Bonds that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when
            received by such Purchaser or Holder as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser or Holder prior to
            the time of such disclosure without an obligation of confidentiality, (b) subsequently becomes publicly known through no act or omission by such Purchaser or Holder or any person acting on such Purchaser’s or Holder’s behalf, (c) otherwise
            becomes known to such Purchaser or Holder other than through disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to such Purchaser or Holder under Section 7.1 of this Agreement that are otherwise
            publicly available.  Each Purchaser and Holder will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser or Holder in good faith to protect confidential information of third
            parties delivered to such Purchaser or Holder and shall use such information only for purposes of monitoring its investment in the Bonds, provided that such Purchaser or Holder may deliver or disclose Confidential Information to (i) its
            directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by the Bonds and who agree to hold confidential the Confidential
            Information substantially in accordance with the terms of this Section 20), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of
            this Section 20, (iii) any other Holder of any Bond, (iv) any Institutional Investor to which it sells or offers to sell such Bond or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of
            such Confidential Information to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase any security of the Company (if such Person has agreed in writing prior to its receipt of such Confidential
            Information to be bound by the provisions of this Section 20), (vi) any federal or state or provincial regulatory authority having jurisdiction over such Purchaser or Holder, (vii) the NAIC or the SVO or, in each case, any similar organization,
            or any nationally recognized rating agency that requires access to information about such Purchaser’s or Holder’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to
            effect compliance with any law, rule, regulation or order applicable to such Purchaser or Holder, (x) in response to any subpoena or other legal process, (y) in connection with any litigation to which such Purchaser or Holder is a party or (z)
            if an Event of Default has occurred and is continuing, to the extent such Purchaser or Holder may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and
            remedies under such Purchaser’s or Holder’s Bonds and this Agreement.  Each Holder of a Bond, by its acceptance of a Bond, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were a
            party to this Agreement.  On reasonable request by the Company in connection with the delivery to any Holder of a Bond of information required to be delivered to such Holder under this Agreement or requested by such Holder (other than a Holder
            that is a party to this Agreement or its nominee), such Holder will enter into an agreement with the Company embodying the provisions of this Section 20.

           

          
            Section 21.         Miscellaneous.

          

           

          Section 21.1.    Successors and Assigns.  All covenants and other agreements contained in this Agreement by or
            on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent Holder of a Bond) whether so expressed or not; provided, however, the provisions of
            Section 7 hereof and any other provision of this Agreement that relates only to Institutional Investors shall only apply to Institutional Investors.

          

          

          
            - 36 -

            
              

          

          
            
              
                
                  	
                          Elizabethtown Gas Company

                        	
                          Bond Purchase Agreement

                        

                

              

            

            

            

            Section 21.2.    Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the
              meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (a) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (b) all financial statements shall
              be prepared in accordance with GAAP.  For purposes of determining compliance with the covenants set out in any Financing Agreement, any election by the Company to measure an item of Indebtedness using fair value (as permitted by Accounting
              Standard Codification Topic No. 825‐10‐25 -– Recognition, subsection Fair Value Option or any similar accounting standard) shall be disregarded and such
              determination shall be made by valuing indebtedness at 100% of the outstanding principal thereof, unless otherwise provided in such Financing Agreement.

          

           

          Section 21.3.    Severability.  Any provision of this Agreement that is prohibited or unenforceable in any
            jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to
            the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

           

          Section 21.4.  Construction, Etc.  Each covenant contained herein shall be construed (absent express provision
            to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any
            provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

           

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

           

          Section 21.5.    Counterparts.  This Agreement may be executed in any number of counterparts, each of which
            shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

           

          Section 21.6.    Governing Law.  This Agreement shall be construed and enforced in accordance with, and the
            rights of the parties shall be governed by, the law of the State of New York excluding choice‐of‐law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

           

          Section 21.7.    Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the
            non‐exclusive jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or relating to this Agreement or the Bonds.  To the fullest extent
            permitted by applicable law, the Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or
            hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

           

          

          
            - 37 -

            
              

          

          
            
              
                	
                        Elizabethtown Gas Company

                      	
                        Bond Purchase Agreement

                      

              

            

          

           

          (b)      The Company consents to process being served by or on behalf of any Holder of Bonds in any suit, action or proceeding of the nature referred to in Section 21.7(a) by mailing a copy
            thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, return receipt requested, to it at its address specified in Section 17 or at such other address of which such Holder shall then have been
            notified pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent
            permitted by applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed to be received as evidenced by a delivery receipt furnished by the United States
            Postal Service or any reputable commercial delivery service.

           

          (c)      Nothing in this Section 21.7 shall affect the right of any Holder of a Bond to serve process in any manner permitted by law, or limit any right that the Holders of any of the Bonds may
            have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

           

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

           

          Section 21.8.   Payments Due on Non‐Business Days.  Anything in this Agreement or the Bonds to the contrary
            notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make‐Whole Amount or interest on any
            Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that
            if the maturity date of any Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest
            payable on such next succeeding Business Day.

           

          Section 21.9.    Purchasers.  Notwithstanding anything to the contrary in this Agreement, (a) in the event any
            Purchaser at the First Closing is, at any time prior to the Second Closing, no longer a Holder of a Series 2020A-1 Bond and such Purchaser is not listed as a Purchaser of a Series 2020A-2 Bond in the Second Closing, such Purchaser shall not be
            deemed to be a “Purchaser” for purposes of Sections 7 and 16, and (b) if at any time after the Second Closing, any Purchaser shall cease being a Holder of a Bond, then such Purchaser shall not be deemed to be a “Purchaser” for purposes of
            Sections 7 and 16.

           

          *   *   *   *   *

           

          

          
            - 38 -

            
              

          

          
            
              
                
                  	
                          Elizabethtown Gas Company

                        	
                          Bond Purchase Agreement

                        

                

              

            

          

           

          

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

          

          

          	 	
                  Very truly yours,

                
	 	 
	 	
                  Elizabethtown Gas Company

                
	 	  

          	 	
                  By 

                	
                  /s/Matthew B. Orendorff

                	 

          	 	
                  Name:

                	
                  Matthew B. Orendorff

                
	 	
                  Its:

                	
                  Treasurer

                

          

          

          
            - 39 -

            
              

          

          
            
              
                
                  
                    	
                            Elizabethtown Gas Company

                          	
                            Bond Purchase Agreement

                          

                  

                

              

            

          

          

          

          Accepted as of the date first written above.

          

          

          	 	
                  American General Life Insurance Company

                
	 	
                  The Variable Annuity Life Insurance Company

                
	 	
                  American Home Assurance Company

                

          	

                	
                  By:

                	
                  AIG Asset Management (U.S.), LLC, as 

                  Investment Adviser

                

          

          

          	 	
                  By:

                	
                  /s/ Yvette Dennis

                
	 	 	
                  Name:

                	
                  Yvette Dennis

                
	 	 	
                  Title:

                	
                  Vice President

                

          

          

          
            - 40 -

            
              

          

          
          
            
              
                
                  
                    
                      	
                              Elizabethtown Gas Company

                            	
                              Bond Purchase Agreement

                            

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Metropolitan Life Insurance Company

                
	 	
                  By:

                	
                  MetLife Investment Management, LLC, Its Investment Manager

                
	 	 
	 	
                  Metropolitan Tower Life Insurance Company

                
	 	
                  By:

                	
                  MetLife Investment Management, LLC, Its Investment Manager

                
	 	 
	 	
                  MetLife Insurance K.K.

                
	 	
                  By:

                	
                  MetLife Investment Management, LLC, Its Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ John Wills

                
	 	 
	 	 	
                  Name:

                	
                  John Wills

                
	 	 	
                  Title:

                	
                  Authorized Signatory

                

          

          

          
            - 41 -

            
              

          

          
            
              
                
                  
                    
                      
                        	
                                Elizabethtown Gas Company

                              	
                                Bond Purchase Agreement

                              

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Transamerica Financial Life Insurance Company

                
	 	
                  By:

                	
                  AEGON USA Investment Management, LLC, its investment manager

                
	 	

                

          	 	By: 

                	
                  /s/ Frederick B. Howard

                
	 	

                	
                  Name:

                	
                  Frederick B. Howard

                
	 	

                	
                  Title:

                	
                  Vice President

                

          

          

          	 	
                  Transamerica Life Insurance Company

                
	 	
                  By:

                	
                  AEGON USA Investment Management, LLC, its investment manager

                
	 	 

          	 	
                  By:

                	
                  /s/ Frederick B. Howard

                
	 	

                	
                  Name:

                	
                  Frederick B. Howard

                
	 	
                  

                  

                	
                  Title:

                	
                  Vice President

                

          

          

          
            - 42 -

            
              

          

          
            
              
                
                  
                    
                      
                        	
                                Elizabethtown Gas Company

                              	
                                Bond Purchase Agreement

                              

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Massachusetts Mutual Life Insurance Company

                
	 	
                  By:

                	
                  Barings LLC as Investment Adviser

                

          

          

          	 	
                  By:  

                	
                  /s/ John Brown IV

                
	 	 	
                  Name:

                	
                  John Brown IV

                
	 	 	
                  Title

                	
                   Managing Director

                

          

          

          
            - 43 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          	
                                  Elizabethtown Gas Company

                                	
                                  Bond Purchase Agreement

                                

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  The Northwestern Mutual Life Insurance Company

                
	 	
                  By:

                	
                  Northwestern Mutual Investment Management Company, LLC, Its Investment Adviser

                
	 	 
	 	
                  By:

                	
                  /s/ Bradley T. Kunath

                
	 	 	
                  Name:

                	
                  Bradley T. Kunath

                
	 	 	
                  Title:

                	
                   Managing Director

                

          

          

          	 	
                  The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account

                
	 	 
	 	
                  By:

                  

                	
                  /s/ Bradley T. Kunath

                
	 	 	
                  Name:

                	
                   Bradley T. Kunath

                
	 	 	
                  Title:

                	
                   Its Authorized Representative

                

          

          

          
            - 44 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    Elizabethtown Gas Company

                                  	
                                    Bond Purchase Agreement

                                  

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  State Farm Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Julie Hoyer

                
	 	 	
                  Name:

                	
                   Julie Hoyer

                
	 	 	
                  Title:

                	
                  Investment Executive

                
	 	 
	 	
                  By:

                	
                  /s/ Rebekah L. Holt

                
	 	 	
                  Name:

                	
                   Rebekah L. Holt

                
	 	 	
                  Title:

                	
                  Investment Professional

                
	 	 
