Document:

The York Water Company

      

      

      

      

      $20,000,000

      

      

      

      

      4.54% Senior Notes due January 31, 2049

      

      

      

      

      ______________

      

      

      Note Purchase Agreement

      

      

      ______________

      

      

      

      

      Dated January 31, 2019

      
        

        

      

      

      

      
        
          

      

      Table of Contents

      Section Heading Page

      Section 1. Authorization of Notes 

      Section 2. Sale and Purchase of Notes 

      Section 3. Closing 

      Section 4. Conditions to Closing 

      Section 4.1. Representations and Warranties 

      Section 4.2. Performance; No Default 

      Section 4.3. Compliance Certificates 

      Section 4.4. Opinions of Counsel 

      Section 4.5. Purchase Permitted By Applicable Law, Etc 

      Section 4.6. Sale of Other Notes 

      Section 4.7. Payment of Special Counsel Fees 

      Section 4.8. Private Placement Number 

      Section 4.9. Changes in Corporate Structure 

      Section 4.10. Funding Instructions 

      Section 4.11. Commission Approval 

      Section 4.12. Consent of Holders of Other Securities 

      Section 4.13. Proceedings and Documents 

      Section 5. Representations and Warranties of the Company 

      Section 5.1. Organization; Power and Authority 

      Section 5.2. Authorization, Etc 

      Section 5.3. Disclosure 

      Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates 

      Section 5.5. Financial Statements; Material Liabilities 

      Section 5.6. Compliance with Laws, Other Instruments, Etc 

      Section 5.7. Governmental Authorizations, Etc 

      Section 5.8. Litigation; Observance of Statutes and Orders 

      Section 5.9. Taxes 

      Section 5.10. Title to Property; Leases 

      Section 5.11. Licenses, Permits, Etc 

      Section 5.12. Compliance with Employee Benefit Plans 

      Section 5.13. Private Offering by the Company 

      Section 5.14. Use of Proceeds; Margin Regulations 

      Section 5.15. Existing Indebtedness 

      Section 5.16. Foreign Assets Control Regulations, Etc 

      Section 5.17. Status under Certain Statutes 

      Section 6. Representations of the Purchasers 

      Section 6.1. Purchase for Investment 

      Section 6.2. Source of Funds 

      Section 7. Information as to Company 

      Section 7.1. Financial and Business Information 

      Section 7.2. Officer’s Certificate 

      Section 7.3. Visitation 

      Section 7.4.  Electronic Delivery 

      Section 8. Payment and Prepayment of the Notes 

      Section 8.1. Maturity 

      Section 8.2. Optional Prepayments with Make-Whole Amount 

      Section 8.3. Allocation of Partial Prepayments 

      Section 8.4. Maturity; Surrender, Etc. 

      Section 8.5. Purchase of Notes 

      Section 8.6. Make-Whole Amount 

      Section 8.7. Payments Due on Non-Business Days 

      Section 8.8. Prepayment of Notes upon the Invalidity of the Notes 

      Section 9. Affirmative Covenants. 

      Section 9.1. Compliance with Laws 

      Section 9.2. Insurance 

      Section 9.3. Maintenance of Properties 

      Section 9.4. Payment of Taxes 

      Section 9.5. Corporate Existence, Etc 

      Section 9.6. Books and Records 

      Section 9.7. Subsidiary Guarantors 

      Section 10. Negative Covenants. 

      Section 10.1. Transactions with Affiliates 

      Section 10.2. Merger, Consolidation, Etc 

      Section 10.3. Line of Business 

      Section 10.4. Economic Sanctions, Etc 

      Section 10.5. Liens 

      Section 10.6. Limitations on Indebtedness 

      Section 10.7. Dividends, Stock Purchases 

      Section 11. Events of Default 

      Section 12. Remedies on Default, Etc 

      Section 12.1. Acceleration 

      Section 12.2. Other Remedies 

      Section 12.3. Rescission 

      Section 12.4. No Waivers or Election of Remedies, Expenses, Etc 

      Section 13. Registration; Exchange; Substitution of Notes 

      Section 13.1. Registration of Notes 

      Section 13.2. Transfer and Exchange of Notes 

      Section 13.3. Replacement of Notes 

      Section 14. Payments on Notes 

      Section 14.1. Place of Payment 

      Section 14.2. Payment by Wire Transfer 

      Section 14.3. FATCA Information 

      Section 15. Expenses, Etc 

      Section 15.1. Transaction Expenses 

      Section 15.2. Certain Taxes 

      Section 15.3. Survival 

      Section 16. Survival of Representations and Warranties; Entire Agreement 

      Section 17. Amendment and Waiver 

      Section 17.1. Requirements 

      Section 17.2. Solicitation of Holders of Notes 

      Section 17.3. Binding Effect, Etc 

      Section 17.4. Notes Held by Company, Etc 

      Section 18. Notices 

      Section 19. Reproduction of Documents 

      Section 20. Confidential Information 

      Section 21. Substitution of Purchaser 

      Section 22. Miscellaneous 

      Section 22.1. Successors and Assigns 

      Section 22.2. Accounting Terms 

      Section 22.3. Severability 

      Section 22.4. Construction, Etc 

      Section 22.5. Counterparts 

      Section 22.6. Governing Law 

      Section 22.7. Jurisdiction and Process; Waiver of Jury Trial 

      
        
          

      

      Schedule A — Defined Terms

      

      

      Schedule 1 — Form of 4.54% Senior Note due
            January 31, 2049

      

      

      Schedule 4.4(a) —  Form of Opinion of Special Counsel for the Company

      

      

      Schedule 4.4(b) — Form of Opinion of Special Counsel for the Purchasers

      

      

      Schedule 5.3 — Disclosure Materials

      

      

      Schedule 5.4 — Subsidiaries of the Company and Ownership of Subsidiary Stock

      

      

      Schedule 5.5 — Financial Statements

      

      

      Schedule 5.15 — Existing Indebtedness

      

      

      Purchaser Schedule — Information Relating to Purchasers 

      

      

      
        
          

      

      The York Water Company

      130 East Market Street

      York, Pennsylvania  17405

      

      

      

      

      4.54% Senior Notes due January 31, 2049

      

      

      

      

      

      

      January 31, 2019

      

      

      

      

      To Each of the Purchasers Listed in

      the Purchaser Schedule Hereto:

      Ladies and Gentlemen:

      The York Water Company, a Pennsylvania corporation (the “Company”),
          agrees with each of the Purchasers as follows:

      Section 1. Authorization of Notes.

      The Company will authorize the issue and sale of $20,000,000 aggregate principal amount of its 4.54% Senior Notes due January 31, 2049 (the “Notes”).  The Notes shall be substantially in the form set out in Schedule 1.  Certain capitalized and other terms used in this Agreement are defined in Schedule A and, for purposes of this Agreement, the rules of construction
          set forth in Section 22.4 shall govern.

      Section 2. Sale and Purchase of Notes.

      Subject to the terms and conditions of this Agreement, the Company will issue and sell to each
          Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, Notes in the principal amount specified opposite such Purchaser’s name in the Purchaser Schedule at the purchase price of 100% of the principal
          amount thereof.  The Purchasers’ obligations hereunder are several and not joint obligations and no Purchaser shall have any liability to any Person for the performance or non-performance of any obligation by any other Purchaser hereunder.

      Section 3. Closing.

      The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of
          Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603, at 8:00 a.m., Chicago time, at a closing (the “Closing”) on
          January 31, 2019.  At the Closing the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may
          request) dated the date of the Closing and registered in such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price
          therefor by wire transfer of immediately available funds for the account of the Company to account number XXXXXXXXXX at XXXXXXXXXXXXXXXXX, ABA Number XXXXXXXXX. If at the Closing the Company shall fail to tender such Notes to any Purchaser as
          provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further obligations under this Agreement,
          without thereby waiving any rights such Purchaser may have by reason of such failure by the Company to tender such Notes or any of the conditions specified in Section 4 not having been fulfilled to such Purchaser’s satisfaction.

      Section 4. Conditions to Closing.

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

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

      Section 4.2. Performance; No Default.  The Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or
          complied with by it prior to or at the Closing.  Before and after giving effect to the issue and sale of the Notes (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.

      (a) Officer’s Certificate.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the date of the
          Closing, certifying that the conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

      (b) Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant
          Secretary, dated the date of the Closing, certifying as to (i) the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement and (ii) the Company’s
          organizational documents as then in effect.

      Section 4.4. Opinions of Counsel.  Such
          Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the date of the Closing (a) from Reed Smith LLP, counsel for the Company, covering the matters set forth in Schedule 4.4(a) and covering such other
          matters incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers) and (b) from Chapman and Cutler LLP, the
          Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Schedule 4.4(b) and covering such other matters incident to such transactions as such Purchaser may reasonably request.

      Section 4.5. Purchase Permitted By Applicable Law, Etc. 
          On the date of the Closing such Purchaser’s purchase of Notes 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 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 Other Notes. 
          Contemporaneously with the Closing the Company shall sell to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at the Closing as specified in the Purchaser Schedule.

      Section 4.7. Payment of Special Counsel Fees. 
          Without limiting Section 15.1, the Company shall have paid on or before the Closing the fees, charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered
          to the Company at least one Business Day prior to the Closing.

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

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

      Section 4.10. Funding Instructions.  At least
          three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the information specified in Section 3 including (i) the name
          and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited.

      Section 4.11. Commission Approval.  The
          Pennsylvania Public Utility Commission shall have entered an appropriate order authorizing the issuance and sale of the Notes upon terms not inconsistent with this Agreement and the Notes and such order shall not be the subject of a pending
          appeal.  

      Section 4.12. Consent of Holders of Other Securities. 
          On or prior to the Closing, any consents or approvals required to be obtained from any holder or holders of any outstanding Security of the Company and any amendments of agreements pursuant to which any Securities may have been issued which shall
          be necessary to permit the consummation of the transactions contemplated hereby shall have been obtained and all such consents or amendments shall be satisfactory in form and substance to you and your special counsel.

      Section
            4.13. Proceedings and
            Documents.  All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and its special
          counsel, and such Purchaser and its special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such special counsel may reasonably request.

      Section 5. Representations and Warranties of the Company.

      The Company represents and warrants to each Purchaser that:

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

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

      Section 5.3. Disclosure.  The Company, through
          its agent, PNC Capital Markets LLC, has delivered to each Purchaser a copy of a Confidential Private Placement Memorandum, dated January 2019 (the “Memorandum”),
          relating to the transactions contemplated hereby.  This Agreement, the Memorandum, the financial statements listed in Schedule 5.5 and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company prior
          to January 18, 2019 in connection with the transactions contemplated hereby and identified in Schedule 5.3 (this Agreement, the Memorandum and such documents, certificates or other writings and such financial statements delivered to each
          Purchaser being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material
          fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Except as disclosed in the Disclosure Documents, since December 31, 2017, there has been no
          change in the financial condition, operations, business or properties of the Company except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

      Section 5.4. Organization and Ownership of Shares of
            Subsidiaries; Affiliates.  Schedule 5.4 contains (except as noted therein) complete and correct lists of (i) the Company’s Affiliates, and (ii) the Company’s directors and senior officers.  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 on Schedule 5.5.  All of such 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 Schedule 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 in the Disclosure Documents.

      Section 5.6. Compliance with Laws, Other Instruments,
            Etc.  The execution, delivery and performance by the Company of this Agreement and the Notes will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any
          property of the Company under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter, regulations or by‐laws, shareholders agreement or any other agreement or instrument to which the Company is bound
          or by which the Company or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court, arbitrator or Governmental
          Authority applicable to the Company or (iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company. 

      Section 5.7. Governmental Authorizations, Etc. 
          No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by the Company of this Agreement or the Notes, other than the
          authorization of the Pennsylvania Public Utility Commission, which authorization has been duly obtained pursuant to an order of the Commission which is in full force and effect, has not been revoked or amended, is not the subject of a pending
          appeal and is legally sufficient to authorize the offer, issuance, sale and delivery of the Notes and the execution, delivery and performance of this Agreement by the Company.

      Section 5.8. Litigation; Observance of Statutes and
            Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the best 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 would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

      (b) The Company is not (i) in violation of any order, judgment, decree or ruling of any court, any arbitrator of any kind or any Governmental Authority or (ii) in violation of any applicable law, ordinance, rule or regulation of any
          Governmental Authority (including Environmental Laws, the USA PATRIOT Act or any of the other laws and regulations that are referred to in Section 5.16), which violation would, individually or in the aggregate, 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 have paid all taxes shown to be due and payable on such returns and all other taxes and assessments payable by them, to the extent such taxes and
          assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (i) the amount of which, individually or in the aggregate, is not Material or (ii) the amount, applicability or validity of which
          is currently being contested in good faith by appropriate proceedings and with respect to which the Company has established adequate reserves in accordance with GAAP.  The charges, accruals and reserves on the books of the Company in respect of
          U.S. federal, state or other taxes for all fiscal periods are adequate.  The U.S. federal income tax liabilities of the Company has been finally determined (whether by reason of completed audits or the statute of limitations having run) for all
          fiscal years up to and including the fiscal year ended December 31, 2014.

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

      Section 5.11. Licenses, Permits, Etc.  The
          Company 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, without
          known conflict with the rights of others, except for those conflicts that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

      Section 5.12. Compliance with Employee Benefit Plans. 
          (a) The Company and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and would not, individually or in the aggregate,
          reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee
          benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that would, individually or in the aggregate, 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 reasonably be expected to 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 case of any single
          Plan and by more than $10,000,000 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 meaning specified in section 3 of ERISA.

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

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

      (e) The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of section 406 of ERISA or in connection with which a tax could be
          imposed pursuant to section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company to each Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s representation
          in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes 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 its behalf has offered the Notes or any similar Securities for sale to, or solicited any offer to buy the Notes or any similar Securities from, or otherwise approached or negotiated in
          respect thereof with, any Person other than the Purchasers and not more than 5 other Institutional Investors, each of which has been offered the Notes at 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 Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable
          jurisdiction.

      Section 5.14. Use of Proceeds; Margin Regulations. 
          The Company will apply the proceeds of the sale of the Notes hereunder as set forth in the Executive Summary [The Offering and Use of Proceeds] of
          the Memorandum.  No part of the proceeds from the sale of the Notes 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).  The Company does not own any margin stock and the Company does not have any present intention that margin stock will constitute more than 10% the value of its consolidated 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.

      Section
            5.15. Existing Indebtedness.   (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company as of September 30, 2018
          (including descriptions of the obligors and obligees, principal amounts outstanding, any collateral therefor and any Guaranty thereof), 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 the outstanding principal amount of which exceeds $5,000,000 that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness
          to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

      (b) 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 its charter or any other
          organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as disclosed in Schedule 5.15.

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

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

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

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

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

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

      (d) The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in
          compliance with all 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, the Public Utility Holding Company Act of 2005, the ICC Termination Act of 1995, or the Federal Power Act.

      Section 6. Representations of the Purchasers.

      Section
            6.1. Purchase for Investment. 
          Each Purchaser severally represents that (a) it is purchasing the Notes for its own account or for one or more separate accounts maintained by such Purchaser or for the account of one or more pension or trust funds and not with a view to the
          distribution thereof, provided that the disposition of such Purchaser’s or their property shall at all times be within such Purchaser’s or their control and (b) it is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3), or (7) under
          the Securities Act).  Each Purchaser understands that the Notes 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 Notes.

      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 Notes 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 the PTE 91-38 and, except as disclosed
          by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled
          separate account or collective investment fund; or

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

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

      (f) the Source is a governmental plan; or

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

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

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

      Section 7. Information as to Company.

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

      (a) Quarterly Statements — within 60 days (or such shorter period as is the earlier of (x) 15 days greater
          than the period applicable to the filing of the Company’s Quarterly Report on Form 10‐Q (the “Form 10‐Q”) with the SEC regardless of whether
          the Company is subject to the filing requirements thereof and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are
          delivered under any Material Credit Facility if such delivery occurs earlier than such required delivery date) after the end of each quarterly fiscal period in each fiscal year of the Company (other than the last quarterly fiscal period of each
          such fiscal year), duplicate copies of,

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

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

      setting forth in each case in comparative form the figures for the corresponding periods in the
          previous fiscal year, all in reasonable detail, prepared in accordance with GAAP applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial
          position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments;

      (b) Annual Statements — within 120 days (or such shorter period as is the earlier of (x) 15 days greater
          than the period applicable to the filing of the Company’s Annual Report on Form 10‐K (the “Form 10‐K”) with the SEC regardless of whether the
          Company is subject to the filing requirements thereof and (y) the date by which such financial statements are required to be delivered under any Material Credit Facility or the date on which such corresponding financial statements are delivered
          under any Material Credit Facility if such delivery occurs earlier than such required delivery date) 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

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

      setting forth in each case in comparative form the figures for the previous fiscal year, all in
          reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon (without a “going concern” or similar qualification or exception and without any qualification or exception as to the scope of the audit on which such
          opinion is based) of independent public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon
          and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing
          standards, and that such audit provides a reasonable basis for such opinion in the circumstances;

      (c) SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial
          statement, report, notice, proxy statement or similar document sent by the Company or any Subsidiary (x) to its creditors under any Material Credit Facility (excluding information sent to such creditors in the ordinary course of administration of
          a credit facility, such as information relating to pricing and borrowing availability) or (y) to its public Securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly
          requested by such holder), and each prospectus and all amendments thereto filed by the Company or any Subsidiary with the SEC; 

      (d) Notice of Default or Event of Default — promptly, and in any event within 5 days after a Responsible
          Officer becoming aware of the existence of any Default or Event of Default, a written notice specifying the nature and period of existence thereof and what action the Company is taking or proposes to take with respect thereto;

      (e) Employee Benefits Matters — promptly, and in any event within 5 days after a Responsible Officer
          becoming 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, 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;

      (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 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;

      (iii) any event, transaction or condition that could result in the incurrence of any liability by the Company or any ERISA Affili-ate 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; or

      (iv) receipt of notice of the imposition of a Material financial penalty (which for this purpose shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or
          more Non-U.S. Plans;

      (f) Resignation or Replacement of Auditors — within 10 days following the date on which the Company’s
          auditors resign or the Company elects to change auditors, as the case may be, notification thereof, together with such further information as the Required Holders may request; 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 (including actual copies of the Company’s Form 10‐Q and Form 10‐K) or relating to the ability of the Company to perform its
          obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of a Note.

      Section
            7.2. Officer’s Certificate. 
          Each set of financial statements delivered to a holder of a Note pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial Officer:

      (a) Covenant Compliance — setting forth the information from such financial statements that is required in
          order to establish whether the Company was in compliance with the requirements of Section 10 during the quarterly or annual period covered by the financial statements then being furnished (including with respect to each such provision that
          involves mathematical calculations, the information from such financial statements that is required to perform such calculations) and detailed calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible
          under the terms of such Section, and the calculation of the amount, ratio or percentage then in existence.  In the event that the Company or any Subsidiary has made an election to measure any financial liability using fair value (which election
          is being disregarded for purposes of determining compliance with this Agreement pursuant to Section 22.2) as to the period covered by any such financial statement, such Senior Financial Officer’s certificate as to such period shall include a
          reconciliation from GAAP with respect to such election; 

      (b) Event of Default — certifying that such Senior Financial Officer has reviewed the relevant terms hereof
          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 or, if any such condition or event existed or exists,
          specifying the nature and period of existence thereof and what action the Company shall have taken or proposes to take with respect thereto; and

      (c) Subsidiary Guarantors – setting forth a list of all Subsidiaries that are Subsidiary Guarantors and certifying that each Subsidiary that is required to be a Subsidiary Guarantor pursuant to Section 9.7 is a Subsidiary Guarantor, in each
          case, as of the date of such certificate of Senior Financial Officer.

      Section
            7.3. Visitation.  The
          Company shall permit the representatives of each holder of a Note that is an Institutional Investor:

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

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

      Section
            7.4. Electronic Delivery. 
          Financial statements, opinions of independent certified public accountants, other information and Officer’s Certificates that are required to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall be deemed to
          have been delivered if the Company satisfies any of the following requirements with respect thereto:

      (a) such financial statements satisfying the requirements of Section 7.1(a) or (b) and related Officer’s Certificate satisfying the requirements of Section 7.2 and any other information required under Section
          7.1(c) are delivered to each holder of a Note by e-mail at the e-mail address set forth in such holder’s Purchaser Schedule or as communicated from time to time in a separate writing delivered to the Company; 

      (b) the Company shall have timely filed such Form 10–Q or Form 10–K, satisfying the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, with the SEC on EDGAR and shall have made such form and
          the related Officer’s Certificate satisfying the requirements of Section 7.2 available on its home page on the internet, which is located at http://www.yorkwater.com as of the date of this Agreement; 

      (c) such financial statements satisfying the requirements of Section 7.1(a) or Section 7.1(b) and related Officer’s Certificate(s) satisfying the requirements of Section 7.2 and any other information required
          under Section 7.1(c) are timely posted by or on behalf of the Company on IntraLinks or on any other similar website to which each holder of Notes has free access; or 

      (d) the Company shall have timely filed any of the items referred to in Section 7.1(c) with the SEC on EDGAR and shall have made such items available on its home page on the internet or on IntraLinks or on any
          other similar website to which each holder of Notes has free access;

      provided however,
          that in no case shall access to such financial statements, other information and Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than confidentiality provisions consistent with Section 20 of this
          Agreement); provided further, that in the case of any of clauses (b), (c) or (d), the Company shall have given each holder of a Note prior
          written notice, which may be by e-mail or in accordance with Section 18, of such posting or filing in connection with each delivery, provided
            further, that upon request of any holder to receive paper copies of such forms, financial statements, other information and Officer’s Certificates or to receive them by e-mail, the Company will promptly e-mail them or deliver such paper
          copies, as the case may be, to such holder.

      Section 8. Payment and Prepayment of the Notes.

