Document:

Exhibit
10.1

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL AND (ii) IS THE TYPE THAT SAFE-T GROUP
LTD. TREATS AS PRIVATE OR CONFIDENTIAL. OMISSIONS ARE DENOTED IN BRACKETS THROUGHOUT THIS EXHIBIT.

 

AMENDMENT
TO AGREEMENT

 

This
amendment (the "Amendment") is made by and
between Safe-T Group Ltd., (“Company”), and ORB Spring Ltd. (“Partner”),
parties to the agreement made and entered into on August 8, 2022 (the "Agreement").

 

WHEREAS, the
Parties wish to amend the certain terms and/or conditions of the Agreement as more fully set forth herein;

 

NOW,
THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Parties hereto hereby agree as follows:

 

		1.	Definitions. Capitalized
                                            terms used but not defined herein shall have the meanings set forth in the Agreement.

 

		2.	The
                                            Agreement is amended as follows:

 

		a)	Section
                                            1.4 is hereby waived and deleted in its entirety.

 

		b)	Section 3.2.3 is hereby amended to delete in part, as shown below:

“50%
of Series C and Series D Warrants shall vest on March 1, 2023 (the “Second Vesting Date”) and be exercisable as of
the Second Vesting Date and for three (3) years thereafter, subject to Section ‎3.3 below.; provided, however, that the Warrants
under this Section ‎3.2.3 shall expire on the Second Vesting Date in the event the Milestone is not met, and the Partner has notified
the Company on its decision to rescind the remaining balance of the Facility.”

 

		c)	Section
                                            3.2.4 hereby amended to delete in part, as shown below:

 

50% of Series C and Series D Warrants shall vest on September 1, 2023
(the “Third Vesting Date”) and be exercisable as of the Third Vesting Date and for three (3) years thereafter, subject
to Section ‎3.3 below; provided, however, that the Warrants under this Section ‎3.2.4 shall expire on the Third Vesting
Date in the event the Milestone is not met, and the Partner has notified the Company on its decision to rescind
the remaining balance of the Facility; and further provided, that the Warrants under this Section ‎3.2.4 shall expire
on the Third Vesting Date pro rata to the amounts of Tranches 3-8 which shall have not been actually withdrawn by the Company. By way
of illustration only, (a) if the Company, at its sole discretion, withdraws US$0.5 million out of US$2 million of Tranches 3-8 available
under this Agreement, than 75% of the Warrants under this Section ‎3.2.4 (i.e., 37.5% of the total amount of Series C Warrants and
37.5% of the total amount of Series D Warrants) shall expire on the Third Vesting Date; and (b) if the Company, at its sole discretion,
withdraws US$2 million out of US$2 million of Tranches 3-8 available under this Agreement, than none of the Warrants under this Section
‎3.2.4 shall expire on the Third Vesting Date

 

     

     

    

 

		d)	Schedule
                                            1.2 is hereby amended and replaced with the attached “Amended Schedule 1.2”.

 

		e)	Schedules
                                            3.4C and 3.4D are hereby amended to reflect the waiver and deletion herein of Section 1.4.
                                            Amended Schedules are attached hereto as “Amended Schedule 3.4C” and “Amended
                                            Schedule 3.4D”.

 

		3.	Except
                                            as set forth in this Amendment, the Agreement is unaffected and shall continue in full force
                                            and effect in accordance with its terms. If there is conflict between this amendment and
                                            the Agreement or any earlier amendment, the terms of this amendment will prevail.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as
of the date first above written.

 

	Safe-T
    Group Ltd.	 	ORB
    Spring Ltd.
	 	 	 
	/s/
    Shachar Daniel	 	/s/
    Barak Avitbul
	Shachar
    Daniel, Chief Executive Officer	 	Barak
    Avitbul, Chief Executive Officer
	 	 	 
	/s/
    Shai Avnit	 	 
	Shai
    Avnit, Chief Financial Officer	 	 

 

	Agreed
    and acknowledged:	 
	 	 
	/s/
    Barak Avitbul	 
	Barak
    Avitbul	 
	 	 
	Dated:
    October 27, 2022	 

  

    2

     

    

 

AMENDED
SCHEDULE 1.2

 

Tranches
Timetable

 

[**]

 

    3

     

    

 

AMENDED
SCHEDULE 3.4C

 

THIS
AMENDED AND RESTATED WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS AMENDED AND RESTATED WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES
LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

 

AMENDED
AND RESTATED SERIES C WARRANT TO PURCHASE ORDINARY SHARES OF SAFE-T GROUP LTD.

 

	 Warrant
                                            Shares: 2,222,222
	                   Warrant
    Issue Date: August 11, 2022

 

 

THIS
AMENDED AND RESTATED SERIES C WARRANT (the “Warrant”)
certifies that, effective as of the Warrant Issue Date (as defined above), Mr. Barak Avitbul (the “Holder”) is entitled,
on the terms set forth below, to purchase from Safe-T Group Ltd., a company incorporated under the laws of the State of Israel (the “Company”),
the Warrant Shares (as defined below), in accordance with the terms hereof, at a purchase price per Warrant Share equal to the Series
C Exercise Price (as defined below).

 

This
Warrant is issued pursuant to the terms of that certain agreement between the Company and ORB Spring Ltd., dated August 8, 2022 (the
“Agreement”). In any conflict between the provisions of this Warrant and the provisions of the Agreement, the provisions
of the Agreement shall prevail. Any capitalized term not specifically defined herein shall have such meaning as is ascribed to it in
the Agreement.

 

	1.	Warrant Shares.
Subject to the terms and conditions hereinafter set forth, the Holder is entitled to subscribe for and purchase from the Company, during
the exercise periods and subject to the vesting schedule set forth in Section ‎4 below, up to 2,222,222 fully paid and non-assessable
Ordinary Shares of the Company (the “Warrant Shares”). The number of the Warrant Shares issuable hereunder may be
adjusted from time to time in accordance with the provisions of Section ‎8 below.

 

 

	2.	Exercise
                                            Price. The exercise price for each Warrant Share purchasable under this Warrant shall
                                            be US$0.675 (the “Series C Exercise Price”).

 

	3.	Legend.
                                            Each certificate for the Warrant Shares purchased under this Warrant shall bear a legend
                                            as follows unless such Warrant Shares have been registered under the Securities Act of 1933,
                                            as amended:

 

The
securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Act”),
or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except
pursuant to an effective registration statement under the Act, or pursuant to an exemption from registration under the Act and applicable
state law which, in the opinion of counsel to Safe-T Group Ltd., is available.

 

    4

     

    

 

		4.	Exercise
                                            Period; Vesting.

 

		4.1.	1,111,111 Series C Warrants to purchase up to 1,111,111 Warrant
Shares (50% of Series C Warrants) shall vest on March 1, 2023 (the “Second Vesting Date”) and be exercisable as of
the Second Vesting Date and for three (3) years thereafter, subject to Section ‎4.3 below.; provided, however, that the Warrants
under this Section ‎4.1 shall expire on the Second Vesting Date in the event the Milestone is not met, and the Partner has notified
the Company on its decision to rescind the remaining balance of the Facility;

 

		4.2.	1,111,111 Series C Warrants to purchase up to 1,111,111 Warrant
Shares (50% of Series C Warrants) shall vest on September 1, 2023 (the “Third Vesting Date”) and be exercisable as
of the Third Vesting Date and for three (3) years thereafter, subject to Section ‎‎4.3 below; provided, however, that
the Warrants under this Section ‎4.2 shall expire on the Third Vesting Date in the event the Milestone is not met, and the Partner
has notified the Company on its decision to rescind the remaining balance of the Facility; and further provided, that the Warrants
under this Section ‎‎4.2 shall expire on the Third Vesting Date pro rata to the amounts of Tranches 3-8 which shall have not
been actually withdrawn by the Company. By way of illustration only, (a) if the Company, at its sole discretion, withdraws US$0.5 million
out of US$2 million of Tranches 3-8 available under the Agreement, than 833,333 Series C Warrants to purchase up to 833,333 Warrant Shares
[75% of Series C Warrants under this Section ‎4.2] shall expire on the Third Vesting Date; and (b) if the Company, at its sole discretion,
withdraws US$2 million out of US$2 million of Tranches 3-8 available under the Agreement, than none of Series C Warrants under this Section
‎4.2 shall expire on the Third Vesting Date;

   

		4.3.	Notwithstanding the above, if at any time from and after the date of issuance of the Warrants hereof,
the closing price of the Company’s Ordinary Shares on the TASE (or other stock exchange or market on which the Ordinary Shares are
then listed or quoted, including by means of ADSs, as defined below) equals or exceeds US$1.0125 [1.5 (one point five) of Series C Exercise
Price per share], adjusted, if applicable, for the Company's capital events, such as stock splits, etc., for three (3) consecutive trading
days (the “Mandatory Exercise Measuring Period”), then the Company shall have the right to require the Holder and/or
any of his Transferees, to exercise all or any portion of Series C Warrants, still unexercised (and in such event vesting of any such
unexercised Series C Warrants required to be exercised shall be accelerated and all of them shall vest immediately), for a cash exercise,
as designated in the Mandatory Exercise Notice on the Mandatory Exercise Date (each as defined below) into fully paid, validly issued
and nonassessable Ordinary Shares, at the Series C Exercise Price (the “Mandatory Exercise”). The Company may exercise
its right to require exercise under this Section ‎4.3 by delivering within not more than five (5) trading days following the end of
such Mandatory Exercise Measuring Period a written notice thereof to the Holder (which notice for the purposes hereof shall also be deemed
a notice to his Transferees (the “Mandatory Exercise Notice” and the date that Holder received such notice is referred
to as the “Mandatory Exercise Notice Date”). The Mandatory Exercise Notice shall be irrevocable. The Mandatory Exercise
Notice shall state (i) the trading day on which the Mandatory Exercise shall occur, which shall be the second trading day following the
Mandatory Exercise Notice Date (the “Mandatory Exercise Date”) and (ii) the aggregate number of Warrants which the Company
has elected to be subject to such Mandatory Exercise (the “Mandatory Exercise Warrants”) pursuant to this Section ‎4.3.
If the Holder or any of his Transferees then holding the Warrants, fails to provide the Company on the Mandatory Exercise Date or within
five (5) business days thereafter, with the aggregate exercise price of the Mandatory Exercise Warrants or any part thereof, at the end
of such period any nonpaid Mandatory Exercise Warrants shall automatically terminate and become null and void.

 

		4.4.	Notwithstanding the above, this Warrant may not be exercised on the Record
Date (as such term is defined under the TASE rules and regulations) of: (i) a distribution of bonus shares; (ii) a rights offer; (iii)
any distribution of dividends; (iv) a consolidation of the share capital of the Company; (v) a share split; or (vi) a reduction of the
share capital of the Company (each of the above: a “Corporate Event”). In addition, if the Ex-Date (as such term is
defined under the TASE rules and regulations) for a Corporate Event occurs before the Record Date for such Corporate Event, then the Warrant
may not be exercised on the said Ex-Date.

 

    5

     

    

 

		5.	Manner of Exercise.

 

		5.1.	The Warrant may be exercised by the delivery of the Warrant to the Company at its principal office, together
with a duly executed copy of the form of Notice of Exercise attached hereto as Exhibit A, to the chief financial officer
of the Company at its principal offices and the payment to the Company of an amount equal to the aggregate of the Series C Exercise Price
for all of the Warrant Shares being purchased, in immediately available cash funds.

 

		5.2.	Unless otherwise agreed in writing by the Parties, the closing of each such Exercise Notice shall occur
no later than three (3) TASE trading days after the date of delivery of such Exercise Notice (the “Warrant Closing Date”),
at which time Holder shall pay its Exercise Price to the Company by wire transfer and the Company shall issue the Warrant Shares and transfer
to its registration company (the “Registration Company”) all the documents and information required in order to deposit
the Warrant Shares in Holder's account (which details shall be provided to the Company in the Exercise Notice) and shall cause the Registration
Company to register such deposit; if and when issued in accordance with the provisions hereof, the Warrant Shares shall be listed for
trading on the TASE and, subject to the provisions of Section 3.7 of the Agreement, on Nasdaq.

 

		5.3.	No fractional shares or scrip representing fractional shares shall be issued upon exercise of this Warrant.
As to any fraction of a Warrant Share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall,
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the
Series C Exercise Price or round up to the next whole share.

 

		6.	Issuance of Shares on Exercise. Following an exercise as provided in Section ‎‎5 above,
the Warrant Shares so purchased shall be issued and the Holder shall be deemed the record owner of such Warrant Shares, as of the close
of business on the date on which the last of the actions required to exercise the Warrant as provided in Section ‎5 above has been
completed.

 

		7.	Holder's Rights as a Shareholder. The Holder shall not be entitled to any right as a shareholder
of the Company with respect to Warrant Shares until such time that it becomes a holder of Warrant Shares in accordance with Section ‎6
above. Upon becoming a holder of Warrant Shares, such shares shall entitle the Holder to all rights attached to the shares of the same
class under the Company’s articles of association (the “Articles”) then in effect.

 

		8.	Adjustments

 

The Series C Exercise
Price and the number of Warrant Shares purchasable hereunder are subject to adjustment from time to time, as follows:

 

		8.1.	If the Company at any time, while any of the Warrants are
exercisable and outstanding, subdivides its Ordinary Shares, the number of Warrant Shares issuable upon exercise of the Warrants shall
be proportionately increased and, for the avoidance of any doubt, the Series C Exercise Price per Warrant Share shall be proportionally
reduced.

 

		8.2.	If the Company at any time, while any of the Warrants are
exercisable and outstanding, combines its Ordinary Shares, the number of Warrant Shares issuable upon the exercise of the Warrants shall
be proportionately decreased and, for the avoidance of any doubt, the Series C Exercise Price per Warrant Share shall be proportionally
increased.