	 	
                  State Farm Life and Accident Assurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Julie Hoyer

                
	 	 	
                  Name:

                	
                  Julie Hoyer

                
	 	 	
                  Title:

                	
                   Investment Executive

                
	 	 
	 	
                  By:

                	
                  /s/ Rebekah L. Holt

                
	 	 	
                  Name:

                	
                  Rebekah L. Holt

                
	 	 	
                  Title:

                	
                  Investment Professional

                

          

          

          
            - 45 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      Elizabethtown Gas Company

                                    	
                                      Bond Purchase Agreement

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Athene Annuity & Life Assurance Company

                
	 	
                  By:

                	
                  Apollo Insurance Solutions Group LP, its investment adviser

                
	 	
                  By:

                	
                  Apollo Capital Management, L.P., its sub adviser

                
	 	
                  By:

                	
                  Apollo Capital Management GP, LLC, its General Partner

                
	 	 
	 	
                  By: 

                	
                  /s/ Joseph D. Glatt

                
	 	 	
                  Name:

                	
                  Joseph D. Glatt

                
	 	 	
                  Title:

                	
                  Vice President

                
	 	 
	 	
                  Jackson National Life Insurance Company

                
	 	
                  By:

                	
                  Apollo Insurance Solutions Group LP, its investment adviser

                
	 	
                  By:

                	
                  Apollo Capital Management, L.P., its sub adviser

                
	 	
                  By:

                	
                  Apollo Capital Management GP, LLC, its General Partner

                
	 	 
	 	
                  By: 

                	
                  /s/ Joseph D. Glatt

                
	 	 	
                  Name:

                	
                  Joseph D. Glatt

                
	 	 	
                  Title:

                	
                  Vice President

                

          

          

          
            - 46 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Elizabethtown Gas Company

                                      	
                                        Bond Purchase Agreement

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Genworth Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Stuart Shepetin

                
	 	 	
                  Name:

                	
                   Stuart Shepetin

                
	 	 	
                  Title:

                	
                   Investment Officer

                

          

          

          	 	
                  Genworth Life and Annuity Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Stuart Shepetin

                
	 	 	
                  Name:

                	
                    Stuart Shepetin

                
	 	 	
                  Title:

                	
                  Investment Officer

                

          

          

          
            - 47 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                	
                                        Elizabethtown Gas Company

                                      	
                                        Bond Purchase Agreement

                                      

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  New York Life Insurance Company

                
	 	 
	 	
                  By: 

                	
                   /s/ A. Post Howland

                
	 	 	
                  Name:

                	
                  A. Post Howland

                
	 	 	
                  Title:

                	
                  Vice President

                

          

          

          	 	
                  New York Life Insurance and Annuity Corporation

                
	 	 
	 	
                  By:

                	
                   NYL Investors LLC, its Investment Manager

                
	 	 
	 	
                  By: 

                	
                   /s/ A. Post Howland

                
	 	 	
                  Name:

                	
                  A. Post Howland

                
	 	 	
                  Title:

                	
                  Managing Director

                

          

          

          	 	
                  New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 30C)

                
	 	 
	 	
                  By:

                	
                  NYL Investors LLC, its Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ A. Post Howland

                
	 	 	
                  Name:

                	
                  A. Post Howland

                
	 	 	
                  Title:

                	
                  Managing Director

                

          

          

          
            - 48 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Elizabethtown Gas Company

                                        	
                                          Bond Purchase Agreement

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Allianz Life Insurance Company of North America

                
	 	 
	 	
                  By:

                	
                   Allianz Global Investors U.S. LLC

                
	 	 	
                  As the authorized signatory and investment manager

                
	 	 
	 	
                  By:  

                	
                  /s/ Lawrence Halliday

                
	 	 	
                  Name:

                	
                   Lawrene Halliday

                
	 	 	
                  Title:

                	
                   Managing Director

                

          

          

          
            - 49 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	
                                            Elizabethtown Gas Company

                                          	
                                            Bond Purchase Agreement

                                          

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  The Guardian Life Insurance Company of America

                
	 	  
	 	
                  By:

                	
                  /s/ Adam Gossett

                
	 	 	
                  Name:

                	
                   Adam Gossett

                
	 	 	
                  Title:

                	
                   Senior Director

                
	 	 	 	 
	 	
                  The Guardian Insurance & Annuity Company, Inc.

                
	 	 	 
	 	
                  By:

                	
                  /s/ Adam Gossett

                
	 	 	
                  Name:

                	
                   Adam Gossett

                
	 	 	
                  Title:

                	
                   Senior Director

                
	 	 	 
	 	
                  Berkshire Life Insurance Company of America

                
	 	 	 
	 	
                  By:

                	
                  /s/ Adam Gossett

                
	 	 	
                  Name:

                	
                  Adam Gossett

                
	 	 	
                  Title:

                	
                   Senior Director

                

          

          

          
            - 50 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              Elizabethtown Gas Company

                                            	
                                              Bond Purchase Agreement

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Knights of Columbus

                
	 	 
	 	
                  By:

                	
                  /s/ Michael J. O’Connor

                
	 	 	
                  Name:

                	
                  Michael J. O’Connor

                
	 	 	
                  Title:

                	
                  Supreme Secretary

                

          

          

          
            - 51 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                Elizabethtown Gas Company

                                              	
                                                Bond Purchase Agreement

                                              

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  United of Omaha Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Justin P. Kavan

                
	 	 	
                  Name:

                	
                  Justin P. Kavan

                
	 	 	
                  Title:

                	
                  Head of Private Placements

                

          

          

          	 	
                  Companion Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Justin P. Kavan

                
	 	 	
                  Name:

                	
                  Justin P. Kavan

                
	 	 	
                  Title:

                	
                  Head of Private Placements

                

          

          

          	 	
                  Mutual of Omaha Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Justin P. Kavan

                
	 	 	
                  Name:

                	
                  Justin P. Kavan

                
	 	 	
                  Title:

                	
                  Head of Private Placements

                

          

          

          
            - 52 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Elizabethtown Gas Company

                                                	
                                                  Bond Purchase Agreement

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  John Hancock Life Insurance Company (U.S.A.)

                
	 	 
	 	
                  By:

                	
                  /s/ Matthew Fedors

                
	 	 	
                  Name:

                	
                  Matthew Fedors

                
	 	 	
                  Title:

                	
                  Managing Director

                

          

          

          
            - 53 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  Elizabethtown Gas Company

                                                	
                                                  Bond Purchase Agreement

                                                

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  Protective Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Diane S. Griswold

                
	 	 	
                  Name:

                	
                  Diane S. Griswold

                
	 	 	
                  Title:

                	
                  VP, Investments

                

          

          

          
            - 54 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Elizabethtown Gas Company

                                                  	
                                                    Bond Purchase Agreement

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  RGA Americas Reinsurance Company, LTD.

                
	 	 
	 	
                  By:

                	
                  /s/ Christopher Quallen

                
	 	 	
                  Name:

                	
                  Christopher Quallen

                
	 	 	
                  Title:

                	
                  V.P. Portfolio Management

                

          

          

          
            - 55 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Elizabethtown Gas Company

                                                  	
                                                    Bond Purchase Agreement

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          Accepted as of the date first written above.

          

          

          	 	
                  American Nuclear Insurers

                
	 	
                  By: Conning, Inc., as Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ Samuel Otchere

                
	 	 	
                  Name:

                	
                  Samuel Otchere

                
	 	 	
                  Title:

                	
                  Director

                

          

          

          	 	
                  Associated Industries of Massachusetts Mutual Insurance Company

                
	 	
                  By:

                	
                  Conning, Inc., as Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ Samuel Otchere

                
	 	 	
                  Name:

                	
                  Samuel Otchere

                
	 	 	
                  Title:

                	
                  Director

                

          

          

          	 	
                  Penn National Security Insurance Company

                
	 	
                  By: Conning, Inc., as Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ Samuel Otchere

                
	 	 	
                  Name:

                	
                  Samuel Otchere

                
	 	 	
                  Title:

                	
                  Director

                

          

          

          	 	
                  Pennsylvania National Mutual Casualty Insurance Company

                
	 	
                  By: Conning, Inc., as Investment Manager

                
	 	 
	 	
                  By:

                	
                  /s/ Samuel Otchere

                
	 	 	
                  Name:

                	
                  Samuel Otchere

                
	 	 	
                  Title:

                	
                  Director

                

          

          

          
            - 56 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Elizabethtown Gas Company

                                                  	
                                                    Bond Purchase Agreement

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          The foregoing is hereby agreed to as of the date thereof.

          

          

          	 	
                  CMFG Life Insurance Company

                
	 	 
	 	
                  By:

                	
                  MEMBERS Capital Advisors, Inc.,

                
	 	 	
                  acting as Investment Advisor

                
	 	 
	 	
                  By:

                	
                  /s/ Jason Micks

                
	 	 	
                  Name:

                	
                  Jason Micks

                
	 	 	
                  Title:

                	
                  Managing Director, Investments

                

          

          

          
            - 57 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Elizabethtown Gas Company

                                                  	
                                                    Bond Purchase Agreement

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

          

            The foregoing is hereby agreed to as of the date thereof.

          

          

          	 	
                  Standard Insurance Company

                
	 	 
	 	
                  By:

                	
                  /s/ Chris Beaulieu

                
	 	 	
                  Name:

                	
                  Chris Beaulieu

                
	 	 	
                  Title:

                	
                  VP, Individual Annuities & Investments

                
	 	 	 	 

          

          

          
            - 58 -

            
              

          

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Elizabethtown Gas Company

                                                  	
                                                    Bond Purchase Agreement

                                                  

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

           

          

          The foregoing is hereby agreed to as of the date thereof.

          

          

          	 	
                  Life Insurance Company of the Southwest

                
	 	 
	 	
                  By:

                	
                  /s/ Paul Koenig

                
	 	 	
                  Name:

                	
                  Paul Koenig

                
	 	 	
                  Title:

                	
                  Head of Portfolio Management

                
	 	 	
                  National Life Group

                

           

          
            - 59 -

            
              

          

           Defined Terms

           

          As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

           

          “Affiliate” means, at any time, and with respect to any Person, (a) any other Person
              that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any other Person beneficially owning or holding, directly or indirectly,
              10% or more of any class of voting or equity interests of such first Person or any Subsidiary of such first Person or any Person of which such first Person and its Subsidiaries beneficially own or hold, in the aggregate, directly or
              indirectly, 10% or more of any class of voting or equity interests.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

           

          “Agreement” is defined in Section 16.3.