      Section 8.1. Maturity.  As provided therein,
          the entire unpaid principal balance of each Note shall be due and payable on the 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 Notes, in an amount not less than 5% of the aggregate principal amount of the Notes then outstanding in
          the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount; provided, that at any time on or after July 31, 2048 the Company may, at its option, upon notice as provided below, prepay all or any part of the Notes at 100% of the principal amount so prepaid,
          together with accrued interest to the prepayment date.  The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 10 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 17.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on
          such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), 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 Notes a certificate of a Senior Financial Officer specifying the calculation of such Make-Whole Amount as of the specified prepayment date.

      Section
            8.3. Allocation of Partial
            Prepayments.  In the case of each partial prepayment of the Notes pursuant to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as
          practicable, to the respective unpaid principal amounts thereof not theretofore called for prepayment.

      Section 8.4. Maturity; Surrender, Etc.   In the case of each
          prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment, 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 Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

      Section
            8.5. Purchase of Notes. 
          The Company will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with this Agreement
          and the Notes or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions.  Any such offer shall provide each holder with sufficient
          information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 15 Business Days.  If the holders of more than 25% of the principal amount of the Notes then outstanding accept such offer, the
          Company shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least 5 Business
          Days from its receipt of such notice to accept such offer.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to this Agreement and no Notes may be issued
          in substitution or exchange for any such Notes.

      Section 8.6. Make-Whole Amount.

      The term “Make-Whole Amount” means, with respect to any Note, 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 Note 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 Note, the principal of such Note 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, as the context requires.

      “Discounted
            Value” means, with respect to the Called Principal of any Note, 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 Notes is payable) equal to the Reinvestment Yield with respect to
          such Called Principal.

      “Reinvestment
            Yield” means, with respect to the Called Principal of any Note, the sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask 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 (i) converting U.S. Treasury bill quotations to bond equivalent yields in accordance
          with accepted financial practice and (ii) interpolating linearly between the “Ask 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 applicable Note.  

      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 Note, the sum of (x) 0.50%
          plus (y) 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 applicable Note.

      “Remaining
            Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining
          Scheduled Payment with respect to such Called Principal by (b) the number of years, computed on the basis of a 360-day year comprised 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 Note, 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 Notes, 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.

      “Settlement
            Date” means, with respect to the Called Principal of any Note, 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. Payments Due on
            Non-Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y),
          any payment of interest on any Note that is due on a date that is not 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; and (y) any payment of principal of or Make‐Whole Amount on any Note (including principal due on the Maturity Date of such Note) that is due on a date that is not a Business Day 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
            8.8. Prepayment of Notes upon
            the Invalidity of the Notes.  

      (a) Notice of Challenge.  In the event that any Person (other than the Company), by a lawful appeal proceeding, challenges (a “Challenge”) the order of the Pennsylvania Public Utility Commission authorizing the sale of the Notes within 30 days from the date of issuance of
          such order, and as a result of such Challenge a court of competent jurisdiction issues a final, non-appealable ruling to the effect that the issuance of the Notes or any material term of the Notes is invalid or unlawful under the Pennsylvania
          Public Utility Code (an “Adverse Ruling”), the Company shall within five Business Days after any Responsible Officer has knowledge of the
          Adverse Ruling, give written notice of such fact to the holders of the Notes.  Such notice shall contain and constitute an election to prepay Notes as described in subparagraph (b) of this Section 8.8 and shall be accompanied by the certificate
          described in subparagraph (c) of this Section 8.8.

      (b) Election to Prepay Notes.  The election to prepay Notes contemplated by subparagraph (a) of this Section 8.8 shall be an
          election, in accordance with and subject to this Section 8.8, to prepay all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified by the Company (the “Proposed Challenge Prepayment Date”).  Such date shall be not less than 30 days and not more than 60 days after the date of such election (if the Proposed Challenge Prepayment Date shall not
          be specified in such election, the Proposed Challenge Prepayment Date shall be the first Business Day after the 45th day after the date of such election).  

      (c) Officer’s Certificate.  Such notice described in paragraph (a) above shall specify (i) the Proposed Challenge Prepayment
          Date; (ii) that such notice is an election to prepay the Notes; (iii) the principal amount of each Note elected to be prepaid; (iv) the Prepayment Challenge Amount due in connection with such prepayment; (v) the interest that would be due on each
          Note elected to be prepaid, accrued to the Proposed Challenge Prepayment Date; and (vi) the facts and circumstances of such Adverse Ruling.  

      (d) Prepayment.  The Company shall, on the Proposed Challenge Prepayment Date, prepay all of the Notes held by each holder.  The
          prepayment price of the Notes required by this Section 8.8 shall be an amount equal to 100% of the outstanding principal amount of the Notes so to be prepaid and accrued interest thereon to the date of such prepayment, together with the then
          applicable Prepayment Challenge Amount.

      Section 8.9. Change in Control.

      (a) Notice of Change in Control or Control Event.  The Company will, within five Business Days after any Responsible Officer has
          knowledge of the occurrence of any Change in Control or Control Event, give written notice of such Change in Control or Control Event to each holder of Notes unless notice in respect of such Change in Control (or the Change in Control
          contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of this Section 8.9.  If a Change in Control has occurred, such notice shall contain and constitute an offer to prepay Notes as described in subparagraph (c)
          of this Section 8.9 and shall be accompanied by the certificate described in subparagraph (g) of this Section 8.9.

      (b) Condition to Company Action.  The Company will not take any action that consummates or finalizes a Change in Control unless
          (i) at least 30 days prior to such action it shall have given to each holder of Notes written notice containing and constituting an offer to prepay Notes as described in subparagraph (c) of this Section 8.9, accompanied by the certificate
          described in subparagraph (g) of this Section 8.9, and (ii) contemporaneously with such action, it prepays all Notes required to be prepaid in accordance with this Section 8.9.

      (c) Offer to Prepay Notes.  The offer to prepay Notes contemplated by subparagraphs (a) and (b) of this Section 8.9 shall be an
          offer to prepay, in accordance with and subject to this Section 8.9, all, but not less than all, the Notes held by each holder (in this case only, “holder”
          in respect of any Note 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 8.9, such date shall be not less than 30 days and not more than 60 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 first Business Day after the 45th day after the date of such offer).

      (d) Acceptance/Rejection.  A holder of Notes may accept the offer to prepay made pursuant to this Section 8.9 by causing a notice
          of such acceptance to be delivered to the Company not later than 15 days after receipt by such holder of the most recent offer of prepayment.  A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.9 shall
          be deemed to constitute a rejection of such offer by such holder.

      (e) Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.9 shall be at 100% of the principal amount of
          such Notes, together with interest on such Notes accrued to the date of prepayment, but without Make‐Whole Amount or other premium.  The prepayment shall be made on the Proposed Prepayment Date except as provided in subparagraph (f) of this
          Section 8.9.

      (f) Deferral Pending Change in Control.  The obligation of the Company to prepay Notes pursuant to the offers required by
          subparagraph (c) and accepted in accordance with subparagraph (d) of this Section 8.9 is subject to the occurrence of the Change in Control in respect of which such offers and acceptances shall have been made.  In the event that such Change in
          Control has not occurred on the Proposed Prepayment Date in respect thereof, the prepayment shall be deferred until, and shall be made on, the date on which such Change in Control occurs.  The Company shall keep each holder of Notes reasonably
          and timely informed of (i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and the prepayment are expected to occur, and (iii) any determination by the Company that efforts to effect such Change in
          Control have ceased or been abandoned (in which case the offers and acceptances made pursuant to this Section 8.9 in respect of such Change in Control shall be deemed rescinded).

      (g) Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.9 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 8.9; (iii) the principal amount of each Note offered to
          be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.9 have been fulfilled; and (vi) in reasonable detail, the nature and date or
          proposed date of the Change in Control.

      (h) Certain Definitions.  “Change
            in Control” shall be deemed to have occurred if any person (as such term is used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or related persons constituting a group (as such term is
          used in Rule 13d‐5 under the Exchange Act), 

      (i) become the “beneficial owners” (as such term is used in Rule 13d‐3 under the Exchange Act as in effect on the date of the Closing), directly or indirectly, of more than 50% of the total voting power of all
          classes then outstanding of the Company’s Voting Stock, or

      (ii) acquire after the date of the Closing (x) the power to elect, appoint or cause the election or appointment of at least a majority of the members of the board of directors of the Company, through beneficial
          ownership of the capital stock of the Company or otherwise, or (y) all or substantially all of the properties and assets of the Company.

      “Control
            Event” means:

      (i) the execution by the Company or any of its Subsidiaries or Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or series of transactions or events which,
          individually or in the aggregate, may reasonably be expected to result in a Change in Control,

      (ii) the execution of any written agreement which, when fully performed by the parties thereto, would result in a Change in Control, or

      (iii) the making of any written offer by any person (as such term is used in section 13(d) and section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or related persons constituting a group
          (as such term is used in Rule 13d‐5 under the Exchange Act as in effect on the date of the Closing) to the holders of the common stock of the Company, which offer, if accepted by the requisite number of holders, would result in a Change in
          Control.

      (i) All calculations contemplated in this Section 8.9 involving the capital stock of any Person shall be made with the assumption that all convertible Securities of such Person then outstanding and all convertible Securities issuable
          upon the exercise of any warrants, options and other rights outstanding at such time were converted at such time and that all options, warrants and similar rights to acquire shares of capital stock of such Person were exercised at such time.

      Section 9. Affirmative Covenants.

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

      Section 9.1. Compliance with Laws.  Without
          limiting Section 10.4, the Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject (including 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, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

      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 9.3 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 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 (i) the amount, applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis in good faith and in appropriate
          proceedings, and the Company or a Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary or (ii) the nonpayment of all such taxes, assessments, charges and levies would not,
          individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

      Section 9.5. Corporate Existence, Etc.  Subject
          to Section 10.2, the Company will at all times preserve and keep its corporate existence in full force and effect.  Subject to Section 10.2,
          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 the Company and its
          Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure to preserve and keep in full force and effect such corporate existence, right or franchise would not, individually or in the aggregate, have a Material
          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, as the case may be.  The Company will, and will cause each of its Subsidiaries to, keep books, records and accounts which, in reasonable detail, accurately reflect all transactions and dispositions of assets.  The Company and its
          Subsidiaries have devised a system of internal accounting controls sufficient to provide reasonable assurances that their respective books, records, and accounts accurately reflect all transactions and dispositions of assets and the Company will,
          and will cause each of its Subsidiaries to, continue to maintain such system.

      Section 9.7. Subsidiary Guarantors.  (a) The
          Company will cause each of its Subsidiaries that guarantees or otherwise becomes liable at any time, whether as a borrower or an additional or co-borrower or otherwise, for or in respect of any Indebtedness under any Material Credit Facility to
          concurrently therewith:

      (i) enter into an agreement in form and substance satisfactory to the Required Holders providing for the guaranty by such Subsidiary, on a joint and several basis with all other such Subsidiaries, of (x) the
          prompt payment in full when due of all amounts payable by the Company pursuant to the Notes (whether for principal, interest, Make-Whole Amount or otherwise) and this Agreement, including all indemnities, fees and expenses payable by the Company
          thereunder and (y) the prompt, full and faithful performance, observance and discharge by the Company of each and every covenant, agreement, undertaking and provision required pursuant to the Notes or this Agreement to be performed, observed or
          discharged by it (a “Subsidiary Guaranty”); and 

      (ii)  deliver the following to each holder of a Note:

      (A) an executed counterpart of such Subsidiary Guaranty;

      (B) a certificate signed by an authorized responsible officer of such Subsidiary containing representations and warranties on behalf of such Subsidiary to the same effect, mutatis mutandis, as those contained in Sections 5.1, 5.2, 5.6 and 5.7 of this Agreement (but with respect to such Subsidiary and such Subsidiary Guaranty rather than the
          Company);

      (C) all documents as may be reasonably requested by the Required Holders to evidence the due organization, continuing existence and, where applicable, good standing of such Subsidiary and the due authorization
          by all requisite action on the part of such Subsidiary of the execution and delivery of such Subsidiary Guaranty and the performance by such Subsidiary of its obligations thereunder; and 

      (D) an opinion of counsel reasonably satisfactory to the Required Holders covering such matters relating to such Subsidiary and such Subsidiary Guaranty as the Required Holders may reasonably request.

      (b) At the election of the Company and by written notice to each holder of Notes, any Subsidiary Guarantor that has provided a Subsidiary Guaranty under subparagraph (a) of this Section 9.7 may be discharged from all of its obligations and liabilities under its Subsidiary Guaranty and shall be automatically released from its obligations thereunder without the need for the execution or
          delivery of any other document by the holders, provided that (i) if such Subsidiary Guarantor is a guarantor or is otherwise liable for or in
          respect of any Material Credit Facility, then such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under its Subsidiary Guaranty) under such
          Material Credit Facility, (ii) at the time of, and after giving effect to, such release and discharge, no Default or Event of Default shall be existing, (iii) no amount is then due and payable under such Subsidiary Guaranty, (iv) if in connection
          with such Subsidiary Guarantor being released and discharged under any Material Credit Facility, any fee or other form of consideration is given to any holder of Indebtedness under such Material Credit Facility for such release, the holders of
          the Notes shall receive equivalent consideration substantially concurrently therewith and (v) each holder shall have received a certificate of a Responsible Officer certifying as to the matters set forth in clauses (i) through (iv).  In the event
          of any such release, for purposes of Section 10.6, all Indebtedness of such Subsidiary shall be deemed to have been incurred concurrently with such release.

      Section 10. Negative Covenants.

      The Company covenants that so long as any of the Notes 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 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. Merger, Consolidation, Etc.  The
          Company will not, and will not permit any Subsidiary Guarantor to, consolidate with or merge with any other Person or convey, transfer or lease all or
          substantially all of its assets in a single transaction or series of related transactions to any Person unless:

      (a) in the case of any such transaction involving the Company, the successor formed by such consolidation or the survivor of
          such merger or the Person that acquires by conveyance, transfer or lease all or substantially all of the assets of the Company as an entirety, as the case may be, shall be a solvent corporation or limited liability company organized and existing
          under the laws of the United States or any state thereof (including the District of Columbia), and, if the Company is not such corporation or limited liability company, (i) such corporation or limited liability company shall have executed and
          delivered to each holder of any Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement and the Notes and (ii) such corporation or limited liability company shall have caused to be
          delivered to each holder of any Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Required Holders, to the effect that all agreements or instruments effecting such
          assumption are enforceable in accordance with their terms and comply with the terms hereof; 

      (b) in the case of any such transaction involving a Subsidiary Guarantor, the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease
          all or substantially all of the assets of such Subsidiary Guarantor as an entirety, as the case may be, shall be (1) the Company, such Subsidiary Guarantor or another Subsidiary Guarantor; or (2) a solvent corporation or limited liability company
          (other than the Company or another Subsidiary Guarantor) that is organized and existing under the laws of the United States or any state thereof (including the District of Columbia) and, if such Subsidiary Guarantor is not such corporation or
          limited liability company, (A) such corporation or limited liability company shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of the
          Subsidiary Guaranty of such Subsidiary Guarantor and (B) the Company shall have caused to be delivered to each holder of Notes an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the
          Required Holders, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; 

      (c) each Subsidiary Guarantor under any Subsidiary Guaranty that is outstanding at the time such transaction or each transaction in such a series of transactions occurs reaffirms its obligations under such
          Subsidiary Guaranty in writing at such time pursuant to documentation that is reasonably acceptable to the Required Holders; and

      (d) immediately before and immediately after giving effect to such transaction or each transaction in any such series of transactions, no Default or Event of Default shall have occurred and be continuing.

      No such conveyance, transfer or lease of substantially all of the assets of the Company or any Subsidiary Guarantor shall
          have the effect of releasing the Company or such Subsidiary Guarantor, as the case may be, or any successor corporation or limited liability company that shall theretofore have become such in the manner prescribed in this Section 10.2, from its
          liability under (x) this Agreement or the Notes (in the case of the Company) or (y) the Subsidiary Guaranty (in the case of any Subsidiary Guarantor), unless, in the
            case of the conveyance, transfer or lease of substantially all of the assets of a Subsidiary Guarantor, such Subsidiary Guarantor is released from its Subsidiary Guaranty in accordance with Section 9.7(b) in connection with or immediately
            following such conveyance, transfer or lease.

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

      Section 10.4. Economic Sanctions, Etc.  The
          Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in
          any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in
          violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.

      Section 10.5. Liens.  (a) The Company will not,
          and will not permit any Subsidiary to, create or incur, or suffer to be incurred or to exist, any mortgage, pledge, security interest, encumbrance, lien or charge of any kind on its or their property or assets, whether now owned or hereafter
          acquired, or upon any income or profits therefrom, or transfer any property for the purpose of subjecting the same to the payment of obligations in priority to the payment of its or their general creditors, or acquire or agree to acquire any
          property or assets upon conditional sales agreements or other title retention devices, except Excepted Encumbrances; provided, however, that
          this requirement shall not be applicable to, nor prevent:

      (i) the pledging by the Company of its assets as security for the payment of any tax, assessment or other similar charge demanded of the Company by any governmental authority or public body as long as the
          Company in good faith contests its liability to pay the same, or as security to be deposited with any governmental authority or public body for any purpose at any time required by law or governmental regulation as a condition to the transaction
          of any business or the exercise of any privilege, license or right; or 

      (ii) the pledging by the Company of any assets for the purpose of securing a stay or discharge or for any other purpose in the course of any legal proceeding in which the Company is a party; or 

      (iii) making good faith deposits in connection with tenders, contracts or leases to which the Company is a party; or 

      (iv) the pledging by the Company of its revenues to the Pennsylvania Infrastructure Investment Authority pursuant to that certain Loan Agreement dated as of August 24, 1999 in order to secure a loan in the
          original aggregate principal amount of $800,000 made by such Authority to the Company, such loan having an outstanding principal balance of approximately $41,032 as of September 30, 2018; or 

       (v) the pledging by the Company or any Subsidiary of any assets for the
          purpose of securing Indebtedness of the Company or any Subsidiary not otherwise permitted by clauses (i) through (iv) or permitted as an Excepted Encumbrance, provided that Priority Debt at any one time outstanding shall not at any time exceed 10% of the Plant Account of the Company and its Subsidiaries (determined as of the end of the then most recently ended quarterly
          fiscal period), provided, further, that notwithstanding the foregoing, the Company shall not, and shall not permit any of its Subsidiaries
          to, secure pursuant to this Section 10.5(a)(v) any Indebtedness outstanding under or pursuant to any Material Credit Facility unless and until the Notes (and any guaranty delivered in connection therewith) shall concurrently be secured equally
          and ratably with such Indebtedness pursuant to documentation reasonably acceptable to the Required Holders in substance and in form, including an intercreditor agreement and opinions of counsel to the Company and/or any such Subsidiary, as the
          case may be, from counsel that is reasonably acceptable to the Required Holders.

      (b) In the event any Property or assets of the Company are subject to a lien or charge not otherwise permitted by paragraph (a) above to secure any Indebtedness of the Company (for purposes of this paragraph (b), the “Liened Property”), such lien or charge shall nevertheless be deemed permitted if the Company makes effective provision whereby the Notes shall (so
          long as any other Indebtedness shall be so secured) be secured (along with any other Indebtedness similarly entitled to be equally and ratably secured) by a direct lien on the Liened Property on parity to the lien or liens securing any and all
          such other Indebtedness; 

      Section 10.6. Limitations on Indebtedness.

      (a) The Company will not, and will not permit any Subsidiary to, have outstanding, or in any manner be liable in respect of, any Funded Debt or Seasonal Indebtedness, except the following:

       (i) Seasonal Indebtedness of the Company and its Subsidiaries, provided that (A) such Seasonal Indebtedness has not existed for a period of at least 30 consecutive days in the twelve preceding months or (B) the amount of such Seasonal Indebtedness, when
          added to the outstanding amount of Funded Debt, does not exceed 60% of Plant Account on the books of the Company and its Subsidiaries at any one time outstanding; and 

      (ii) Funded Debt (including the Notes) of the Company and its Subsidiaries; provided that: 

      (A) such Funded Debt shall not exceed 60% of the Plant Account on the books of the Company and its Subsidiaries at any one time outstanding, and 

      (B) in the case of any Funded Debt constituting Priority Debt, Priority Debt at any one time outstanding shall not exceed 10% of the Plant Account of the Company and its Subsidiaries (determined as of the end of
          the then most recently ended quarterly fiscal period).

      (b) The renewal, extension or refunding of any Funded Debt issued or incurred in accordance with the limitations of Section 10.6(a)(ii) shall constitute the issuance of additional Funded Debt that is subject to the limitations of this
          Section 10.6.  Any Indebtedness paid or defeased from the proceeds of additional Funded Debt may be excluded from outstanding Indebtedness for purposes of this Section 10.6. 

      (c) Subject to compliance with this Section 10.6 hereof, nothing contained in this Agreement shall prohibit the Company or any Subsidiary from incurring, issuing or permitting to exist any Indebtedness.  

      Section 10.7.  Dividends, Stock Purchases.  The
          Company will not, except as hereinafter provided: 

      (a) Declare or pay any dividends, either in cash or property, on any shares of its capital stock of any class (except dividends or other distributions payable solely in shares of capital stock of the Company,
          including the portion of dividends reinvested in shares of the Company’s common capital stock under the Company’s Optional Dividend Reinvestment Plan); or

      (b) Directly or indirectly, purchase, redeem or retire any shares of its capital stock of any class or any warrants, rights or options to purchase or acquire any shares of its capital stock (other than in
          exchange for or out of the net proceeds to the Company from the substantially concurrent issue or sale of other shares of capital stock of the Company or warrants, rights or options to purchase or acquire any shares of its capital stock); or

      (c) Make any other payment or distribution, either directly or indirectly, in respect of its capital stock; or

      (d) Make any payment, distribution, conveyance or transfer of any property to any Subsidiary;

      (such declarations or payments of dividends, purchases, redemptions or retirements of capital stock and warrants, rights
          or options, and all such other distributions, conveyances and transfers being herein collectively called “Restricted Payments”), if after
          giving effect thereto the aggregate amount of Restricted Payments made during the period from and after December 31, 1982 to and including the date of the making of the Restricted Payment in question, would exceed the sum of (1) $1,500,000 plus (2) earned surplus of the Company, on a non-consolidated basis, accumulated after December 31, 1982, determined without any deduction on
          account of such Restricted Payments, provided, however, that notwithstanding the foregoing, in no event shall the Company make any
          distribution, conveyance or transfer to any Subsidiary of any property constituting the Plant Account.  