 

    6

     

    

 

		8.3.	If
the Company at any time, while any of the Warrants are exercisable and outstanding, pays a dividend with respect to the Ordinary Shares,
then the Series C Exercise Price shall be adjusted, from and after the date of determination of shareholders entitled to receive such
dividend or distribution (the “Record Date”), to such price that equals the product of the Series C Exercise Price
in effect immediately prior to the Record Date multiplied by a fraction (X) the numerator of which shall be the opening price of the
Ordinary Shares as published by the TASE on the “Ex-Dividend” date, and (Y) the denominator of which shall be the closing
price of the Ordinary Shares as published by the TASE on the last trading day immediately prior to the relevant "Ex-Dividend"
date. Such adjustment shall be subject to the receipt of any tax ruling or approval required under applicable law.

 

		8.4.	In
the event that the Company at any time, while any of the Warrants are exercisable and outstanding, makes or fixes a record date for the
determination of holders of shares entitled to receive bonus shares, then the number of Warrant Shares exercisable upon exercise of the
Warrants then outstanding shall be increased by a number of Warrant Shares equal to the number of shares that the Holder would have been
entitled to receive in respect of the Warrant Shares for which the Warrants could have been exercised immediately prior to the ex-bonus
shares date.

 

		8.5.	In
the event that the Company at any time, while any of the Warrants are exercisable and outstanding, makes or fixes a record date for the
determination of holders of shares entitled to receive rights to purchase shares of the Company upon any rights offering by the Company,
then the number of Warrant Shares exercisable upon the exercise of the Warrants then outstanding shall be increased to reflect the bonus
component in the rights offering, being expressed as a fraction, the numerator of which shall be the closing price of the Ordinary Shares
as published by TASE on the last trading day immediately prior to the ex-rights date and the denominator of which shall be the ex-rights
price per share as shall be published by TASE.

 

		8.6.	If
the Company, at any time, while any of the Warrants are exercisable and outstanding, distributes to holders of Ordinary Shares as a dividend
any asset other than cash or Company's securities (in each case, “Distributed Property”), then provision shall be
made so that upon exercise of the Warrants, the Company will deliver to the Holder with respect to Holder's warrants then outstanding
the Distributed Property that such holder would have been entitled to receive in respect of the Warrant Shares for which the Holder's
outstanding warrants could have been exercised immediately prior to the record date of such distribution.

 

		8.7.	If
a Merger Event (as defined below) occurs at any time while the Warrants are exercisable and outstanding, then lawful provision shall
be made so that Holder shall thereafter be entitled to receive, upon exercise of the Warrants, the number of Ordinary Shares or other
securities or property of the successor corporation resulting from such Merger Event that would have been issuable if Holder had exercised
the Warrants immediately prior to the Merger Event. In any such case, the Company shall take all action, including any adjustment (as
determined in good faith by the Company's Board of Directors with respect to all outstanding options and warrants issued by the Company),
to protect all the rights and interests of the Holder after the Merger Event such that all rights and interests of the Holder in this
Agreement (including adjustments of the Exercise Price and/or number of Ordinary Shares purchasable) shall be applicable in their entirety.
For the purposes hereof “Merger Event” means a merger or consolidation involving the Company in which the Company is not
the surviving entity, or in which the outstanding Ordinary Shares of the Company are otherwise converted into or exchanged for shares
of capital of another entity.

 

    7

     

    

 

		9.	Representations
                                            and Warranties of the Company

 

The
Company represents and warrants to Holder as follows:

 

		9.1.	This
Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance
with its terms. The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be (i) duly authorized, validly issued, fully paid, non-assessable, (ii) issued in compliance with all applicable
laws, including Israeli Securities Law and the Act, (iii) free of any rights of first refusal, co-sale rights, preemptive rights or any
other applicable subscription or participation rights and (iv) free and clear of any liens, claims, encumbrances or third party rights
of any kind, subject to any lock-up requirements as prescribed by law and referenced in Sections 3.5 and 3.6 of the Agreement (of which
the Holder is aware). Holder acknowledges that in making the foregoing representation the Company is relying upon Holder’s representations
in the Agreement, including without limitation in Section 3.8 of the Agreement and the certificate provided thereunder, and Holder hereby
represents and warrants to the Company that such representations and warranties are accurate as of the date hereof.

 

		9.2.	The
execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with
the terms hereof will not be, inconsistent with the Articles and any other Company's governing documents, do not and will not contravene
any law, regulation or judgment applicable to the Company, and do not and will not conflict with or contravene any provision of, or constitute
a default under, any legal instrument of which the Company is a party or by which it is bound.

 

		10.	Transferability.
                                            Series C Warrants shall not be transferrable, save to transfer to the Transferees. Any transfer
                                            to a Transferee hereunder shall be conducted by using the Form of Transfer, substantially
                                            in the form of Exhibit B hereto.

 

		11.	Saturdays,
                                            Holidays, etc. If the last or appointed day for the taking of any action or the expiration
                                            of any right required or granted herein shall not be a business day, then such action may
                                            be taken or such right may be exercised on the next succeeding business day.

 

		12.	Entire
                                            Agreement, Amendments. This Warrant, the Agreement and any other documents delivered
                                            pursuant hereto or thereto, set forth the entire understanding of the parties with respect
                                            to the subject matter hereof. No modification or amendment of this Warrant will be valid
                                            unless executed in writing by the Company and the Holder.

 

		13.	Notices.
                                            All notices and other communications given or made pursuant to this Warrant shall be in writing
                                            and shall be given and deemed delivered as provided in Section 13 to the Agreement.

 

		14.	Titles
                                            and Subtitles. The titles and subtitles used in this Warrant are used for convenience
                                            only and are not to be considered in construing or interpreting this Warrant. All references
                                            in this Warrant to sections, paragraphs and exhibits shall, unless otherwise provided, refer
                                            to sections and paragraphs hereof and exhibits attached hereto.

 

		15.	Law;
                                            Jurisdiction. Provisions of Section 10 of the Agreement shall apply with regard to the
                                            governing law and jurisdiction.

 

		16.	Counterparts.
                                            This Warrant may be executed in any number of counterparts, each of which shall be deemed
                                            an original and enforceable against the parties actually executing such counterpart, and
                                            all of which together shall constitute one and the same instrument.

 

    8

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized officer.

 

	SAFE-T
    GROUP LTD.	 
	 	 
	 	 
	By:	Shachar
    Daniel, Chief Executive Officer	 
	 	Shai
    Avnit, Chief Financial Officer	 
	 	 	 
	AGREED
    AND ACCEPTED:	 
	 	 
		 
	Barak
    Avitbul 	 

 

    9

     

    

 

EXHIBIT A

 

NOTICE
OF EXERCISE

 

To:
SAFE-T GROUP LTD.

 

Attn:
Chief Financial Officer

 

		1.	The
                                            undersigned hereby elects to purchase [FILL IN NUMBER OF SHARES] ____________ shares
                                            of Ordinary Shares of the share capital of Safe-T Group Ltd. pursuant to the terms of the
                                            attached Series C Warrant (the “Warrant”), and tenders herewith payment
                                            in full for the purchase price of the shares being purchased.

 

		2.	Please
                                            issue a certificate or certificates representing said Warrant Shares in the name of the undersigned,
                                            and record same in the Company’s internal share registry.

 

		3.	The
                                            undersigned hereby represents and warrants that the aforesaid Warrant Shares are being acquired
                                            for the account of the undersigned for investment and not with a view to, or for resale,
                                            in connection with the distribution thereof, and that the undersigned has no present intention
                                            of distributing or reselling such shares. The undersigned further represents and warrants
                                            that the representations of Mr. Barak Avitbul contained in Section 3.8 of the Agreement between
                                            the Company and ORB Spring Ltd. and acknowledged by Mr. Avitbul, dated August 8, 2022, remain
                                            accurate in all respects as of the date hereof (it being understood that if the undersigned
                                            is a Transferee of the Warrant from Mr. Avitbul, such representations are being made by the
                                            undersigned as if it were a party to such Agreement).

 

	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	Address: 	 
	 	Date:	 

 

    10

     

    

 

EXHIBIT
B

 

FORM
OF TRANSFER

 

(To
be signed only upon transfer of Warrant)

 

FOR
VALUE RECEIVED, the undersigned (the “Transferor”) hereby sells, assigns and transfers unto ______________________________________________,
being Transferee, (the “Transferee”) the Warrant to purchase _____________ Warrant Shares in an aggregate exercise
price of US$ _________ and appoints ______________, as Attorney-in-Fact to transfer said Warrant on the books of Safe-T Group Ltd., with
full power of substitution in the premises. The Transferor further represents that the transfer is made in accordance with the terms
of the Warrant.

	 	 
	Dated:
    __________________	 
	 	 
	________________________	 
	 	 
	By:
    Barak Avitbul	 

 

 

and
the undersigned Transferee hereby agrees to the transfer and agrees to be bound by the terms and conditions of the Warrant and represents
and warrants that the representations contained in Section 3.8 of the Agreement between the Company and ORB Spring Ltd. (“ORB”),
dated August 8, 2022, remain accurate in all respects as of the date hereof (it being understood that such representations are being
made by the undersigned as if it were a party to such Agreement).

 

	Dated:
    __________________	 
	 	 
	By:	 
	 	 
	Name:
    	 

 

    11

     

    

 

AMENDED
SCHEDULE 3.4D

 

THIS
AMENDED AND RESTATED WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS AMENDED AND RESTATED WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES
LAW, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO SUCH SECURITIES
OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. 

 

AMENDED
AND RESTATED SERIES D WARRANT TO PURCHASE ORDINARY SHARES OF SAFE-T GROUP LTD.

 

	Warrant
Shares: 370,370
	                   Warrant
    Issue Date: August 11, 2022

 

THIS
AMENDED AND RESTATED SERIES D WARRANT (the “Warrant”)
certifies that, effective as of the Warrant Issue Date (as defined above), Mr. Barak Avitbul (the “Holder”) is entitled,
on the terms set forth below, to purchase from Safe-T Group Ltd., a company incorporated under the laws of the State of Israel (the “Company”),
the Warrant Shares (as defined below), in accordance with the terms hereof, at a purchase price per Warrant Share equal to the Series
D Exercise Price (as defined below).

 

This
Warrant is issued pursuant to the terms of that certain agreement between the Company and ORB Spring Ltd., dated August 8, 2022 (the
“Agreement”). In any conflict between the provisions of this Warrant and the provisions of the Agreement, the provisions
of the Agreement shall prevail. Any capitalized term not specifically defined herein shall have such meaning as is ascribed to it in
the Agreement.

 

		1.	Warrant Shares. Subject to the terms and conditions hereinafter set forth, the Holder is entitled
to subscribe for and purchase from the Company, during the exercise periods and subject to the vesting schedule set forth in Section ‎4
below, up to 370,370 fully paid and non-assessable Ordinary Shares of the Company (the “Warrant Shares”). The number
of the Warrant Shares issuable hereunder may be adjusted from time to time in accordance with the provisions of Section ‎8 below.

 

		2.	Exercise Price. The exercise price for each Warrant Share purchasable under this Warrant shall
be US$1.35 (the “Series D Exercise Price”).

 

		3.	Legend. Each certificate for the
Warrant Shares purchased under this Warrant shall bear a legend as follows unless such Warrant Shares have been registered under the Securities
Act of 1933, as amended:

 

The securities represented by this
certificate have not been registered under the Securities Act of 1933, as amended (the “Act”), or applicable state law. Neither
the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration
statement under the Act, or pursuant to an exemption from registration under the Act and applicable state law which, in the opinion of
counsel to Safe-T Group Ltd., is available.

 

    12

     

    

 

		4.	Exercise Period; Vesting.

 

		4.1.	185,185 Series D Warrants to purchase up to 185,185 Warrant
Shares (50% of Series D Warrants) shall vest on March 1, 2023 (the “Second Vesting Date”) and be exercisable as of
the Second Vesting Date and for three (3) years thereafter, subject to Section ‎4.3 below. ; provided, however, that the
Warrants under this Section ‎4.1 shall expire on the Second Vesting Date in the event the Milestone is not met, and the Partner has
notified the Company on its decision to rescind the remaining balance of the Facility;

 

		4.2.	185,185 Series D Warrants to purchase up to 185,185 Warrant
Shares (50% of Series D Warrants) shall vest on September 1, 2023 (the “Third Vesting Date”) and be exercisable as
of the Third Vesting Date and for three (3) years thereafter, subject to Section ‎‎4.3 below; provided, however, that
the Warrants under this Section ‎4.2 shall expire on the Third Vesting Date in the event the Milestone is not met, and the Partner
has notified the Company on its decision to rescind the remaining balance of the Facility; and further provided, that the Warrants
under this Section ‎‎4.2 shall expire on the Third Vesting Date pro rata to the amounts of Tranches 3-8 which shall have not
been actually withdrawn by the Company. By way of illustration only, (a) if the Company, at its sole discretion, withdraws US$0.5 million
out of US$2 million of Tranches 3-8 available under the Agreement, than 138,889 Series D Warrants to purchase up to 138,889 Warrant Shares
[75% of Series D Warrants under this Section ‎4.2] shall expire on the Third Vesting Date; and (b) if the Company, at its sole discretion,
withdraws US$2 million out of US$2 million of Tranches 3-8 available under the Agreement, than none of Series D Warrants under this Section
‎4.2 shall expire on the Third Vesting Date;

 

		4.3.	Notwithstanding the above, if at any time from and after
the date of issuance of the Warrants hereof, the closing price of the Company’s Ordinary Shares on the TASE (or other stock exchange
or market on which the Ordinary Shares are then listed or quoted, including by means of ADSs, as defined below) equals or exceeds US$2.025
[1.5 (one point five) of Series D Exercise Price per share], adjusted, if applicable, for the Company's capital events, such as stock
splits, etc., for three (3) consecutive trading days (the “Mandatory Exercise Measuring Period”), then the Company
shall have the right to require the Holder and/or any of his Transferees, to exercise all or any portion of Series D Warrants, still
unexercised (and in such event vesting of any such unexercised Series D Warrants required to be exercised shall be accelerated and all
of them shall vest immediately), for a cash exercise, as designated in the Mandatory Exercise Notice on the Mandatory Exercise Date (each
as defined below) into fully paid, validly issued and nonassessable Ordinary Shares, at the Series D Exercise Price (the “Mandatory
Exercise”). The Company may exercise its right to require exercise under this Section ‎4.3 by delivering within not more
than five (5) trading days following the end of such Mandatory Exercise Measuring Period a written notice thereof to the Holder (which
notice for the purposes hereof shall also be deemed a notice to his Transferees (the “Mandatory Exercise Notice” and
the date that Holder received such notice is referred to as the “Mandatory Exercise Notice Date”). The Mandatory Exercise
Notice shall be irrevocable. The Mandatory Exercise Notice shall state (i) the trading day on which the Mandatory Exercise shall occur,
which shall be the second trading day following the Mandatory Exercise Notice Date (the “Mandatory Exercise Date”) and (ii)
the aggregate number of Warrants which the Company has elected to be subject to such Mandatory Exercise (the “Mandatory Exercise
Warrants”) pursuant to this Section ‎4.3. If the Holder or any of his Transferees then holding the Warrants, fails to provide
the Company on the Mandatory Exercise Date or within five (5) business days thereafter, with the aggregate exercise price of the Mandatory
Exercise Warrants or any part thereof, at the end of such period any nonpaid Mandatory Exercise Warrants shall automatically terminate
and become null and void.