           

          “Anti‐Corruption Laws” means any law or regulation in a U.S. or any non‐U.S.
              jurisdiction regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010.

           

          “Anti‐Money Laundering Laws” means any law or regulation in a U.S. or any non‐U.S.
              jurisdiction regarding money laundering, drug trafficking, terrorist‐related activities or other money laundering predicate crimes, including the Currency and Foreign Transactions Reporting Act of 1970 (otherwise known as the Bank Secrecy
              Act) and the USA PATRIOT Act.

           

          “Blocked Person” means (a) a Person whose name appears on the list of Specially
              Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws or (c) a Person that is an
              agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a) or (b).

           

          “Bonds” is defined in Section 1.1.

           

          “BPU” is defined in Section 4.13.

           

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

           

          “Called Principal” is defined in Section 8.6.

           

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

           

            Schedule B

              (to Bond Purchase Agreement)

            
              
                

            

            
            “Change in Control” is defined in Section 8.7(g).

             

            “Closing” is defined in Section 3.1.

             

            “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
                rules and regulations promulgated thereunder from time to time.

             

            “Collateral Filings” is defined in Section 4.11.

             

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

             

            “Confidential Information” is defined in Section 20.

             

            “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
              policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

             

            “Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their
                or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates.

             

            “Default” means an event or condition the occurrence or existence of which would,
                with the lapse of time or the giving of notice or both, become an Event of Default.

             

            “Default Rate” means that rate of interest that is the greater of (i) 2% per annum
                above the rate of interest stated in the Bonds of such Tranche or (ii) 2% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York as its “base” or “prime” rate; provided, however, in no event with the
                rate of interest on a Bond, including any Default Rate, be greater than 10% per annum.

             

            “Discounted Value” is defined in Section 8.6.

             

            “Disclosure Documents” is defined in Section 5.3. 

             

            “Electronic Delivery” is defined in Section 7.1(a).

             

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

             

            “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
                time to time, and the rules and regulations promulgated thereunder from time to time in effect.

            

            

            
              B-2

              
                

            

            “ERISA Affiliate” means any trade or business (whether or not incorporated) that is
                treated as a single employer together with the Company under section 414 of the Code.

             

            “Event of Default” is defined in Section 11.

             

            “Exchange Act” means the Securities Exchange Act of 1934, as amended.

             

            “FATCA” means (a) sections 1471 through
                1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), together with any current or future regulations or official
                interpretations thereof, (b) any treaty, law or regulation of any other jurisdiction, or relating to an intergovernmental agreement between the United States of America and any other jurisdiction, which (in either case) facilitates the implementation of the foregoing clause (a), and (c) any agreements entered into pursuant to section 1471(b)(1) of the Code.

             

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

             

            “First Closing” is defined in Section 3.1.

             

            “First Closing Financing Agreements” means
                this Agreement, the Indenture in effect at the time of the First Closing (including without limitation the Third Supplement) and the Series 2020A-1 Bonds.

             

            “First Supplement” is defined in Section 1.1.

             

            “Fourth Supplement” is defined in Section 1.1.

             

            “GAAP” means generally accepted accounting principles as in effect from time to time
                in the United States of America.

             

            “Governmental Authority” means:

             

            (a)          the government of

             

            (i)          the United States of America or any State or other political subdivision thereof, or

             

            (ii)         any other jurisdiction in which the Company or any Subsidiary conducts all or any part of its business, or which asserts jurisdiction over any properties of
              the Company or any Subsidiary, or

             

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

             

            

            
              B-3

              
                

            

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

             

            “Holder” is defined in the Indenture.

             

            “Indebtedness” with respect to any Person means, at any time, without duplication,

             

            (a)          its liabilities for borrowed money and its redemption obligations in respect of mandatorily redeemable Preferred Stock;

             

            (b)        its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable arising in the ordinary course of business but including all
              liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

             

            (c)          (i) all liabilities appearing on its balance sheet in accordance with GAAP in respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet in
              accordance with GAAP in respect of synthetic leases assuming such synthetic leases were accounted for as Capital Leases;

             

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

             

            (e)          all liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for such Person’s account by banks and other financial institutions
              (whether or not representing obligations for borrowed money);

             

            (f)           the aggregate swap termination value of all swap contracts of such Person, and

             

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

             

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

             

            “Indenture” is defined in Section 1.1.

             

            “INHAM Exemption” is defined in Section 6.2(e).

             

              

            
              B-4

              
                

            

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

             

            “Investor Presentation” is defined in Section 5.3.

             

            “Lien” is defined in the Indenture.

             

            “Make‐Whole Amount” is defined in Section 8.6.

             

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

             

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

             

            “Mortgaged Property” is defined in the Indenture.

             

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

             

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

             

            “NAIC Annual Statement” is defined in Section 6.2(a).

             

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

             

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

             

            “OFAC Sanctions Program” means any economic or trade sanction that OFAC is
                responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found at http://www.treasury.gov/resource‐center/sanctions/Programs/Pages/Programs.aspx.

             

              

            
              B-5

              
                

            

            “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any
                other officer of the Company whose responsibilities extend to the subject matter of such certificate.

             

            “Original Indenture” is defined in Section 1.1.

             

            “Parent” means South Jersey Industries, Inc.

             

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

             

            “Permitted Lien” is defined in the Indenture.

             

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

             

            “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject
                to Title I of ERISA that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Company or any ERISA
                Affiliate or with respect to which the Company or any ERISA Affiliate may have any liability.

             

            “Preferred Stock” means any class of capital stock of a Person that is preferred over
                any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

             

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

             

            “Proposed Prepayment Date” is defined in Section 8.7(b).

             

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

             

            “Public Order” means the order of the BPU, Docket No. GF18050512 dated June 22,
                2018.

             

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

             

            “QPAM Exemption” is defined in Section 6.2(d).

             

            “Reinvestment Yield” is defined in Section 8.6.

             

            “Related Fund” means, with respect to any Holder of any Bond, any fund or entity that
                (a) invests in securities or bank loans, and (b) is advised or managed by such Holder, the same investment advisor as such Holder or by an Affiliate of such Holder or such investment advisor.

             

            “Remaining Average Life” is defined in Section 8.6.

                

              

            
              B-6

              
                

            

            “Remaining Scheduled Payments” is defined in Section 8.6.

             

            “Required Holders” means (a) at any time prior to the Second Closing, (i) the
                Purchasers of the Series 2020A-2 Bonds and (ii) the holders of more than 50% in aggregate principal amount of the Bonds at the time outstanding (exclusive of any such Bonds then owned by the Company or any of its Affiliates); and (b) at any
                time on or after the Second Closing, or if the Second Closing does not occur prior to June 15, 2021, the holders of more than 50% in aggregate principal amount of the Bonds at the time outstanding (exclusive of Bonds then owned by the
                Company or any of its Affiliates).

             

            “Responsible Officer” means any Senior Financial Officer and any other officer of the
                Company with responsibility for the administration of the relevant portion of this Agreement.

             

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

             

            “Second Closing” is defined in Section 3.1.

             

            “Second Closing Financing Agreements” means
                this Agreement, the Indenture in effect at the time of the Second Closing (including without limitation the Supplements) and the Series 2020A-2 Bonds.

             

            “Second Closing Purchaser” is defined in Section 3.2.

             

            “Second Supplement” is defined in Section 1.1.

             

            “Securities” is defined in the Indenture.

             

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

             

            “Senior Financial Officer” means the principal financial officer or the treasurer of
                the Company.

             

            “Series 2020A-1 Bonds” is defined in Section 1.1.

             

            “Series 2020A-1 Bonds, Tranche A” is defined in Section 1.1.

             

            “Series 2020A-1 Bonds, Tranche B” is defined in Section 1.1.

             

            “Series 2020A-2 Bonds” is defined in Section 1.1.

             

            “Series 2020A-2 Bonds, Tranche A” is defined in Section 1.1.

             

            “Series 2020A-2 Bonds, Tranche B” is defined in Section 1.1.

             

              

            
              B-7

              
                

            

            “Series 2020A-2 Bonds, Tranche C” is defined in Section 1.1.

             

            “Series 2020A-2 Public Order” is defined in Section 4.13(b).

             

            “Settlement Date” is defined in Section 8.6.

             

            “Source” is defined in Section 6.2.

             

            “State Sanctions List” means a list that is adopted by any state Governmental
                Authority within the United States of America pertaining to Persons that engage in investment or other commercial activities in Iran or any other country that is a target of economic sanctions imposed under U.S. Economic Sanctions Laws.

             

            “Subsidiary” means, as to any Person, any other Person in which such first Person or
                one or more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the
                directors (or Persons performing similar functions) of such second Person, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such first Person or one or more of its Subsidiaries
                or such first Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless
                the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Company.

             

            “Supplements” is defined in Section 1.1.

             

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

             

            “Third Supplement” is defined in Section 1.1.

             

            “Tranche” means (a) the Series 2020A-1 Bonds, Tranche A, (b) the Series 2020A-1
                Bonds, Tranche B, (c) the Series 2020A-2 Bonds, Tranche A, (d) the Series 2020A-2 Bonds, Tranche B, or (e) the Series 2020A-2 Bonds, Tranche C, as the context requires.

             

            “Trustee” is defined in Section 1.1.

             

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

             

            “UCC Financing Statements” shall mean any financing statements required or permitted
                to be filed in accordance with the UCC.

             

            “USA PATRIOT Act” means United States Public Law 107‐56, Uniting and Strengthening
                America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

            

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

            

            

            

            

            B-8eex-ex101_7.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT, dated as of November ___, 2020 (this “Agreement”), by and between Emerald X, LLC, a Delaware limited liability company (the “Company”), and Hervé Sedky (the “Executive”) (each of the Executive and the Company, a “Party,” and collectively, the “Parties”) and, solely for purposes of Sections 1.2, 2.3(b), 2.4, and 8.1, Emerald Holding, Inc., a Delaware corporation (“Parent”) is effective as of the date hereof.

WHEREAS, the Company desires to employ the Executive and wishes to acquire and be assured of the Executive’s services on the terms and conditions hereinafter set forth; and 

WHEREAS, the Executive desires to be employed by the Company and to perform and to serve the Company on the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valid consideration, the sufficiency of which is acknowledged, the Parties hereto agree as follows:

Section 1.Employment.