      The Company will not declare any dividend which constitutes a Restricted Payment payable more than 60
          days after the date of declaration thereof.

      For the purposes of this Section 10.7 the amount of any Restricted Payment declared, paid or
          distributed in property of the Company shall be deemed to be the greater of the book value or fair market value (as determined in good faith by the Board of Directors of the Company) of such property at the time of the making of the Restricted
          Payment in question.

      Section 11. Events of Default.

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

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

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

      (c) the Company defaults in the performance of or compliance with any term contained in Section 7.1(d) or Sections 10.5, 10.6 or 10.7; or

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

      (e) (i) any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in this Agreement or any writing furnished in connection with the transactions contemplated
          hereby proves to have been false or incorrect in any material respect on the date as of which made, or (ii) any representation or warranty made in writing by or on behalf of any Subsidiary Guarantor or by any officer of such Subsidiary Guarantor
          in any Subsidiary Guaranty or any writing furnished in connection with such Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or

      (f) (i) the Company or any Significant Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or premium or make-whole amount or interest on any Indebtedness
          that is outstanding in an aggregate principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) beyond any period of grace provided with respect thereto, or (ii) the Company or any Significant Subsidiary is in
          default in the performance of or compliance with any term of any evidence of any Indebtedness in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment) or of any mortgage,
          indenture or other agreement relating thereto or any other condition exists, and as a consequence of such default or condition, such Indebtedness has become or has been declared (or one or more Persons are entitled to declare such Indebtedness to
          be) due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of
          Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any Significant Subsidiary has become obligated to purchase or repay Indebtedness before its regular maturity or before its regularly scheduled dates of payment
          in an aggregate outstanding principal amount of at least $5,000,000 (or its equivalent in the relevant currency of payment), or (y) one or more Persons have the right to require the Company or any Significant Subsidiary so to purchase or repay
          such Indebtedness; or

      (g) the Company or any Significant Subsidiary (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing
          against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction,
          (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is
          adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

      (h) a court or other Governmental Authority of competent jurisdiction enters an order appointing, without consent by the Company or any of its Significant Subsidiaries, a custodian, receiver, trustee or other
          officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for
          liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of the Company or any of its Significant Subsidiaries, or any such petition shall be filed against
          the Company or any of its Significant Subsidiaries and such petition shall not be dismissed within 60 days; or

      (i) any event occurs with respect to the Company or any Significant Subsidiary which under the laws of any jurisdiction is analogous to any of the events described in Section 11(g) or Section 11(h), provided that the applicable grace period, if any, which shall apply shall be the one applicable to the relevant proceeding which most closely
          corresponds to the proceeding described in Section 11(g) or Section 11(h); or

      (j) one or more final judgments or orders for the payment of money aggregating in excess of $5,000,000 (or its equivalent in the relevant currency of payment), including any such final order enforcing a binding
          arbitration decision, are rendered against one or more of the Company and its Significant Subsidiaries and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60
          days after the expiration of such stay; or

      (k) 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 ERISA section 4042 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) there is any “amount of unfunded benefit liabilities” (within the meaning
          of section 4001(a)(18) of ERISA) under one or more Plans, determined in accordance with Title IV of ERISA, (iv) the aggregate present value of accrued benefit liabilities under all funded Non-U.S. Plans exceeds the aggregate current value of the
          assets of such Non-U.S. Plans allocable to such liabilities, (v) the Company or any ERISA Affiliate shall have incurred or is reasonably expected to incur 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, (vi) the Company or any ERISA Affiliate withdraws from any Multiemployer Plan, (vii) the Company or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment
          welfare benefits in a manner that would increase the liability of the Company or any Subsidiary thereunder, (viii) the Company or any Subsidiary fails to administer or maintain a Non-U.S. Plan in compliance with the requirements of any and all
          applicable laws, statutes, rules, regulations or court orders or any Non-U.S. Plan is involuntarily terminated or wound up, or (ix) the Company or any Subsidiary becomes subject to the imposition of a financial penalty (which for this purpose
          shall mean any tax, penalty or other liability, whether by way of indemnity or otherwise) with respect to one or more Non-U.S. Plans; and any such event or events described in clauses (i) through (ix) 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 this Section 11(k), the terms “employee
            benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in section 3 of ERISA; or

      (l) any Subsidiary Guaranty shall cease to be in full force and effect, any such Subsidiary Guarantor or any Person acting on behalf of any such Subsidiary Guarantor shall contest in any manner the validity,
          binding nature or enforceability of any Subsidiary Guaranty, or the obligations of any Subsidiary Guarantor under any Subsidiary Guaranty are not or cease to be legal, valid, binding and enforceable in accordance with the terms of such Subsidiary
          Guaranty.

      Section 12. Remedies on Default, Etc.

      Section 12.1. Acceleration.  (a) If an Event of
          Default with respect to the Company described in Section 11(g), (h) or (i) (other than an Event of Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses
          clause (i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

      (b) If any other Event of Default has occurred and is continuing, the Required Holders may at any time at its or their option, by notice or notices to the Company, declare all the Notes then outstanding to be immediately due and
          payable.

      (c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing, any holder or holders of Notes at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice
          or notices to the Company, declare all the Notes held by it or them to be immediately due and payable.

      Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
          declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes, plus (x) all accrued and unpaid interest thereon (including interest accrued thereon at the Default Rate) and (y) the Make-Whole Amount determined
          in respect of such principal amount, 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 Note has the right to maintain its investment in the Notes 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 Notes 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. Other Remedies.  If any Default or
          Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note 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 Note or Subsidiary Guaranty, 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 12.3. Rescission.  At any time after any
          Notes have been declared due and payable pursuant to Section 12.1(b) or (c), the Required Holders, 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 Notes, all principal of and Make-Whole Amount, if any, on any Notes 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 Notes, 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 17, and (d) no judgment or decree has been entered for the
          payment of any monies due pursuant hereto or to the Notes.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

      Section
            12.4. No Waivers or Election
            of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or
          remedies.  No right, power or remedy conferred by this Agreement, any Subsidiary Guaranty or any Note 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 15, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of
          such holder incurred in any enforcement or collection under this Section 12, including reasonable attorneys’ fees, expenses and disbursements.

      Section 13. Registration; Exchange; Substitution of Notes.

      Section
            13.1. Registration of Notes. 
          The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address of each holder of one or more Notes, each transfer thereof and the name and address of each
          transferee of one or more Notes shall be registered in such register.  If any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial owner of such Note or Notes shall also be registered in such register as an
          owner and holder thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its nominee may execute any amendment, waiver or consent pursuant to this Agreement.  Prior to due presentment for registration of transfer,
          the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give
          to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

      Section
            13.2. Transfer and Exchange
            of Notes.  Upon surrender of any Note to the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)), for registration of transfer or exchange (and in the case of a surrender for
          registration of transfer accompanied by a written instrument of transfer duly executed by the registered holder of such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant name, address and other information
          for notices of each transferee of such Note or part thereof), within 10 Business Days thereafter, the Company shall execute and deliver, at the Company’s expense (except as provided below), one or more new Notes (as requested by the holder
          thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of
          Schedule 1.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may
          require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the
          registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to
          have made the representation set forth in Section 6.2.

      Section 13.3. Replacement of Notes.  Upon
          receipt by the Company at the address and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
          (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

      (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with
          a minimum net worth of at least $50,000,000 or a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

      (b) in the case of mutilation, upon surrender and cancellation thereof,

      within 10 Business Days thereafter, the Company at its own expense shall execute and deliver, in lieu thereof, a new
          Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid
          thereon.

      Section 14. Payments on Notes.

      Section
            14.1. Place of Payment. 
          Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of PNC Bank in such jurisdiction.  The Company may at any
          time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in
          such jurisdiction.

      Section
            14.2. Payment by Wire
            Transfer.  So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for
          principal, Make-Whole Amount, if any, interest and all other amounts becoming due hereunder by the method and at the address specified for such purpose below such Purchaser’s name in the Purchaser Schedule, 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 Note 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 Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal
          executive office or at the place of payment most recently designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition of any Note 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 Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the
          benefits of this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to such Note as the Purchasers have made
          in this Section 14.2.

      Section 14.3.  FATCA Information.  By acceptance of any Note, the holder of
          such Note 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 14.3 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.

      Section 15. Expenses, Etc.

      Section
            15.1. Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all costs and expenses (including reasonable
          attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by the Purchasers and each other holder of a Note in connection with such transactions and in connection with any
          amendments, waivers or consents under or in respect of this Agreement, any Subsidiary Guaranty or the Notes (whether or not such amendment, waiver or consent becomes effective), including: (a) the costs and expenses incurred in enforcing or
          defending (or determining whether or how to enforce or defend) any rights under this Agreement, any Subsidiary Guaranty or the Notes or in responding to any subpoena or other legal process or informal investigative demand issued in connection
          with this Agreement, any Subsidiary Guaranty or the Notes, or by reason of being a holder of any Note, (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the Company or any
          Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes and any Subsidiary Guaranty and (c) the costs and expenses incurred in connection with the initial filing of this Agreement
          and all related documents and financial information with the SVO provided, that such costs and expenses under this clause (c) shall not
          exceed $3,500.  If required by the NAIC, the Company shall obtain and maintain at its own cost and expense a Legal Entity Identifier (LEI).

      The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, (i)
          all claims in respect of any fees, costs or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or other holder in connection with its purchase of the Notes), (ii) any and all wire transfer fees that any
          bank or other financial institution deducts from any payment under such Note to such holder or otherwise charges to a holder of a Note with respect to a payment under such Note and (iii) any judgment, liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable attorneys’ fees and expenses) or obligation resulting from the consummation of the transactions contemplated hereby,
            including the use of the proceeds of the Notes by the Company.

      Section
            15.2. Certain Taxes.  The Company agrees to pay all stamp, documentary or similar taxes or fees which may be payable in respect of the execution and delivery or the
          enforcement of this Agreement or any Subsidiary Guaranty or the execution and delivery (but not the transfer) or the enforcement of any of the Notes in the United States or any other jurisdiction where the Company or any Subsidiary Guarantor has
          assets or of any amendment of, or waiver or consent under or with respect to, this Agreement or any Subsidiary Guaranty or of any of the Notes, and to pay any value added tax due and payable in respect of reimbursement of costs and expenses by
          the Company pursuant to this Section 15, and will save each holder of a Note to the extent permitted by applicable law harmless against any loss or liability resulting from nonpayment or delay in payment of any such tax or fee required to be paid
          by the Company hereunder.

      Section
            15.3. Survival.  The obligations of the Company under this Section 15 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of
          any provision of this Agreement, any Subsidiary Guaranty or the Notes, and the termination of this Agreement.

      Section 16. Survival of Representations and Warranties; Entire Agreement.

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

      Section 17. Amendment and Waiver.  

      Section 17.1. Requirements.  This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or
          prospectively), only with the written consent of the Company and the Required Holders, except that:

      (a) no amendment or waiver of any of Sections 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used therein), will be effective as to any Purchaser unless consented to by such Purchaser in writing;
          and

      (b)  no amendment or waiver may, without the written consent of each Purchaser and the holder of each Note at the time outstanding, (i) subject to 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 (x) interest on the Notes or (y) the Make-Whole Amount, (ii) change the percentage of the principal amount
          of the Notes the holders of which are required to consent to any amendment or waiver, or (iii) amend any of Sections 8 (except as set forth in
          the second sentence of Section 8.2), 11(a), 11(b), 12, 17 or 20.

      Section 17.2. Solicitation of Holders of Notes.

      (a) Solicitation.  The Company will provide each holder of a Note with sufficient information, sufficiently far in advance of the
          date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes or any Subsidiary Guaranty.  The
          Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to this Section 17 or any Subsidiary Guaranty to each holder of a Note promptly following the date on which it is executed and
          delivered by, or receives the consent or approval of, the requisite holders of Notes.

      (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, or grant any security or provide other credit support, to any holder of a Note as consideration for or as an inducement to the entering into by such holder of any waiver or amendment of any
          of the terms and provisions hereof or of any Subsidiary Guaranty or any Note unless such remuneration is concurrently paid, or security is concurrently granted or other credit support concurrently provided, on the same terms, ratably to each
          holder of a Note even if such holder did not consent to such waiver or amendment.

      (c) Consent in Contemplation of Transfer.  Any consent given pursuant to this Section 17 or any Subsidiary Guaranty by a holder of
          a Note that has transferred or has agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate 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, 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 Notes 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
            17.3. Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 17 or any Subsidiary Guaranty applies equally to all holders of Notes and is
          binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation,
          covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and any holder of a Note and no delay in exercising any rights hereunder or under
          any Note or Subsidiary Guaranty shall operate as a waiver of any rights of any holder of such Note.

      Section 17.4. Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then
          outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, any Subsidiary Guaranty or the Notes, or have directed the taking of any action provided herein or in any Subsidiary Guaranty or the Notes to
          be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

      Section 18. Notices.

      Except to the extent otherwise provided in Section 7.4, 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 an internationally recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with
          return receipt requested (postage prepaid), or (c) by an internationally recognized overnight delivery service (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 the Purchaser Schedule, 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 Note, to such holder at such address as such other holder shall have specified to the Company in writing, or

      (iii) if to the Company, to the Company at its address set forth at the beginning hereof to the attention of Chief Financial Officer, or at such other address as the Company shall have specified to the holder of
          each Note in writing.

      Notices under this Section 18 will be deemed given only when actually received.

      Section 19. Reproduction of Documents.

      This Agreement and all documents relating thereto, including (a) consents, waivers and modifications
          that may hereafter be executed, (b) documents received by any Purchaser at the Closing (except the Notes 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 Notes from contesting
          any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

      Section 20. Confidential Information.

      For the purposes of this Section 20, “Confidential Information” means information delivered to any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this
          Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of the Company or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b)
          subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by the Company or any Subsidiary or (d)
          constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such
          Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may
          deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys, trustees and affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by its
          Notes), (ii) its auditors, financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with this Section 20, (iii) any other holder of any Note, (iv) any Institutional
          Investor to which it sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by 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 this Section 20), (vi) any federal or state regulatory authority having
          jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any
          other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y) in
          connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in
          the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes, this Agreement or any Subsidiary Guaranty.  Each holder of a Note, by its acceptance of a Note, 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 Note 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 this Section 20.

      In the event that as a condition to receiving access to information relating to the Company or its
          Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality undertaking (whether through IntraLinks, another secure website,
          a secure virtual workspace or otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede any such other
          confidentiality undertaking.

      Section 21. Substitution of Purchaser.

      Each Purchaser shall have the right to substitute any one of its Affiliates or another Purchaser or
          any one of such other Purchaser’s Affiliates (a “Substitute Purchaser”) as the purchaser of the Notes that it has agreed to purchase
          hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Substitute Purchaser, shall contain such Substitute Purchaser’s agreement to be bound by this Agreement and shall contain a confirmation by
          such Substitute Purchaser of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be deemed to refer
          to such Substitute Purchaser in lieu of such original Purchaser.  In the event that such Substitute Purchaser is so substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such original Purchaser all of the
          Notes then held by such Substitute Purchaser, upon receipt by the Company of notice of such transfer, any reference to such Substitute Purchaser as a “Purchaser” in this Agreement (other than in this Section 21), shall no longer be deemed to
          refer to such Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall again have all the rights of an original holder of the Notes under this Agreement.

      Section 22. Miscellaneous.

      Section 22.1. Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of
          their respective successors and assigns (including any subsequent holder of a Note) whether so expressed or not, except that, subject to Section 10.2, the Company may not assign or otherwise transfer any of its rights or obligations hereunder or
          under the Notes without the prior written consent of each holder.  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto and their respective successors and assigns permitted
          hereby) any legal or equitable right, remedy or claim under or by reason of this Agreement.  

      Section 22.2. Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance
          with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes
          of determining compliance with this Agreement (including Section 9, Section 10 and the definition of “Indebtedness”), any election by the Company to measure any financial liability using fair value (as permitted by Financial Accounting Standards
          Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value Option, International Accounting Standard 39 – Financial Instruments: Recognition and Measurement or any similar accounting standard) shall be disregarded and such determination shall be made
          as if such election had not been made.

      Section
            22.3. 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 22.4. 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.

      Defined terms herein shall apply equally to the singular and plural forms of the terms defined. 
          Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.  The words “include,” “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”  The word
          “will” shall be construed to have the same meaning and effect as the word “shall.”  Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to
          such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein) and, for purposes of the Notes, shall
          also include any such notes issued in substitution therefor pursuant to Section 13, (b) subject to Section 22.1, any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein,”
          “hereof” and “hereunder,” and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Sections and Schedules shall be construed to refer to
          Sections of, and Schedules to, this Agreement, and (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time.

      Section 22.5. 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 22.6. 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 22.7. 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 Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives and agrees not to
          assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought
          in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

      (b) The Company agrees, to the fullest extent permitted by applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a) brought in any such court shall be conclusive and binding
          upon it subject to rights of appeal, as the case may be, and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which it or any of its assets is or may be subject) by
          a suit upon such judgment. 

      (c) The Company consents to process being served by or on behalf of any holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.7(a) by mailing a copy thereof by registered, certified priority or
          express mail (or any substantially similar form of mail), postage prepaid, return receipt or delivery confirmation requested, to it at its address specified in Section 18 or at such other address of which such holder shall then have been notified
          pursuant to said Section.  The Company agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by
          applicable law, be taken and held to be valid personal service upon and personal delivery to it.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any
          reputable commercial delivery service.

      (d) Nothing in this Section 22.7 shall affect the right of any holder of a Note to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against the Company
          in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

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

      

      

      
        
          

      

      

      

      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,

      

      

      The York Water Company

      

      

      

      

      

      

      By /s/ Jeffrey R. Hines

      Its President and CEO

      

      

      
        
          

      

      

      

      This Agreement is hereby

      accepted and agreed to as 

      of the date hereof.

      

      

      

      

      The Lincoln National Life Insurance Company

      

      

      By:  Macquarie Investment Management Advisers, a series of Macquarie Investment Management
          Business Trust, Attorney in Fact

      

      

      

      

      

      

      By /s/ Karl
            Spaeth

      Name:  Karl Spaeth

      Title:    Vice President

      

      

      

      

      Lincoln Life & Annuity Company of New York

      

      

      By:  Macquarie Investment Management Advisers, a series of Macquarie Investment Management
          Business Trust, Attorney-in-Fact

      

      

      

      

      

      

      By /s/ Karl Spaeth

      Name:  Karl Spaeth

      Title:    Vice President

      

      

      
        
          

      

      

      

      This Agreement is hereby

      accepted and agreed to as 

      of the date hereof.

      

      

      

      

      Companion Life Insurance Company

      

      

      

      

      

      

      By /s/ Lee
            Martin

      Name:  Lee Martin

      Title:    Vice President

      

      

      

      

      Mutual of Omaha Insurance Company

      

      

      

      

      

      

      By /s/ Lee Martin

      Name:  Lee Martin

      Title:    Vice President

      

      

      

      

      

      

      

      

      

      

      
        
          

      

      

      

      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, 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.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of the Company.

      “Agreement”
          means this Note Purchase Agreement, including all Schedules attached to this Agreement.

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

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

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

      “Business
            Day” means (a) for the purposes of Section 8.6 only, any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are required or authorized to be closed, and (b) for the purposes of any other 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 York, Pennsylvania are required or authorized to be closed.

      “Capitalized
            Lease” shall mean any lease, the obligation for Rentals with respect to which is required to be capitalized on a balance sheet of the lessee in accordance with generally accepted accounting principles.

      “Capitalized
            Rentals” shall mean as of the date of any determination the amount at which the aggregate Rentals due and to become due under all Capitalized Leases under which the Company is a lessee would be reflected as a liability on a balance sheet
          of the Company.

      “Closing”
          is defined in Section 3.

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

      “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; and the terms “Controlled” and “Controlling” shall have
          meanings correlative to the foregoing. 

      “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 per annum that is the greater of (a) 2% above the rate of interest stated in clause (a) of the first paragraph of the Notes or (b) 2% over the rate of interest publicly announced by PNC Bank in New York,
          New York as its “base” or “prime” rate, but in no event in excess of the maximum rate of interest permitted by applicable law.

      “Disclosure
            Documents” is defined in Section 5.3.

      “EDGAR”
          means the SEC’s Electronic Data Gathering, Analysis and Retrieval System or any successor SEC electronic filing system for such purposes.

      “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 those related to Hazardous Materials.

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

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

      “Excepted
            Encumbrances” shall mean any of the following:  

      (a) liens for taxes, assessments or governmental charges not delinquent and liens for workers’ compensation awards and similar obligations not delinquent and undetermined liens or charges incidental to
          construction;

      (b) any liens securing Indebtedness neither assumed nor guaranteed by the Company on which it customarily pays interest, existing in or relating to real estate acquired by the Company for transmission,
          distribution or right‐of‐way purposes;

      (c) easements or reservations in any property of the Company created for the purpose of roads, railroads, railroad side tracks, water and gas transmission and distribution mains, conduits, water power rights of
          the Commonwealth of Pennsylvania or others, building and use restrictions and defects of title to, or leases of, any parts of the property of the Company which do not in the opinion of the Company’s counsel materially impair the use of the
          property as an entirety in the operation of the business of the Company;

      (d) undetermined liens and charges incidental to current construction, including mechanics’, laborers’, materialmen’s and similar liens not delinquent;

      (e) any obligations or duties affecting the property of the Company to any municipality or public authority with respect to any franchise, grant, license, permit or certificate;

      (f) rights reserved to or vested in any municipality or public authority to control or regulate any property of the Company or to use such property in a manner which does not materially impair the use of such
          property for the purposes for which it is held by the Company; 

      (g) judgments in course of appeal or otherwise in contest and secured by sufficient bond or security; or

      (h) any right of set-off or banker’s lien in favor of any bank lender or any security interest in favor of any bank lender in deposits, moneys, securities or other property in the possession of or on deposit
          with, or in transit to, such bank lender or any of its affiliates.