 

    13

     

    

 

		4.4.	Notwithstanding the above,
this Warrant may not be exercised on the Record Date (as such term is defined under the TASE rules and regulations) of: (i) a distribution
of bonus shares; (ii) a rights offer; (iii) any distribution of dividends; (iv) a consolidation of the share capital of the Company;
(v) a share split; or (vi) a reduction of the share capital of the Company (each of the above: a “Corporate Event”).
In addition, if the Ex-Date (as such term is defined under the TASE rules and regulations) for a Corporate Event occurs before the Record
Date for such Corporate Event, then the Warrant may not be exercised on the said Ex-Date.

 

		5.	Manner of Exercise.

 

		5.1.	The Warrant may be exercised by the delivery of the Warrant
to the Company at its principal office, together with a duly executed copy of the form of Notice of Exercise attached hereto as Exhibit
A, to the chief financial officer of the Company at its principal offices and the payment to the Company of an amount equal to
the aggregate of the Series D Exercise Price for all of the Warrant Shares being purchased, in immediately available cash funds.

 

		5.2.	Unless otherwise agreed in writing by the Parties, the closing
of each such Exercise Notice shall occur no later than three (3) TASE trading days after the date of delivery of such Exercise Notice
(the “Warrant Closing Date”), at which time Holder shall pay its Exercise Price to the Company by wire transfer and
the Company shall issue the Warrant Shares and transfer to its registration company (the “Registration Company”) all
the documents and information required in order to deposit the Warrant Shares in Holder's account (which details shall be provided to
the Company in the Exercise Notice) and shall cause the Registration Company to register such deposit; if and when issued in accordance
with the provisions hereof, the Warrant Shares shall be listed for trading on the TASE and, subject to the provisions of Section 3.7
of the Agreement, on Nasdaq.

 

		5.3.	No fractional shares or scrip representing fractional shares
shall be issued upon exercise of this Warrant. As to any fraction of a Warrant Share which the Holder would otherwise be entitled to
purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an
amount equal to such fraction multiplied by the Series D Exercise Price or round up to the next whole share.

 

		6.	Issuance of Shares on Exercise. Following an exercise as provided in Section ‎‎5 above,
the Warrant Shares so purchased shall be issued and the Holder shall be deemed the record owner of such Warrant Shares, as of the close
of business on the date on which the last of the actions required to exercise the Warrant as provided in Section ‎5 above has been
completed.

 

		7.	Holder's Rights as a Shareholder. The Holder shall not be entitled to any right as a shareholder
of the Company with respect to Warrant Shares until such time that it becomes a holder of Warrant Shares in accordance with Section ‎6
above. Upon becoming a holder of Warrant Shares, such shares shall entitle the Holder to all rights attached to the shares of the same
class under the Company’s articles of association (the “Articles”) then in effect.

 

    14

     

    

 

		8.	Adjustments

 

The
Series D Exercise Price and the number of Warrant Shares purchasable hereunder are subject to adjustment from time to time, as follows:

 

		8.1.	If
the Company at any time, while any of the Warrants are exercisable and outstanding, subdivides its Ordinary Shares, the number of Warrant
Shares issuable upon exercise of the Warrants shall be proportionately increased and, for the avoidance of any doubt, the Series D Exercise
Price per Warrant Share shall be proportionally reduced.

 

		8.2.	If
the Company at any time, while any of the Warrants are exercisable and outstanding, combines its Ordinary Shares, the number of Warrant
Shares issuable upon the exercise of the Warrants shall be proportionately decreased and, for the avoidance of any doubt, the Series
D Exercise Price per Warrant Share shall be proportionally increased.

 

		8.3.	If
the Company at any time, while any of the Warrants are exercisable and outstanding, pays a dividend with respect to the Ordinary Shares,
then the Series D Exercise Price shall be adjusted, from and after the date of determination of shareholders entitled to receive such
dividend or distribution (the “Record Date”), to such price that equals the product of the Series D Exercise Price
in effect immediately prior to the Record Date multiplied by a fraction (X) the numerator of which shall be the opening price of the
Ordinary Shares as published by the TASE on the “Ex-Dividend” date, and (Y) the denominator of which shall be the closing
price of the Ordinary Shares as published by the TASE on the last trading day immediately prior to the relevant "Ex-Dividend"
date. Such adjustment shall be subject to the receipt of any tax ruling or approval required under applicable law.

 

		8.4.	In
the event that the Company at any time, while any of the Warrants are exercisable and outstanding, makes or fixes a record date for the
determination of holders of shares entitled to receive bonus shares, then the number of Warrant Shares exercisable upon exercise of the
Warrants then outstanding shall be increased by a number of Warrant Shares equal to the number of shares that the Holder would have been
entitled to receive in respect of the Warrant Shares for which the Warrants could have been exercised immediately prior to the ex-bonus
shares date.

 

		8.5.	In
the event that the Company at any time, while any of the Warrants are exercisable and outstanding, makes or fixes a record date for the
determination of holders of shares entitled to receive rights to purchase shares of the Company upon any rights offering by the Company,
then the number of Warrant Shares exercisable upon the exercise of the Warrants then outstanding shall be increased to reflect the bonus
component in the rights offering, being expressed as a fraction, the numerator of which shall be the closing price of the Ordinary Shares
as published by TASE on the last trading day immediately prior to the ex-rights date and the denominator of which shall be the ex-rights
price per share as shall be published by TASE.

 

		8.6.	If
the Company, at any time, while any of the Warrants are exercisable and outstanding, distributes to holders of Ordinary Shares as a dividend
any asset other than cash or Company's securities (in each case, “Distributed Property”), then provision shall be
made so that upon exercise of the Warrants, the Company will deliver to the Holder with respect to Holder's warrants then outstanding
the Distributed Property that such holder would have been entitled to receive in respect of the Warrant Shares for which the Holder's
outstanding warrants could have been exercised immediately prior to the record date of such distribution.

 

		8.7.	If
a Merger Event (as defined below) occurs at any time while the Warrants are exercisable and outstanding, then lawful provision shall
be made so that Holder shall thereafter be entitled to receive, upon exercise of the Warrants, the number of Ordinary Shares or other
securities or property of the successor corporation resulting from such Merger Event that would have been issuable if Holder had exercised
the Warrants immediately prior to the Merger Event. In any such case, the Company shall take all action, including any adjustment (as
determined in good faith by the Company's Board of Directors with respect to all outstanding options and warrants issued by the Company),
to protect all the rights and interests of the Holder after the Merger Event such that all rights and interests of the Holder in this
Agreement (including adjustments of the Exercise Price and/or number of Ordinary Shares purchasable) shall be applicable in their entirety.
For the purposes hereof “Merger Event” means a merger or consolidation involving the Company in which the Company is not
the surviving entity, or in which the outstanding Ordinary Shares of the Company are otherwise converted into or exchanged for shares
of capital of another entity.

 

    15

     

    

 

		9.	Representations
                                            and Warranties of the Company

 

The
Company represents and warrants to Holder as follows:

 

		9.1.	This
Warrant has been duly authorized and executed by the Company and is a valid and binding obligation of the Company enforceable in accordance
with its terms. The Warrant Shares are duly authorized and reserved for issuance by the Company and, when issued in accordance with the
terms hereof, will be (i) duly authorized, validly issued, fully paid, non-assessable, (ii) issued in compliance with all applicable
laws, including Israeli Securities Law and the Act, (iii) free of any rights of first refusal, co-sale rights, preemptive rights or any
other applicable subscription or participation rights and (iv) free and clear of any liens, claims, encumbrances or third party rights
of any kind, subject to any lock-up requirements as prescribed by law and referenced in Sections 3.5 and 3.6 of the Agreement (of which
the Holder is aware). Holder acknowledges that in making the foregoing representation the Company is relying upon Holder’s representations
in the Agreement, including without limitation in Section 3.8 of the Agreement and the certificate provided thereunder, and Holder hereby
represents and warrants to the Company that such representations and warranties are accurate as of the date hereof.

 

		9.2.	The
execution and delivery of this Warrant are not, and the issuance of the Warrant Shares upon exercise of this Warrant in accordance with
the terms hereof will not be, inconsistent with the Articles and any other Company's governing documents, do not and will not contravene
any law, regulation or judgment applicable to the Company, and do not and will not conflict with or contravene any provision of, or constitute
a default under, any legal instrument of which the Company is a party or by which it is bound.

 

		10.	Transferability.
                                            Series D Warrants shall not be transferrable, save to transfer to the Transferees. Any transfer
                                            to a Transferee hereunder shall be conducted by using the Form of Transfer, substantially
                                            in the form of Exhibit B hereto.

 

		11.	Saturdays,
                                            Holidays, etc. If the last or appointed day for the taking of any action or the expiration
                                            of any right required or granted herein shall not be a business day, then such action may
                                            be taken or such right may be exercised on the next succeeding business day.

 

		12.	Entire
                                            Agreement, Amendments. This Warrant, the Agreement and any other documents delivered
                                            pursuant hereto or thereto, set forth the entire understanding of the parties with respect
                                            to the subject matter hereof. No modification or amendment of this Warrant will be valid
                                            unless executed in writing by the Company and the Holder.

 

		13.	Notices.
                                            All notices and other communications given or made pursuant to this Warrant shall be in writing
                                            and shall be given and deemed delivered as provided in Section 13 to the Agreement.

 

		14.	Titles
                                            and Subtitles. The titles and subtitles used in this Warrant are used for convenience
                                            only and are not to be considered in construing or interpreting this Warrant. All references
                                            in this Warrant to sections, paragraphs and exhibits shall, unless otherwise provided, refer
                                            to sections and paragraphs hereof and exhibits attached hereto.

 

		15.	Law;
                                            Jurisdiction. Provisions of Section 10 of the Agreement shall apply with regard to the
                                            governing law and jurisdiction.

 

		16.	Counterparts.
                                            This Warrant may be executed in any number of counterparts, each of which shall be deemed
                                            an original and enforceable against the parties actually executing such counterpart, and
                                            all of which together shall constitute one and the same instrument.

 

    16

     

    

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be executed by a duly authorized officer.

  

	SAFE-T
    GROUP LTD.	 
		 
	 	 
	By:	Shachar
    Daniel, Chief Executive Officer	 
	 	Shai
    Avnit, Chief Financial Officer	 
	 	 	 
	AGREED
    AND ACCEPTED:	 
	 	 	 
		 
	Barak
    Avitbul 	 

 

    17

     

    

  

EXHIBIT A

 

NOTICE
OF EXERCISE

 

To:
SAFE-T GROUP LTD.

 

Attn:
Chief Financial Officer

 

		4.	The
                                            undersigned hereby elects to purchase [FILL IN NUMBER OF SHARES] ____________ shares
                                            of Ordinary Shares of the share capital of Safe-T Group Ltd. pursuant to the terms of the
                                            attached Series D Warrant (the “Warrant”), and tenders herewith payment
                                            in full for the purchase price of the shares being purchased.

 

		5.	Please
                                            issue a certificate or certificates representing said Warrant Shares in the name of the undersigned,
                                            and record same in the Company’s internal share registry.

 

		6.	The
                                            undersigned hereby represents and warrants that the aforesaid Warrant Shares are being acquired
                                            for the account of the undersigned for investment and not with a view to, or for resale,
                                            in connection with the distribution thereof, and that the undersigned has no present intention
                                            of distributing or reselling such shares. The undersigned further represents and warrants
                                            that the representations of Mr. Barak Avitbul contained in Section 3.8 of the Agreement between
                                            the Company and ORB Spring Ltd. and acknowledged by Mr. Avitbul, dated August 8, 2022, remain
                                            accurate in all respects as of the date hereof (it being understood that if the undersigned
                                            is a Transferee of the Warrant from Mr. Avitbul, such representations are being made by the
                                            undersigned as if it were a party to such Agreement).

 

	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	Address: 	 
	 	Date:	 

 

    18

     

    

 

EXHIBIT
B

 

FORM
OF TRANSFER

 

(To
be signed only upon transfer of Warrant)

 

FOR
VALUE RECEIVED, the undersigned (the “Transferor”) hereby sells, assigns and transfers unto ______________________________________________,
being Transferee, (the “Transferee”) the Warrant to purchase _____________ Warrant Shares in an aggregate exercise
price of US$ _________ and appoints ______________, as Attorney-in-Fact to transfer said Warrant on the books of Safe-T Group Ltd., with
full power of substitution in the premises. The Transferor further represents that the transfer is made in accordance with the terms
of the Warrant.

 

	Dated:
    __________________	 
	 	 
	________________________	 
	 	 
	By:
    Barak Avitbul	 
	 	 

and
the undersigned Transferee hereby agrees to the transfer and agrees to be bound by the terms and conditions of the Warrant and represents
and warrants that the representations contained in Section 3.8 of the Agreement between the Company and ORB Spring Ltd. (“ORB”),
dated August 8, 2022, remain accurate in all respects as of the date hereof (it being understood that such representations are being
made by the undersigned as if it were a party to such Agreement).