1.1.Term.  Subject to Section 3 hereof, the Company agrees to employ the Executive, and the Executive agrees to be employed by the Company, in each case pursuant to this Agreement, for a period commencing on January 22, 2021 (the “Start Date”) and ending on the fourth anniversary of the Start Date (the “Initial Term”); provided, however, that the period of the Executive’s employment pursuant to this Agreement shall be automatically extended for successive one-year periods thereafter (each, a “Renewal Term”), in each case unless either Party provides the other Party with written notice that such period shall not be so extended at least six (6) months in advance of the expiration of the Initial Term or the then-current Renewal Term, as applicable (the Initial Term and all Renewal Terms, collectively, the “Term”).  Each additional one-year Renewal Term shall be added to the end of the next scheduled expiration date of the Initial Term or Renewal Term, as applicable, as of the first day after the last date on which notice may be given pursuant to the preceding sentence.  

1.2.Duties.  Beginning on the Start Date, the Executive shall serve as the Company’s and Parent’s President and Chief Executive Officer, and in such other positions as an officer or director of the Company and such Affiliates (as defined in Section 8.12 below) of the Company as the Executive and the board of directors of Parent (the “Board”) shall mutually agree from time to time. The Executive shall report directly to the Board beginning on the Start Date and during the Term, and shall perform such duties, functions and responsibilities during the Term as are commensurate with his position at such time, as reasonably and lawfully directed by the Board; provided that, during the period that the Limited Non-Compete (as defined below) remains in effect, the Executive shall have no duties, functions and responsibilities related to any jewelry events (including, but not limited to, Couture, JA New York; Las Vegas Antique Jewelry and Watch) or any fasteners events (including, but not limited to, International Fastener Expo; Match & Meet). On or as soon as practicable following the Start Date, the Board shall appoint the Executive to the Board and during the Term, Parent shall use its best efforts to nominate the Executive for reelection to the Board. The Executive shall not receive separate or additional compensation for such Board service. The Executive’s principal place of employment shall at all 

1

 

times during the Term be the Company’s offices in New York, New York (subject to reasonable accommodations in light of COVID-19-related or similar considerations).

1.3.Exclusivity.  During the Term, the Executive shall devote substantially all of the Executive’s business time and attention to the business and affairs of the Company, shall faithfully serve the Company, and shall conform to and comply with the lawful and reasonable directions and instructions given to the Executive by the Board, consistent with Section 1.2 hereof.  During the Term, the Executive shall use the Executive’s best efforts to promote and serve the interests of the Company and shall not engage in any other business activity, whether or not such activity shall be engaged in for pecuniary profit; provided that the Executive may (a) serve any civic, charitable, educational or professional organization, (b) manage the Executive’s personal investments, and (c) serve as a director on an outside board of directors with the Board’s advance written consent, in each case so long as any such activities do not (X) violate the terms of this Agreement (including Section 4) or (Y) interfere with the Executive’s duties and responsibilities to the Company in any material respect.

Section 2.Compensation.

2.1.Salary.  As compensation for the performance of the Executive’s services hereunder, during the Term, the Company shall pay to the Executive a salary at an annual rate of $650,000, payable in accordance with the Company’s standard payroll policies, which will be reviewed for increase annually during the Term (as increased from time to time, the “Base Salary”).

2.2.Annual Bonus.  For each calendar year ending during the Term, the Executive shall be eligible to receive an annual bonus (the “Annual Bonus”) to be based upon Company performance and other criteria for each such calendar year as determined by the Board after consultation with the Executive.  The Executive’s target Annual Bonus opportunity for each calendar year that ends during the Term shall be 107.69% of the Base Salary ($700,000 based on the Base Salary in effect at the Start Date) (the “Target Annual Bonus Opportunity”).  For the first twelve (12) months of the Term, however, the Annual Bonus shall be guaranteed at an amount equal to the Target Annual Bonus Opportunity, which guarantee shall, to the extent the Start Date does not fall on the first day of a calendar year, be pro-rated for the number of days within the first twelve (12) months of the Term occurring within each of the first two calendar years of the Term. Subject to the foregoing (and to the extent an Annual Bonus in respect of the first twelve (12) months is paid over two calendar years, with respect to the remaining portion of the Annual Bonus in respect of the second calendar year), the amount of the Annual Bonus actually paid shall depend on the extent to which the performance goals, set annually by the Board as described above, are achieved or exceeded.  The Annual Bonus shall be paid in the calendar year following the calendar year in respect of which it is earned at the same time as the Company normally pays bonuses to other senior executives; provided, that, if Executive’s employment hereunder is terminated prior to the Annual Bonus payment date (a) by the Company for Cause or (b) by the Executive voluntarily without Good Reason and not for death or Disability, the Annual Bonus shall not be payable. 

 

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2.3. Sign-On Compensation. 

(a) The Company shall pay the Executive a cash sign-on bonus in an amount equal to $100,000 (the “Sign-On Bonus”), which Sign-On Bonus shall be payable to the Executive in lump sum within thirty (30) days following the Start Date. 

(b) Within ten (10) days following the Start Date, Parent shall grant to the Executive a number of restricted stock units (“RSUs”) pursuant to Parent’s 2017 Omnibus Equity Plan (the “Plan”) and the forms of award agreement substantially in the form attached hereto as Exhibit A.  The common stock of Parent (“Common Stock”) underlying the RSUs shall have an aggregate value of $1,250,000 on the date of grant, valued based on the fair market value of the Common Stock as of the date of grant (as determined pursuant to the Plan), but in no case shall more than 355,000 RSUs be issued pursuant to the foregoing. 

2.4.Equity.  The Executive shall be provided the following equity incentive interests and/or rights to purchase equity interests in Parent:

(a) Initial Equity Grants.  Within ten (10) days following the Start Date, Parent shall grant to the Executive a combination of RSUs and an option to purchase Common Stock (an “Option”) pursuant to the Plan and the forms of award agreements substantially in the forms attached hereto as Exhibit B and Exhibit C, respectively.  

(b) Equity Purchase.  As soon as practicable following the Start Date (or, if mutually agreed with the Company, prior to the Start Date), the Executive shall purchase a number of shares of Common Stock with an aggregate fair market value of $200,000 on the date of purchase (based on a purchase price per share equal to the fair market value per share of Common Stock on the date of purchase).

2.5. Employee Benefits.  During the Term, the Executive shall be eligible to participate in such health and other group insurance, perquisites and other employee benefit plans and programs of the Company as in effect from time to time on the same basis as other senior executives of the Company.  

2.6. Vacation.  During the Term, the Executive shall be entitled to an unlimited number of vacation days, pursuant to the Company’s MyTime policy.

2.7. Business Expenses.  The Company shall pay or reimburse the Executive, upon presentation of documentation, for all commercially reasonable business out-of-pocket expenses that the Executive incurs during the Term in performing the Executive’s duties under this Agreement in accordance with the expense reimbursement policy of the Company as approved by the Board (or a committee thereof), as in effect from time to time.  To the extent that any travel requires a flight approximately two hours or longer, the Executive shall be permitted to fly business class.  Notwithstanding anything herein to the contrary or otherwise, except to the extent any expense or reimbursement described in this Agreement does not constitute a “deferral of compensation” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and guidance thereunder (“Section 409A”), any expense or reimbursement described in this Agreement shall meet the following requirements: (a) the amount of expenses eligible for reimbursement provided to the Executive during any calendar 

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year will not affect the amount of expenses eligible for reimbursement to the Executive in any other calendar year; (b) the reimbursements for expenses for which the Executive is entitled to be reimbursed shall be made on or before the last day of the calendar quarter following the calendar quarter in which the applicable expense is incurred; (c) the right to payment or reimbursement or in-kind benefits hereunder may not be liquidated or exchanged for any other benefit; and (d) the reimbursements shall be made pursuant to objectively determinable and nondiscretionary Company policies and procedures regarding such reimbursement of expenses.

2.8.Legal Fees.  Within ten (10) days of the date the Executive submits applicable documentation for reimbursement, the Company shall reimburse the Executive reasonable, documented legal fees and related expenses incurred in connection with the drafting, negotiation and execution of this Agreement, the Executive’s equity arrangements and the other agreements and arrangements related to the Executive’s employment transition and commencement of employment with the Company.

Section 3.Employment Termination.  

3.1.Termination of Employment.  The Company may terminate the Executive’s employment hereunder for any reason during the Term, and the Executive may voluntarily terminate the Executive’s employment hereunder for any reason during the Term at any time, in each case upon not less than 15 days’ notice to the Company or the Executive, as applicable (the date on which the Executive’s employment terminates for any reason is herein referred to as the “Termination Date”).  Upon the termination of the Executive’s employment with the Company for any reason, the Executive shall be entitled to (a) payment of any Base Salary earned but unpaid through the Termination Date, (b) any earned but unpaid Annual Bonus for calendar years completed prior to the Termination Date (payable in the ordinary course pursuant to Section 2.2), (c) vested benefits (if any) in accordance with the applicable terms of applicable Company arrangements and (d) any unreimbursed expenses in accordance with Sections 2.8 and 2.9 hereof (collectively, the “Accrued Amounts”).  

3.2. Certain Terminations. 

(a) Termination by the Company other than for Cause, Death or Disability; Termination by the Executive for Good Reason.  If (1) the Executive’s employment is terminated (X) by the Company other than for Cause, death or Disability or (Y) by the Executive for Good Reason, (2) the Term expires due to the Company’s provision of a non-renewal notice pursuant to Section 1.1, or (3) the Executive is not permitted by the Company to commence employment with the Company pursuant to the terms hereof, other than due to any action taken by Executive that would constitute Cause under this Agreement, in addition to the Accrued Amounts, the Executive shall be entitled to: (i) a payment equal to one (1) times the sum of the Executive’s Base Salary at the rate in effect immediately prior to the Termination Date (or, in the case of clause (3), on the Start Date) and the amount of any Annual Bonus actually earned in respect of the last completed fiscal year prior to the year in which the Termination Date occurs, or if terminated prior to any non-pro rated Annual Bonus being paid, an amount equal to the Target Annual Bonus Opportunity (the “Severance Amount”); (ii) the Pro Rata Bonus (as defined below), (iii) pro rata vesting of a number of then unvested Options and then unvested RSUs granted to Executive equal to the number of unvested RSUs and unvested Options that would have become vested in the 

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ordinary course (calculated on a grant-by-grant basis) had the Executive remained employed with the Company for an additional twelve (12) months, multiplied by a fraction, the numerator of which is the number of days the Executive was employed by the Company from the last vesting date for the applicable award (or, in the case of the first vesting tranche, since the vesting commencement date) and the denominator of which is 365; and (iv) subject to the timely election of continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) and the Executive’s copayment of premiums associated with such coverage consistent with amounts paid by the Executive during the year in which the Termination Date occurs, the Company shall reimburse the Executive, on a monthly basis, an after-tax amount equal to the excess costs of continued health benefits for himself and his covered dependents for the twelve (12)-month period following the Termination Date (“Medical Benefit Continuation”).