      “Event
            of Default” is defined in Section 11.

      “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. 

      “Form
            10‐K” is defined in Section 7.1(b).

      “Form
            10‐Q” is defined in Section 7.1(a).

      “Funded
            Debt” of any Person shall mean (a) all Indebtedness for borrowed money or which has been incurred in connection with the acquisition of assets in each case having a final maturity of one or more than one year from the date of origin
          thereof (or which is renewable or extendible at the option of the obligor for a period or periods more than one year from the date of origin), including all payments in respect thereof that are required to be made within one year from the date of
          any determination of Funded Debt and (b) all Guaranties of such Indebtedness described in clause (a).

      “GAAP”
          means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.6, with respect to any Subsidiary, generally accepted accounting principles (including
          International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Subsidiary.

      “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.

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

      “Guaranty”
          means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any indebtedness, dividend or
          other obligation of any other Person in any manner, whether directly or indirectly, including obligations incurred through an agreement, contingent or otherwise, by such Person:

      (a) to purchase such indebtedness or obligation or any property constituting security therefor;

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

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

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

      In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the indebtedness or other
          obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor.

      “Hazardous
            Materials” means any and all pollutants, toxic or hazardous wastes or other substances that might pose a hazard to health and safety, the removal of which may be required or the generation, manufacture, refining, production, processing,
          treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of which is or shall be restricted, prohibited or penalized by any applicable law, including asbestos, urea formaldehyde
          foam insulation, polychlorinated biphenyls, petroleum, petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.

      “holder”
          means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Company pursuant to Section 13.1, provided, however, that if such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related definitions in this Schedule A, “holder” shall mean the beneficial owner of such Note whose name and
          address appears in such register.

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

      “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 Capitalized 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 Capitalized 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 its liabilities in respect of letters of credit or instruments serving a similar function issued or accepted for its 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.

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

      “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 and the Notes, (c) the ability of any Subsidiary Guarantor to perform its obligations under its Subsidiary Guaranty, or (d) the validity or enforceability of this Agreement, the Notes or any Subsidiary Guaranty.

      “Material
            Credit Facility” means, as to the Company and its Subsidiaries, 

      (a) the (i) $13,000,000 revolving line of credit from Fulton Bank, N.A., (ii) $7,500,000 revolving line of credit from PNC Bank, N.A., (iii) $10,000,000 line of credit from Brank Banking and Trust Company, and
          (iv) $11,000,000 revolving line of credit from Citizens Bank of Pennsylvania, including, in each case, any renewals, extensions, amendments, supplements, restatements, replacements or refinancing thereof; and

      (b) any other agreement creating or evidencing indebtedness for borrowed money entered into on or after the date of Closing by the Company or any Subsidiary, or in respect of which the Company or any Subsidiary
          is an obligor or otherwise provides a guarantee or other credit support (“Credit Facility”), in a principal amount outstanding or available for
          borrowing equal to or greater than $40,000,000 (or the equivalent of such amount in the relevant currency of payment, determined as of the date of the closing of such facility based on the exchange rate of such other currency); and if no Credit
          Facility equals or exceeds such amount, then the largest Credit Facility shall be deemed to be a Material Credit Facility but only if it is in a principal amount outstanding or available for borrowing equal to or greater than $10,000,000.  

      “Maturity
            Date” is defined in the first paragraph of each Note.

      “Memorandum”
          is defined in Section 5.3.

      “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.

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

      “Notes”
          is defined in Section 1.

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

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

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

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

      “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.

      “Plant
            Account” shall mean the plant account under the Pennsylvania Public Utilities Commission Uniform System of Accounts for Water Utilities dated November 21, 1946, as the same may be amended from time to time.

      “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.

      “Prepayment
            Challenge Amount” means, with respect to any Note, an amount equal to 0.50% (50 basis points) times the outstanding principal amount
          of such Note. 

      “Priority
            Debt” means Indebtedness of the Company or any Subsidiary secured by assets not otherwise permitted by clauses (i) through (iv) of Section 10.5(a) or as an Excepted Encumbrance and, without duplication, the aggregate amount of
          Indebtedness of all Subsidiaries (other than Subsidiary Guarantors).

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

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

      “Purchaser”
          or “Purchasers” means each of the purchasers that has executed and delivered this Agreement to the Company and such Purchaser’s successors and
          assigns (so long as any such assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that ceases to be the
          registered holder or a beneficial owner (through a nominee) of such Note as the result of a transfer thereof pursuant to Section 13.2 shall cease to be included within the meaning of “Purchaser” of such Note for the purposes of this Agreement
          upon such transfer.

      “Purchaser
            Schedule” means the Purchaser Schedule to this Agreement listing the Purchasers of the Notes and including their notice and payment information.

      “Qualified
            Institutional Buyer” means any Person who is a “qualified institutional buyer” within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

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

      “Related
            Fund” means, with respect to any holder of any Note, 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.

      “Rentals” shall mean and include all fixed
          rents (including as such all payments which the lessee is obligated to make to the lessor on termination of the lease or surrender of the Property) payable by the Company, as lessee or sublessee under a lease of real or personal property, but
          shall be exclusive of any amounts required to be paid by the Company (whether or not designated as rents or additional rents) on account of maintenance, repairs, insurance, taxes and similar charges.  Fixed rents under any so-called “percentage leases” shall be computed solely on the basis of the minimum rents, if any, required to be paid by the lessee regardless of sales
          volume or gross revenues.

      “Required
            Holders” means at any time on or after the Closing, the holders of more than 50% in principal amount of the Notes at the time outstanding (exclusive of Notes 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.

      “Restricted
            Payment” is defined in Section 10.8.

      “Seasonal
            Indebtedness” as of the date of any determination thereof shall mean (a) all Indebtedness for money borrowed or which has been incurred in connection with the acquisition of assets in each case other than Funded Debt and (b) Guaranties
          of Seasonal Indebtedness of others.

      “SEC”
          means the Securities and Exchange Commission of the United States of America.

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

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

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

      “Significant
            Subsidiary” means at any time any Subsidiary that would at such time constitute a “significant subsidiary” (as such term is defined in Regulation S-X of the SEC as in effect on the date of the Closing) of the Company.

      “Source”
          is defined in Section 6.2.

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

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

      “Subsidiary
            Guarantor” means each Subsidiary that has executed and delivered a Subsidiary Guaranty.

      “Subsidiary
            Guaranty” is defined in Section 9.7(a).

      “Substitute
            Purchaser” is defined in Section 21.

      “SVO”
          means the Securities Valuation Office of the NAIC.

      “Swap
            Contract” means (a) any and all interest rate swap transactions, basis swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or
          equity index swaps or options, bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap transactions, floor transactions, currency options, spot contracts or any other similar transactions or any of the
          foregoing (including any options to enter into any of the foregoing), and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement
          published by the International Swaps and Derivatives Association, Inc. or any International Foreign Exchange Master Agreement.

      “Swap
            Termination Value” means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap
          Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market values(s) for
          such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts.

      “Synthetic
            Lease” means, at any time, any lease (including leases that may be terminated by the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains or obtains
          ownership of the property so leased for U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

      “United
            States Person” has the meaning set forth in Section 7701(a)(30) of the Code.

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

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

      “Voting
            Stock” means Securities of any class or classes, the holders of which are ordinarily, in the absence of contingencies, entitled to elect the corporate directors (or Persons performing similar functions). 

      “Wholly-Owned
            Subsidiary” means, at any time, any Subsidiary all of the equity interests (except directors’ qualifying shares) and voting interests of which are owned by any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries
          at such time.

      
        
          

      

      

      

      [Form of Note]

      This Note has not been registered under the Securities Act of 1933, as
          amended, and may not be transferred, sold or otherwise disposed of except while registration under said Act is in effect or pursuant to an exemption from registration under said Act or if said Act does not apply.

      The York Water Company

      4.54% Senior Note Due January 31, 2049

      No. R__ [Date]

      $[_______] PPN 987184 E*5

      

      

      For
            Value Received, the undersigned, The York Water Company (herein called the “Company”), a corporation organized and existing under the
          laws of the Commonwealth of Pennsylvania, hereby promises to pay to [____________], or registered assigns, the principal sum of [_____________________] Dollars (or so much thereof as shall not have been prepaid) on January 31, 2049 (the “Maturity Date”), with interest
          (computed on the basis of a 360-day year of twelve 30‐day months) (a) on the unpaid balance hereof at the rate of 4.54% per annum from the date hereof, payable semiannually, on the 31st day of January and July in each year, commencing with the
          January 31 or July 31 next succeeding the date hereof, and on the Maturity Date, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, (x) on any overdue payment of interest and (y) during the
          continuance of an Event of Default, on such unpaid balance and on any overdue payment of any Make-Whole Amount, at the Default Rate, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

      Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be
          made in lawful money of the United States of America at PNC Bank or at such other place as the Company shall have designated by written notice to the holder of this Note as provided in the Note Purchase Agreement referred to below.

      This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated January 31, 2019 (as from time to time amended, the “Note Purchase Agreement”), between the Company and the respective Purchasers named therein and is entitled to the benefits thereof.  Each holder of this Note will be deemed, by its acceptance
          hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note Purchase Agreement and (ii) made the representations set forth in Section 6 of the Note Purchase Agreement.  Unless otherwise indicated, capitalized
          terms used in this Note shall have the respective meanings ascribed to such terms in the Note Purchase Agreement.

      This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this
          Note for registration of transfer accompanied by a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and
          registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the Person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other
          purposes, and the Company will not be affected by any notice to the contrary.

      This Note is subject to prepayment, in whole or from time to time in part, at the times and on the
          terms specified in the Note Purchase Agreement, but not otherwise.

      If an Event of Default occurs and is continuing, the principal of this Note may be declared or
          otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

      This Note shall be construed and enforced in accordance with, and the rights of the Company and the
          holder of this Note 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.

      

      

      The York Water Company

      

      

      

      

      

      

      By

      Its

      

      

      
        
          

      

      

      

      Form of Opinion of Special Counsel

          For The Company

      The following opinions are to be provided by special counsel for the Company, subject to customary assumptions,
          limitations and qualifications.  All capitalized terms used herein without definition shall have the meanings ascribed thereto in the Note Purchase Agreement.

      

      

      1. The Company is a corporation presently subsisting under the laws of Pennsylvania and has the corporate power and authority to conduct its business as currently conducted and currently proposed to be conducted, to execute and
          deliver the Note Purchase Agreement and the Notes and to perform the provisions thereof.

      2. The Note Purchase Agreement has been duly authorized, executed and delivered by the Company and constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms.

      3. The Notes being purchased by you at the Closing have been duly authorized, executed and delivered by the Company and constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance
          with their terms.

      4. No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority by the Company is required in connection with the execution, delivery or performance by the Company of the Note
          Purchase Agreement or the Notes, except for the approval required from the Pennsylvania Public Utility Commission.

      5. It was not necessary in connection with the offering, sale and delivery of the Notes purchased by you at the Closing, under the circumstances contemplated by the Note Purchase Agreement, to register said Notes under the Securities
          Act of 1933 or to qualify an indenture in respect of the Notes under the Trust Indenture Act of 1939.

      6. The execution, delivery and performance by the Company of the Note Purchase Agreement and the Notes does not and will not (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any
          Lien in respect of any property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan, or credit agreement, corporate charter, by-laws or other constituent document to which the Company or any Subsidiary is a party
          or by which the Company or any Subsidiary or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree or ruling of any court,
          arbitrator or Governmental Authority applicable to the Company or any Subsidiary or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to the Company or any Subsidiary.

      7. The Company is not an “investment company” or, to the knowledge of such counsel, a Person directly or indirectly controlled by or acting on behalf of an “investment company” within the meaning of the Investment Company Act of
          1940.

      8. None of the transactions contemplated by the Note Purchase Agreement (including, without limitation, the use of the proceeds from the sale of the Notes) will violate or result in a violation of Regulation T, U or X of the Board of
          Governors of the United States Federal Reserve System, 12 CFR, Part 220, Part 221 and Part 224, respectively.

      

      

      
        
          

      

      

      

      Form of Opinion of Special Counsel

          For The Purchasers

      [To Be Provided on a Case by Case Basis]

      

      

      
        
          

      

      Schedule 5.3

      Disclosure Materials 

          

      

      None.

      

      

      
        
          

      

      Schedule 5.4

      Affiliates and Directors of the Company 

      

      

      (i) Affiliates: None.

      

      

      

      

      

      

      (ii) Company’s Directors and
          Senior Officers:

      

      

      Directors

      

      

      James H. Cawley, Esq.

      Michael W. Gang, Esq.

      Jeffrey R. Hines, P.E.

      George W. Hodges

      George Hay Kain, III

      Jody L. Keller, SPHR

      Erin C. McGlaughlin

      Robert P. Newcomer

      Steven R. Rasmussen, CPA

      Ernest J. Waters

      

      

      

      

      Officers

      

      

      Jeffrey R. Hines, P.E., President and Chief Executive Officer

      Joseph T. Hand, Chief Operating Officer

      Matthew E. Poff, CPA, Chief Financial Officer

      Vernon L. Bracey, Vice President of Customer Service

      Mark S. Snyder, P.E., Vice President of Engineering

      John H. Strine, Vice President of Operations

      

      

      

      

      

      

      
        
          

      

      Schedule 5.5

      Financial Statements

      

      

      
        	
                ·

              	
                December 31, 2017 Audited Financial Statements, which include balance sheets as of December 31, 2017 and 2016, and related
                    statements of income, changes in common stockholder’s equity, and cash flows for the years then ended, and the related notes to the financial statements.

              

      

      

      

      
        	
                ·

              	
                September 30, 2018 Unaudited Financial Statements, which include condensed balance sheets as of September 30, 2018 and December 31,
                    2017, and related statements of income, changes in common stockholder’s equity, and cash flows for the nine month periods ended September 30, 2018 and September 30, 2017, and the related notes to the interim financial statements.

              

      

      

      

      
        
          

      

      	
              Schedule 5.15

              Existing Indebtedness of the Company and its SubsidiariesExhibit

Exhibit  10.1

Execution Version

 
 
 
 
 
 
 
 
AMENDED AND RESTATED
PARTICIPATION AGREEMENT 
 
 
Dated as of February 4, 2019 
 
 
 
by and between 
 
 
 
CFI HENDON HOLDINGS, LLC  
(Initial Senior Participant and Servicer) 
 
and 
 
N1 HENDON HOLDINGS, LLC  
(Initial Junior Participant) 
 
 
 
Hendon 
 
 
 
 
 
 
 
 
 
 
 
 
 

THIS AMENDED AND RESTATED PARTICIPATION AGREEMENT (“Agreement”), dated as of February 4, 2019, by and between CFI HENDON HOLDINGS, LLC, having an address of 515 S. Flower St., 44th Floor, Los Angeles, CA 90071 (together with its successors and assigns in interest, in its capacity as initial owner of the Senior Participation, the “Initial Senior Participant” and in its capacity as Servicer), and N1 HENDON HOLDINGS, LLC, having an address of 515 S. Flower St., 44th Floor, Los Angeles, CA 90071 (together with its successors and assigns in interest, in its capacity as initial owner of the Junior Participation, the “Initial Junior Participant”).
W I T N E S S E T H:
WHEREAS, pursuant to the Mortgage (as defined herein) SE Malls Lender NT-I, LLC (an affiliate of the Initial Junior Participant) originated a certain loan described on the schedule attached hereto as Exhibit A (the “Purchase Schedule”) (the “Mortgage Loan”) to the mortgage loan borrowers described on the Purchase Schedule (collectively, the “Mortgage Loan Borrower”), which is evidenced, inter alia, by a mortgage note (as amended, modified or supplemented, the “Note”) now held by the Initial Junior Participant and secured by first lien mortgages, deeds to secure debt or deeds of trust (collectively, and as amended, modified or supplemented, the “Mortgage”) on multiple parcels of, or estates in, real property located as described on the Purchase Schedule (collectively, the “Mortgaged Property”); 
WHEREAS, pursuant to that certain Participation Agreement dated as of January 31, 2018 entered into between the Initial Junior Participant and the Initial Senior Participant (the “Existing Participation Agreement”), the Initial Junior Participant sold to the Initial Senior Participant and the Initial Senior Participant purchased from the Initial Junior Participant a senior participation in the Mortgage Loan; and
WHEREAS, in connection with certain amendments to the Mortgage Loan being entered into on the date hereof, the Senior Participant and the Junior Participant desire to amend and restate the terms of the Existing Participation Agreement, effective as of the date hereof.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto mutually agree as follows:
Section 1.    Definitions. References to a “Section” or the “recitals” are, unless otherwise specified, to a Section or the recitals of this Agreement. Whenever used in this Agreement, the following terms shall have the respective meanings set forth below unless the context clearly requires otherwise. Any term used but not defined herein shall have the meaning given to such term in the Servicing Addendum.
“Affiliate” shall mean with respect to any specified Person (i) any other Person Controlling or Controlled by or under common Control with such specified Person (each, a “Common Control Party”), (ii) any other Person owning, directly or indirectly, ten percent (10%) or more of the beneficial interests in such Person or (iii) any other Person in which such Person or a Common Control Party owns, directly or indirectly, ten percent (10%) or more of the beneficial interests.

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“Agreement” shall mean this Participation Agreement, the exhibits and schedule hereto and all amendments hereof and supplements hereto.
“Alternative Index” shall have the meaning assigned to such term in the Mortgage Loan Agreement.
“Balloon Payment” shall mean the final payment of principal due on the Mortgage Loan on the maturity date or extended maturity date thereof.
“Bankruptcy Code” shall mean the United States Bankruptcy Code, as amended from time to time, any successor statute or rule promulgated thereto.
“Business Day” shall mean any day other than (i) a Saturday or a Sunday or (ii) a day on which federally insured depository institutions in New York City are authorized or obligated by law, governmental decree or executive order to be closed.
“Code” shall mean the Internal Revenue Code of 1986, as amended.
“Condemnation Proceeds” shall mean any awards resulting from the destruction or damage of a Mortgaged Property, or from the full or partial condemnation or any eminent domain proceeding or any conveyance in lieu or in anticipation thereof with respect to a Mortgaged Property by or to any governmental or quasi-governmental authority, other than amounts to be applied to the restoration, preservation or repair of a Mortgaged Property.
“Control” shall mean the ownership, directly or indirectly, in the aggregate of more than fifty percent (50%) of the beneficial ownership interests of an entity and the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through the ability to exercise voting power, by contract or otherwise. “Controlled by,” “controlling” and “under common control with” shall have the respective correlative meaning thereto.
“Default Interest” shall mean interest on the Mortgage Loan at a rate per annum equal to the lesser of (i) the maximum rate permitted by applicable law and (ii) the Interest Rate in effect at the time of occurrence of the Event of Default plus four percent (4%), compounded monthly.
“Defaulted Mortgage Loan Additional Costs” shall mean any non-principal or interest amounts due under the Mortgage Loan, other than Prepayment Premiums, Default Interest or late charges, that are allocable to the Participations; provided that if the Mortgage Loan Borrower or a Mortgage Loan Borrower Related Party is the purchaser, the Defaulted Mortgage Loan Purchase Price shall include such amounts and (b) any expenses incurred in enforcing the Mortgage Loan Documents in accordance with this Agreement (including, without limitation, fees and expenses payable or reimbursable to the Servicer, including, without limitation, liquidation fees and workout fees).
“Due Date” shall mean the date on which Monthly Payments are due under the Mortgage Loan; provided that if Monthly Payments are no longer due under the Mortgage Loan 

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(including because of any principal prepayment), the “Due Date” shall mean the fifth (5th) day of each calendar month or, if such day is not a Business Day, the immediately preceding Business Day.
“Event of Default” shall mean, with respect to the Mortgage Loan, an “Event of Default” as defined in the Mortgage Loan Agreement.
“Initial Junior Participant” shall have the meaning assigned to such term in the preamble to this Agreement.
“Initial Senior Participant” shall have the meaning assigned to such term in the preamble to this Agreement.
“Insolvency Proceeding” shall mean any proceeding under Title 11 of the United States Code (11 U.S.C. Sec. 101 et seq.) or any other insolvency, liquidation, reorganization or other similar proceeding concerning the Mortgage Loan Borrower, any action for the dissolution of the Mortgage Loan Borrower, any proceeding (judicial or otherwise) concerning the application of the assets of the Mortgage Loan Borrower for the benefit of its creditors, the appointment of or any proceeding seeking the appointment of a trustee, receiver or other similar custodian for all or any substantial part of the assets of the Mortgage Loan Borrower or any other action concerning the adjustment of the debts of the Mortgage Loan Borrower, the cessation of business by the Mortgage Loan Borrower, except following a sale, transfer or other disposition of all or substantially all of the assets of the Mortgage Loan Borrower in a transaction permitted under the Mortgage Loan Documents; provided, however, that following any such permitted transaction affecting the title to the Mortgaged Property, the Mortgage Loan Borrower for purposes of this Agreement shall be defined to mean the successor owner of the Mortgaged Property from time to time as may be permitted pursuant to the Mortgage Loan Documents; provided, further, however, that for the purposes of this definition, in the event that more than one entity comprises the Mortgage Loan Borrower, the term “Mortgage Loan Borrower” shall refer to any such entity.
“Insurance Proceeds” shall mean amounts paid to the Servicer for the benefit of the Participants by any insurer pursuant to any hazard policy, environmental policy or other insurance policy covering any of the Mortgaged Properties or the Mortgage Loan Borrowers.
“Interest Rate” shall mean the Interest Rate (as defined in the Mortgage Loan Documents).
“Junior Participant” shall mean the Initial Junior Participant, and its successors in interest, or any subsequent holder of the Junior Participation.
“Junior Participation” shall mean the interest of the Junior Participant in the Mortgage Loan, as set forth in this Agreement.
“Junior Participation Percentage Interest” shall mean a fraction, expressed as a percentage, the numerator of which is the Junior Participation Principal Balance and the denominator of which is the sum of the Senior Participation Principal Balance and the Junior Participation Principal Balance.