 

	Dated:
    __________________	 
	 	 
	By:	 
	 	 
	Name:
    	 

 

 

19ex10p1d220930

4869-4999-9400.5   LOAN AGREEMENT  between  ARKANSAS DEVELOPMENT FINANCE AUTHORITY,  as Issuer and each of  UNITED STATES STEEL CORPORATION,  as Company  and  EXPLORATORY VENTURES, LLC,  as Operating Company relating to  $290,000,000  Arkansas Development Finance Authority  Environmental Improvement Revenue Bonds, Series 2022  (United States Steel Corporation Project) (Green Bonds)  Dated as of September 1, 2022  The interest of the Arkansas Development Finance Authority in this Loan Agreement has  been assigned (except for the Unassigned Issuer’s Rights) pursuant to the Trust Indenture  dated as of the date hereof between the Arkansas Development Finance Authority and The  Bank of New York Mellon Trust Company, N.A., as trustee, and is subject to the security  interest of The Bank of New York Mellon Trust Company, N.A., as trustee. 

 

TABLE OF CONTENTS  Page  4869-4999-9400.5   ARTICLE I  DEFINITIONS  Section 1.01. Use of Defined Terms ...................................................................................... 2  Section 1.02. Definitions........................................................................................................ 2  Section 1.03. Interpretation .................................................................................................... 6  Section 1.04. Captions and Headings .................................................................................... 6  ARTICLE II  REPRESENTATIONS  Section 2.01. Representations and Covenants of Issuer ........................................................ 7  Section 2.02. Representations and Covenants of Company and Operating Company .......... 8  ARTICLE III  ISSUANCE OF BONDS; COMPLETION OF PROJECT  FACILITIES  Section 3.01. Issuance of Bonds .......................................................................................... 10  Section 3.02. Completion of Project Facilities .................................................................... 10  Section 3.03. Use of Proceeds.............................................................................................. 10  Section 3.04. Investment of Fund Moneys .......................................................................... 11  Section 3.05. Issuer’s Fee .................................................................................................... 11  ARTICLE IV  LOAN BY ISSUER, REPAYMENT OF INSTALLMENT  PAYMENTS AND ADDITIONAL PAYMENTS  Section 4.01. Loan of Proceeds; Installment and Purchase Price Payments ....................... 12  Section 4.02. Additional Payments ...................................................................................... 13  Section 4.03. Deposit of Moneys in Bond Fund; Moneys for Redemption of Bonds ......... 13  Section 4.04. Obligations Unconditional ............................................................................. 14  Section 4.05. Assignment by Company ............................................................................... 14  Section 4.06. Assignment by Issuer ..................................................................................... 14  Section 4.07. Limitation of Issuer’s Liability ...................................................................... 15  ARTICLE V  ADDITIONAL AGREEMENTS AND COVENANTS  Section 5.01. Lease, Sale or Grant of Use of Project Facilities by Operating  Company ........................................................................................................ 15  Section 5.02. Indemnification of Issuer, Trustee and Tender Agent ................................... 15  Section 5.03. Company and Operating Company Not to Adversely Affect Exclusion  from Gross Income of Interest on Bonds ....................................................... 19  Section 5.04. Company and Operating Company to Maintain their Existence;  Mergers or Consolidations ............................................................................. 20  Section 5.05. Reports and Audits ......................................................................................... 21  Section 5.06. Insurance ........................................................................................................ 21  Section 5.07. Green Bonds Certificate ................................................................................. 21  

 

ii  4869-4999-9400.5   Section 5.08. Company to Furnish Notices and Opinions Relating to Changes in  Interest Rate Periods ...................................................................................... 22  ARTICLE VI  OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS  Section 6.01. Options to Terminate Agreement................................................................... 22  Section 6.02. Optional and Extraordinary Optional Redemption; Option to Prepay  Installment Payments under Indenture........................................................... 22  Section 6.03. Mandatory Prepayment of Installment Payments .......................................... 22  Section 6.04. Actions by Issuer............................................................................................ 23  Section 6.05. Release of Indenture in Event of Prepayment of Installment Payments ........ 23  ARTICLE VII  EVENTS OF DEFAULT AND REMEDIES  Section 7.01. Events of Default ........................................................................................... 23  Section 7.02. Remedies on Default ...................................................................................... 24  Section 7.03. No Remedy Exclusive.................................................................................... 24  Section 7.04. Agreement to Pay Fees and Expenses ........................................................... 24  Section 7.05. No Waiver ...................................................................................................... 25  Section 7.06. Notice of Default............................................................................................ 25  ARTICLE VIII  MISCELLANEOUS  Section 8.01. Term of Agreement ........................................................................................ 25  Section 8.02. Amounts Remaining in Funds ....................................................................... 25  Section 8.03. Notices ........................................................................................................... 25  Section 8.04. Extent of Covenants of Issuer; No Personal Liability ................................... 25  Section 8.05. Binding Effect ................................................................................................ 26  Section 8.06. Amendments and Supplements ...................................................................... 26  Section 8.07. Execution Counterparts .................................................................................. 26  Section 8.08. Severability .................................................................................................... 26  Section 8.09. Governing Law; Venue .................................................................................. 26  Section 8.10. Further Assurances and Corrective Instruments ............................................ 27  Section 8.11. Issuer, Company and Operating Company Representatives .......................... 27  Section 8.12. Immunity of Incorporators, Stockholders, Officers and Directors ................ 27  Section 8.13. Delegation of Duties and Assignment of Rights by Issuer ............................ 27  Section 8.14. Survival of Fee Obligation ............................................................................. 27  Section 8.15. Liability of Issuer Limited ............................................................................. 27  Section 8.16. Waiver of Personal Liability .......................................................................... 28  Section 8.17. No Constitutional Debt .................................................................................. 28  Section 8.18. Section Headings ........................................................................................... 29  Section 8.19. Concerning the Trustee .................................................................................. 29  Section 8.20. Joinder of Operating Company ...................................................................... 29  EXHIBIT A PROJECT FACILITIES  EXHIBIT B FORM OF DISBURSEMENT REQUEST  EXHIBIT C FORM OF COMPLETION CERTIFICATE  

 

4869-4999-9400.5   LOAN AGREEMENT  THIS LOAN AGREEMENT (this “Agreement”) made and entered into as of  September 1, 2022, by and between the ARKANSAS DEVELOPMENT FINANCE  AUTHORITY (the “Issuer”), a public body politic and corporate created and existing under the  laws of the State of Arkansas (the “State”), duly organized and validly existing under and by virtue  of the Arkansas Development Finance Authority Act, Title 15, Chapter 5, Subchapters 1 through  3 of the Arkansas Code of 1987 Annotated, as amended (the “Act”), and each of  UNITED STATES STEEL CORPORATION, a corporation duly organized and existing under  and pursuant to the laws of the State of Delaware (the “Company”) and duly qualified to own  property and transact business in the State, and EXPLORATORY VENTURES, LLC, a limited  liability company duly organized and existing under and pursuant to the laws of the State of  Delaware (the “Operating Company”) and duly qualified to own property and transact business in  the State, under the circumstances summarized in the following recitals (capitalized terms used  herein and not defined in the recitals have the meanings set forth in Article I hereof or elsewhere  in this Agreement):  W I T N E S S E T H:  WHEREAS, by virtue of the Act and pursuant to its corporate authorization, the Issuer is  authorized to enter into this Agreement and to do or cause to be done all the acts and things herein  or in the Indenture (as defined herein) provided or required to be done by it, to issue the Bonds (as  defined herein) and to loan the proceeds of the sale of such Bonds to the Company to (a) finance  or refinance a portion of the costs of the acquisition, construction, equipping and installation of  certain solid waste disposal facilities described in Exhibit A hereto constituting an “industrial  enterprise” within the meaning of the Act (the “Project Facilities”) at the flat-rolled steel mill  under construction by the Operating Company, an indirect subsidiary of the Company, near  Osceola in Mississippi County, Arkansas and (b) pay certain costs of issuing the Bonds; and  WHEREAS, in order to provide funds for the purposes stated above, the Issuer has  determined, at the request of the Company and the Operating Company, to issue its Environmental  Improvement Revenue Bonds, Series 2022 (United States Steel Corporation Project) (Green  Bonds), in the aggregate principal amount of $290,000,000 (the “Bonds”), under the Trust  Indenture (the “Indenture”) dated as of September 1, 2022, between the Issuer and The Bank of  New York Mellon Trust Company, N.A., as trustee (the “Trustee”), and has determined to enter  into this Agreement and to secure the Bonds by the pledge and assignment of Installment Payments  to be made by the Company hereunder; and  WHEREAS, the Company also has agreed under this Agreement to pay, or cause to be  paid, when due certain expenses and other costs incurred by the Issuer and the Trustee in  connection with this Agreement, the Indenture and the issuance of the Bonds; and  WHEREAS, the Bonds are special, limited revenue obligations of the Issuer payable solely  from the Pledged Receipts, as defined in the Indenture, and in no event shall the Bonds constitute  an indebtedness of the State or any political subdivision or agency thereof or an indebtedness for  which the faith and credit of the State or any political subdivision or agency thereof or any of their  

 

2  4869-4999-9400.5   revenues are pledged or an indebtedness secured by a lien on or a security interest in any property  of the State or any political subdivision or agency thereof; and  WHEREAS, all acts and things have been done and performed which are necessary to  make the Bonds, when executed and delivered by the Issuer and authenticated by the Trustee, the  legal, valid and binding special limited revenue obligations of the Issuer in accordance with the  terms thereof.  NOW, THEREFORE, for and in consideration of the premises, the respective  representations and agreements contained herein, and other good and valuable consideration, the  receipt and sufficiency of which are hereby mutually acknowledged, the parties hereto,  recognizing that under the Act this Agreement shall not in any way obligate the State or any  political subdivision or agency thereof, including, without limitation, the Issuer, to raise any money  by taxation or use other public moneys for any purpose in relation to the Project Facilities and that  neither the State nor any political subdivision or agency thereof, including, without limitation, the  Issuer, shall pay or promise to pay any debt or meet any financial obligation to any Person at any  time in relation to the Project Facilities, except from moneys received or to be received under the  provisions of this Agreement or derived from the exercise of the rights of the Issuer hereunder,  agree as follows:  ARTICLE I  DEFINITIONS  Section 1.01. Use of Defined Terms.  In addition to the words and terms defined  elsewhere in this Agreement, or by reference to another document, the words and terms set forth  in Section 1.02 shall have the meanings set forth therein unless the content or use clearly indicates  another meaning or intent.  In addition, all capitalized terms used herein and not otherwise defined  shall have the meanings set forth in the Indenture.  Section 1.02. Definitions.  The following terms shall have the following meanings:  “Act” means the Arkansas Development Finance Authority Act, Title 15, Chapter 5,  Subchapters 1 through 3 of the Arkansas Code of 1987 Annotated, as amended.  “Additional Payments” means payments due hereunder as described in Section 4.02 hereof  in addition to the Installment Payments and to payments of Purchase Price.  “Agreement” means this Loan Agreement as amended or supplemented from time to time.  “Bond Purchase Agreement” means the Bond Purchase Agreement among the Company,  the Issuer and the Underwriter with respect to the Bonds. “Bonds” has the meaning set forth in the recitals to this Agreement.  “Code” means the Internal Revenue Code of 1986, as amended, the regulations (whether  proposed, temporary or final) under that Code or the statutory predecessor of that Code, and any  amendments of, or successor provisions to, the foregoing and any official rulings, announcements,  

 

3  4869-4999-9400.5   notices, procedures and judicial determinations regarding any of the foregoing, all as and to the  extent applicable.  Unless otherwise indicated, reference to a Section of the Code means that  Section of the Code, including such applicable regulations, rulings, announcements, notices,  procedures and determinations pertinent to that Section of the Code.  “Company Documents” has the meaning set forth in Section 2.02(b).  “Company Purchase Date” means, with respect to the related Bonds, any date on which  the Company purchases such Bonds in lieu of optional redemption under Section 4.07 of the  Indenture.  “Completion Certificate” means a certificate in substantially the form attached hereto as  Exhibit C.  “Continuing Disclosure Agreement” means the Continuing Disclosure Agreement, dated  the Date of Issuance, executed by the Company, as originally executed or as it may from time to  time be supplemented or amended.  “Conversion Date” means each Business Day, other than a Mandatory Purchase Date, on  which Bonds are subject to optional redemption under Section 4.02(a), (b) or (c) of the Indenture  and are converted at the option of the Company in accordance with Section 2.04 of the Indenture  (1) from the Term Interest Rate Period then in effect for such Bonds to a Fixed Interest Rate Period  or vice versa, (2) from a Term Interest Rate Period then in effect for such Bonds to another Term  Interest Rate Period or (3) from a Fixed Interest Rate Period then in effect for such Bonds to  another Fixed Interest Rate Period, and in each case on which such Bonds are required to be  tendered for purchase in accordance with Section 4.08 of the Indenture.  “Event of Default” means any of the events described as an Event of Default in  Section 7.01.  “Indenture” means the Trust Indenture dated as of even date with this Agreement, between  the Issuer and the Trustee, as amended or supplemented from time to time.  “Installment Payments” means the amounts required to be paid by the Company to the  Trustee on behalf of the Issuer as described in, and pursuant to, Section 4.01(a) on each date on  which payment of principal or redemption price of, or premium, if any, or interest on, the Bonds  is due, as installments for the repayment of the Loan, sufficient to enable the Trustee to make such  payment in full.  “Issuer” means the Arkansas Development Finance Authority, a public body politic and  corporate created and existing under the laws of the State, particularly the Act.  “Loan” means the loan of the proceeds of the sale of the Bonds from the Issuer to the  Company as provided in Section 4.01.  “Mandatory Purchase Date” means with respect to Bonds in a Term Interest Rate Period,  the Business Day next succeeding the last designated day of such Term Interest Rate Period as  specified by the Company in its notice described in Section 2.04(b)(i) of the Indenture and on  