The Company’s obligations to pay the Severance Amount and to provide Medical Benefit Continuation shall be conditioned upon (i) the Executive’s continued compliance with the Executive’s obligations under Section 4 of this Agreement and (ii) the Executive executing and delivering to the Company a general release in the form attached hereto as Exhibit D (the “Release”) and the Release becoming irrevocable within 60 days following the Termination Date (the date that the Release becomes irrevocable, the “Release Effective Date”).  Payment of the Severance Amount will be made in equal installments on the Company’s payroll dates occurring in the 12 month period following the Release Effective Date, and payments of the Medical Benefit Continuation will be paid, in each case commencing on the first payroll date of the Company following the Release Effective Date; provided, that, if the 60-day period referred to in the preceding sentence spans two calendar years, payments shall in all cases be paid or commence to be paid on the first payroll date in the second calendar year; provided, further, that, the first payment will include any installments that would have been paid prior thereto but for this sentence; and provided further in the event that a “change in control event” under Section 409A of the Code has occurred within two (2) years prior to the date on which the Severance Amount becomes payable, the Severance Amount shall be paid in a lump sum on the 60th day that follows such change in control event.    

If the Executive is not permitted to continue participation in the Company’s medical insurance plan pursuant to the terms of such plan or pursuant to a determination by the Company’s insurance providers or such continued participation in any plan would result in the imposition of an excise tax on the Company pursuant to Section 4980D of the Code, the Company shall use reasonable efforts to obtain individual insurance policies providing medical benefits to the Executive and his covered dependents during the Medical Benefits Continuation period, but shall be required to pay for such policies only an amount equal to the amount the Company would have paid had the Executive continued participation in the Company’s medical plans; provided, that, if such coverage cannot be obtained, the Company shall pay to the Executive monthly during the Medical Benefit Continuation period an amount equal to the amount the Company would have paid had the Executive continued participation in the Company’s medical plan.

(b) Termination by Death or Disability.  If the Executive’s employment is terminated by reason of the Executive’s death or Disability, the Company shall pay the Executive (or the Executive’s heirs upon a termination by death) a pro-rata bonus for the year of termination, equal to the Annual Bonus the Executive would have been entitled to receive had the Executive’s employment not been terminated, based on the actual performance of the Company 

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for the full year, multiplied by a fraction, the numerator of which is the number of days the Executive is employed by the Company during the applicable year prior to and including the Termination Date and the denominator of which is 365, payable at the time when annual bonuses are paid generally (the “Pro Rata Bonus”).

(c) Definitions.  For purposes of Section 3, the following terms have the following meanings:

(1)“Cause” shall mean the Executive’s having engaged in any of the following: (A) willful misconduct or gross negligence in the performance of any of the Executive’s duties to the Company, which, if capable of being cured, is not cured to the reasonable satisfaction of the Board within 30 days after the Executive receives from the Board written notice of such willful misconduct or gross negligence; (B) intentional failure or refusal to perform reasonably assigned duties or to cooperate with an internal investigation being conducted by or at the direction of the Board, which is not cured to the reasonable satisfaction of the Board within 30 days after the Executive receives from the Board written notice of such failure or refusal; (C) any indictment for, conviction of, or plea of guilty or nolo contendere to, (1) any felony (other than motor vehicle offenses the effect of which do not materially affect the performance of the Executive’s duties) or (2) any crime (whether or not a felony) involving fraud, theft, breach of trust or similar acts, whether of the United States or any state thereof or any similar foreign law to which the Executive may be subject; (D) any willful failure to comply with any written rules, regulations, policies or procedures of the Company which, if not complied with, would reasonably be expected to have a material adverse effect on the business or financial condition of the Company, which in the case of a failure that is capable of being cured, is not cured to the reasonable satisfaction of the Board within 30 days after the Executive receives from the Company written notice of such failure or (E) abuse of alcohol or another controlled substance which materially impacts the Executive’s performance of Executive’s duties hereunder.  If the Company terminates the Executive’s employment for Cause, the Company shall provide written notice to the Executive of that fact on or before the termination of employment. However, if, within 60 days following the termination, the Company first discovers facts that would have established “Cause” for termination, and those facts were not known by the Company at the time of the termination, then the Company may provide Executive with written notice, including the facts establishing that the purported “Cause” was not known at the time of the termination, in which case the Executive’s termination of employment will be considered a for Cause termination under this Agreement, and Executive shall be required to immediately return to the Company all amounts previously paid or provided to the Executive pursuant to Section 3.2(a), and the Company shall have the right to cease to pay or provide any future amounts pursuant to Section 3.2(a). 

(2)“Disability” shall mean the Executive is entitled to and has begun to receive long-term disability benefits under the long-term disability plan of the Company in which the Executive participates, or, if there is no such plan, the Executive’s inability, due to physical or mental illness, to perform the essential functions of the Executive’s job, with or without a reasonable accommodation, for 180 days out of any 270 day consecutive day period.

(3)“Good Reason” shall mean one of the following has occurred: (A) a material breach by the Company of any of the terms in this Agreement; (B) any reduction in the Executive’s Base Salary or Target Annual Bonus Opportunity; (C) the relocation 

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of the Executive’s principal place of employment that would increase the Executive’s one-way commute by more than 20 miles; or (D) any material and adverse change in the Executive’s position, title or status or any change in the Executive’s job duties, authority or responsibilities to those of lesser status.  A termination of employment by the Executive for Good Reason shall be effectuated by giving the Company written notice of the termination, setting forth the conduct of the Company that constitutes Good Reason, within 60 days of the first date on which the Executive has knowledge of such conduct. The Executive shall further provide the Company at least 30 days following the date on which such notice is provided to cure such conduct.  Failing such cure, a termination of employment by the Executive for Good Reason shall be effective on the day following the expiration of such cure period. 

(d) Section 409A.  The provisions herein, and plans and arrangements referenced hereunder, are intended to comply with, or be exempt from, the requirements of Section 409A of the Code and will be administered, construed and interpreted in accordance with such intent.   If the Executive is a “specified employee” for purposes of Section 409A, to the extent the Severance Amount required to be paid pursuant to Section 3.2 hereof constitutes “non-qualified deferred compensation” for purposes of Section 409A, payment thereof shall be delayed until the day after the first to occur of (i) the day which is six months from the Termination Date and (ii) the date of the Executive’s death, with any delayed amounts being paid in a lump sum together with interest on such amount at the applicable federal rate (as defined in and under Section 1274(d) of the Code) on such date and any remaining payments being made in the normal course.  For purposes of this Agreement, the terms “terminate,” “terminated” and “termination” mean a termination of the Executive’s employment that constitutes a “separation from service” within the meaning of the default rules under Section 409A.  For purposes of Section 409A, the right to a series of installment payments under this Agreement shall be treated as a right to a series of separate payments.

3.3. Exclusive Remedy.  The foregoing payments upon termination of the Executive’s employment shall constitute the exclusive severance payments and benefits due the Executive under this Agreement upon a termination of the Executive’s employment, unless otherwise provided in any agreement that post-dates this Agreement.  For the avoidance of doubt, the foregoing sentence relates solely to this Agreement and does not impact or alter any rights to payments or benefits the Executive may have under the Plan and award agreements thereunder.  

3.4. Resignation from All Positions.  Upon the termination of the Executive’s employment with the Company for any reason, the Executive shall, if requested, resign as of the Termination Date, from all positions the Executive then holds as an officer, director and member of the boards of directors (and any committee thereof) of the Company and its Affiliates.  The Executive shall be required to execute such writings as are required to effectuate the foregoing.

3.5. Cooperation.  Following the termination of the Executive’s employment with the Company for any reason, upon reasonable request from the Company and at the Company’s expense and subject to the Executive’s reasonable availability, the Executive shall respond and provide information with respect to matters in which the Executive has knowledge as a result of his services to the Company and its subsidiaries, and will provide reasonable assistance to the Company in defense of any claims that may be made against the Company, and will assist 

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the Company in the prosecution of any claims that may be made by the Company, to the extent that such claims may relate to the period of the Executive’s employment with the Company.  The Company shall compensate the Executive for all hours of time spent in complying with this Section 3.5 above 5 hours in any calendar month, at an hourly rate based on his Base Salary in effect immediately prior to the Executive’s termination of employment.  

3.6. No Mitigation or Offset.  The Executive is not be required to seek other employment or otherwise mitigate the payment obligations of the Company pursuant to this Agreement, nor will any such payments be reduced by any earnings the Executive may receive from any other source.

	
 
	
Section 4.
	
Unauthorized Disclosure; Non-Competition; Non-Solicitation; Interference with Business Relationships; Proprietary Rights.

4.1. Unauthorized Disclosure.  The Executive agrees and understands that in the Executive’s position with the Company, the Executive will be exposed to and will receive information relating to the confidential affairs of the Company and its Affiliates, including, without limitation, technical information, intellectual property, business and marketing plans, strategies, customer information, software, other information concerning the products, promotions, development, financing, expansion plans, business policies and practices of the Company and its Affiliates and other forms of information considered by the Company and its Affiliates to be confidential or in the nature of trade secrets (including, without limitation, ideas, research and development, know-how, formulas, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals) (collectively, the “Confidential Information”).  Confidential Information shall not include information that is generally known to the public or within the relevant trade or industry other than due to the Executive’s violation of this Section 4.1 or disclosure by a third party who is known by the Executive to owe the Company an obligation of confidentiality with respect to such information.  The Executive agrees that at all times during the Executive’s employment with the Company, the Executive shall not disclose such Confidential Information to any individual, corporation, partnership, limited liability company, association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof (each a “Person”), except in connection with Executive’s employment with the Company, and shall not disclose any Confidential Information to any Person following Executive’s employment with the Company  without the prior written consent of the Company, and shall not use or attempt to use any such information in any manner other than in connection with the Executive’s employment with the Company, unless required or permitted by law to disclose such information, in which case the Executive shall provide the Company with written notice of such requirement as far in advance of such anticipated disclosure as reasonably practicable.  This confidentiality covenant has no temporal, geographical or territorial restriction.  Upon termination of the Executive’s employment with the Company, the Executive shall promptly following request supply to the Company all property, keys, notes, memoranda, writings, lists, files, reports, customer lists, correspondence, tapes, disks, cards, surveys, maps, logs, machines, technical data and any other tangible product or document which has been produced by, received by or otherwise submitted to the Executive during the Executive’s employment with the Company (other than any documents relating to the Executive’s employment, benefits, personal tax related-matters or personal contacts), and any copies thereof, in each case, to the extent remaining in the Executive’s 

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(or capable of being reduced to the Executive’s) possession.  Notwithstanding the foregoing, nothing herein shall prevent the Executive from disclosing Confidential Information to the extent required by law.  Additionally, nothing herein shall preclude the Executive’s right to communicate, cooperate or file a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise make disclosures to any Governmental Entity, in each case, that are protected under the whistleblower or similar provisions of any such law or regulation; provided that in each case such communications and disclosures are consistent with applicable law.  Nothing herein shall preclude the Executive’s right to receive an award from a Governmental Entity for information provided under any whistleblower or similar program.  The Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in confidence to a federal, state or local government official or to an attorney solely for the purpose of reporting or investigating a suspected violation of law.  The Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, provided that such filing is made under seal.  If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the trade secret to the Executive’s attorney and use the trade secret information in any related court proceeding, provided that the Executive files any document containing the trade secret under seal and does not disclose the trade secret except pursuant to court order.