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“Junior Participation Principal Balance” shall mean, with respect to the Mortgage Loan, at any time of determination, the Purchase Date Junior Participation Principal Balance set forth on the Purchase Schedule, less any payments of principal thereon or reductions in such amount pursuant to this Agreement.
“Junior Participation Rate” shall mean the Junior Participation Rate set forth on the Purchase Schedule, provided if the interest rate is modified under the Loan as a result of a modification agreed to by Lender, the Junior Participation Rate shall become such modified interest rate (inclusive of any cap on such interest rate) from and after the date the same becomes effective.
“Lender” shall have the meaning assigned to such term in the Mortgage Loan Agreement.
“LIBOR” shall mean LIBOR (as defined in the Mortgage Loan Documents).
“Liquidation Proceeds” shall mean amounts (other than Insurance Proceeds and condemnation awards) received by the Servicer in connection with the liquidation of the Mortgage Loan or any of the Mortgaged Properties, whether through judicial foreclosure, sale or otherwise, other than amounts required to be paid to the Mortgage Loan Borrowers pursuant to law or the terms of the Mortgage Loan.
“Major Decisions” shall mean:
(i)    any modification of, or waiver with respect to, the Mortgage Loan (including the Mortgage Loan Documents) that would result in the extension of the maturity date or extended maturity date thereof, a reduction in the interest rate borne thereby or the monthly debt service payment or a deferral or a forgiveness of interest on or principal of the Mortgage Loan or a modification or waiver of any other term of the Mortgage Loan relating to the amount or timing of any payment of principal or interest or any other sums due and/or payable under the Mortgage Loan Documents or a modification or waiver of any material term of the Mortgage Loan, including but not limited to provisions that restrict the Mortgage Loan Borrower or its equity owners from incurring additional indebtedness or incurring any lien on any of the Mortgaged Property or the personal property related thereto (other than liens permitted pursuant to the Mortgage Loan); provided that with respect to each of the foregoing, only to the extent, if any, that the lender has any rights under the Mortgage Loan Documents with respect to such matters;
(ii)    any waiver of an Event of Default;
(iii)    any transfer of the Mortgaged Property or any portion thereof, or any transfer of any direct or indirect ownership interest in the Mortgage Loan Borrower, except in each case as expressly permitted by the Mortgage Loan Documents;
(iv)    the approval of any material alteration of, the Mortgaged Property (if lender approval is required by the Mortgage Loan Documents and, if so, notwithstanding anything to the contrary set forth herein, subject to the same standard of approval as is set forth in the applicable Mortgage Loan Documents); or

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(v)    the approval of any further encumbrance or lien or change in use on or of the Mortgaged Property.
“Monthly Payment” shall mean, with respect to any Monthly Payment Date, the aggregate of the Scheduled Interest Payment and the Scheduled Principal Payment, if any, for such Monthly Payment Date.
“Monthly Payment Date” shall mean the Payment Date (as defined in the Mortgage Loan Documents).
“Mortgage” shall have the meaning assigned to such term in the recitals.
“Mortgage Loan” shall have the meaning assigned to such term in the recitals.
“Mortgage Loan Agreement” shall have the meaning assigned to such term on the Purchase Schedule.
“Mortgage Loan Borrower” shall have the meaning assigned to such term in the recitals.
“Mortgage Loan Borrower Related Party” shall have the meaning assigned to such term in Section 14.
“Mortgage Loan Documents” shall mean, with respect to the Mortgage Loan, the Mortgage, the Note and all other documents now or hereafter evidencing and securing the Mortgage Loan.
“Mortgaged Property” shall have the meaning assigned to such term in the recitals.
“Non-Exempt Person” shall mean any Person, other than a Person who is either (i) a U.S. Person or (ii) has on file with the Servicer for the relevant year such duly-executed form(s) or statement(s) which may, from time to time, be prescribed by law and which, pursuant to applicable provisions of (A) any income tax treaty between the United States and the country of residence of such Person, (B) the Code or (C) any applicable rules or regulations in effect under clauses (A) or (B) above, permit the Senior Participant to make such payments free of any obligation or liability for withholding.
“Note” shall have the meaning assigned to such term in the recitals.
“Participant” shall mean the Senior Participant or the Junior Participant, as applicable.
“Participation” shall mean the Senior Participation or the Junior Participation, as applicable.
“Participation Register” shall have the meaning assigned to such term in Section 17.

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“Percentage Interest” shall mean, with respect to the Senior Participant, the Senior Participation Percentage Interest, and with respect to the Junior Participant, the Junior Participation Percentage Interest, as each may be adjusted from time to time.
“Person” means any individual, sole proprietorship, corporation, general partnership, limited partnership, limited liability company or partnership, joint venture, insurance company, association, joint stock company, bank, trust, estate, unincorporated organization, any federal, state, county or municipal government (or any agency or political subdivision thereof).
“Prepayment Premium” shall mean, with respect to the Mortgage Loan, any prepayment premium, spread maintenance premium, yield maintenance premium or similar fee required to be paid in connection with a prepayment of the Mortgage Loan pursuant to the Mortgage Loan Documents, including any exit fee.
“Purchase Date” shall mean January 31, 2018.
“Purchase Schedule” shall have the meaning assigned to such term in the preamble to this Agreement.
“Remittance Date” shall mean the first Business Day following each Due Date.
“Scheduled Interest Payment” shall mean the scheduled monthly payment of interest on the Mortgage Loan that is due and payable on the Due Date, subject to any modification permitted pursuant to this Agreement.
“Scheduled Principal Payment” shall mean the scheduled monthly payment of principal, if any, on the Mortgage Loan that is due and payable on the Due Date, including the Balloon Payment due and payable on the Maturity Date, subject to any modification permitted pursuant to this Agreement.
“Securities Act” shall mean the Securities Act of 1933, as amended.
“Senior Participant” shall mean the Initial Senior Participant, and its successors in interest, or any subsequent holder of the Senior Participation.
“Senior Participation” shall mean the interest of the Senior Participant in the Mortgage Loan, as set forth in this Agreement.
“Senior Participation Percentage Interest” shall mean a fraction, expressed as a percentage, the numerator of which is the Senior Participation Principal Balance and the denominator of which is the sum of the Senior Participation Principal Balance and the Junior Participation Principal Balance.
“Senior Participation Principal Balance” shall mean, with respect to the Mortgage Loan, at any time of determination, the Purchase Date Senior Participation Principal Balance set forth on the Purchase Schedule, less any payments of principal thereon or reductions in such amount pursuant to this Agreement.

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“Senior Participation Purchase Price” shall mean the amount that the Initial Senior Participant is required to pay to the Junior Participant to acquire the Senior Participation, as set forth on the Purchase Schedule.
“Senior Participation Rate” shall mean the Senior Participation Rate set forth on the Purchase Schedule, provided if the interest rate is modified under the Loan as a result of a modification agreed to by Lender, the Senior Participation Rate shall become such modified interest rate (inclusive of any cap on such interest rate) from and after the date the same becomes effective.
“Sequential Pay Event” shall mean any Event of Default with respect to an obligation to pay money due under the Mortgage Loan, any other Event of Default for which the Mortgage Loan is actually accelerated, and any bankruptcy or insolvency event that constitutes an Event of Default.
“Servicer” shall mean the Senior Participant or such replacement servicer selected by the Senior Participant in its sole and absolute discretion.
“Servicing Addendum” shall mean the Servicing Addendum attached hereto as Exhibit D.
“Taxes” shall mean any income or other taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature, now or hereafter imposed by any jurisdiction or by any department, agency, state or other political subdivision thereof or therein.
“Transfer” shall have the meaning assigned to such term in Section 15.
“U.S. Person” shall mean a citizen or resident of the United States, a corporation or partnership (except to the extent provided in applicable Treasury Regulations) created or organized in or under the laws of the United States, any State thereof or the District of Columbia, including any entity treated as a corporation or partnership for federal income tax purposes, or an estate whose income is subject to United States federal income tax regardless of its source, or a trust if a court within the United States is able to exercise primary supervision over the administration of such trust, and one or more such U.S. Persons have the authority to control all substantial decisions of such trust (or, to the extent provided in applicable Treasury Regulations, a trust in existence on August 20, 1996 which is eligible to elect to be treated as a U.S. Person).
“Workout” shall mean any written modification, waiver, amendment, restructuring or workout, whether permanent or temporary, of the Mortgage Loan or the Note entered into with the Mortgage Loan Borrower following an Event of Default.
Section 2.    Purchase of Senior Participation; Servicing.
(a)    On the Purchase Date, the Initial Senior Participant purchased the Senior Participation for the Senior Participation Purchase Price. Thereafter, the Senior Participant has been and shall be the owner of the Senior Participation. The purchase of the Senior Participation shall be deemed effective as of 11:59 p.m., New York time, on the Purchase Date.

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(b)    As further described in Section 5, the Junior Participant acknowledges and agrees that, subject in each case to this Agreement, the Mortgage Loan shall be serviced by the Servicer in accordance with this Agreement and the Servicing Addendum; provided, however, that the Senior Participant may utilize a subservicer to perform such functions; provided further that the Servicer shall not be obligated to advance monthly payments of principal or interest in respect of the Senior Participation or the Junior Participation not paid by the Mortgage Loan Borrower or otherwise available for payment on or with respect to or in connection with the Mortgage Loan or the Mortgaged Property. Subject to the terms and conditions of this Agreement, the Junior Participant hereby irrevocably and unconditionally consents to the appointment of the Servicer and agrees to reasonably cooperate with the Servicer with respect to the servicing of the Mortgage Loan and the Participations. In no event shall the Servicer be required to enforce the rights of the Junior Participant against the Senior Participant and nothing herein shall be deemed to limit the Servicer in enforcing the rights of the Senior Participant against the Junior Participant; provided, however, this statement shall not be construed to otherwise limit the rights of the Junior Participant as between it and the Senior Participant as hereinafter set forth. Notwithstanding the foregoing, the Junior Participant shall, subject to the terms of this Agreement, at all times, retain legal title to the Mortgage Loan and be the mortgagee and secured party of record for the Senior Participation and the Junior Participation. Notwithstanding any other provision hereof, it is understood and agreed that the Senior Participation shall not represent a direct ownership interest in the Mortgage Loan but that the Senior Participation shall represent a participating beneficial ownership interest (of the type and nature contemplated by 11 U.S.C. Section 541(d) of the Bankruptcy Code) in the Mortgage Loan, the proceeds thereof and the Mortgage Loan Documents, in each case allocable to the Senior Participation as provided herein.
Section 3.    Subordination of Junior Participation; Payments Prior to a Sequential Pay Event. The Junior Participation and the right of the Junior Participant to receive payments of interest, principal and other amounts with respect to such Junior Participation shall at all times be junior, subject and subordinate to the Senior Participation and the right of the Senior Participant to receive payments of interest, principal and other amounts with respect to the Senior Participation as set forth herein. If no Sequential Pay Event, as determined by the Servicer, shall have occurred and be continuing, all amounts tendered by the Mortgage Loan Borrower or otherwise available for payment on or with respect to or in connection with the Mortgage Loan or the Mortgaged Property and all amounts realized as proceeds thereof, whether received in the form of Monthly Payments, the Balloon Payment, Liquidation Proceeds, proceeds under any guaranty, letter of credit or other collateral or instrument securing the Mortgage Loan, Condemnation Proceeds, or Insurance Proceeds (other than proceeds, awards or settlements to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgage Loan Borrower in accordance with the terms of the Mortgage Loan Documents), in each case other than amounts for required to be held as reserves or escrows in accordance with the terms of the Mortgage Loan Documents, shall be distributed by the Servicer in the following order of priority without duplication (and payments of the amounts so distributed shall be made on the applicable Remittance Date in accordance with wiring instructions provided by the applicable party to the Servicer at least two (2) Business Days prior to such Remittance Date):

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(a)    first, to the Servicer in an amount equal to any unreimbursed costs and expenses paid by the Servicer with respect to the Mortgage Loan pursuant to this Agreement;
(b)    second, to the Senior Participant in an amount equal to the sum of any unreimbursed costs and expenses paid by the Senior Participant with respect to the Mortgage Loan pursuant to this Agreement;
(c)    third, with respect to interest payments received, to the Senior Participant in an amount equal to the accrued and unpaid interest on the Senior Participation Principal Balance at the Senior Participation Rate;
(d)    fourth, with respect to interest payments received, to the Junior Participant in an amount equal to the accrued and unpaid interest on the Junior Participation Principal Balance at the Junior Participation Rate;
(e)    fifth, with respect to any principal payments received, to the Senior Participant until the Senior Participation Principal Balance has been reduced to zero and there are no outstanding obligations to the Senior Participant;
(f)    sixth, with respect to any principal payments received, to the Junior Participant until the Junior Participation Principal Balance has been reduced to zero and there are no outstanding obligations to the Junior Participant; and
(g)    seventh, if any excess amount is available to be distributed in respect of the Mortgage Loan, and not otherwise applied in accordance with the foregoing clauses (a)-(f), any remaining amount shall be paid pro rata to the Senior Participant and the Junior Participant in accordance with their respective Percentage Interests. 
Section 4.    Payments Following a Sequential Pay Event. Payments of interest and principal shall be made to the Participants in accordance with Section 3 of this Agreement; provided that, if a Sequential Pay Event, as determined by the Servicer, shall have occurred and be continuing, all amounts tendered by the Mortgage Loan Borrower or otherwise available for payment on or with respect to or in connection with the Mortgage Loan or the Mortgaged Property and all amounts realized as proceeds thereof, whether received in the form of Monthly Payments, any proceeds from the sale or distribution of any REO Property, the Balloon Payment, Liquidation Proceeds, proceeds under any guaranty, letter of credit or other collateral or instrument securing the Mortgage Loan, Condemnation Proceeds, or Insurance Proceeds (other than proceeds, awards or settlements to be applied to the restoration or repair of the Mortgaged Property or released to the Mortgage Loan Borrower in accordance with the terms of the Mortgage Loan Documents), in each case other than amounts required by the Mortgage Loan Documents to be continued to be held as reserves or escrows, shall be distributed by the Servicer in the following order of priority without duplication (and payments of the amounts so distributed shall be made on the applicable Remittance Date in accordance with wiring instructions provided by the applicable party to the Servicer at least two (2) Business Days prior to the Remittance Date):

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(a)    first, to the Servicer in an amount equal to any unreimbursed costs and expenses paid by the Servicer with respect to the Mortgage Loan pursuant to this Agreement
(b)    second, to the Senior Participant in an amount equal to the sum of any unreimbursed costs and expenses paid by the Senior Participant with respect to the Mortgage Loan pursuant to this Agreement;
(c)    third, to the Senior Participant in an amount equal to the accrued and unpaid interest on the Senior Participation Principal Balance at the Senior Participation Rate;
(d)    fourth, to the Senior Participant until the Senior Participation Principal Balance has been reduced to zero and there are no outstanding obligations to the Senior Participant;
(e)    fifth, to the Junior Participant in an amount equal to the accrued and unpaid interest on the Junior Participation Principal Balance at the Junior Participation Rate;
(f)    sixth, to the Junior Participant until the Junior Participation Principal Balance has been reduced to zero and there are no outstanding obligations to the Junior Participant; and
(g)    seventh, if any excess amount is available to be distributed in respect of the Mortgage Loan, and not otherwise applied in accordance with the foregoing clauses (a)-(f), any remaining amount shall be paid pro rata to the Senior Participant and the Junior Participant in accordance with their respective Percentage Interests.
Section 5.    Administration of the Mortgage Loan.
(a)    Pursuant to this agreement, the Junior Participant agrees and acknowledges that the Senior Participant has been irrevocably selected to service the Mortgage Loan and is hereby made the “Servicer” of the Mortgage Loan pursuant to Section 10.3 of the Mortgage Loan Agreement, for all purposes and with all rights, delegations and powers as permitted thereunder; provided, however, that the Senior Participant may utilize a subservicer to perform such functions. Notwithstanding anything to the contrary herein or therein, but subject to the provisions of Section 5(d) requiring approval of Major Decisions by the Junior Participant, this includes an irrevocable power of attorney coupled with an interest, and its proxy, to execute documents or complete any necessary actions (including in foreclosure proceedings, to exercise a power of sale, or with respect to the delivery of a deed in lieu of foreclosure of the Mortgage or lien on such underlying property) on behalf of the “Lender” under the Mortgage Loan Agreement and related Mortgage Loan Documents for all purposes that the Senior Participant or Servicer has hereunder and that the Lender has under the Mortgage Loan Agreement and related Mortgage Loan Documents. Subject to this Agreement (including, but subject to, the provisions of Section 5(d) requiring approval of Major Decisions by the Junior Participant), the Servicer shall have the sole and exclusive authority with respect to the administration of, and exercise of rights and remedies with respect to, the Mortgage Loan, including, without limitation, the sole authority to modify or waive any of the terms of the Mortgage Loan Documents or consent to any action or failure to act by the Mortgage Loan Borrower or any other party to the Mortgage Loan Documents, call or waive any Event of Default, accelerate the Mortgage Loan or institute any foreclosure action or other remedy and the Junior Participant 

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shall not have any voting, consent or other rights whatsoever with respect to the administration of, or exercise of the rights and remedies of the Senior Participant with respect to, the Mortgage Loan. Subject to this Agreement (including the provisions of Section 5(d) requiring approval of Major Decisions by the Junior Participant), the Junior Participant agrees that it shall have no right to, and hereby presently and irrevocably assigns and conveys to the Servicer the rights, if any, that the Junior Participant has to, (i) call or cause the Senior Participant to call an Event of Default under the Mortgage Loan, or (ii) exercise any remedies with respect to the Mortgage Loan or the Mortgage Loan Borrower, including, without limitation, filing or causing the Senior Participant to file any bankruptcy petition against the Mortgage Loan Borrower. The foregoing provisions of this Section 5(a) shall not limit or modify the rights of the Junior Participant to exercise its rights specifically set forth under this Agreement.
(b)    The administration of the Mortgage Loan shall be governed by this Agreement and the Servicing Addendum. Servicing of the Mortgage Loan shall be carried out by the Servicer pursuant to this Agreement and the Servicing Addendum. Notwithstanding anything to the contrary contained herein, the Senior Participant shall cause the Servicer to service and administer the Mortgage Loan, taking into account the interests of the Senior Participant and the Junior Participant (it being understood that the interest of the Junior Participant is a junior participation interest, subject to the terms and conditions of this Agreement). The foregoing provisions of this Section 5(b) shall not limit or modify the rights of the Junior Participant to exercise its rights specifically set forth under this Agreement.
(c)    Notwithstanding anything to the contrary contained herein, in connection with a Workout of the Mortgage Loan that occurs after the date hereof (entered into with the consent of the Participants that are entitled to consent at the time of such Workout pursuant to Section 5(d)), if the Mortgage Loan terms are modified such that (i) the unpaid principal balance of the Mortgage Loan is decreased, (ii) the Interest Rate or scheduled amortization payments on such Mortgage Loan are reduced, (iii) payments of interest or principal on such Mortgage Loan are waived, reduced or deferred or (iv) any other adjustment is made to any of the terms of the Mortgage Loan, all payments to the Senior Participant pursuant to Section 3 and Section 4, as applicable, shall be made as though such Workout did not occur, with the payment terms of the Senior Participation remaining the same as they are on the date hereof, and the Junior Participation shall bear the full economic effect of all waivers, reductions or deferrals of amounts due on the Mortgage Loan attributable to such Workout (up to the amount otherwise due on the Junior Participation). Subject to this Agreement (including the provisions of Section 5(d) requiring approval of Major Decisions by the Junior Participant), in the case of any modification or amendment described above, the Senior Participant, will have the sole authority and ability to revise the payment provisions set forth in Section 3 and Section 4 above in a manner that reflects the subordination of the Junior Participation to the Senior Participation with respect to the loss that is the result of such amendment or modification, including: (i) the ability to increase the Senior Participation Percentage Interest and to reduce the Junior Participation Percentage Interest in a manner that reflects a loss in principal as a result of such amendment or modification; and (ii) the ability to change the Senior Participation Rate and the Junior Participation Rate, as applicable, in order to reflect a reduction in the Interest Rate of the Mortgage Loan, but the Senior Participant shall not be permitted to change the order of the clauses set forth in Sections 3 and 4 hereof. If on any date where LIBOR (or the Alternative Index, if applicable) is required to 