 

4  4869-4999-9400.5   which such Bonds are required to be tendered for purchase in accordance with Section 4.08 of the  Indenture.  “Notice Address” means:  (a) As to the Issuer:  Arkansas Development Finance Authority  1 Commerce Way, Suite 602  Little Rock, Arkansas 72202  Attention:  President  Email:  mark.conine@arkansas.gov  Facsimile:  (501) 682-5939  Telephone:  (501) 682-5900  With a copy to the Issuer at:  Arkansas Development Finance Authority  1 Commerce Way, Suite 602  Little Rock, Arkansas 72202  Attention: Public Finance Officer  Email:  robert.arrington@arkansas.gov  Facsimile:  (501) 682-5939  Telephone:  (501) 682-5900  And a copy to:  Arkansas Development Finance Authority  1 Commerce Way, Suite 602  Little Rock, Arkansas 72202  Attention: Finance Manager  Email:  kim.poposky@arkansas.gov  Facsimile:  (501) 682-5939  Telephone:  (501) 682-5900  (b) As to the Company:  United States Steel Corporation  600 Grant Street, 61st Floor  Pittsburgh, Pennsylvania 15219-2800  Attention: Vice President - Treasurer & Chief Risk Officer  Facsimile: (412) 433-1167  

 

5  4869-4999-9400.5   With a copy to the Company at:  United States Steel Corporation  600 Grant Street, 19th Floor  Pittsburgh, Pennsylvania 15219-2800  Attention: Manager – Corporate Finance   Facsimile: (412) 433-4567  (c) As to the Operating Company:  Exploratory Ventures, LLC  2027 East State Highway 198  Osceola, Arkansas 72370  Attention: Chief Administrative Officer, Chief Compliance    Officer and General Counsel  E-mail: ltrammell@bigriversteel.com  Office: (870) 559-3123  Mobile: (586) 322-6633  With a copy to the Operating Company at:  Exploratory Ventures, LLC  2027 East State Highway 198  Osceola, Arkansas 72370  Attention: Treasurer  Facsimile: (412) 433-1167  (d) As to the Trustee:  The Bank of New York Mellon Trust Company, N.A.  500 Ross Street, 12th Floor  Pittsburgh, Pennsylvania 15259  Attention: Corporate Trust Administration  Facsimile: (412) 236-0870  or such additional or different address, notice of which is given under Section 8.03.  “Operating Company Documents” has the meaning set forth in Section 2.02(c).  “Person” (or words importing persons) means any individual, corporation, partnership,  joint venture, limited liability company, association, joint-stock company, trust, unincorporated  organization or government or any agency or political subdivision thereof.  “Project Facilities” means the solid waste disposal facilities of the Operating Company  constituting an “industrial enterprise” within the meaning of the Act financed or refinanced with  the proceeds of the sale of the Bonds, as more fully described in Exhibit A, as Exhibit A may be  amended as provided in Section 11.01 of the Indenture.  

 

6  4869-4999-9400.5   “Purchase Price” means (a) with respect to Bonds to be purchased on a Company Purchase  Date pursuant to Section 4.07 of the Indenture or a Conversion Date pursuant to Section 4.08 of  the Indenture, an amount equal to the redemption price at which such Bonds would have been  redeemed under the Indenture if such Bonds were redeemed rather than purchased on such  Company Purchase Date or Conversion Date, and (b) with respect to Bonds to be purchased on a  Mandatory Purchase Date pursuant to Section 4.08 of the Indenture, an amount equal to the  principal amount of the Bonds to be purchased on such Mandatory Purchase Date.  Because each  Company Purchase Date, Conversion Date and Mandatory Purchase Date is an Interest Payment  Date, any accrued interest due on Bonds on such dates will be paid as interest due on such Bonds  on such dates and not as part of the Purchase Price.  “Tax Regulatory Agreement” means the Tax Regulatory Agreement with respect to the  Bonds, dated the Date of Issuance between the Issuer and each of the Company and the Operating  Company, and any permitted amendments or supplements thereto.  “Underwriter” means BofA Securities, Inc., on behalf of itself and as representative of a  group of underwriters named in the Bond Purchase Agreement.  Section 1.03. Interpretation.  Unless the context clearly indicates otherwise, the  capitalized terms defined in this Article I and in the Indenture shall, for all purposes of this  Agreement and all agreements supplemental hereto, have the meanings hereby ascribed to them.   Such terms, together with all other provisions of this Agreement, shall be read and understood in  a manner consistent with the provisions of the Act.  Words or phrases importing the masculine  gender shall be read and understood to include the feminine and neuter genders and those  importing number shall include singular or plural, both as appropriate to the context.  Any reference herein to the Issuer, to its board or to officers thereof, includes entities or  officials succeeding to their respective functions, duties or responsibilities pursuant to or by  operation of law or lawfully performing their functions.  Any reference to a section, provision or chapter of the laws of the State or to any statute of  the United States of America includes that section, provision or chapter or statute as amended,  modified, revised, supplemented or superseded from time to time; provided, that no such  amendment, modification or similar change shall apply solely by reason of this provision, if it  constitutes in any way an impairment of the rights or obligations of the Issuer, the Bondholders,  the Trustee, the Company or the Operating Company under this Agreement.  Section 1.04. Captions and Headings.  The captions and headings in this Agreement are  solely for convenience of reference and in no way define, limit or describe the scope or intent of  any articles, sections, subsections, paragraphs, subparagraphs or clauses hereof.  

 

7  4869-4999-9400.5   ARTICLE II  REPRESENTATIONS  Section 2.01. Representations and Covenants of Issuer.  The Issuer represents and  covenants that:  (a) It is a public body politic and corporate created and existing under the Act  and, under the provisions of the Act and applicable laws of the State, the Issuer is  authorized to enter into the transactions contemplated by this Agreement and the  Indenture and to carry out its obligations hereunder and thereunder.  (b) Based upon representations of the Operating Company and the Company,  the Project Facilities are solid waste disposal facilities constituting an “industrial  enterprise” within the meaning of the Act; provided, however, the Issuer makes no  representation or warranty concerning the suitability of the Project Facilities for the  purpose for which they are being undertaken by the Operating Company and the Issuer has  not made any independent investigation as to the feasibility of the Project Facilities or the  creditworthiness of the Company or the Operating Company.  Each Underwriter and  Holder shall make its own independent investigation as to the creditworthiness and  feasibility of the Project Facilities, independent of any representation or warranty of the  Issuer.  (c) All requirements of the Act with respect to the issuance of the Bonds and  the execution of this Agreement by the Issuer have been complied with and issuing the  Bonds and entering into this Agreement by the Issuer will be in furtherance of the purposes  of the Act.  (d) Under the provisions of the Act, the Issuer has full legal right, power and  authority to enter into the transactions contemplated by this Agreement and the Indenture  and to carry out its obligations hereunder and thereunder and by proper action, the Issuer  has duly authorized the execution, delivery and performance of its obligations under this  Agreement and the Indenture.  (e) This Agreement and the Indenture each constitutes the legal, valid, and  binding limited obligation of the Issuer, enforceable against the Issuer in accordance with  its terms, except as the same may be limited by bankruptcy, insolvency, reorganization,  and other laws affecting creditors’ rights generally from time to time in effect, and rights  of acceleration, indemnity, and contribution, and the availability of equitable remedies may  be limited by equitable principles. (f) The issuance and sale of the Bonds, the execution and delivery of this  Agreement and the assignment of this Agreement to the Trustee (other than the Unassigned  Issuer’s Rights), and the performance of all covenants and agreements of the Issuer  contained in the Bonds, the Tax Regulatory Agreement and this Agreement have been duly  authorized by resolutions of the governing body of the Issuer adopted at meetings thereof  

 

8  4869-4999-9400.5   duly called and held by the affirmative vote of not less than a majority of a quorum present  at such meeting.  (g) It agrees to issue the Bonds and to loan the proceeds thereof to the Company  for the purpose of providing financing or refinancing of the acquisition, construction,  equipping and installation of the Project Facilities and to pay certain costs of issuing the  Bonds.  (h) The execution and delivery of this Agreement, the Indenture and the Tax  Regulatory Agreement by the Issuer do not, and the consummation by the Issuer of the  transactions contemplated hereby and thereby and the performance by the Issuer of its  obligations hereunder and thereunder will not, result in a breach of any of the terms or  provisions of, or constitute a default under, any indenture, mortgage, deed of trust or  other agreement or instrument to which the Issuer is now a party or by which it is now  bound.  (i) It has not and will not pledge the amounts derived from this Agreement  other than to secure the Bonds.  (j) It has awarded State volume cap in an amount at least equal to the aggregate  principal amount of the Bonds.  Section 2.02. Representations and Covenants of Company and Operating Company.   The Company and/or the Operating Company represent and covenant that:  (a) The Company is a corporation duly organized and existing under and  pursuant to the laws of the State of Delaware.  The Company is qualified to do business in  the State.  The Operating Company is a limited liability company duly organized and  existing under and pursuant to the laws of the State of Delaware.  The Operating Company  is qualified to do business in the State.  (b) The Company has full power and authority to execute, deliver and perform  its obligations under this Agreement, the Tax Regulatory Agreement, the Bond Purchase  Agreement and the Continuing Disclosure Agreement (collectively, the “Company  Documents”) and to enter into and carry out the transactions contemplated by the Company  Documents; such execution, delivery and performance does not, and will not, violate any  provision of law applicable to the Company or the Company’s articles of incorporation,  code of regulations, bylaws or other corporate charter or similar instrument each as may be  amended, and does not, and will not, conflict with or result in a default under any agreement  or instrument to which the Company is a party or by which it is bound; the Company  Documents have, by proper action, been duly authorized, executed and delivered by the  Company and all steps necessary have been taken to constitute the Company Documents  legal, valid and binding obligations of the Company.  The Operating Company is an  indirect subsidiary of the Company, and the Company has control over the Operating  Company.  (c) The Operating Company has full power and authority to execute, deliver  and perform its obligations under this Agreement and the Tax Regulatory Agreement  

 

9  4869-4999-9400.5   (collectively, the “Operating Company Documents”) and to enter into and carry out the  transactions contemplated by the Operating Company Documents; such execution,  delivery and performance does not, and will not, violate any provision of law applicable to  the Operating Company or the Operating Company’s certificate of formation, limited  liability company agreement, bylaws or other organizational document or similar  instrument each as may be amended, and does not, and will not, conflict with or result in a  default under any agreement or instrument to which the Operating Company is a party or  by which it is bound; the Operating Company Documents have, by proper action, been  duly authorized, executed and delivered by the Operating Company and all steps necessary  have been taken to constitute the Operating Company Documents legal, valid and binding  obligations of the Operating Company.  (d) No approval, consent or other action by, or filing with, any governmental  authority or agency is required to be obtained or accomplished by the Company in  connection with the Company Documents that has not been obtained or accomplished, or  will not be obtained or accomplished by the Date of Issuance of the Bonds, the failure of  which will not have a materially adverse effect on the Company’s ability to execute, deliver  and perform the Company Documents or the transactions contemplated herein or therein.  (e) No approval, consent or other action by, or filing with, any governmental  authority or agency is required to be obtained or accomplished by the Operating Company  in connection with the Operating Company Documents that has not been obtained or  accomplished, or will not be obtained or accomplished by the Date of Issuance of the  Bonds, the failure of which will not have a materially adverse effect on the Operating  Company’s ability to execute, deliver and perform the Operating Company Documents or  the transactions contemplated herein or therein.  (f) Each of the Project Facilities will, at the time it is placed in service, be a  solid waste disposal facility constituting an “industrial enterprise” within the meaning of  the Act.  (g) Each one and all of the representations and warranties of the Company  contained in the Tax Regulatory Agreement, as executed and delivered simultaneously  with this Agreement, are true and correct.  Each one and all of the representations and  warranties of the Operating Company contained in the Tax Regulatory Agreement, as  executed and delivered simultaneously with this Agreement, are true and correct.  (h) The Company will enter into a continuing disclosure agreement in order  that the Underwriter can comply with the applicable requirements of Rule 15c2-12 as  promulgated by the Securities and Exchange Commission (“Rule 15c2-12”) and recognizes  that the Issuer is not an “obligated person” within the meaning of Rule 15c2-12.  

 

10  4869-4999-9400.5   ARTICLE III  ISSUANCE OF BONDS; COMPLETION OF  PROJECT FACILITIES  Section 3.01. Issuance of Bonds.  To provide funds to finance or refinance the costs of  the acquisition, construction, equipping and installation of the Project Facilities, upon satisfaction  of the conditions set forth herein and in the Bond Resolution, the Issuer will issue, sell and deliver  the Bonds and will lend the proceeds received by it from the sale of the Bonds to the Company.   The Bonds will be issued in accordance with and pursuant to the Indenture in the aggregate  principal amount, will bear interest at the rate or rates, will mature and will be subject to  redemption as set forth therein.  The Company and the Operating Company each hereby approves  the terms and conditions of the Indenture, and the Bonds, and the terms and conditions under which  the Bonds will be issued, sold and delivered.  Section 3.02. Completion of Project Facilities.  The Operating Company represents that  the acquisition, construction, equipping, installation, operation and use of the Project Facilities  will occur, and that the proceeds derived from the sale of the Bonds provided by the Company to  the Operating Company, including any investment thereof, will be expended, in accordance with  the provisions of the Bond Resolution, this Agreement, the Indenture and the Tax Regulatory  Agreement.  The Company and the Operating Company each hereby acknowledges and agrees  that there is no implied or express warranty by the Issuer that the proceeds of the Bonds will be  sufficient to pay all costs of the acquisition, construction, equipping and installation of the Project  Facilities.  Upon completion of the acquisition, construction, equipping and installation of the  Project Facilities, and in any event not more than 90 days thereafter, the Company or the Operating  Company shall deliver the Completion Certificate to the Trustee.  Section 3.03. Use of Proceeds.  The proceeds from the sale of the Bonds shall be  deposited in the Project Fund and used to finance or refinance the costs of the acquisition,  construction, equipping and installation of the Project Facilities.  Each disbursement request shall  be on the form attached hereto as Exhibit B, executed by an Authorized Company Representative.   Subject to the provisions below, disbursements from the Project Fund shall be made only to  reimburse or pay the Company or the Operating Company, or any person designated by the  Company, for the following:  (a) Costs incurred directly or indirectly for or in connection with the  acquisition, construction, equipping and installation of the Project Facilities, including  costs incurred in respect of the Project Facilities for preliminary planning and studies;  architectural, legal, engineering, surveying, accounting, consulting, supervisory and other  services; labor, services and materials; and recording of documents and title work.  (b) Subject to the limitations set forth in the Code, financial, legal, accounting,  printing and engraving fees, charges and expenses, and all other such fees, charges and  expenses incurred in connection with the authorization, sale, issuance and delivery of the  Bonds.  