4.2. Non-Competition.  By and in consideration of the Company entering into this Agreement, and in further consideration of the Executive’s exposure to the Confidential Information, the Executive agrees that the Executive shall not, during the Term and for a period of 12 months after the Executive’s termination of employment for any reason (the “Restriction Period”), directly or indirectly, own, manage, operate, join, control, be employed by, or participate in the ownership, management, operation or control of, or be connected in any manner with, including, without limitation, holding any position as a stockholder, director, officer, consultant, independent contractor, employee, partner, or investor in, any Restricted Enterprise (as defined below); provided that in no event shall (X) ownership by the Executive of two percent or less of the outstanding securities of any class of any issuer whose securities are registered under the Securities Exchange Act of 1934, as amended, standing alone, be prohibited by this Section 4.2, so long as the Executive does not have, or exercise, any rights to manage or operate the business of such issuer other than rights as a shareholder thereof,  (Y) being employed by or otherwise providing services to an entity, standing alone, be prohibited by this Section 4.2, so long as the entity has more than one discrete and readily distinguishable part of its business and the Executive’s duties are not at or involving the part of the entity’s business that is actively engaged in a Restricted Enterprise or (Z) subject to prior written approval by the Compensation Committee of the Board, being a passive investor or equity holders in a private equity, venture or similar fund that invests in Restricted Enterprises or providing services to a private equity, venture or similar management firm that invests in Restricted Enterprises, be prohibited by this Section 4.2, so long as such services do not involve directing investments in or providing services to such Restricted Enterprises.  For purposes of this paragraph, “Restricted Enterprise” shall mean (1) any Person that is engaged in the operation of business-to-business live events including trade shows, conferences and hosted buyer events, and/or (2) any Person that is engaged in the operation of a business in material competition with any other business line in which the Company is engaged, 

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which business line generates an annual revenue equal to or in excess of $10 million; in each case, in any country or territory in which Parent or any of its subsidiaries markets any of its services or products, and during the Term (or, in the case of enforcement after the Termination Date, during the two (2) year period preceding the Termination Date).  In accordance with Massachusetts law, you are hereby advised that you have the right to consult with counsel before signing this Agreement.     

4.3. Non-Solicitation of Employees.  During the Restriction Period, the Executive shall not directly or indirectly hire, contact, induce or solicit (or assist any Person to hire, contact, induce or solicit) for employment any person who is, or within 12 months prior to the date of such hiring, contacting, inducing or solicitation was, an employee of the Company or any of its Affiliates; provided, however, that the foregoing shall not prevent the Executive from placing advertisements in publications of general circulation or on job search websites, so long as the Executive is not personally involved in recruiting any individual who responds to such an advertisement.

4.4. Interference with Business Relationships.  During the Restriction Period (other than in connection with carrying out the Executive’s responsibilities for the Company and its Affiliates), the Executive shall not directly or indirectly induce or solicit (or assist any Person to induce or solicit) any customer or client of the Company or its subsidiaries to terminate its relationship or otherwise cease doing business in whole or in part with the Company or its Affiliates, or directly or indirectly interfere with (or assist any Person to interfere with) any material relationship between the Company or its Affiliates and any of its or their customers or clients so as to cause harm to the Company or its Affiliates. 

4.5. Extension of Restriction Period.  The Restriction Period shall be tolled for any period during which the Executive is in breach of any of Section 4.2, 4.3 or 4.4 hereof.

4.6. Proprietary Rights.  Except to the extent any rights in any inventions, discoveries, and improvements (whether or not patentable or registrable under copyright or similar statutes), and all patentable or copyrightable works, initiated, conceived, discovered, reduced to practice, or made by the Executive, either alone or in conjunction with others, during the Executive’s employment with the Company and related to the business or activities of the Company and its Affiliates (the “Developments”) constitute a work made for hire under the U.S. Copyright Act, 17 U.S.C. § 101 et seq. that are owned ab initio by the Company and/or its applicable Affiliate, the Executive assigns and agrees to assign all of the Executive’s right, title and interest in all Developments (including all intellectual property rights therein) to the Company or its nominee without further compensation, including all rights or benefits therefor, including without limitation the right to sue and recover for past and future infringement.  The Executive acknowledges that any rights in any Developments constituting a work made for hire under the U.S. Copyright Act, 17 U.S.C § 101 et seq. are owned upon creation by the Company and/or its applicable Affiliate as the Executive’s employer.  The Executive hereby expressly and irrevocably waives any and all moral rights in the Developments including, without limitation, the right to attribution or anonymity in respect of authorship, the right to restrain any distortion, mutilation or other modification of any such Developments and the right to prohibit any use of any such Developments in association with a product, service, cause or institution that may be 

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prejudicial to his honor or reputation.  Whenever reasonably requested to do so by the Company, and at the expense of the Company, the Executive shall execute any and all applications, assignments or other instruments which the Company shall reasonably deem necessary to apply for and obtain trademarks, patents or copyrights of the United States or any foreign country or otherwise protect the interests of the Company and its Affiliates therein with respect to the Developments.  These obligations shall continue beyond the end of the Executive’s employment with the Company with respect to Developments initiated, conceived or made by the Executive while employed by the Company, and shall be binding upon the Executive’s employers, assigns, executors, administrators and other legal representatives.  In connection with the Executive’s execution of this Agreement, the Executive has informed the Company in writing of any interest in any inventions or intellectual property rights related to the Company’s business that the Executive holds as of the date hereof.  If the Company is unable for any reason, after reasonable effort, to obtain the Executive’s signature on any document needed in connection with the actions described in this Section 4.6, the Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as the Executive’s agent and attorney in fact to act for and on the Executive’s behalf to execute, verify and file any such documents and to do all other lawfully permitted acts to further the purposes of this Section 4.6 with the same legal force and effect as if executed by the Executive. 

4.7. Remedies.  The Executive agrees that any breach of the terms of this Section 4 would result in irreparable injury and damage to the Company for which the Company would have no adequate remedy at law; the Executive therefore also agrees that in the event of said breach or any threat of breach, the Company shall be entitled to an immediate injunction and restraining order to prevent such breach, threatened breach and/or continued breach by the Executive and/or any and all Persons acting for and/or with the Executive, without having to prove damages, in addition to any other remedies to which the Company may be entitled at law or in equity.  The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or threatened breach hereof, including, without limitation, the recovery of damages from the Executive.  The Executive and the Company further agree that the provisions of the covenants contained in this Section 4 are reasonable and necessary to protect the businesses of the Company and its Affiliates because of the Executive’s access to Confidential Information and the Executive’s material participation in the operation of such businesses.

Section 5.Representations.  The Executive represents and warrants that (a) the Executive is not subject to any contract, arrangement, policy or understanding, or to any statute, governmental rule or regulation, that in any way limits the Executive’s ability to enter into and fully perform the Executive’s obligations under this Agreement and (b) the Executive is not otherwise unable to enter into and fully perform the Executive’s obligations under this Agreement.  In the event of a material breach of any representation in this Section 5, the Company may terminate this Agreement and the Executive’s employment with the Company without any liability to the Executive.

Section 6.Non-Disparagement.  From and after the Start Date and following termination of the Executive’s employment with the Company (i) the Executive agrees not to make any statement that is intended to become public, or that should reasonably be expected to become public, and that criticizes, ridicules, disparages or is otherwise derogatory of the Company, any of its subsidiaries, Affiliates, employees, officers, directors or stockholders, and (ii) the Company 

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agrees that it will issue no public statements and will instruct its directors and executive officers not to make any statement that is intended to become public, or that should reasonably be expected to become public, and that criticizes, ridicules, disparages or is otherwise derogatory of the Executive.  

Section 7.Taxes; Clawbacks.

7.1.Withholding.  All amounts paid to the Executive under this Agreement during or following the Term shall be subject to withholding and other employment taxes imposed by applicable law.  The Executive shall be solely responsible for the payment of all taxes imposed on the Executive relating to the payment or provision of any amounts or benefits hereunder.