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be determined by the Servicer, but the Servicer is unable to determine LIBOR (or the Alternative Index, if applicable), the Senior Participation Rate and the Junior Participation Rate will be based on an alternative index and spread chosen by the Servicer in accordance with the provisions of the Mortgage Loan Documents, which reflects, as closely as possible, the original economics among the Participants hereunder.
(d)    Notwithstanding the foregoing, the Servicer shall prior to taking any action that is a Major Decision, (x) notify in writing the Junior Participant of any proposal to take any such actions and (y) receive the written approval of the Junior Participant; provided that if the Junior Participant fails to notify the Servicer of its approval or disapproval of any such proposed action within ten (10) Business Days (or, if the Mortgage provides for a shorter period for Lender to give consent, no later than one (1) Business Day prior to the end of such shorter period) of delivery to the Junior Participant by the Senior Participant of written notice of such a proposed action, together with all information reasonably necessary to make an informed decision with respect thereto, such action by the Servicer (provided that any such notice sent by the Servicer shall contain a statement in bold faced 12 point type to the effect that failure to respond within ten (10) Business Days or such shorter period) shall be deemed to have been approved by the Junior Participant. Notwithstanding the foregoing, the Servicer may take any action before the expiration of the aforementioned ten (10) Business Day period (or such shorter period) if (A) the Servicer has reasonably determined that failure to take such action would violate applicable law and/or the terms of the Mortgage Loan Documents, and (B) it has delivered written notice to the Junior Participant at least two (2) Business Days prior to taking such action (except in cases of emergency, when no prior notice need be sent, in which event the acting party shall so advise the Junior Participant with reasonable diligence of the action taken). Upon reasonable request, the Servicer shall provide the Junior Participant with any information the Servicer possesses regarding Major Decisions, including, without limitation, its reasons for determining to take a proposed Major Decision.
Notwithstanding anything contained in this Section 5(d), the Servicer shall not comply with any advice, consultation or disapproval provided by any Participant, if such advice, consultation or disapproval would (i) require or cause the Servicer to violate any applicable law, (ii) require or cause the Servicer to violate the provisions of this Agreement, (iii) require or cause the Servicer to violate the terms of the Mortgage Loan, (iv) expose any Participant or their affiliates, officers, directors, employees or agents to any claim, suit or liability, or (v) materially expand the scope of the Servicer’s responsibilities hereunder.
Section 6.    Payment Procedure.
(a)    The Servicer, in accordance with the priorities set forth in Section 3 or 4, as applicable will deposit or cause to be deposited (i) all amounts allocable to the Senior Participation to the Collection Account for the Senior Participation, and (ii) all amounts allocable to the Junior Participation to the Collection Account for the Junior Participation. The Servicer shall deposit such amounts to the applicable account no later than the Business Day next following the date such payment was received by the Servicer from or on behalf of the Mortgage Loan Borrower.
(b)    If the Servicer determines, or a court of competent jurisdiction orders, at any time that any amount received or collected in respect of the Senior Participation or the Junior 

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Participation must, pursuant to any insolvency bankruptcy, fraudulent conveyance, preference or similar law, be returned to the Mortgage Loan Borrower or paid to the Senior Participant, the Junior Participant or the Servicer or paid to any other Person, then, notwithstanding any other provision of this Agreement, the Servicer shall not be required to distribute any portion thereof to such Junior Participant or the Senior Participant, as applicable, and the Junior Participant will promptly on demand by the Servicer repay to the Servicer any portion thereof that the Servicer shall have theretofore distributed to the Junior Participant together with interest thereon at such rate, if any, as the Servicer shall have been required to pay to any Mortgage Loan Borrower, the Senior Participant, the Servicer or such other Person with respect thereto all in accordance with such applicable law.
(c)    If, for any reason, the Servicer makes any payment to the Junior Participant before the Senior Participant has received the corresponding payment, and the Servicer is not returned the corresponding payment within five (5) Business Days of its payment to the Junior Participant, the Junior Participant will, at the request of the Senior Participant, promptly return that payment to the Senior Participant.
(d)    The Senior Participant and the Junior Participant each agree that if at any time it shall receive from any sources whatsoever any payment on account of the Mortgage Loan in excess of its distributable share thereof, it will promptly remit such excess to the Senior Participant or the Junior Participant, as applicable, subject to this Agreement. The Senior Participant shall have the right to offset any amounts due hereunder to the Senior Participant from the Junior Participant with respect to the Mortgage Loan against any future payments due to the Junior Participant under the Mortgage Loan; provided that the obligations of the Senior Participant and the Junior Participant under this Section 6 are separate and distinct obligations from one another and in no event shall the Senior Participant enforce the obligations of the Senior Participant against the Junior Participant or the obligations of the Junior Participant against the Senior Participant. The obligations of the Senior Participant and the Junior Participant under this Section 6 constitute absolute, unconditional and continuing obligations.
Section 7.    Limitation on Liability of the Participants. The Senior Participant (including the Servicer) shall have no liability to the Junior Participant with respect to the Junior Participation, except with respect to losses actually incurred due to the gross negligence, willful misconduct or breach of this Agreement on the part of the Senior Participant or the Servicer, as applicable. The Junior Participant shall have no liability to the Senior Participant with respect to the Senior Participation except with respect to losses actually suffered due to the gross negligence, willful misconduct or breach of this Agreement on the part of the Junior Participant.
The Junior Participant acknowledges that the Senior Participant (including the Servicer) may exercise, or omit to exercise, any rights that the Senior Participant or Servicer has in this Agreement in a manner that may be adverse to the interests of the Junior Participant and that the Senior Participant (including the Servicer) shall have no liability whatsoever to the Junior Participant in connection with the Senior Participant’s or Servicer’s rights or any omission by the Senior Participant or Servicer to exercise such rights other than as described above.

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Section 8.    Bankruptcy. Subject to Section 5(d), the Junior Participant hereby covenants and agrees that only the Senior Participant (or the Servicer on its behalf) has the right to institute, file, commence, acquiesce, petition under Bankruptcy Code Section 303 or otherwise, or join any Person in any such petition or otherwise invoke or cause any other Person to invoke an Insolvency Proceeding with respect to or against the Mortgage Loan Borrower or seek to appoint a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official with respect to the Mortgage Loan Borrower or all or any part of its property or assets or ordering the winding-up or liquidation of the affairs of the Mortgage Loan Borrower. The Junior Participant further agrees that only the Senior Participant (or the Servicer on its behalf), as creditor, can make any election, give any consent, commence any action or file any motion, claim, obligation, notice or application or take any other action in any case by or against the Mortgage Loan Borrower under the Bankruptcy Code or in any other Insolvency Proceeding. The Junior Participant hereby appoints the Senior Participant (or the Servicer on its behalf) as its agent, and grants to the Senior Participant (or the Servicer on its behalf) an irrevocable power of attorney coupled with an interest, and its proxy, for the purpose of exercising any and all rights and taking any and all actions available to the Junior Participant in connection with any case by or against the Mortgage Loan Borrower under the Bankruptcy Code or in any other Insolvency Proceeding, including, without limitation, the right to file and/or prosecute any claim, vote to accept or reject a plan, make any election under Section 1111(b) of the Bankruptcy Code with respect to the Mortgage Loan, and file a motion to modify, lift or terminate the automatic stay with respect to the Mortgage Loan. The Junior Participant, in its capacity as such, hereby agrees that, upon the request of the Senior Participant (or the Servicer on its behalf), the Junior Participant shall execute, acknowledge and deliver to the Senior Participant (or the Servicer on its behalf) all and every such further deeds, conveyances and instruments as the Senior Participant (or the Servicer on its behalf) may reasonably request for the better assuring and evidencing of the foregoing appointment and grant.
Section 9.    Representations of Initial Senior Participant. The Initial Senior Participant represents, and it is specifically understood and agreed, that it has acquired its Senior Participation for its own account in the ordinary course of its business and the Junior Participant shall otherwise have no liability or responsibility to the Initial Senior Participant except as expressly provided herein or for actions that are taken or omitted to be taken by the Junior Participant that constitute gross negligence or willful misconduct or that constitute a breach of this Agreement. The Initial Senior Participant represents and warrants that the execution, delivery and performance of this Agreement is within its limited liability company powers, has been duly authorized by all necessary limited liability company action, and does not contravene its certificate of formation or limited liability company operating agreement or any law or any contractual restriction binding upon the Initial Senior Participant, except for such contraventions that in the aggregate would not materially and adversely affect its performance under this Agreement, and that this Agreement is the legal, valid and binding obligation of the Initial Senior Participant enforceable against the Initial Senior Participant in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and except that the enforcement of rights with respect to indemnification and contribution obligations may be limited by applicable law. The Initial Senior Participant represents and warrants that it is duly organized, validly existing, 

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in good standing, and in possession of all licenses and authorizations materially necessary to carry on its business, except where failure to be in good standing or possess such licenses and authorizations would not materially and adversely affect its performance under this Agreement. The Initial Senior Participant represents and warrants that (a) this Agreement has been duly executed and delivered by the Initial Senior Participant, (b) to the Initial Senior Participant’s actual knowledge, all consents, approvals, authorizations, orders or filings of or with any court or governmental agency or body, if any, required for the execution, delivery and performance of this Agreement by the Initial Senior Participant have been obtained or made and (c) to the Initial Senior Participant’s actual knowledge, there is no pending action, suit or proceeding, arbitration or governmental investigation against the Initial Senior Participant, in each case an adverse final determination of which would materially and adversely affect its performance under this Agreement.
Section 10.    Representations of the Initial Junior Participant.
The Initial Junior Participant represents and warrants that the execution, delivery and performance of this Agreement is within its limited liability company powers, has been duly authorized by all necessary limited liability company action, and does not contravene the Initial Junior Participant’s certificate of formation or limited liability company operating agreement or any law or material contractual restriction binding upon the Initial Junior Participant, except for such contraventions that in the aggregate would not materially and adversely affect its performance under this Agreement, and that this Agreement is the legal, valid and binding obligation of the Initial Junior Participant enforceable against the Initial Junior Participant in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), and except that the enforcement of rights with respect to indemnification and contribution obligations may be limited by applicable law. The Initial Junior Participant represents and warrants that it is duly organized, validly existing, in good standing, and in possession of all licenses and authorizations materially necessary to carry on its business, except where failure to be in good standing or possess such licenses and authorizations would not materially and adversely affect its performance under this Agreement. The Initial Junior Participant represents and warrants that (a) this Agreement has been duly executed and delivered by the Initial Junior Participant, (b) to the Initial Junior Participant’s actual knowledge, all consents, approvals, authorizations, orders or filings of or with any court or governmental agency or body, if any, required for the execution, delivery and performance of this Agreement by the Initial Junior Participant have been obtained or made and (c) to the Initial Junior Participant’s actual knowledge, there is no pending action, suit or proceeding, arbitration or governmental investigation against the Initial Junior Participant, in each case an adverse final determination of which would materially and adversely affect its performance under this Agreement. Schedule I hereto represents a true, correct and complete list of all material Mortgage Loan Documents delivered in connection with the Mortgage Loan. True counterpart originals of the Mortgage Loan Documents have been provided by the Initial Junior Participant to the Initial Senior Participant. The Initial Junior Participant currently owns the Mortgage Loan Documents and the related rights therein, and the Mortgage Loan Documents and related rights therein are not, and have not been, pledged, nor assigned, to another party and are not otherwise encumbered. The Mortgage Loan Documents have not been amended, modified, supplemented, or 

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restated, except as set forth on Schedule I hereto, and that, to the Initial Junior Participant’s knowledge, there currently exists no default under any of the Mortgage Loan Documents.
The Junior Participant acknowledges that the Senior Participant and Servicer do not owe the Junior Participant any fiduciary duty with respect to any action taken under the Mortgage Loan Documents and, subject to Section 5(d), need not consult with the Junior Participant with respect to any action taken by the Senior Participant or the Servicer in connection with the Mortgage Loan.
The Junior Participant expressly and irrevocably waives for itself and any Person claiming through or under the Junior Participant any and all rights that it may have under Section 1315 of the New York Real Property Actions and Proceedings Law or the provisions of any similar law which purports to give a junior loan participant the right to initiate any loan enforcement or foreclosure proceedings.
Section 11.    Independent Analysis of the Senior Participant. The Senior Participant acknowledges that it had, independently and without reliance upon the Initial Junior Participant, except with respect to the representations and warranties provided by the Initial Junior Participant herein,and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to purchase the Senior Participation and the Senior Participant accepts responsibility therefor. The Senior Participant hereby acknowledges that, other than the representations and warranties provided herein, the Junior Participant has made no representations or warranties with respect to the Mortgage Loan, and that, subject to such representations and warranties as provided by the Junior Participant herein, the Junior Participant shall have no responsibility for (i) the collectability of the Mortgage Loan, (ii) the validity, enforceability or legal effect of any of the Mortgage Loan Documents or the title insurance policy or policies or any survey furnished or to be furnished to the Junior Participant in connection with the origination of the Mortgage Loan, (iii) the validity, sufficiency or effectiveness of the lien created or to be created by the Mortgage Loan Documents, or (iv) the financial condition of the Mortgage Loan Borrower. The Senior Participant assumes all risk of loss in connection with the Senior Participation except as specifically set forth herein.
Section 12.    No Creation of a Partnership or Exclusive Purchase Right. Nothing contained in this Agreement, and no action taken pursuant hereto, shall be deemed to constitute the relationship created hereby among any of the Participants as a partnership, association, joint venture or other entity. The Senior Participant shall have no obligation whatsoever to offer to the Junior Participant the opportunity to purchase a participation interest in any future loans originated by the Senior Participant or its Affiliates and if the Senior Participant chooses to offer to the Junior Participant the opportunity to purchase a participation interest in any future mortgage loans originated by the Senior Participant or its affiliates, such offer shall be at such purchase price and interest rate as such Senior Participant chooses, in its sole and absolute discretion. The Junior Participant shall not have any obligation whatsoever to purchase from the Senior Participant a participation interest in any future loans originated by the Senior Participant or its Affiliates.

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Section 13.    Not a Security. The Senior Participation and the Junior Participation shall not be deemed to be a security within the meaning of the Securities Act or the Securities Exchange Act of 1934, as amended.
Section 14.    Other Business Activities of the Participants. Each Participant acknowledges that the Participants or their Affiliates may make loans or otherwise extend credit to, and generally engage in any kind of business with, the Mortgage Loan Borrower or any Affiliate thereof, any entity that is a holder of debt secured by direct or indirect ownership interests in the Mortgage Loan Borrower or any entity that is a holder of a preferred equity interest in the Mortgage Loan Borrower (each, a “Mortgage Loan Borrower Related Party”), and receive payments on such other loans or extensions of credit to Mortgage Loan Borrower Related Parties and otherwise act with respect thereto freely and without accountability in the same manner as if this Agreement and the transactions contemplated hereby were not in effect. Notwithstanding the foregoing, a Person’s ownership of a mezzanine loan with respect to the Mortgage Loan Borrower or its Affiliates shall not make such Person a “Mortgage Loan Borrower Related Party,” until such Person has exercised and consummated its right to foreclose thereunder in accordance with the terms of any applicable intercreditor agreement.
Section 15.    Sale of the Junior Participation and the Senior Participation.
(a)    The Junior Participant agrees that it will not sell, assign, transfer, pledge, syndicate, hypothecate, contribute, encumber or otherwise dispose of all or any portion of the Junior Participation (a “Transfer”) without the Senior Participant’s prior written consent, which consent shall be in the Senior Participant’s sole and absolute discretion. If the Junior Participation is held by more than one Junior Participant at any time, the holders of a majority of the Junior Participation Principal Balance of the Junior Participation shall immediately appoint a representative to exercise all rights of the Junior Participation hereunder. The Junior Participant agrees it will pay the expenses of the Senior Participant (including all expenses of the Servicer) in connection with any such Transfer.
(b)    All Transfers under Section 15(a) shall be made upon at least ten (10) days’ prior written notice to the Senior Participant, and each transferee shall (i) execute an assignment and assumption agreement whereby such transferee assumes all or a ratable portion, as the case may be, of the obligations of the Junior Participant hereunder with respect to the Junior Participation from and after the date of such assignment and (ii) agree in writing to be bound by this Agreement. Upon the consummation of a Transfer of all or any portion of the Junior Participation in accordance with this Agreement, the transferring Person shall be released from all liability arising under this Agreement with respect to the Junior Participation (or the portion thereof that was the subject of such Transfer), for the period after the effective date of such Transfer. In connection with any such permitted transfer of a portion of the Junior Participation and for all purposes of this Agreement, the Senior Participant need only recognize the majority holder of the Junior Participation (or, if so appointed, a representative pursuant to the terms of clause (a) above) for purposes of notices, consents and other communications between the Senior Participant and such majority holder of the Junior Participation (or, if so appointed, a representative pursuant to the terms of clause (a) above) shall be the only Person authorized hereunder to exercise any rights of the Junior Participant under 

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this Agreement; provided, however, that the majority holder of the Junior Participation (or, if so appointed, a representative pursuant to the terms of clause (a) above) may from time to time designate any other Person as an additional party entitled to receive notices, consents and other communications and/or to exercise rights on behalf of the Junior Participant hereunder by delivering written notice thereof to the Senior Participant, and, from and after delivery of such notice, such designee shall be so authorized hereunder and shall be the only party entitled to receive such notices, consents and such other communications and/or to exercise such rights.
(c)    The Senior Participant shall have the right to Transfer all or any portion of its Senior Participation to any Person without the prior consent of Junior Participant; provided, however, that following any Transfer of the Senior Participation, the Mortgage Loan continues to be serviced in its entirety pursuant to the terms herein by a servicer unaffiliated with the Mortgage Loan Borrower; and further provided, that any Person to whom the Senior Participation is transferred (i) agrees to assume the obligations and agreements of the Senior Participant pursuant to Section 33 and (ii) demonstrates to the reasonable satisfaction of the Junior Participant that such Person has the ability to fund the Additional Loan; provided that any Affiliate of the Senior Participant is deemed to have sufficient ability for purposes of this clause (ii).
Section 16.    Registration of Transfer. In connection with any Transfer of a Participation Interest, a transferee shall execute an assignment and assumption agreement whereby such transferee assumes all of the obligations of the applicable Participant hereunder with respect to such Participation Interest thereafter accruing and agrees to be bound by the terms of this Agreement, including the restriction on Transfers set forth in Section 15, from and after the date of such assignment. No transfer of a Participation may be made unless it is registered on the Participation Register, and the Servicer shall not recognize any attempted or purported transfer of any Participation in violation of the provisions of Section 15 and this Section 16. Any such purported transfer shall be absolutely null and void and shall vest no rights in the purported transferee. Each Participant desiring to effect such transfer shall, and does hereby agree to, indemnify the Servicer and any other Participant against any liability that may result if the transfer is not made in accordance with the provisions of this Agreement.
Section 17.    Registration of the Senior Participation and the Junior Participation.
(a)    The Servicer shall keep, or cause to be kept, at the Servicer’s offices books (the “Participation Register”) for the registration and transfer of the Participations. The Servicer shall serve as the initial participation registrar and the Servicer hereby accepts such appointment. The names and addresses of the holders of the Participations and the names and addresses of any transferee of any Participation of which the Servicer has received notice, in the form of a copy of the assignment and assumption agreement referred to in Section 16, and which Transfer was not made in violation of Section 15, shall be registered in the Participation Register. The Person in whose name a Participation is so registered shall be deemed and treated as the sole owner and holder thereof for all purposes of this Agreement, except in the case of the Initial Senior Participant and the Initial Junior Participant who may hold their participations through a nominee. Upon request of a Participant, the Servicer shall provide such party with the names and addresses of the Participants.

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(b)    If a Senior Participant or the Junior Participant effects a Transfer in accordance with Sections 15 and 16, at the written request of the Senior Participant or the Junior Participant, as applicable (or any transferee of all or any portion of the Senior Participation or the Junior Participation, as applicable), the Servicer, within ten (10) Business Days after such Senior Participant’s or the Junior Participant’s written request therefor, shall issue to such Senior Participant or the Junior Participant, as applicable, and to such transferee(s) one (1) or more participation certificates (each, in substantially the form annexed hereto as Exhibit C), reflecting the ownership interest of such Persons in such Senior Participation or the Junior Participation, as applicable. If the Senior Participant or the Junior Participant is identified on the Participation Register as the holder of any of a Senior Participation or the Junior Participation, as applicable, at the written request of the Senior Participant or the Junior Participant, as applicable, the Servicer, within ten (10) Business Days after such Senior Participant’s or the Junior Participant’s written request therefor, shall also provide replacement participation certificates for any lost participation certificate. The applicable Participant requesting such participation certificate(s) shall reimburse the Servicer for the Servicer’s reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements) incurred by the Servicer in connection with the terms of this Section 17(b).
Section 18.    Statement of Intent. The Servicer and each Participant intend that the Participations be classified and maintained as a grantor trust under subpart E, part I of subchapter J of chapter 1 of the Code that is a fixed investment trust within the meaning of Treasury Regulation § 301.7701-4(c), and the parties will not take any action inconsistent with such classification. It is neither the purpose nor the intent of this Agreement to create a partnership, joint venture, “taxable mortgage pool” or association taxable as a corporation among the parties.
Section 19.    No Pledge. This Agreement shall not be deemed to represent a pledge of any interest in any Mortgage Loan by (i) the Senior Participant to the Junior Participant or (ii) the Junior Participant to the Senior Participant. Except as otherwise provided in this Agreement, the Junior Participant shall not have any interest in any property taken as security for any Mortgage Loan (other than to be the named party of record thereon); provided, however, that if any such property or the proceeds of any sale, lease or other disposition thereof shall be received, then the Junior Participant shall be entitled to receive its share of such application in accordance with the terms of this Agreement.
Section 20.    Governing Law; Waiver of Jury Trial. THIS AGREEMENT AND THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE. EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.
Section 21.    Submission To Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally:
(a)    SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, OR FOR RECOGNITION AND 

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ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;
(b)    CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND, TO THE EXTENT PERMITTED BY LAW, WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;
(c)    AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO ITS ADDRESS SET FORTH HEREIN OR AT SUCH OTHER ADDRESS OF WHICH A PARTY HEREIN SHALL HAVE BEEN NOTIFIED; AND
(d)    AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.
Section 22.    Modifications. This Agreement shall not be modified, cancelled or terminated except by an instrument in writing signed by the parties hereto.
Section 23.    Successors and Assigns; Third Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Except as provided herein, none of the provisions of this Agreement shall be for the benefit of or enforceable by any Person not a party hereto. Subject to Section 15, each Participant may assign or delegate its rights or obligations under this Agreement. Upon any such assignment, the assignee shall be entitled to all rights and benefits of the Senior Participant or the Junior Participant, as applicable, hereunder, including, without limitation, the right to make further assignments and grant additional participations (in each case subject to Section 15).
Section 24.    Counterparts. This Agreement may be executed in any number of counterparts and all of such counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Agreement in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart of this Agreement.
Section 25.    Captions. The titles and headings of the paragraphs of this Agreement have been inserted for convenience of reference only and are not intended to summarize or otherwise describe the subject matter of the paragraphs and shall not be given any consideration in the construction of this Agreement.