 

11  4869-4999-9400.5   (c) Any other costs, expenses, fees and charges properly chargeable to the cost  of the acquisition, construction, equipping or installation of the Project Facilities, including  interest on the Bonds prior to the time the Project Facilities are placed in service, and that  comply with the Company’s and the Operating Company’s representations and warranties  in Section 2.02 of this Agreement.  (d) All moneys remaining in the Project Fund after the completion of the  acquisition, construction, equipping and installation of the Project Facilities and after  payment or provision for payment thereof and all other items provided for in the preceding  subsections (a) to (c), inclusive, of this Section, shall, at the written direction of an  Authorized Company Representative, be used in accordance with Section 5.01(f) of the  Indenture.  Section 3.04. Investment of Fund Moneys.  At the written direction of the Authorized  Company Representative to the Trustee, any moneys held as part of the Project Fund, the Bond  Fund and the Rebate Fund shall be invested or reinvested by the Trustee in Eligible Investments.   The Issuer has no right to direct the investment of any moneys held in such Funds and the Company  hereby covenants that it will restrict any investment and reinvestment of any moneys held in such  Funds and the use of the proceeds of the Bonds in such manner and to such extent, if any, that the  Bonds will not constitute arbitrage bonds under Section 148 of the Code.  Each of the Company and the Operating Company shall provide the Issuer with a certificate  of an appropriate officer, employee or agent of or consultant to the Company or the Operating  Company for inclusion in the transcript of proceedings for the Bonds, setting forth the reasonable  expectations of the Company and the Operating Company on the date of delivery of and payment  for the Bonds regarding the amount and use of the proceeds of the Bonds and the facts, estimates  and circumstances on which those expectations are based.  The Company agrees that at no time shall any funds constituting gross proceeds of the  Bonds be used in any manner to cause or result in a prohibited payment under applicable  regulations pertaining to, or in any other fashion as would constitute failure of compliance with,  Section 148 of the Code.  If there is any amount required to be paid to the United States pursuant to Section 148(f)  of the Code or Section 5.03 of the Indenture, the Company shall pay such amount to the Trustee  for deposit to the Rebate Fund created under Section 5.03 of the Indenture, who will, acting on  behalf of the Company, submit the payment to the United States.  The Company shall provide to  the Trustee and the Issuer the rebate computations required to be made pursuant to the Tax  Regulatory Agreement and Section 5.03 of the Indenture, and the Trustee shall keep such records  of such computations.  Section 3.05. Issuer’s Fee.  The Company will pay the Issuer’s closing fee in the amount  of $290,000 and the Issuer’s counsel fee in the amount of $95,000, together with out-of-pocket  disbursements and expenses related thereto, on the Date of Issuance of the Bonds.  The Company  will also pay any other administrative expenses of the Issuer incurred in connection with the  financing or refinancing of the acquisition, construction, equipping and installation of the Project  Facilities, and any such additional fees and expenses (including reasonable and documented out- 

 

12  4869-4999-9400.5   of-pocket attorney’s fees) incurred by the Issuer in connection with inquiring into, or enforcing,  the performance of the Company’s obligations hereunder, within 30 days of receipt of a statement  from the Issuer requesting payment of such amount.  ARTICLE IV  LOAN BY ISSUER, REPAYMENT OF INSTALLMENT PAYMENTS AND  ADDITIONAL PAYMENTS  Section 4.01. Loan of Proceeds; Installment and Purchase Price Payments.  (a)  The  Issuer agrees, upon the terms and conditions contained in this Agreement, to lend to the Company  an amount equal to the principal amount of the Bonds, notwithstanding whether the proceeds  received by the Issuer from the sale of the Bonds shall be greater or less than such principal amount  of the Bonds.  Such proceeds shall be disbursed to or on behalf of the Company and/or the  Operating Company as provided in Section 3.03.  On each date on which any payment of principal or redemption price of, or premium, if  any, or interest on, the Bonds shall become due (whether at maturity, or upon redemption or  acceleration or otherwise), the Company will pay or cause to be paid to the Trustee, for the account  of the Issuer and in immediately available funds, as a Loan repayment installment, an amount  which, together with other moneys held by the Trustee under the Indenture and available therefor,  will enable the Trustee to make each such payment of principal or redemption price of, or premium,  if any, or interest on, the Bonds then due to the Bondholders, in full and in a timely manner (the  “Installment Payments”).  In furtherance of the foregoing, so long as any Bonds are outstanding, the Company will  pay or cause to be paid all amounts required to prevent any deficiency or default in any payment  of principal or redemption price of, and premium, if any, and interest on, the Bonds, including any  deficiency caused by an act or failure to act by the Trustee, the Company, the Operating Company,  the Issuer or any other Person.  The Issuer assigns all amounts payable under this subsection by the Company to the  Trustee pursuant to the Indenture for the benefit of the Bondholders.  The Company assents to  such assignment.  Accordingly, the Company will pay directly to the Trustee at its designated  office all payments payable by the Company pursuant to this subsection.  As security in part for the payment of the Bonds, the Issuer will assign to the Trustee the  Issuer’s rights under this Agreement (except the Unassigned Issuer’s Rights), and the Issuer hereby  directs the Company to make or cause the Installment Payments required hereunder to be made  (except such payments for expenses and indemnification included in the Unassigned Issuer’s  Rights) directly to the Trustee.  The Company hereby assents to such assignment and agrees to  make payments directly to the Trustee without defense or set-off by reason of any dispute between  the Company and the Issuer or the Trustee.  (b) The Company will also pay or cause to be paid in immediately available funds to  the Trustee or the Tender Agent, as the case may be, by 4:00 p.m., New York City time, on each  day on which a payment of the Purchase Price of a Bond which the Company has opted to purchase  

 

13  4869-4999-9400.5   in lieu of optional redemption pursuant to Section 4.07 of the Indenture shall become due and on  each Conversion Date and Mandatory Purchase Date on which a payment of the Purchase Price of  a Bond which has been tendered (or deemed tendered) for purchase pursuant to Section 4.08 of  the Indenture shall become due, an amount which, together with other moneys held by the Trustee  or the Tender Agent under the Indenture and available therefor, will enable the Trustee or the  Tender Agent, as the case may be, to make such payment in full in a timely manner.  Section 4.02. Additional Payments.  The Company will also pay the following upon  demand after receipt of a bill therefor:  (a) The reasonable and documented out-of-pocket fees and expenses, including  reasonable attorneys’ fees, of the Issuer incurred in connection with this Agreement, the  Indenture, the Tax Regulatory Agreement and the Bonds, and the making of any  amendment or supplement thereto, including, but not limited to: (i) those described in  Section 3.05 (which includes, among other fees and expenses, the fees and expenses  associated with the drafting, execution and delivery of this Agreement, the Indenture, the  Tax Regulatory Agreement, the Bond Purchase Agreement and the Bonds), (ii) those  described in Section 7.04 and (iii) any other payments or indemnification required under  Section 5.02.  (b) The reasonable and documented out-of-pocket fees and expenses of the  Trustee and any Tender Agent and Remarketing Agent under the Indenture, including  reasonable attorneys’ fees, for any services rendered by the Trustee and any Tender Agent  and Remarketing Agent under the Indenture, including those of the Trustee described in  Section 7.04 in connection with inquiring into or enforcing the performance of the  Company’s or the Operating Company’s obligations hereunder, and any other payments or  indemnification required under Section 5.02, such fees, expenses and payments to be paid  directly to the Trustee, the Tender Agent or the Remarketing Agent for its own account as  and when such fees and expenses become due and payable.  The Company further agrees to pay all reasonable and documented out-of-pocket costs and  expenses (including reasonable attorney’s fees and expenses) of the Issuer and the Trustee and any  Tender Agent and Remarketing Agent incurred after the initial issuance of the Bonds in the  preparation of any responses, reproduction of any documentation or participation in any inquiries,  investigations or audits from any Person solely or primarily in connection with the Bonds,  including without limitation, the Internal Revenue Service, the Securities Exchange Commission  or other governmental agency.  Section 4.03. Deposit of Moneys in Bond Fund; Moneys for Redemption of Bonds.   The Company may at any time deposit moneys in the Bond Fund, without premium or penalty, to  be held by the Trustee for application to Installment Payments not yet due and payable, and the  Issuer agrees that the Trustee shall accept such deposits when tendered by the Company.  Such  deposits shall be credited against the Installment Payments, or any portion thereof, in the order of  their due dates.  Such deposits shall not in any way alter or suspend the obligations of the Company  under this Agreement during the term hereof as provided in Section 8.01.  

 

14  4869-4999-9400.5   In addition, the Company may deliver moneys to the Trustee as a prepayment of  Installment Payments pursuant to Sections 6.01 and 6.02 to be used for the optional redemption of  Bonds and shall deliver moneys to the Trustee for the Extraordinary Mandatory Redemption of  Bonds in accordance with Section 4.02(e) of the Indenture.  Section 4.04. Obligations Unconditional.  The obligations of the Company to make  payments required by Sections 4.01, 4.02 and 4.03 and to perform its other agreements contained  herein shall be absolute and unconditional, and the Company shall make such payments without  abatement, diminution or deduction regardless of any cause or circumstance whatsoever,  including, without limitation, damage, destruction or condemnation of the Project Facilities (the  risk of which shall be borne exclusively by the Operating Company and the Company) and any  defense (other than payment), setoff, recoupment or counterclaim which the Company may have  or assert against the Issuer, the Trustee or any other Person.  Section 4.05. Assignment by Company.  Rights granted to the Company under this  Agreement may be assigned in whole or in part by the Company without the necessity of obtaining  the consent of the Issuer or the Trustee, subject, however, to each of the following conditions:  (a) unless waived by the Issuer or the Trustee, the Company shall notify the  Issuer, the Trustee and the Operating Company in writing of the identity of any assignee at  least 30 days prior to the effective date of such assignment;  (b) no assignment shall relieve the Company from primary liability hereunder  for its obligations hereunder, and the Company shall continue to remain primarily liable  for the payment of the Installment Payments and Additional Payments and any other  payments due under this Agreement and for performance and observance of the agreements  on its part herein provided to be performed and observed by it;  (c) any assignment from the Company must retain for the Company such rights  and interests as will permit it to perform, and to cause the Operating Company to perform,  their respective obligations under this Agreement;  (d) the Company shall, within 30 days after the execution thereof, furnish or  cause to be furnished to the Issuer, the Trustee and the Operating Company a true and  complete copy of each such assignment;  (e) any assignment from the Company shall not materially impair fulfillment  of the purposes to be accomplished by the operation by the Operating Company of the  Project Facilities as solid waste disposal facilities constituting an “industrial enterprise”  within the meaning of the Act; and  (f) the Company shall deliver an Opinion of Nationally Recognized Bond  Counsel to the Issuer and the Trustee at or prior to the effective date of such assignment to  the effect that the assignment will not adversely affect the exclusion of interest on the  Bonds from gross income for federal income tax purposes.  Section 4.06. Assignment by Issuer.  The Issuer will assign its rights under and interest  to this Agreement (except for the Unassigned Issuer’s Rights) to the Trustee pursuant to the  

 

15  4869-4999-9400.5   Indenture as security for the payment of the Bonds.  Otherwise, the Issuer will not sell, assign or  otherwise dispose of its rights under or interest in this Agreement nor create or permit to exist any  lien, encumbrance or security interest thereon.  Section 4.07. Limitation of Issuer’s Liability.  The Bonds are special, limited revenue  obligations of the Issuer and the Bond Service Charges thereon shall be paid equally and ratably  by the Trustee on behalf of the Issuer solely from the Pledged Receipts, including the Installment  Payments to be made by the Company under this Agreement, and the payments of Purchase Price  shall be paid by the Trustee or the Tender Agent, as the case may be, solely from the sources  specified in Section 4.09 of the Indenture, and the Issuer has no obligation to seek collection of  any such payments.  The Company hereby acknowledges the above and its agreements in  Sections 4.01(a) and 4.01(b) to pay such amounts as are required from time to time to prevent  any deficiency or default in the payment of the Bond Service Charges and Purchase Price  payments.  ARTICLE V  ADDITIONAL AGREEMENTS AND COVENANTS  Section 5.01. Lease, Sale or Grant of Use of Project Facilities by Operating  Company.  Subject to the provisions of Section 5.03, the Operating Company may lease, sell or  grant the right to occupy and use the Project Facilities, in whole or in part, to others, including  without limitation to the City of Osceola, Arkansas in connection with the abatement of a portion  of certain ad valorem taxes that would otherwise be levied on the Project Facilities by local public  bodies with taxing authority; provided that:  (a) no such grant, sale or lease shall relieve the Company or the Operating  Company from its respective obligations under this Agreement or under any other  Company Document or Operating Company Document;  (b) the Operating Company shall retain such rights and interests as will permit  it to comply with its obligations under this Agreement;  (c) no such grant, sale or lease shall impair the purposes of the Act; and  (d) the Operating Company or the Company shall deliver to the Issuer and the  Trustee an Opinion of Nationally Recognized Bond Counsel to the effect that such grant,  sale or lease will not adversely affect the exclusion of interest on the Bonds from gross  income for federal income tax purposes.  Section 5.02. Indemnification of Issuer, Trustee and Tender Agent.  (a)  THE  COMPANY RELEASES THE ISSUER, THE TRUSTEE AND THE TENDER AGENT FROM,  AND COVENANTS AND AGREES THAT THE ISSUER, THE TRUSTEE AND THE  TENDER AGENT SHALL NOT BE LIABLE FOR, AND COVENANTS AND AGREES, TO  THE EXTENT PERMITTED BY LAW, TO INDEMNIFY AND HOLD HARMLESS THE  ISSUER AND ITS DIRECTORS, MEMBERS, OFFICERS, EMPLOYEES AND AGENTS  (EACH, AN “ISSUER INDEMNIFIED PARTY”) AND THE TRUSTEE AND THE TENDER  AGENT AND THEIR RESPECTIVE DIRECTORS, MEMBERS, OFFICERS, EMPLOYEES  