7.2. Section 280G.  

(a) In the event that shareholder approval is not obtained pursuant to Section 7.2(c) below (or payments or benefits are not eligible for a “cure” vote under Section 280G of the Code), if (i) the aggregate of all amounts and benefits due to the Executive under this Agreement or under any other Company arrangement would, if received by the Executive in full and valued under Section 280G of the Code, constitute “parachute payments” as defined in and under Section 280G of the Code (collectively, “280G Benefits”), and if (ii) such aggregate would, if reduced by all federal, state and local taxes applicable thereto, including the excise tax imposed pursuant to Section 4999 of the Code, be less than the amount the Executive would receive, after all taxes, if the Executive received aggregate 280G Benefits equal (as valued under Section 280G of the Code) to only three times the Executive’s “base amount” as defined in and under Section 280G of the Code, less $1.00, then (iii) such 280G Benefits as the Executive shall select shall (to the extent that the reduction of such 280G Benefits can achieve the intended result and such 280G Benefits are not subject to Section 409A of the Code) be reduced or eliminated to the extent necessary so that the aggregate 280G Benefits received by the Executive will not constitute parachute payments.  Notwithstanding the foregoing, if any 280G Benefits are subject to Section 409A of the Code or if the Executive fails to select an order under the preceding sentence, any such reduction shall occur in the following order: (i) by eliminating the acceleration of vesting of any stock options for which the exercise price exceeds the fair market value (and if there is more than one option award so outstanding, then the acceleration of the vesting of the most “under water” option shall be reduced first, and so-on), starting with those assigned the most value for under Q&A 24 of Treas. Reg. 1.280G-1 and so-on; (ii) by reducing any cash payments not subject to Section 409A of the Code; (iii) by reducing any benefit continuation payments (and if there be more than one such payment, by reducing the payments in reverse order, with the payments made the latest being reduced first); (iv), by reducing any cash payments that are subject to Section 409A of the Code (and if there be more than one such payment, by reducing the payments in reverse order, with the payments made the latest being reduced first); (v) by reducing the payments of any restricted stock, restricted stock units, performance awards or similar equity-based awards that have been awarded to the Executive by the Company that are subject to performance-based vesting (and if there be more than one such award held by the Executive, by reducing the awards in the reverse order of the date of their award, with the most-recently awarded reduced first and the oldest award reduced last); (vi) by reducing the payments of any restricted stock, restricted stock units, performance awards or similar equity-based awards that have been 

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awarded to the Executive by the Company that are subject to time-based vesting (and if there be more than one such award held by Executive, by reducing the awards in the reverse order of the date of their award, with the most-recently awarded reduced first and the oldest award reduced last) starting with those assigned the most value for under Q&A 24 of Treas. Reg. 1.280G-1 and so-on; and (vii) by reducing the acceleration of vesting of any stock options that are not described in (i), above starting with those assigned the most value for under Q&A 24 of Treas. Reg. 1.280G-1 and so-on.

(b) It is possible that after the determinations and selections made pursuant to this Section 7.2, the Executive will receive 280G Benefits that are, in the aggregate, either more or less than the amount provided under this Section 7.2 (hereafter referred to as an “Excess Payment” or “Underpayment,” respectively).  If it is established, pursuant to a final determination of a court or an Internal Revenue Service proceeding that has been finally and conclusively resolved, that an Excess Payment has been made, then the Executive shall promptly pay an amount equal to the Excess Payment to the Company, together with interest on such amount at the applicable federal rate (as defined in and under Section 1274(d) of the Code) from the date of the Executive’s receipt of such Excess Payment until the date of such payment.  In the event that it is determined (i) by a court or (ii) by the Company’s third-party auditor, that an Underpayment has occurred, the Company shall promptly pay an amount equal to the Underpayment to the Executive, together with interest on such amount at the applicable federal rate from the date such amount would have been paid to the Executive had the provisions of this Section 7.2 not been applied until the date of such payment.

(c) Notwithstanding the foregoing, if it appears that any amount or benefit that is to be paid to the Executive under this Agreement or any other plan, program, agreement, or arrangement of the Company or any of its Affiliates may constitute a “parachute payment” under Section 280G(b)(2) of the Code, the Company (if eligible to use such exemption) shall (if then eligible to do so) use its best reasonable efforts to obtain shareholder approval of such payments for purposes of Section 280G(b)(5) of the Code.

(d) The costs of all analysis pursuant to this Section 7.2 shall be borne exclusively by the Company and the Company shall provide the Executive with written records of its analysis performed hereunder.

7.3. Clawbacks.  If any law, rule or regulation applicable to the Company or its Affiliates (including any rule or requirement of any nationally recognized stock exchange on which the stock of the Company or its Affiliates has been listed), or any policy of the Company or its Affiliates reasonably designed to comply therewith, requires the forfeiture or recoupment of any amount paid or payable to the Executive hereunder (or under any other agreement between the Executive and the Company or its Affiliates or under any plan in which the Executive participates), the Executive hereby consents to such forfeiture or recoupment, in each case in the time and manner determined by the Company in its reasonable good faith discretion.  Furthermore, if the Executive engages in any act of embezzlement, fraud or dishonesty involving the Company or its 

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Affiliates which results in a financial loss to the Company or its Affiliates, the Company shall be entitled to recoup an amount from the Executive determined by the Company in its reasonable discretion to be commensurate with such financial loss.

Section 8.Miscellaneous.

8.1. Indemnification; D&O Insurance. On the Start Date, Parent and the Executive shall enter into the standard form of indemnification agreement that Parent offers to its Section 16 officers, as referenced in Parent’s Form 10-K filed in February 2020. Without limiting the foregoing, the Company agrees that it will indemnify and hold harmless the Executive (including by advancing all reasonable legal fees and expenses incurred by the Executive within fifteen (15) days of receipt of documentation thereof to the Executive) against any claims, cost and expenses the Executive may incur as a result of any alleged violation of the non-competition restrictions requiring the Executive to refrain from participating in any jewelry events (including, but not limited to, Couture, JA New York, and Las Vegas Antique Jewelry and Watch) or any fasteners events (including, but not limited to, International Fastener Expo, and Match & Meet) contained in an agreement to be entered into by and between the Executive and Reed Elsevier Inc. (the “Limited Non-Compete”) solely in connection with the execution of, or provision of services under, this Agreement or the Executive’s required equity investment in the Company. For the avoidance of doubt, the foregoing indemnification of the Executive shall not apply with respect to any claims, cost and expenses the Executive may incur as a result any alleged violation of the Limited Non-Compete not in connection with the Executive’s execution of, or provision of services under, this Agreement. The Executive shall be covered under any directors’ and officers’ insurance that the Company and Parent maintain for its directors and other officers in the same manner and on the same basis as the Company’s and Parent’s other directors and other senior officers during the Term and for so long as any claims may be made against the Executive consistent with applicable statutes of limitation after the Term. 

8.2. Amendments and Waivers.  This Agreement and any of the provisions hereof may be amended, waived (either generally or in a particular instance and either retroactively or prospectively), modified or supplemented, in whole or in part, only by written agreement signed by the Parties hereto; provided that the observance of any provision of this Agreement may be waived in writing by the Party that will lose the benefit of such provision as a result of such waiver.  The waiver by either Party of a breach of any provision of this Agreement shall not operate or be construed as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach, except as otherwise explicitly provided for in such waiver.  Except as otherwise expressly provided herein, no failure on the part of either Party to exercise, and no delay in exercising, any right, power or remedy hereunder, or otherwise available in respect hereof at law or in equity, shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  

8.3. Assignment; No Third-Party Beneficiaries.  This Agreement, and the Executive’s rights and obligations hereunder, may not be assigned by the Executive, and any purported assignment by the Executive in violation hereof shall be null and void.  Nothing in this Agreement shall confer upon any Person not a party to this Agreement, or the legal representatives of such Person, any rights or remedies of any nature or kind whatsoever under or by reason of this 

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Agreement, except the personal representative of the deceased Executive may enforce the provisions hereof applicable in the event of the death of the Executive.  The Company is authorized to assign this Agreement and its rights and obligations hereunder without the consent of the Executive as part of the transfer of all or substantially all of its properties or assets to any other Person or entity; provided that no such transfer shall operate to expand the scope of any restrictive covenant set forth herein unless otherwise agreed by the Executive in writing in connection with such transfer.

8.4. Notices.  Unless otherwise provided herein, all notices, requests, demands, claims and other communications provided for under the terms of this Agreement shall be in writing.  Any notice, request, demand, claim or other communication hereunder shall be sent by (i) personal delivery (including receipted courier service) or overnight delivery service, with confirmation of receipt, (ii) e-mail, (iii) reputable commercial overnight delivery service courier, with confirmation of receipt or (iv) registered or certified mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below:

	
 
	
If to the Company or Parent: 
	

	

	
 

Emerald X, LLC 

100 Broadway, 14th Floor

New York, NY 10005

Attention:  Chairman of the Board and General Counsel

 

with a copy to:

 

Fried, Frank, Harris, Shriver & Jacobson LLP

	

	
One New York Plaza

	

	
New York, NY  10004

	

	
Attention:  Jeffrey Ross, Esq.

 

	
 
	

	
If to the Executive:At the Executive’s principal office at the Company (during the Term), and at all times to the Executive’s principal residence as reflected in the records of the Company. If by e-mail, to the Executive’s email as reflected in the Company’s records.

 

with a copy (not constituting notice hereunder) to:

Moulton | Moore | Stella LLP

Frank Gehry Building

2431 Main Street, Suite C

Santa Monica, CA 90405

Attention:   Adam Stella

Email:adam@moultonmoore.com.

 

All such notices, requests, consents and other communications shall be deemed to have been given when received (or the following business day in the case of emails or facsimiles 

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delivered after normal business hours at the location of the recipient).  Either Party may change its address or email address to which notices, requests, demands, claims and other communications hereunder are to be delivered by giving the other Parties hereto notice in the manner then set forth.

 

8.5. Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights and obligations of the Parties hereto shall be governed by, the laws of the Commonwealth of Massachusetts without giving effect to the conflicts of law principles thereof. 

8.6. Jurisdiction; Waiver of Jury Trial.  The Executive agrees that jurisdiction and venue for any action arising from or relating to this Agreement or the relationship among the Parties hereto, including but not limited to matters concerning validity, construction, performance, or enforcement, shall be exclusively in the federal and state courts of the Commonwealth of Massachusetts located in Suffolk County (collectively, the “Selected Courts”) (provided, that a final judgment in any such action shall be conclusive and enforced in other jurisdictions) and further agree that service of process may be made in any matter permitted by law.  The Executive irrevocably waives and agrees not to assert (i) any objection which he may ever have to the laying of venue of any action or proceeding arising out of this Agreement or the transactions contemplated hereby in the Selected Courts, and (ii) any claim that any such action brought in any such court has been brought in an inconvenient forum.  This Section 8.6 is intended to fix the location of potential litigation among the Parties hereto and does not create any causes of action or waive any defenses or immunities to suit.  EACH PARTY WAIVES ANY RIGHT TO A TRIAL BY JURY, TO THE EXTENT LAWFUL, AND AGREES THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY LITIGATION WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR THE CONTEMPLATED TRANSACTIONS.

8.7. Severability.  Whenever possible, each provision or portion of any provision of this Agreement, including those contained in Section 4 hereof, will be interpreted in such manner as to be effective and valid under applicable law but the invalidity or unenforceability of any provision or portion of any provision of this Agreement in any jurisdiction shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of this Agreement, including that provision or portion of any provision, in any other jurisdiction.  In addition, should a court or arbitrator determine that any provision or portion of any provision of this Agreement, including those contained in Section 4 hereof, is not reasonable or valid, either in period of time, geographical area, or otherwise, the Parties agree that such provision should be interpreted and enforced to the maximum extent which such court or arbitrator deems reasonable or valid.