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Section 26.    Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable laws, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement.
Section 27.    Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter contained in this Agreement and supersedes all prior agreements, understandings and negotiations between the parties.
Section 28.    Withholding Taxes.
(a)    If the Servicer, Senior Participant or the Mortgage Loan Borrower shall be required by law to deduct and withhold Taxes from interest, fees or other amounts payable to the Junior Participant with respect to the Mortgage Loan as a result of the Junior Participant constituting a Non-Exempt Person, the Servicer or the Senior Participant, as applicable, shall be entitled to do so with respect to the Junior Participant’s interest in such payment (all withheld amounts being deemed paid to the Junior Participant); provided that the Servicer or the Senior Participant, as applicable, shall furnish such Junior Participant with a statement setting forth the amount of Taxes withheld, the applicable rate and other information which may reasonably be requested for purposes of assisting such Junior Participant to seek any allowable credits or deductions for the Taxes so withheld in each jurisdiction in which the Junior Participant is subject to tax.
(b)    The Junior Participant shall and hereby agrees to indemnify the Senior Participant and the Servicer against, and hold the Senior Participant and the Servicer harmless from and against, any Taxes, interest, penalties and attorneys’ fees and disbursements arising or resulting from any failure of the Senior Participant or the Servicer to withhold Taxes from payment made to the Junior Participant in reliance upon any representation, certificate, statement, document or instrument made or provided by the Junior Participant to the Senior Participant or the Servicer in connection with the obligation of the Senior Participant or the Servicer to withhold Taxes from payments made to the Junior Participant, it being expressly understood and agreed that (i) the Senior Participant and the Servicer shall be absolutely and unconditionally entitled to accept any such representation, certificate, statement, document or instrument as being true and correct in all respects and to fully rely thereon without any obligation or responsibility to investigate or to make any inquiries with respect to the accuracy, veracity, correctness or validity of the same and (ii) the Junior Participant shall, upon request of the Senior Participant or the Servicer and at its sole cost and expense, defend any claim or action relating to the foregoing indemnification using counsel selected by the Senior Participant or the Servicer, as applicable.
(c)    The Junior Participant represents to the Senior Participant and the Servicer (for the benefit of the Mortgage Loan Borrower) that it is not a Non-Exempt Person and that none of the Senior Participant, the Servicer or the Mortgage Loan Borrower is obligated under applicable law to withhold Taxes on sums paid to it with respect to the Mortgage Loan or otherwise pursuant to this Agreement. Contemporaneously with the execution of this Agreement and from time to time as necessary during the term of this Agreement, the Junior Participant shall deliver to the Senior Participant and the Servicer, as applicable, evidence satisfactory to the Senior Participant and/or 

21

the Servicer substantiating that the Junior Participant is not a Non-Exempt Person and that the Senior Participant and the Servicer are not obligated under applicable law to withhold Taxes on sums paid to it with respect to the Mortgage Loan or otherwise under this Agreement. Without limiting the effect of the foregoing, (i) if the Junior Participant is created or organized under the laws of the United States, any state thereof or the District of Columbia, it shall satisfy the requirements of the preceding sentence by furnishing to the Senior Participant or the Servicer, as applicable, an Internal Revenue Service Form W-9 and (ii) if the Junior Participant is not created or organized under the laws of the United States, any state thereof or the District of Columbia, and if the payment of interest or other amounts by the Mortgage Loan Borrower is treated for United States income tax purposes as derived in whole or part from sources within the United States, the Junior Participant shall satisfy the requirements of the preceding sentence by furnishing to the Senior Participant or the Servicer, as applicable, Internal Revenue Service Form W-8ECI, Form W-8IMY (with appropriate attachments) or Form W-8BEN, or successor forms, as may be required from time to time, duly executed by the Junior Participant, as evidence of the Junior Participant’s exemption from the withholding of United States tax with respect thereto. The Senior Participant and the Servicer shall not be obligated to make any payment hereunder to the Junior Participant in respect of its Junior Participation or otherwise until the Junior Participant shall have furnished to the Senior Participant the requested forms, certificates, statements or documents.
Section 29.    Custody of Mortgage Loan Documents. Any originals of all of the Mortgage Loan Documents (other than the Junior Participation) will be (1) provided promptly to the Servicer after the execution of this Agreement and (2) held by the Servicer on behalf of the registered holders of the Participations. The Junior Participant is, and shall continue to be, the mortgagee of record with respect to the Mortgage Loan.
Section 30.    Notices. All notices required hereunder shall be given by (i) telephone (confirmed promptly in writing (but not later than the same day for such notice to be deemed given)) or shall be in writing and personally delivered, (ii) sent by facsimile transmission (during business hours) if the sender on the same day sends a confirming copy of such notice by reputable overnight delivery service (charges prepaid), (iii) reputable overnight delivery service (charges prepaid) or (iv) certified United States mail, postage prepaid return receipt requested, and addressed to the respective parties at their addresses set forth on Exhibit B hereto, or at such other address as any party shall hereafter inform the other party by written notice given as aforesaid. All written notices so given shall be deemed effective upon receipt.
Section 31.    Broker. The Junior Participant and the Senior Participant represent to each other that no broker was responsible for bringing about this transaction.
Section 32.    Certain Matters Affecting the Servicer.
(a)    The Servicer may request and/or rely upon and shall be protected in acting or refraining from acting upon, any officer’s certificate or assignment and assumption agreement delivered to the Servicer pursuant to Section 16;

22

(b)    The Servicer may consult with counsel and any opinion of counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted by it hereunder in good faith and in accordance with such opinion of counsel;
(c)    The Servicer shall be under no obligation to institute, conduct or defend any litigation hereunder or in relation hereto at the request, order or direction of any of the Participants pursuant to the provisions of this Agreement, unless it has received indemnity reasonably satisfactory to it;
(d)    The Servicer or any of its directors, officers, employees, Affiliates, agents or “control” persons within the meaning of the Act, shall not be personally liable for any action taken, suffered or omitted by it in good faith and reasonably believed by the Servicer to be authorized or within the discretion or rights or powers conferred upon it by this Agreement;
(e)    The Servicer shall not be bound to make any investigation into the facts or matters stated in any officer’s certificate or assignment and assumption agreement delivered to the Servicer pursuant to Section 16; and
(f)    The Servicer may execute any of the powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys, but shall not be relieved of its obligations hereunder.
Section 33.    Junior Participant Acquisition of the Mortgaged Properties; Senior Participant Commitment.
(a)    Notwithstanding anything to the contrary herein, in the event any of the Mortgaged Properties become REO Property acquired by the Junior Participant or an Affiliate (“New Owner”), the Senior Participant agrees to either (at its election and in its sole and absolute discretion) (i) maintain the existing Mortgage Loan with the New Owner as the borrower thereunder and extend the final fully extended maturity date thereunder by an additional two (2) years or (ii) advance (or to cause one or more of its Affiliates to advance), subject to satisfaction of to be agreed upon customary closing conditions, a new mortgage loan to the New Owner under substantially similar terms to the existing Mortgage Loan, which such loan being in a principal amount equal to the Senior Participation Principal Balance.
(b)    Notwithstanding anything to the contrary herein, in connection with either event described in clause (a)(i) or (ii) above occurring, the Senior Participant commits to provide (or to cause one or more of its Affiliates to provide) an additional $10,000,000 loan (the “Additional Loan”) to New Owner on the terms and conditions set forth on Exhibit E hereto.
(c)    If so requested by the Junior Participant, the Senior Participant shall cooperate in all reasonable respects to effectuate the financing arrangements contemplated in this Section 33.

23

Section 34.    Existing Participation Agreement/Miscellaneous.  The Existing Participation Agreement is hereby amended and restated in full by this Agreement, effective as of the date hereof (including, without limitation, Section 33 of the Existing Participation Agreement and Exhibit E of the Existing Participation Agreement, which remain in full force and effect under Section 33 and Exhibit E of this Agreement).  The Senior Participant and the Junior Participant consent to the execution of the documents listed as items 28 through 43 on Schedule 1 attached hereto.  Senior Participant represents and warrants to Junior Participant that to the knowledge of Senior Participant (but without having undertaken any efforts to confirm such representation and warranty) as of the date hereof, there is no Event of Default under the Mortgage Loan and a Sequential Pay Event does not exist.  Junior Participant represents and warrants to Senior Participant that to the knowledge of Junior Participant (but without having undertaken any efforts to confirm such representation and warranty) as of the date hereof, there is no Event of Default under the Mortgage Loan and a Sequential Pay Event does not exist.  Senior Participant and Junior Participant acknowledge that as of the date hereof the Senior Participation Principal Balance is $45,574,774.00 and the Junior Participation Principal Balance is $85,150,000.00.
[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, each of the Senior Participant and the Junior Participant has caused this Agreement to be duly executed as of the day and year first above written.
CFI HENDON HOLDINGS, LLC 
 
By:    ____/s/ Donna Hansen________________ 
    Name:  Donna Hansen  
    Title:    Vice President

N1 HENDON HOLDINGS, LLC 

By: N1 LIQUIDATING TRUST,
       its sole member
 
By:    __/s/ Frank V. Saracino_______________ 
    Name:  Frank V. Saracino  
    Title:    Chief Financial Officer
ACKNOWLEDGED AND AGREED: 
 
CFI HENDON HOLDINGS, LLC, in its capacity as Servicer 
 
 
By:    ___/s/ Donna Hansen_______________ 
         Name:  Donna Hansen
         Title:    Vice President

[Signature Page to Participation Agreement]

EXHIBIT A 
 
PURCHASE SCHEDULE
A.    Description of Mortgage Loan
	
		
	Mortgage Loan Borrowers:
	Each of the parties set forth on Exhibit A to the Mortgage Loan Agreement individually and collectively and jointly and severally

	Date of the Mortgage Loan, the Mortgage and Note:
	April 11, 2014

	Initial Principal Amount of Mortgage Loan:
	$150,150,000

	Purchase Date Mortgage Loan Principal Balance:
	$150,150,000

	Mortgage Loan Rate (Tranche A of the Mortgage Loan):
	A per annum rate equal to the lesser of (x) 6.20% plus the greater of (a) LIBOR (or the Alternative Index, if applicable) for any interest period and (b) 0.25%, and (y) 9%

	Mortgage Loan Rate (Tranche B of the Mortgage Loan):
	0%

	Location of Mortgaged Properties:
	As set forth on Schedule I to the Mortgage Loan Agreement (subject to the release of the Panama City Mall occurring on or about the date hereof).

	Initial Maturity Date:
	December 9, 2020

	Mortgage Loan Agreement:
	Loan Agreement, dated as of April 11, 2014, among each of the parties set forth on Exhibit A thereto, individually and collectively and jointly and severally, as borrower, and N1 Hendon Holdings, LLC (as successor in interest to SE Malls Lender NT-I, LLC), as lender, as amended by (i) letter agreement regarding reserves dated December 27, 2018, (ii) letter agreement regarding release of Panama Mall dated December 27, 2018 and (iii) Loan Modification Agreement dated February 4, 2019

Exhibit A - 1

B.    Description of Participation Interests
	
		
	Senior Participation Purchase Date:
	January 31, 2018

	Senior Participation Purchase Price:
	Shall mean the amount that the Initial Senior Participant was required to pay to the Junior Participant to acquire the Senior Participation on the Senior Participation Purchase Date, as set forth in a certain signed settlement statement, dated as of the Senior Participation Purchase Date, among the Initial Senior Participant and the Initial Junior Participant

	Purchase Date Senior Participation Principal Balance:
	$65,000,000

	Purchase Date Junior Participation Principal Balance:
	$85,150,000

	Senior Participation Percentage Interest:
	43.29%

	Junior Participation Percentage Interest:
	56.71%

	Senior Participation Rate:
	A per annum rate equal to the lesser of (x) 6.20% plus the greater of (a) LIBOR (or the Alternative Index, if applicable) for any interest period and (b) 0.25%, and (y) 9%

	Junior Participation Rate:
	A per annum rate equal to the lesser of (x) 6.20% plus the greater of (a) LIBOR (or the Alternative Index, if applicable) for any interest period and (b) 0.25%, and (y) 9%

Exhibit A - 2

EXHIBIT B
Senior Participant and Servicer:
Notice Address:
CFI Hendon Holdings, LLC 
515 S. Flower St., 44th Floor 
Los Angeles, CA 90071 
Attention: Director, Legal Department 
Email: legal@clny.com
Junior Participant:
Notice Address:
N1 Hendon Holdings, LLC 
515 S. Flower St., 44th Floor 
Los Angeles, CA 90071 
Attention: Director, Legal Department 
Email: legal@clny.com

Exhibit B - 1

EXHIBIT C
FORM OF PARTICIPATION CERTIFICATE   
 
[SENIOR][JUNIOR] PARTICIPATION CERTIFICATE
Dated:    [_________]
[___________________] (the “Servicer”) hereby acknowledges ________ [as nominee for] [(“Senior Participant”)] [(“Junior Participant”)], as the holder of a one-hundred percent (100%) undivided interest in the [Senior] [Junior] Participation (as defined in that certain Amended and Restated Participation Agreement, dated as of February 4, 2019 (as same may be amended, restated, renewed, supplemented or otherwise modified, the “Participation Agreement”)), among [_________], as the Initial Senior Participant, and [___________], as the Initial Junior Participant, with respect to a Mortgage Loan in the original principal amount of $150,150,000, evidenced by a certain Note in the original principal amount of $150,150,000, as amended by Loan Modification Agreement dated as of February 4, 2019.
Capitalized terms not specifically defined herein shall have the respective meanings ascribed thereto in the Participation Agreement.
All of the terms, provisions, covenants and conditions of the agreement between the Servicer and the [Senior] [Junior] Participant regarding the [Senior] [Junior] Participation are set forth in the Participation Agreement. The terms of the Participation Agreement are incorporated herein by reference and shall govern this transaction, including, without limitation, the provisions of Section 15 of the Participation Agreement, regarding Transfers of the [Senior] [Junior] Participation or portions thereof. The obligations under the Participation Agreement are registered obligations and the right, title and interest of any Participant and its assignees in and to such obligations shall be transferable only upon notation of such transfer in the register.
The [Senior] [Junior] Participation shall be construed in accordance with the laws of the State of New York applicable to agreements negotiated, made and to be performed entirely in said State, and the obligations, rights and remedies of the holder hereof shall be determined in accordance with such laws.
________________________________ 
as Servicer 
 
 
By:    _________________________ 
    Name: 
    Title:

Exhibit C - 1

EXHIBIT D
SERVICING ADDENDUM
1.    Definitions. Capitalized terms not otherwise defined in this Servicing Addendum shall have the meaning ascribed thereto in the Agreement to which this Servicing Addendum is attached.
“Collection Account” shall have the meaning assigned to such term in Section 4(b) of this Servicing Addendum.
“Costs” shall mean all out-of-pocket costs, fees (not including any servicing fees of any type), expenses, payments, losses, liabilities, judgments and/or causes of action reasonably suffered or incurred or paid or to be paid by the Servicer pursuant to or in connection with the Loan, the Mortgage Loan Documents, the Mortgaged Property, this Servicing Addendum or otherwise in connection with the Mortgage Loan (but not including any servicing fees of any type) and the servicing, administration and/or enforcement pursuant to the terms of this Servicing Addendum, including, without limitation, reasonable attorneys’ fees and disbursements, real estate taxes and assessments (and other similar taxes affecting the Mortgaged Property or any portion thereof), insurance premiums and other protective advances as more particularly provided in the Mortgage Loan Documents, except for those resulting from the Servicer’s gross negligence or willful misconduct; provided, however, that neither (a) the Servicer’s out-of-pocket costs and expenses relating to the origination of the Loan nor (b) the Servicer’s day-to-day customary and usual, ordinary costs of servicing and administration shall constitute Costs hereunder.
“Defaulted Loan” shall mean a Mortgage Loan with an ongoing Event of Default.
“Final Recovery Determination” shall mean a determination by the Servicer that the Mortgage Loan is a Defaulted Loan and that there has been a recovery of all insurance proceeds, liquidation proceeds and other payments or recoveries that the Servicer has determined will be ultimately recoverable.
“Interest Accrual Period” shall mean the term “Interest Period” as defined in the Mortgage Loan Agreement
“Prime Rate” shall mean the “Prime Rate” in effect from time to time (as published in the “Money Rates” section of The Wall Street Journal or, if such section or publication no longer is available, such other publication as determined by Senior Participant in its reasonable discretion).
“Realized Loss” shall mean, with respect to a Defaulted Loan: (a) if a Final Recovery Determination has been made, an amount (not less than zero) equal to (i) (A) the unpaid principal balance of the Mortgage Loan as of the commencement of the Interest Accrual Period in which the Final Recovery Determination was made, plus (B) without taking into account the amount described in subclause (a)(ii) of this definition, all accrued but unpaid interest on the Mortgage Loan at the related interest rate through the end of the Interest Accrual Period in which the Final Recovery Determination was made (exclusive of any portion thereof that constitutes Default Interest in excess 

Exhibit D - 1

of the mortgage rate, Prepayment Premiums or late payment charges or exit fees), plus (C) any related unreimbursed servicing advances through the end of the Interest Accrual Period in which the Final Recovery Determination was made and any interest on such servicing advances and any interest on any principal and interest advances with respect to the Senior Participation, minus (ii) all payments and proceeds, if any, received with respect to such Mortgage Loan; (b) if any portion of the principal or previously accrued interest (other than Default Interest in excess of the mortgage rate, Prepayment Premiums, late payment charges or exit fees) payable thereunder was canceled in connection with a bankruptcy or similar proceeding involving the Mortgage Loan Borrower or a modification, waiver or amendment of the Mortgage Loan granted or agreed to by the Servicer in accordance with this Servicing Addendum, the amount of such principal and/or interest so canceled; and (c) if the interest rate relating to the Mortgage Loan has been permanently reduced and not recaptured for any period in connection with a bankruptcy or similar proceeding involving the Mortgage Loan Borrower or a modification, waiver or amendment of the Defaulted Loan granted or agreed to by the Servicer in accordance with this Servicing Addendum, the amount of the consequent reduction in the interest portion of each successive periodic payment due thereon. Each Realized Loss shall be deemed to have been incurred on the Remittance Date for each affected periodic payment.
“REO Property” shall mean a Property to which title has been acquired on behalf of the Senior Participant and the Junior Participant through foreclosure, delivery of a deed in lieu of foreclosure or otherwise.
2.    Administration of the Loan Generally.
(a)    The Servicer shall administer the Mortgage Loan in a manner consistent with the terms of this Servicing Addendum, the Mortgage Loan Documents and applicable law. The Servicer shall distribute to each Participant, in accordance with the payment terms of the Agreement, all payments due to such Participant with respect to its Participation, to the extent that funds received in respect of the Mortgage Loan are allocated to amounts due with respect to such Participation; provided, however, that prior to calculating any amount of interest, principal or other amounts due on such date to any party hereto, the Servicer shall allocate any Realized Loss with respect to the Mortgage Loan, first, to reduce the Junior Participation Principal Balance (not below zero), and, thereafter, to reduce the Senior Participation Principal Balance (not below zero).
(b)    (i)    In servicing and administering of the Mortgage Loan, the Servicer shall perform and discharge the following duties:
(A)    The Servicer shall use reasonable efforts to determine whether the Mortgage Loan Borrower is complying with the requirements of the Mortgage within the time frames set forth in this Servicing Addendum. The Servicer shall report to each Participant any non-compliance as promptly as reasonably practicable.

Exhibit D - 2

(B)    The Servicer shall use reasonable efforts to determine whether the Mortgage Loan Borrower is complying with the requirements of the Mortgage regarding maintenance of existence. The Servicer shall report to each Participant any non-compliance as promptly as reasonably practicable.
(C)    In connection with any proposed contractual extension of the maturity date pursuant to the terms and conditions of the Mortgage Loan Documents, the Servicer shall use reasonable efforts to determine whether the Mortgage Loan Borrower satisfies all the requisite conditions precedent to any such extension and shall promptly report to each Participant in writing whether such conditions have been satisfied and include all reasonable supporting calculations and assumptions, as applicable.
(D)    The Servicer shall determine LIBOR (or the Alternative Index, if applicable) to be utilized in the calculation of the applicable interest rate under the Note and deliver to the Mortgage Loan Borrower a notification with respect thereto in accordance with the terms of the Note and/or Mortgage Loan Documents. Such notice shall also set forth all amounts, including reserve amounts, due with respect to the Note and Mortgage Loan Documents for each applicable Remittance Date.
(E)    The Servicer shall use reasonable efforts to review the operating statements, financial statements and budgets delivered by the Mortgage Loan Borrower pursuant to the Mortgage as promptly as reasonably practicable and will promptly advise Participants in writing of any material adverse change from prior statements or budgets or any apparent violation of the provisions of the Mortgage shown by the information set forth on the statements and budgets.
(F)    The Servicer shall deliver to each Participant a statement on or before each remittance date under this Servicing Addendum reflecting the Servicer’s calculation of the payment due to each Participant under the terms of the Mortgage Loan Documents.
(G)    The Servicer shall keep and maintain accounting records reasonably acceptable to each of the Participants, upon which shall be recorded all amounts payable to each Participant pursuant to the terms of the Mortgage Loan Documents. Such accounting records shall at all times reflect the current and correct outstanding principal balance of the Note, the Senior Participation and the Junior Participation. In addition, the Servicer shall keep, and furnish copies thereof to each Participant upon request, records setting forth the interest rate payable on the Senior Participation Principal Balance and the Junior Participation Principal Balance, as the case may be, during each Interest Accrual Period relating to the Mortgage Loan and the calculation of the amount of interest (and, if applicable, principal) payable to each Participant during such Interest Accrual Period.