 

16  4869-4999-9400.5   AND AGENTS (EACH, A “TRUSTEE AND TENDER AGENT INDEMNIFIED PARTY”)  FROM AND AGAINST, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES OR  EXPENSES (INCLUDING REASONABLE ATTORNEYS’ FEES, LITIGATION AND COURT  COSTS, AMOUNTS PAID IN SETTLEMENT AS CONSENTED TO BY THE COMPANY  AND AMOUNTS PAID TO DISCHARGE JUDGMENTS), OF EVERY CONCEIVABLE  KIND, CHARACTER AND NATURE WHATSOEVER (INCLUDING FEDERAL AND  STATE SECURITIES LAWS) ARISING OUT OF, RESULTING FROM OR IN ANY WAY  CONNECTED WITH (I) THE PROJECT FACILITIES, OR THE CONDITIONS,  OCCUPANCY, USE, POSSESSION, CONDUCT OR MANAGEMENT OF, OR WORK DONE  IN OR ABOUT THE PROJECT FACILITIES OR THE OTHER FACILITIES OF THE  COMPANY, THE OPERATING COMPANY OR THEIR AFFILIATES AT THE PLANT, OR  FROM THE PLANNING, DESIGN, ACQUISITION, CONSTRUCTION, REHABILITATION,  RENOVATION, IMPROVEMENT, INSTALLATION OR EQUIPPING OF THE PROJECT  FACILITIES OR ANY PART THEREOF; (II) THE ISSUANCE, SALE OR RESALE OF ANY  BONDS OR ANY CERTIFICATIONS OR REPRESENTATIONS MADE IN CONNECTION  THEREWITH, THE EXECUTION AND DELIVERY OF THIS AGREEMENT, THE  INDENTURE OR THE TAX REGULATORY AGREEMENT OR ANY AMENDMENT  THERETO AND THE CARRYING OUT OF ANY OF THE TRANSACTIONS  CONTEMPLATED BY THE BONDS, THE INDENTURE AND THIS AGREEMENT;  (III) THE TRUSTEE’S AND THE TENDER AGENT’S ACCEPTANCE OR  ADMINISTRATION OF THE TRUSTS UNDER THE INDENTURE, OR THE EXERCISE OR  PERFORMANCE OF ANY OF THEIR POWERS OR DUTIES UNDER THE INDENTURE OR  THIS AGREEMENT; (IV) ANY UNTRUE STATEMENT OR ALLEGED UNTRUE  STATEMENT OF ANY MATERIAL FACT OR OMISSION OR ALLEGED OMISSION TO  STATE A MATERIAL FACT REQUIRED TO BE STATED OR NECESSARY TO MAKE THE  STATEMENTS MADE, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY  WERE MADE, NOT MISLEADING, IN ANY OFFICIAL STATEMENT OR OTHER  OFFERING CIRCULAR UTILIZED BY ANY UNDERWRITER OR PLACEMENT AGENT IN  CONNECTION WITH THE SALE OF ANY BONDS OR IN ANY DISCLOSURE MADE BY  THE COMPANY TO COMPLY WITH THE REQUIREMENTS OF RULE 15C2-12; (V) ANY  VIOLATION OF ANY ENVIRONMENTAL LAWS OR THE RELEASE OF ANY  HAZARDOUS MATERIALS AT, FROM, UNDER OR ON THE PROJECT FACILITIES OR  ANY OTHER FACILITIES OF THE COMPANY, THE OPERATING COMPANY OR THEIR  AFFILIATES AT THE PLANT; (VI) THE DEFEASANCE AND/OR REDEMPTION, IN  WHOLE OR IN PART, OF THE BONDS; OR (VII) ANY DECLARATION OF TAXABILITY  OF INTEREST ON THE BONDS, OR ALLEGATIONS THAT INTEREST ON THE BONDS  IS TAXABLE OR ANY REGULATORY AUDIT OR INQUIRY REGARDING WHETHER  INTEREST ON THE BONDS IS TAXABLE; PROVIDED THAT SUCH INDEMNITY SHALL  NOT BE REQUIRED FOR DAMAGES THAT RESULT FROM THE GROSS NEGLIGENCE  OR WILLFUL MISCONDUCT ON THE PART OF ANY ISSUER INDEMNIFIED PARTY  SEEKING SUCH INDEMNITY OR THAT RESULT FROM THE NEGLIGENCE OR  WILLFUL MISCONDUCT ON THE PART OF ANY TRUSTEE AND TENDER AGENT  INDEMNIFIED PARTY SEEKING SUCH INDEMNITY.  THE COMPANY FURTHER  COVENANTS AND AGREES, TO THE EXTENT PERMITTED BY LAW, TO PAY OR TO  REIMBURSE THE ISSUER, THE TRUSTEE AND THE TENDER AGENT AND THEIR  RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES AND AGENTS FOR ANY AND ALL  

 

17  4869-4999-9400.5   COSTS, REASONABLE ATTORNEYS’ FEES AND EXPENSES, LIABILITIES OR OTHER  EXPENSES INCURRED IN CONNECTION WITH INVESTIGATING, DEFENDING  AGAINST OR OTHERWISE IN CONNECTION WITH ANY SUCH LOSSES, CLAIMS,  DAMAGES, LIABILITIES, EXPENSES OR ACTIONS, EXCEPT TO THE EXTENT THAT  THE SAME ARISE OUT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF  THE ISSUER INDEMNIFIED PARTY CLAIMING SUCH PAYMENT OR  REIMBURSEMENT OR TO THE EXTENT THAT THE SAME ARISE FROM THE  NEGLIGENCE OR WILLFUL MISCONDUCT OF THE TRUSTEE AND TENDER AGENT  INDEMNIFIED PARTY CLAIMING SUCH PAYMENT OR REIMBURSEMENT.  IN NO  EVENT SHALL THE ISSUER, THE TRUSTEE OR THE TENDER AGENT BE  RESPONSIBLE OR LIABLE FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE  LOSS OR DAMAGE OR ANY KIND WHATSOEVER (INCLUDING LOSS OF PROFIT),  IRRESPECTIVE OF WHETHER THE ISSUER, THE TRUSTEE OR THE TENDER AGENT  HAS BEEN ADVISED OF THE LIKELIHOOD OF SUCH LOSS OR DAMAGES AND  REGARDLESS OF THE FORM OF ACTION.  THE PROVISIONS OF THIS SECTION SHALL  SURVIVE ANY RESIGNATION OR REMOVAL OF THE TRUSTEE, THE RETIREMENT OF  THE BONDS AND THE TERMINATION OF THIS AGREEMENT OR THE INDENTURE.  (b) THE COMPANY WILL, TO THE FULLEST EXTENT PERMITTED BY LAW,  PROTECT, INDEMNIFY AND SAVE EACH ISSUER INDEMNIFIED PARTY HARMLESS  FROM AND AGAINST ALL LIABILITIES, LOSSES, DAMAGES, COSTS, EXPENSES  (INCLUDING ATTORNEYS’ FEES AND EXPENSES OF THE ISSUER), TAXES, CAUSES  OF ACTION, SUITS, CLAIMS, DEMANDS AND JUDGMENTS IN CONNECTION WITH  THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ARISING FROM OR  RELATED TO THE ISSUANCE OR SALE OF THE BONDS, INCLUDING:  (i) ANY INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO  PROPERTY IN OR UPON THE PROJECT FACILITIES OR GROWING OUT OF OR  CONNECTED WITH THE USE, NON-USE, CONDITION OR OCCUPANCY OF THE  PROJECT FACILITIES OR ANY PART THEREOF, INCLUDING ANY AND ALL  ACTS OR OPERATIONS RELATING TO THE ACQUISITION, CONSTRUCTION,  EQUIPPING OR INSTALLATION OF PROPERTY OR IMPROVEMENTS.  THE  FOREGOING INDEMNIFICATION OBLIGATIONS SHALL NOT BE LIMITED IN  ANY WAY BY ANY LIMITATION ON THE AMOUNT OR TYPE OF DAMAGES,  COMPENSATION OR BENEFITS PAYABLE BY OR FOR THE COMPANY,  CUSTOMERS, SUPPLIERS OR AFFILIATED ORGANIZATIONS UNDER ANY  WORKERS’ COMPENSATION ACTS, DISABILITY BENEFIT ACTS OR OTHER  EMPLOYEE BENEFIT ACTS;  (ii) VIOLATION OF ANY AGREEMENT, PROVISION OR CONDITION  OF THIS AGREEMENT, ANY OTHER COMPANY DOCUMENT, THE BONDS OR  THE INDENTURE, EXCEPT THAT THE COMPANY SHALL NOT BE LIABLE FOR  ANY INDEMNIFICATION TO AN ISSUER INDEMNIFIED PARTY TO THE  EXTENT THAT ANY SUCH VIOLATION RESULTS FROM THAT ISSUER  INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT,  AND EXCEPT THAT THE COMPANY SHALL NOT BE LIABLE FOR ANY  INDEMNIFICATION TO A TRUSTEE AND TENDER AGENT INDEMNIFIED  

 

18  4869-4999-9400.5   PARTY TO THE EXTENT THAT ANY SUCH VIOLATION RESULTS FROM THAT  TRUSTEE AND TENDER AGENT INDEMNIFIED PARTY’S NEGLIGENCE OR  WILLFUL MISCONDUCT;  (iii) VIOLATION BY THE COMPANY OR THE OPERATING COMPANY  OF ANY CONTRACT, AGREEMENT OR RESTRICTION RELATING TO THE  PLANT;  (iv) VIOLATION BY THE COMPANY OR THE OPERATING COMPANY  OF ANY LAW, ORDINANCE, COURT ORDER OR REGULATION AFFECTING THE  PROJECT FACILITIES OR A PART THEREOF OR THE OWNERSHIP, OCCUPANCY  OR USE THEREOF;  (v) WITH RESPECT TO THE INVESTMENT, REBATE, USE,  APPLICATION OR DISBURSEMENT OF THE PROCEEDS FROM THE SALE OF  THE BONDS;  (vi) ANY STATEMENT OR INFORMATION RELATING TO THE  EXPENDITURE OF THE PROCEEDS OF THE BONDS CONTAINED IN THE TAX  REGULATORY AGREEMENT OR SIMILAR DOCUMENT FURNISHED BY THE  COMPANY OR THE OPERATING COMPANY TO THE ISSUER, THE TRUSTEE OR  THE TENDER AGENT WHICH, AT THE TIME MADE, IS MISLEADING, UNTRUE  OR INCORRECT IN ANY MATERIAL RESPECT; AND  (vii) ANY UNTRUE STATEMENT OR ALLEGED UNTRUE STATEMENT  OF A MATERIAL FACT CONTAINED IN ANY OFFERING MATERIAL RELATING  TO THE SALE OR RESALE OF THE BONDS (AS FROM TIME TO TIME AMENDED  OR SUPPLEMENTED) OR ARISING OUT OF OR BASED UPON THE OMISSION  OR ALLEGED OMISSION TO STATE THEREIN A MATERIAL FACT REQUIRED  TO BE STATED THEREIN OR NECESSARY IN ORDER TO MAKE THE  STATEMENTS THEREIN NOT MISLEADING, OR FAILURE TO PROPERLY  REGISTER OR OTHERWISE QUALIFY THE SALE OF THE BONDS OR FAILURE  TO COMPLY WITH ANY LICENSING OR OTHER LAW OR REGULATION WHICH  WOULD AFFECT THE MANNER WHEREBY OR TO WHOM THE BONDS COULD  BE SOLD.  PROMPTLY AFTER RECEIPT BY AN ISSUER INDEMNIFIED PARTY OR A  TRUSTEE AND TENDER AGENT INDEMNIFIED PARTY OF NOTICE OF THE  COMMENCEMENT OF ANY ACTION WITH RESPECT TO WHICH INDEMNITY MAY BE  SOUGHT AGAINST THE COMPANY UNDER THIS SECTION, SUCH INDEMNIFIED  PARTY WILL NOTIFY THE COMPANY IN WRITING OF THE COMMENCEMENT  THEREOF, AND, SUBJECT TO THE PROVISIONS HEREINAFTER STATED, THE  COMPANY SHALL ASSUME THE DEFENSE OF SUCH ACTION (INCLUDING THE  EMPLOYMENT OF COUNSEL, WHO SHALL BE COUNSEL SUBJECT TO THE  APPROVAL OF SUCH INDEMNIFIED PARTY, WHICH APPROVAL SHALL NOT BE  UNREASONABLY WITHHELD, AND THE PAYMENT BY THE COMPANY OF  EXPENSES).  INSOFAR AS SUCH ACTION SHALL RELATE TO ANY ALLEGED  

 