8.8. Entire Agreement.  From and after the Start Date, this Agreement (including all Exhibits hereto and documents referenced herein) constitutes the entire agreement among the Parties hereto, and supersedes all prior representations, agreements and understandings (including any prior course of dealings), both written and oral, among the Parties hereto with respect to the subject matter hereof.

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8.9. Counterparts.  This Agreement may be executed by .pdf or facsimile signatures in any number of counterparts, each of which shall be deemed an original, but all such counterparts shall together constitute one and the same instrument.

8.10.Binding Effect.  This Agreement shall inure to the benefit of, and be binding on, the successors and assigns of each of the Parties hereto, including, without limitation, the Executive’s heirs and the personal representatives of the Executive’s estate and any successor to all or substantially all of the business and/or assets of the Company or Parent.

8.11.General Interpretive Principles.  The name assigned to this Agreement and headings of the sections, paragraphs, subparagraphs, clauses and subclauses of this Agreement are for convenience of reference only and shall not in any way affect the meaning or interpretation of any of the provisions hereof.  Words of inclusion shall not be construed as terms of limitation herein, so that references to “include,” “includes” and “including” shall not be limiting and shall be regarded as references to non-exclusive and non-characterizing illustrations.  Any reference to a Section of the Code shall be deemed to include any successor to such Section.

8.12.Affiliates.  For purposes of this Agreement, the term “Affiliates” means any person or entity Controlling, Controlled by, or Under Common Control with the Company.  The term “Control,” including the correlative terms “Controlling,” “Controlled By,” and “Under Common Control with” means possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities of any company or other ownership interest, by contract or otherwise) of a person or entity.  

[signature page follows]

 

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17

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

		
	
 
	
 

EMERALD X, LLC

 

By:

Name: 

Title:  

 

 

	
 
	
EMERALD HOLDING, INC. (solely for purposes of Sections 1.2, 2.3(b), 2.4, and 8.1 of this Agreement)

 

 

By:  _____________________________

        Name:

        Title:

 

 

EXECUTIVE

 

 

 

	
 
	
Hervé Sedky 

  

[Signature Page to Sedky Employment Agreement]

 

 

 

 
 

 

Exhibit A

Restricted Stock Unit Award Agreement

[To be provided.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

Exhibit B

Restricted Stock Unit Award Agreement

[To be provided.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

Exhibit C

Option Award Agreement

[To be provided.]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

Exhibit D

You should consult with an attorney before signing this release of claims.

Release

1.In consideration of the payments and benefits to be made under the Employment Agreement, dated as of November ___,  2020 (the “Employment Agreement”), by and between Hervé Sedky (the “Executive”) and Emerald X, LLC, (the “Company”) (each of the Executive and the Company, a “Party” and collectively, the “Parties”), and solely for the purpose of Sections 1.2, 2.3(b), 2.4, and 8.1 of the Employment Agreement, Emerald Holding, Inc., (“Parent”), the sufficiency of which the Executive acknowledges, the Executive, with the intention of binding the Executive and the Executive’s heirs, executors, administrators and assigns, does hereby release, remise, acquit and forever discharge the Company and each of its subsidiaries and Affiliates (the “Company Affiliated Group”), their present and former officers, directors, executives, shareholders, insurers, agents, attorneys, employees and employee benefit plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing (collectively, the “Company Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected, which the Executive, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, arising on or prior to the date hereof, against any Company Released Party that arises out of, or relates to, the Employment Agreement, the Executive’s employment with the Company or any of its subsidiaries and Affiliates, or any termination of such employment, including claims (i) for severance, unpaid wages, salary or incentive payments, (ii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort, (iii) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices) and (iv) for employment discrimination under any applicable federal, state or local statute, provision, order or regulation, and including, without limitation, any claim under Title VII of the Civil Rights Act of 1964 (“Title VII”), the Civil Rights Act of 1988, the Fair Labor Standards Act, the Americans with Disabilities Act (“ADA”), the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), the Age Discrimination in Employment Act (“ADEA”), and any similar or analogous state statute, excepting only:

	
 
	
A.
	
rights of the Executive arising under, or preserved by, this Release or Section 3 of the Employment Agreement;

	
 
	
B.
	
the right of the Executive to receive COBRA continuation coverage in accordance with applicable law; 

	
 
	
C.
	
claims for benefits under any health, disability, retirement, life insurance or other, similar employee benefit plan (within the meaning of Section 3(3) of ERISA) of the Company Affiliated Group; 

 

 

 

 
 

 

	
 
	
D.
	
rights to indemnification the Executive has or may have under the by-laws or certificate of incorporation of any member of the Company Affiliated Group or as an insured under any director’s and officer’s liability insurance policy now or previously in force; and

	
 
	
E.
	
rights granted to the Executive during the Executive’s employment related to the purchase and/or grant of equity of Emerald Holding, Inc. 

2.The Executive acknowledges and agrees that this Release is not to be construed in any way as an admission of any liability whatsoever by any Company Released Party, any such liability being expressly denied.

3.This Release applies to any relief no matter how called, including, without limitation, wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages, damages for pain or suffering, costs, and attorneys’ fees and expenses.  

4.The Executive specifically acknowledges that the Executive’s acceptance of the terms of this Release is, among other things, a specific waiver of the Executive’s rights, claims and causes of action under Title VII, ADEA, ADA and any state or local law or regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything contained herein purport, to be a waiver of any right or claim or cause of action which by law the Executive is not permitted to waive.

5.The Executive acknowledges that the Executive has been given a period of twenty-one (21) days to consider whether to execute this Release.  If the Executive accepts the terms hereof and executes this Release, the Executive may thereafter, for a period of seven (7) days following (and not including) the date of execution, revoke this Release.  Any revocation within this period must be submitted, in writing, to Angelique Carbo, Executive Vice President, People and Culture (or her successor), Emerald X, LLC, 100 Broadway, 14th Floor, New York, NY 10005, and must state: “I hereby revoke my acceptance of the Release of Claims.”  The revocation must be either: (a) personally delivered to Angelique Carbo (or her successor) within 7 calendar days after the day Executive signs the Release; (b) mailed to Angelique Carbo (or her successor) at the address specified above by First Class United States mail and postmarked within 7 calendar days after the day Executive signs the Release; or (c) sent by e-mail to Angelique Carbo (or her successor) to her Company issued e-mail address; or (d) delivered to Angelique Carbo (or her successor) at the address specified above through a reputable overnight delivery service with documented evidence that it was sent within 7 calendar days after the day Executive signed the Release.  If no such revocation occurs, this Release shall become irrevocable in its entirety, and binding and enforceable against the Executive, on the day next following the day on which the foregoing seven-day period has elapsed.  If such a revocation occurs, the Executive shall irrevocably forfeit any right to payment of the Severance Amount and provision of the Medical Benefit Continuation (as each is defined in the Employment Agreement), but the remainder of the Employment Agreement shall continue in full force.

6.The Executive acknowledges and agrees that the Executive has not, with respect to any transaction or state of facts existing prior to the date hereof, filed or caused to be filed, and is not presently a party to, any complaints, charges or lawsuits against any Company 

 

 

 

 
 

 

Released Party with any governmental agency, court or tribunal.  The Executive agrees to immediately withdraw or dismiss any complaints, charges or lawsuits that she has filed or caused to be filed, or to which she is a party, against any Company Released Party.  Solely with respect to the claims waived in this Release, the Executive (a) agrees not to file or maintain any complaint, charge or lawsuit against any Company Released Party and (b) agrees not to (i) participate in, or encourage the pursuit of, any claims, or (ii) accept payment from any litigation or threatened litigation against any Company Released Party, unless compelled to testify pursuant to subpoena or order of a court of competent jurisdiction.

7.THE EXECUTIVE ACKNOWLEDGES THAT THE EXECUTIVE HAS BEEN ADVISED TO SEEK, AND HAS HAD THE OPPORTUNITY TO SEEK, THE ADVICE AND ASSISTANCE OF AN ATTORNEY WITH REGARD TO THIS RELEASE, AND HAS BEEN GIVEN A SUFFICIENT PERIOD WITHIN WHICH TO CONSIDER THIS RELEASE.

8.The Executive acknowledges that this Release relates only to claims that exist as of the date of this Release.

9.The Executive acknowledges that the severance payments and benefits the Executive is receiving in connection with this Release and the Executive’s obligations under this Release are in addition to anything of value to which the Executive is entitled from the Company.

10.Each provision hereof is severable from this Release, and if one or more provisions hereof are declared invalid, the remaining provisions shall nevertheless remain in full force and effect.  If any provision of this Release is so broad, in scope, or duration or otherwise, as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 

11.This Release constitutes the complete agreement of the Parties in respect of the subject matter hereof and shall supersede all prior agreements between the Parties in respect of the subject matter hereof except to the extent set forth herein.  For the avoidance of doubt, however, nothing in this Release shall constitute a waiver of any Company Released Party’s right to enforce any obligations of the Executive under the Employment Agreement that survive the Employment Agreement’s termination, including without limitation, any non-competition covenant, non-solicitation covenant or any other restrictive covenants contained therein.

12.The failure to enforce at any time any of the provisions of this Release or to require at any time performance by another party of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity of this Release, or any part hereof, or the right of any party thereafter to enforce each and every such provision in accordance with the terms of this Release.

13.This Release may be executed in counterparts, both of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.  Signatures delivered by facsimile, email or pdf shall be deemed effective for all purposes.

14.This Release shall be binding upon any and all successors and assigns of the Executive and the Company.

 

 

 

 
 

 

15.Except for issues or matters as to which federal law is applicable, this Release shall be governed by and construed and enforced in accordance with the laws of the State of Massachusetts without giving effect to the conflicts of law principles thereof.  

16.Employee further affirms that he has timely been paid or has received all compensation, wages, bonuses, commissions and benefits to which he may be entitled and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions or benefits are due to him except as follows:

__________________________________________________________________________________________________________________________________________________________________________

 

 

 

 

[signature page follows]

 

 

 

 
 

 

IN WITNESS WHEREOF, this Release has been signed by or on behalf of each of the Parties, all as of ____________________.

 

 

		
	
 
	
EMERALD X, LLC

 

 

By:

Name:

Title:  

 

	
 
	
 

 

EXECUTIVE

 

 

 

Hervé Sedky

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