Exhibit D - 3

(H)    The Servicer shall keep and maintain records, and shall keep all filings current, with respect to any UCC financing statements filed in connection with the Mortgage Loan.
(I)    The Senior Participant and the Junior Participant acknowledge and agree that the Servicer shall direct the applicable bank to disburse funds from the Collection Account pursuant to this Servicing Addendum and/or Agreement and/or the Mortgage Loan Documents.
(J)    The Servicer shall provide each Participant with copies of any and all written notices, reports or statements the Servicer receives from the Mortgage Loan Borrower.
(i)    (A)    The Servicer shall dispose of any REO Property utilizing reasonable best efforts to maximize the proceeds of such disposal to the Senior Participant and the Junior Participant (in the best interests of the Senior Participant and the Junior Participant taking into account that the Junior Participation is subordinate to the Senior Participation), if and when the Servicer determines that such disposal would be in the best economic interest of the Senior Participant and the Junior Participant. The Servicer shall manage, conserve, protect and operate each REO Property for the Senior Participant and the Junior Participant solely for the purpose of its prompt disposition and sale.
(B)    If title to the Mortgaged Property is acquired for the benefit of the Senior Participant and the Junior Participant in foreclosure, by deed in lieu of foreclosure or upon abandonment or reclamation from bankruptcy, the deed or certificate of sale shall be taken in the name of the Servicer (or if approved by the Senior Participant, the Junior Participant) or its nominee on behalf of the Senior Participant and the Junior Participant. The Servicer, on behalf of the Senior Participant and the Junior Participant, shall dispose of any REO Property utilizing reasonable best efforts to maximize the proceeds of such disposal to the Senior Participant and the Junior Participant (as a collective whole) if and when the Servicer determines that such disposal would be in the best economic interest of the Senior Participant and the Junior Participant. The Servicer shall manage, conserve, protect and operate each REO Property for the Senior Participant and the Junior Participant solely for the purpose of its prompt disposition and sale.
(C)    The Servicer shall have full power and authority, subject only to the specific requirements and prohibitions of this Servicing Addendum and Agreement, to do any and all things in connection with any REO Property as are consistent with the terms of this Servicing Addendum, all on such terms and for such period as the Servicer deems to be in the best interests of the Senior Participant and the Junior Participant and, in connection therewith, the Servicer shall only agree to the payment of management fees that are consistent with general market standards or to terms that are more favorable to the Seniors Participant and the Junior Participant. The Servicer shall 

Exhibit D - 4

segregate and hold all revenues received by it with respect to any REO Property separate and apart from its own funds and general assets and shall establish and maintain with respect to any REO Property a segregated custodial account (each, an “REO Account”). The Servicer shall deposit or cause to be deposited in the REO Account within one (1) Business Day after receipt all revenues received by it with respect to any REO Property (“REO Proceeds”), and shall withdraw therefrom funds necessary for the proper operation, management and maintenance of such REO Property and for other Costs with respect to such REO Property, including:
(1)    all insurance premiums due and payable in respect of any REO Property;
(2)    all real estate taxes and assessments in respect of any REO Property that may result in the imposition of a lien thereon; and
(3)    all costs and expenses reasonable and necessary to protect, maintain, manage, operate, repair and restore any REO Property.
(D)    The Servicer shall contract with an independent contractor, the fees and expenses of which shall be an expense of the Senior Participant and the Junior Participant and payable out of REO Proceeds, for the operation and management of any REO Property, within forty-five (45) days after the Senior Participant’s and the Junior Participant’s acquisition thereof (unless the Senior Participant and the Junior Participant approve otherwise); provided that:
(1)    the terms and conditions of any such contract shall be reasonable and consistent with the terms of this Servicing Addendum and customary for the area and type of property and shall not be inconsistent herewith;
(2)    any such contract shall require, or shall be administered to require, that the independent contractor pay all costs and expenses incurred in connection with the operation and management of such REO Property, including, without limitation, those listed above, and remit all related revenues (net of such costs and expenses) to the Servicer as soon as practicable, but in no event later than thirty days following the receipt thereof by such independent contractor;
(3)    none of the provisions of this subsection (D) relating to any such contract or to actions taken through any such independent contractor shall be deemed to relieve the Servicer of any of its duties and obligations to the Senior Participant and the Junior Participant with respect to the operation and management of any such REO Property; and

Exhibit D - 5

(4)    the Servicer shall be obligated with respect thereto to the same extent as if it alone were performing all duties and obligations in connection with the operation and management of such REO Property.
(E)    The Servicer shall be entitled to enter into any agreement with any independent contractor performing services for it related to its duties and obligations under this Servicing Addendum for indemnification of such party by such independent contractor, and nothing in this Servicing Addendum shall be deemed to limit or modify such indemnification. When and as necessary, the Servicer shall send to the Senior Participant and the Junior Participant a statement prepared by the Servicer setting forth the amount of net income or net loss, as determined for federal income tax purposes, resulting from the operation and management of a trade or business on, the furnishing or rendering of a non-customary service to the tenants of, or the receipt of any other amount not constituting rents in respect of, any REO Property.
(F)    With respect to the REO Property which the Servicer has determined to sell, the Servicer shall deliver to the Senior Participant and the Junior Participant an officers’ certificate to the effect that the Servicer has determined to sell such REO Property in accordance with this subsection (F). The Servicer may then offer to sell to any Person the REO Property (and shall on a monthly basis advise the Senior Participant and the Junior Participant in writing of the status of such REO Property) or, subject to the following sentence, purchase any such REO Property (in each case in an amount equal to the outstanding principal balance of the Mortgage Loan plus accrued and unpaid interest through the date of such purchase plus, without duplication, any Defaulted Mortgage Loan Additional Costs). The Servicer shall deliver such officers’ certificate and give the Senior Participant and the Junior Participant not less than ten (10) Business Days’ prior written notice of its intention to sell any REO Property, and the Servicer shall accept the highest offer received from any Person for the REO Property in an amount at least equal to the outstanding principal balance of the Mortgage Loan plus accrued and unpaid interest through the date of such purchase plus, without duplication, any Defaulted Mortgage Loan Additional Costs or, at the Servicer’s option, if it has received no offer at least equal to the outstanding principal balance of the Mortgage Loan plus accrued and unpaid interest through the date of such purchase plus, without duplication, any Defaulted Mortgage Loan Additional Costs, the Servicer may purchase the REO Property in an amount equal to the outstanding principal balance of the Mortgage Loan plus accrued and unpaid interest through the date of such purchase plus, without duplication, any Defaulted Mortgage Loan Additional Costs.

Exhibit D - 6

(G)    In the absence of any such offer or purchase by the Servicer as contemplated by the foregoing paragraph, the Servicer shall accept the highest offer received from any Person that is determined by the Servicer to be a fair price for such REO Property, if the highest offeror is a Person other than an interested Person, or if such offer is determined to be a fair price by the Senior Participant, if the highest offeror is an interested Person; provided that the Servicer shall be entitled to engage, at the expense of the Senior Participant and the Junior Participant (which expense shall be borne on a pro rata basis based upon the Senior Participation Principal Balance and the Junior Participation Principal Balance, respectively), an appraiser to determine whether the highest offer is a fair price; provided further that if the highest offeror is an interested Person, such offer shall not be accepted if it is less than the outstanding principal balance of the Mortgage Loan plus accrued and unpaid interest through the date of such purchase plus, without duplication, any Defaulted Mortgage Loan Additional Costs.
(H)    The Servicer shall not be obligated by either of the foregoing paragraphs or otherwise to accept the highest offer if the Servicer determines that rejection of such offer would be in the best interests of the Senior Participant and the Junior Participant. In addition, the Servicer may accept a lower offer if it determines that acceptance of such offer would be in the best interests of the Senior Participant and the Junior Participant (for example, if the prospective buyer making the lower offer is more likely to perform its obligations, or the terms offered by the prospective buyer making the lower offer are more favorable); provided that the offeror is not the Servicer or an Affiliate of the Servicer. The Servicer shall in no event sell the REO Property other than for cash.
(I)    In determining whether any offer received from an interested Person represents a fair price for any REO Property, the Servicer may conclusively rely on the opinion of an appraiser. In determining whether any offer constitutes a fair price for the REO Property, the Servicer (if the highest offeror is not an interested Person) shall take into account, and any appraiser or other expert in real estate matters shall be instructed to take into account, as applicable, among other factors, any updated appraisal previously obtained, the period and amount of any delinquency on the REO Property, the physical (including environmental) condition of the REO Property, the state of the local economy and the Servicer’s obligation to dispose of any REO Property as set forth in Section 2(b)(ii) of this Servicing Addendum.
(J)    Subject to the other provisions of this Section 2(b), the Servicer shall act on behalf of the Senior Participant and the Junior Participant in negotiating and taking other action necessary or appropriate in connection with the sale of the REO Property, including the collection of all amounts payable in connection therewith. Any sale of the REO Property shall be without recourse 

Exhibit D - 7

to, or representation or warranty by, the Servicer or the Senior Participant or the Junior Participant, and, if such sale is consummated in accordance with the duties of the Servicer pursuant to the terms of this Servicing Addendum, no such Person who so performed shall have any liability to the Senior Participant or the Junior Participant with respect to the purchase price therefor accepted by the Servicer.
(K)    Within thirty (30) days after the sale of the REO Property, the Servicer shall provide to the Senior Participant and the Junior Participant a statement of accounting for such REO Property, including without limitation, (i) the date of disposition of the REO Property, (ii) the gross sales price, the selling and other expenses and the net sales price, (iii) accrued interest on the Senior Participation Principal Balance at the applicable Senior Participation Rate, and on the Junior Participation Principal Balance at the Junior Participation Rate, calculated from the date of acquisition to the disposition date, and (iv) such other information as the Senior Participant and the Junior Participant may reasonably request. The Servicer shall file information returns regarding the abandonment or foreclosure of Mortgaged Property with the Internal Revenue Service at the time and in the manner required by the Code.
3.    Enforcement of the Mortgage Loan.
(a)    Subject to the provisions of Section 2 of this Servicing Addendum, the Junior Participant hereby authorizes the Servicer to take legal action to enforce or protect the Junior Participant’s and the Senior Participant’s interests with respect to the Mortgage Loan. If the Servicer, any servicer, trustee or trust fund incurs any liabilities, costs, fees or expenses (including, without limitation, legal fees), or makes any protective or other property advances on behalf of the Mortgage Loan Borrower or other servicing and/or property advances and interest on such advances in connection with the Mortgage Loan, subject to Section 2 of this Servicing Addendum, any actual or proposed amendment or waiver of any term thereof or restructuring or refinancing thereof or with any effort to enforce or protect the Junior Participant’s or the Senior Participant’s rights or interests with respect thereto, then the Servicer shall be reimbursed promptly from payments otherwise distributable to the Junior Participant up to an amount equal to its pro rata share (based upon the Senior Participation Principal Balance and the Junior Participation Principal Balance, respectively), to the extent such costs are not reimbursed by or on behalf of the Mortgage Loan Borrower. Advances will be netted against payments and proceeds of the Mortgage Loan prior to payments to the Senior Participant or the Junior Participant. To the extent any such amounts are not reimbursed by or on behalf of Mortgage Loan Borrower, the Servicer shall be reimbursed promptly from payments otherwise distributable to the Junior Participant up to an amount equal to its pro rata share of such amounts (based upon the Senior Participation Principal Balance and the Junior Participation Principal Balance, respectively). The Junior Participant shall not have any liability under this Section 3 in excess of the value of its Junior Participation or in excess of the payments due to such Junior Participant. To the extent that the Junior Participant advances any such costs prior to their being reimbursed by or on behalf of the Mortgage Loan Borrower and such costs are subsequently recovered by the Servicer, the Junior Participant shall receive a pro rata reimbursement 

Exhibit D - 8

from such recovery (based upon the respective amounts of such advances funded by the Junior Participant and the Servicer, respectively); provided that such recovery shall be payable, first, to the Servicer, and, thereafter, to the Junior Participant (in that order), in each case up to the amount of such costs actually paid by the Servicer and the Junior Participant, as the case may be. 
(b)    Notwithstanding any other provision contained in this Servicing Addendum, neither the Senior Participant nor the Junior Participant shall have any obligation to make any principal and/or interest advance with respect to any Participation.
(c)    Notwithstanding any other provision contained in this Servicing Addendum, the Servicer shall cooperate in all reasonable respects to effectuate the financing arrangements contemplated in Section 33 of the Participation Agreement.
4.    Collection Account.
(a)    The Servicer shall administer any cash management accounts, deposit account control agreements, securities account control agreements and/or any other similar agreements in accordance with the terms of the Mortgage Loan Documents and, on behalf of the Participants, enforce the provisions of such agreements.
(b)    Prior to the date hereof, the Servicer established or caused to be established and maintains one or more custodial accounts (each, a “Collection Account”) in trust for the benefit of the Participants, as their interests may appear, which shall at all times be entitled “CFI Hendon Holdings, LLC, as Servicer, for and on behalf of the Participants in accordance with that Amended and Restated Participation Agreement, dated February 4, 2019, Collection Account”. Amounts on deposit in the Collection Account shall be invested at the direction of the Servicer. Interest or other income earned on funds in the Collection Account will be paid pro rata to the Senior Participant and the Junior Participant in accordance with their respective Percentage Interests. The Servicer shall transfer, or cause to be transferred, to the Collection Account amounts representing the following payments and collections received or made on or with respect to the Mortgage Loan:
(i)    all payments on account of principal on the Mortgage Loan;
(ii)    all payments on account of interest on the Mortgage Loan;

Exhibit D - 9

(iii)    any amount representing reimbursements by the Mortgage Loan Borrower of expenses of the Servicer as required by the Mortgage Loan Documents or this Agreement; and
(iv)    any other amounts paid under the Mortgage Loan.
All unscheduled payments received by the Servicer shall be caused to be deposited into the Collection Account.

Exhibit D - 10

EXHIBIT E
SENIOR PARTICIPANT ADDITIONAL LOAN TERMS AND CONDITIONS
In the event the Additional Loan closes, the terms and conditions contained herein shall be superseded by the final definitive loan documents in their entirety.
		
	Loan Amount:
	$10,000,000 plus an amount equal to the amount of any payments of principal made on the Mortgage Loan prior to the time New Owner takes title to the Mortgaged Properties. The Additional Loan may be drawn at once or periodically.

Borrower:    New Owner.
		
	Maturity Date:
	The final fully extended maturity date under the Mortgage Loan plus an additional two (2) years.

Amortization:    Same as the Mortgage Loan.
Interest Rate:    Same as the Mortgage Loan.
		
	Purpose:
	Solely for capital expenditures, building improvements, tenant improvements, leasing commissions, necessary expenses (to be determined by the Senior Participant) and administrative costs of conversion to equity.

Minimum Draw:    $100,000.
		
	Draw Conditions:
	Customary draw conditions for a mortgage loan facility of this type, including (a) delivery of due diligence information satisfactory to Senior Participant, (b) payment of any customary fees and expenses charged by Senior Participant, (c) the execution and delivery of definitive documentation by New Owner in a form and substance satisfactory to Senior Participant, (d) compliance with customary representations and warranties, (e) satisfactory surveys, title insurance policies and/or title endorsements, as applicable, (f) satisfactory insurance coverage, (g) certified New Owner organizational documents and good standings, (h) satisfactory and customary opinions from New Owner’s counsel, (i) satisfactory payment of taxes, and (j) any other approvals, opinions, documents and information as are customary for loan transactions of this type.

		
	Other terms:
	Same as the Mortgage Loan.

Exhibit E - 1

SCHEDULE I 
 
MORTGAGE LOAN DOCUMENTS
Capitalized terms used, but not defined on this Schedule I shall have the meanings assigned to them in the Agreement to which this Schedule I is attached, or in the Mortgage Loan Agreement referred to on the Purchase Schedule therein. Except as otherwise indicated, all of the Mortgage Loan Documents are dated as of April 11, 2014. The Mortgage Loan Documents were previously assigned to (1) NS Income DB Loan – Series III, a series of NS Income DB Loan, LLC, a Delaware limited liability company, pursuant to documentation dated on or around April 11, 2014 and (2) the existing Lender pursuant to documentation dated as of January 31, 2018.
		
	1.
	Mortgage Loan Agreement;

		
	2.
	Guaranty;

		
	3.
	Environmental Indemnity;

		
	4.
	Mirilashvili Guaranty;

		
	5.
	Note;

		
	6.
	Mortgage (as corrected with respect to the Mortgage entered into regarding the Mortgaged Property in Georgia by that certain Corrective Assignment and Assumption of Interest under Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing to be submitted for recordation in Athens-Clarke County, Georgia as of January 31, 2018);

		
	7.
	Each Assignment of Leases and Rents from each borrower to Lender (as corrected with respect to the Assignment of Leases and Rents entered into regarding the Mortgaged Property in Georgia by that certain Corrective Assignment and Assumption of Interest under Assignment of Leases and Rents to be submitted for recordation in Athens-Clarke County, Georgia as of January 31, 2018);

		
	8.
	Assignment of Agreements, Licenses, Permits and Contracts from Mortgage Loan Borrower to Lender;

		
	9.
	Lockbox Account Agreement;

		
	10.
	Cash Management Agreement;

		
	11.
	Assignment of Management Agreement and Subordination of Management Fees from Manager, Mortgage Loan Borrower, Borrower Representative in favor of Lender;

		
	12.
	Pledge Agreement;

Exhibit I - 1

		
	13.
	Securities Agreement (dated as of June 23, 2014);

		
	14.
	Securities Account Sole Control Agreement (dated as of June 23, 2014) by and between NOGA, Assignor, Credit Suisse Securities (USA) LLC and Pershing LLC;

		
	15.
	Post Closing Agreement among Lender, Mortgage Loan Borrower and Guarantor;

		
	16.
	UCC Financing Statement, naming Florida Borrower, as debtor and Original Lender, as secured party recorded on April 14, 2014 with the Clerk of the Court, Bay County, Florida, at Book 3600, Page 501 (as assigned by Original Lender to Assignor pursuant to that certain UCC Financing Statement Amendment, recorded on May 15, 2014 with the Clerk of the Court, Bay County, Florida, at Book 3608, Page 1238);

		
	17.
	UCC Financing Statement naming Georgia Borrower as debtor and Original Lender as secured party recorded on April 15, 2014 with the Clerk of the Superior Court, Clarke-Athens County, Georgia, at Book 04207, Page 0450-0461 (as assigned by Original Lender to Assignor pursuant to that certain UCC Financing Statement Amendment, recorded on May 23, 2014 with the Clerk of the Superior Court, Clarke-Athens County, Georgia at Book 04218, Page 0521-0531);

		
	18.
	UCC Financing Statement naming Tennessee Borrower as debtor and Original Lender as secured party recorded on April 16, 2014 in the office of the Register of Deeds for Davidson County, Tennessee, at 20140416-0031990 (as assigned by Original Lender to Assignor pursuant to that certain UCC Financing Statement Amendment, recorded on May 15, 2014 in the office of the Register of Deeds for Davidson County, Tennessee, at 20140515-0041713);

		
	19.
	UCC Financing Statement naming Borrower (other than KDI PANAMA OUT PARCEL, LLC) as debtor and Original Lender as secured party filed on April 15, 2014 with the Clerk of the Superior Court, Clarke County, Georgia at UCC Control #0292014000500 (as assigned by Original Lender to Assignor pursuant to that certain UCC Financing Statement Amendment, filed on May 23, 2014 with the Clerk of the Superior Court, Clarke County, Georgia at UCC Control #0292011000665);

		
	20.
	UCC Financing Statement naming KDI Hendon Holding Company, LLC as debtor and Original Lender as secured party filed on April 15, 2014 with the Clerk of the Superior Court, Clarke County, Georgia at UCC Control #0292014000499 (as assigned by Original Lender to Assignor pursuant to that certain UCC Financing Statement Amendment, filed on May 23, 2014 with the Clerk of the Superior Court, Clarke County, Georgia at UCC Control #0292014000666);

Exhibit I - 2

		
	21.
	Escrow Agreement by and among Haynes and Boone, LLP, Mortgage Loan Borrower and First American Title Insurance Company;

		
	22.
	Loan Policy of Title Insurance for each Mortgage Property;

		
	23.
	Survey for each Mortgaged Property;

		
	24.
	Legal Opinions delivered in connection with the closing of the Mortgage Loan to Lender;

		
	25.
	Incumbency Certificates delivered in connection with the closing of the Mortgage Loan to Lender;

		
	26.
	Allocation affidavit for Tennessee; 

		
	27.
	Tenant SNDAs;

		
	28.
	Letter Agreement (regarding Reserves) dated December 27, 2018;

		
	29.  
	Letter Agreement (regarding Release of Panama Mall) dated December 27, 2018;

		
	30. 
	Security Agreement dated December 27, 2018;

		
	31.  
	Account Control Agreement dated December 27, 2018; 

		
	32.
	Limited Guaranty of Recourse Obligations dated December 27, 2018; 

		
	33.
	Consent Agreement dated December 27, 2018; 

		
	34.
	Certification of Trust dated December 27, 2018; 

		
	35.
	Legal Opinions delivered in connection with the matters described in Items 30 through 34 above;

		
	36.
	Incumbency Certificates delivered in connection with the matters described in Items 30 through 34 above;

		
	37.
	Loan Modification Agreement dated February 4, 2019;

		
	38.
	Modification of Mortgage (for each Mortgage covered in Item 6 above) dated February 4, 2019; 

		
	39.
	First Amendment to Cash Management Agreement dated February 4, 2019;

		
	40.
	Legal Opinions delivered in connection with the matters described in Items 37 through 39 above; 

Exhibit I - 3

		
	41.
	Incumbency Certificates delivered in connection with the matters described in Items 37 through 39 above;

		
	42.
	Notice to HSBC Bank USA, N.A. dated February 4, 2019 authorizing transfer of funds from Vaizra Account; and 

		
	43. 
	Notice to HSBC Bank USA, N.A. dated February 4, 2019 evidencing termination of interest in Vaizra Account.

Exhibit I - 4

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