19  4869-4999-9400.5   LIABILITY WITH RESPECT TO WHICH INDEMNITY MAY BE SOUGHT AGAINST THE  COMPANY, THE ISSUER INDEMNIFIED PARTY OR TRUSTEE AND TENDER AGENT  INDEMNIFIED PARTY SHALL HAVE THE RIGHT TO EMPLOY SEPARATE COUNSEL  OF THEIR OWN CHOICE IN ANY SUCH ACTION AND TO PARTICIPATE IN THE  DEFENSE THEREOF, AND THE REASONABLE FEES AND EXPENSES OF SUCH  COUNSEL SHALL BE AT THE EXPENSE OF THE COMPANY; PROVIDED, HOWEVER,  THAT A TRUSTEE OR TENDER AGENT INDEMNIFIED PARTY MAY ONLY EMPLOY  SEPARATE COUNSEL AT THE EXPENSE OF THE COMPANY IF IN THE REASONABLE,  GOOD FAITH JUDGMENT OF SUCH TRUSTEE AND TENDER AGENT INDEMNIFIED  PARTY (I) A CONFLICT OF INTEREST EXISTS BY REASON OF COMMON  REPRESENTATION OR (II) THERE ARE LEGAL DEFENSES AVAILABLE TO SUCH  TRUSTEE AND TENDER AGENT INDEMNIFIED PARTY THAT ARE DIFFERENT FROM  OR ARE IN ADDITION TO THOSE AVAILABLE TO THE COMPANY OR ANOTHER  TRUSTEE AND TENDER AGENT INDEMNIFIED PARTY OR IF ALL TRUSTEE AND  TENDER AGENT INDEMNIFIED PARTIES COMMONLY REPRESENTED DO NOT  AGREE AS TO THE ACTION (OR INACTION) OF COUNSEL.  ANY SUCH TRUSTEE OR  TENDER AGENT INDEMNIFIED PARTY AGREES TO GIVE THE COMPANY PRIOR  WRITTEN NOTICE OF ANY DETERMINATION THAT SUCH A CONFLICT EXISTS AND  THAT IT INTENDS TO RETAIN SEPARATE COUNSEL.  THE COMPANY SHALL NOT  SETTLE OR COMPROMISE ANY ACTION OR PROCEEDING DEFENDED BY THE  COMPANY WITHOUT THE EXPRESS WRITTEN CONSENT OF THE AFFECTED  INDEMNIFIED PARTY, UNLESS SUCH SETTLEMENT OR COMPROMISE  (X) INCLUDES AN UNCONDITIONAL RELEASE OF THE AFFECTED INDEMNIFIED  PARTY FROM ALL LIABILITY ARISING OUT OF SUCH ACTION OR PROCEEDING  AND (Y) DOES NOT INCLUDE A STATEMENT OR ADMISSIONS OF FAULT,  CULPABILITY OR A FAILURE TO ACT, BY OR ON BEHALF OF, THE AFFECTED  INDEMNIFIED PARTY.  THE COMPANY SHALL NOT BE LIABLE FOR ANY  SETTLEMENT OF ANY SUCH ACTION EFFECTED WITHOUT ITS CONSENT, BUT IF  ANY ACTION IS SETTLED WITH THE CONSENT OF THE COMPANY OR IF THERE BE  A FINAL JUDGMENT FOR THE PLAINTIFF IN ANY SUCH ACTION, THE COMPANY  SHALL INDEMNIFY AND HOLD HARMLESS EACH INDEMNIFIED PARTY FROM AND  AGAINST ANY LOSSES, CLAIMS, DAMAGES, LIABILITIES OR EXPENSES INCURRED  OR SUFFERED BY REASON OF SUCH SETTLEMENT OR JUDGMENT.  THE PROVISIONS OF THIS SECTION SHALL SURVIVE PAYMENT AND  DISCHARGE OF THE BONDS.  IF THE TRUSTEE OR THE TENDER AGENT RESIGNS OR  IS REPLACED, THE COMPANY’S OBLIGATIONS UNDER THIS SECTION SHALL  CONTINUE FOR THE BENEFIT OF THE TRUSTEE AND/OR THE TENDER AGENT, AS  THE CASE MAY BE, AS WELL AS THE SUCCESSOR TRUSTEE AND/OR TENDER  AGENT.  Section 5.03. Company and Operating Company Not to Adversely Affect Exclusion  from Gross Income of Interest on Bonds.  The Company and the Operating Company each  hereby represents that it has taken and caused to be taken, and covenants that it will take and cause  to be taken, all actions that may be required of it, alone or in conjunction with the Issuer, and the  Operating Company or the Company, as the case may be, for the interest on the Bonds to be and  to remain excludable from gross income for federal income tax purposes, and represents that it has  

 

20  4869-4999-9400.5   not taken or permitted or omitted to take, and covenants that it will not take or permit or omit to  take, any action that would adversely affect such excludability under the provisions of the Code.  The Company also covenants that it will restrict the investment and reinvestment and the  use of the proceeds of the Bonds in such manner and to such extent, if any, as may be necessary  so that the Bonds will not constitute arbitrage bonds under Section 148 of the Code.  The Company hereby covenants that on or before the 90th day following the date any of the  Project Facilities are no longer being operated as qualifying exempt facilities under the Code  (unless such facilities have simply ceased to be operated), or such later date as provided in the  Indenture, the Company shall cause a related amount of Bonds to be redeemed pursuant to the  Extraordinary Mandatory Redemption provision of the Bonds as provided in Section 4.02(e) of  the Indenture.  Section 5.04. Company and Operating Company to Maintain their Existence;  Mergers or Consolidations.  The Company and the Operating Company each covenants that it  will not merge or consolidate with any other legal entity or sell or convey all or substantially all  of its assets to any other legal entity (except with respect to the Operating Company and the Project  Facilities as provided in Section 5.01), except that each of the Company and the Operating  Company may merge or consolidate with, or sell or convey all or substantially all of its assets to  any other legal entity, provided that (a) the Company or the Operating Company, as the case may  be, shall be the continuing legal entity or the successor legal entity (if other than the Company or  the Operating Company, as applicable), shall be a legal entity organized and existing under the  laws of the United States of America or a state thereof, and, with respect to the Operating  Company, qualified to do business in the State, and, with respect to the Company, such legal entity  shall expressly assume the due and punctual payment of the Installment Payments and the  Additional Payments and all other payment and performance obligations of the Company  hereunder and under the Company Documents in order to ensure timely and proper payment of  the principal of, premium, if any, and interest on all the Bonds, according to their tenor, and the  due and punctual payment and performance and observance of all the covenants and conditions of  this Agreement to be performed by the Company or the Operating Company, as applicable (an  “Assumption Agreement”) and (b) the Company or the Operating Company or such successor legal  entity, as the case may be, shall not, immediately after such merger or consolidation, or such sale  or conveyance, be in default in the performance of any such covenant or condition and no event  which with the lapse of time, the giving of notice or both would constitute an Event of Default  under Section 7.01 shall have occurred and be continuing.  The Company and the Operating Company shall, within 30 days after the execution of an  Assumption Agreement, furnish to the Issuer, the Trustee and the Operating Company or the  Company, as applicable, an executed copy of such Assumption Agreement and appropriate  documentation demonstrating that the successor legal entity (if other than the Company or the  Operating Company, as applicable) is organized and existing under the laws of the United States  of America or a state thereof and, with respect to the Operating Company, is qualified to do  business in the State.  In the case of any such consolidation, merger, sale or conveyance and upon the assumption  by the successor legal entity of the obligations under this Agreement including, with respect to the  

 

21  4869-4999-9400.5   Company, the payment of Installment Payments in accordance with the foregoing, such successor  legal entity shall succeed to and be substituted for the Company or the Operating Company, as  applicable, with the same effect as if it had been named herein as a party hereto, and the Company  or the Operating Company, as applicable, shall thereupon be relieved of any further obligations or  liabilities hereunder (except for those that shall have accrued prior to the effective date of the  assumption) including, with respect to the Company, the payment of Installment Payments, and  the Company or the Operating Company, as applicable, as the predecessor legal entity may  thereupon or at any time thereafter be dissolved, wound-up or liquidated.  Section 5.05. Reports and Audits.  The Company shall, as soon as practicable but in no  event later than six months after the end of each of its fiscal years, file with the Trustee and the  Issuer, audited financial statements of the Company prepared as of the end of such fiscal year;  provided that the Company may satisfy this requirement by its filing of such information with the  Securities and Exchange Commission (www.sec.gov) and the Municipal Securities Rulemaking  Board (emma.msrb.org) in accordance with their respective filing requirements.  Notwithstanding  the above provisions of this Section, the Company shall provide a written copy of the Company’s  most recent audited financial statements to the Issuer upon the written request of the Issuer.  Section 5.06. Insurance.  So long as the Operating Company or the Company owns or  leases or otherwise has a property interest in the Project Facilities during the term of this  Agreement, the Company or the Operating Company shall maintain, or cause to be maintained,  insurance covering the Project Facilities against such risks and in such amounts as is customarily  carried by similar industries as the Operating Company or the Company, and which insurance may  be, in whole or in part, self-insurance on the part of the Company.  Section 5.07. Green Bonds Certificate.  The Company will annually, not later than 180  days after the close of the Company’s fiscal year commencing with the fiscal year ending  December 31, 2023, deliver a certificate to the Trustee that includes a description of the costs of  the Project Facilities funded with the Bonds and the amount of Bond proceeds so applied and  stating to the effect that no changes have been made to the Project Facilities that would reasonably  be expected to materially adversely affect the environmental benefits of the Project Facilities.   Such certificate also shall be posted in the same manner as information is posted for the obligations  of the Company under the Continuing Disclosure Agreement.  Once the Company has spent all of  the proceeds of the Bonds, it shall submit a final certificate to the Trustee (which shall be posted  in the same manner as information is posted for the obligations of the Company under the  Continuing Disclosure Agreement) that includes a statement that all of the proceeds of the Bonds  have been spent.  Thereafter, the Company will no longer be obligated to provide this certificate  to the Trustee or to post this certificate pursuant to its Continuing Disclosure Agreement  obligations.  The Trustee shall not have any obligation to review any such certificate provided to  the Trustee by the Company, nor shall the Trustee be deemed to have notice of any item contained  therein or default that may be disclosed therein in any manner.  The Trustee’s sole responsibility  with respect to such certificates shall be to act as the depository for such certificates for Holders  and to make such certificates available for review by the Holders.  Notwithstanding any other  provision of this Agreement, failure of the Company to comply, or to cause compliance with, the  requirements of this Section, shall not be considered an Event of Default under Section 7.01 hereof.  

 

22  4869-4999-9400.5   Section 5.08. Company to Furnish Notices and Opinions Relating to Changes in  Interest Rate Periods.  The Company is hereby granted the option to designate from time to time  changes in Interest Rate Periods in the manner and to the extent set forth in Section 2.04 of the  Indenture.  In the event the Company elects to exercise any such option, the Company agrees that  it shall cause notices of proposed changes in Interest Rate Periods to be given in accordance with  the provisions of Section 2.04 of the Indenture and to deliver any Opinions of Nationally  Recognized Bond Counsel required under the Indenture in connection therewith. ARTICLE VI  OPTIONS; PREPAYMENT OF INSTALLMENT PAYMENTS  Section 6.01. Options to Terminate Agreement.  The Company shall have, and is hereby  granted, an option to prepay the Installment Payments and terminate this Agreement, upon  satisfaction of the following conditions at any time prior to full payment of the Bonds (or provision  for payment thereof having been made in accordance with the provisions of the Indenture): (a) in  accordance with Article IX of the Indenture, by paying to the Trustee an amount which, when  added to the amount on deposit in the funds established under the Indenture and available therefor,  will be sufficient to pay, retire and, pursuant to the Indenture, redeem all the outstanding Bonds in  accordance with the provisions of the Indenture (including, without limiting the generality of the  foregoing, principal of and interest to maturity or the earliest applicable redemption date, as the  case may be, and expenses of redemption and the Trustee’s fees and expenses due hereunder or  under the Indenture), and, in case of redemption, making arrangements satisfactory to the Trustee  for the giving of the required notice of redemption, (b) by giving the Issuer notice in writing of  such termination and (c) by making full payment of Additional Payments due under Section 4.02  and the payment  of any other amounts due under this Agreement; thereafter such termination shall  forthwith become effective.  Any prepayment pursuant to this Section shall either comply with the provisions of  Article IX of the Indenture or result in redemption of the Bonds within 90 days of the date of  prepayment.  Nothing contained in this Section shall prevent the payment of part of any of the  Bonds pursuant to Article IV or Section 9.02 of the Indenture.  Section 6.02. Optional and Extraordinary Optional Redemption; Option to Prepay  Installment Payments under Indenture.  The Company has the option to redeem the Bonds, in  whole or in part, on the terms and conditions set forth in Section 4.02(a), (b) and (c) of the  Indenture by prepaying the Installment Payments due under Section 4.01(a).  The Company also  has the option to redeem the Bonds, in whole or in part, upon the occurrence of certain  extraordinary circumstances and on the terms and conditions described in Section 4.02(d) of the  Indenture by prepaying the Installment Payments due under Section 4.01(a).  Section 6.03. Mandatory Prepayment of Installment Payments.  The Company shall  have and hereby accepts the obligation to prepay Installment Payments with respect to the Bonds  to the extent Extraordinary Mandatory Redemption of the Bonds is required pursuant to Section  4.02(e) of the Indenture.  

 

23  4869-4999-9400.5   Section 6.04. Actions by Issuer.  At the written request of the Company, the Issuer shall  take all steps required of it under the applicable provisions of the Indenture or the Bonds to effect  the redemption of all or a portion of the Bonds pursuant to this Article VI; provided that, in such  event, the Company shall reimburse the Issuer for its reasonable expenses, including attorneys’  fees, incurred in complying with such request.  Section 6.05. Release of Indenture in Event of Prepayment of Installment Payments.   Upon the payment of all amounts due hereunder and under the Indenture pursuant to any option  or obligation to prepay the Installment Payments in full as provided in this Agreement, the Issuer  shall, upon receipt of the prepayment by the Trustee, deliver to the Company, if necessary, a release  from the Trustee of the lien of the Indenture.  ARTICLE VII  EVENTS OF DEFAULT AND REMEDIES  Section 7.01. Events of Default.  Each of the following shall be an Event of Default:  (a) The Company shall fail to pay the amounts required to be paid under  Section 4.01, 4.02 or 6.03 on each date specified therein.  (b) Failure by the Company or the Operating Company to observe and perform  any covenant, condition or agreement on its part to be observed or performed under this  Agreement (other than as referred to in Section 7.01(a) and other than certain  representations, warranties and covenants regarding various matters relating to the tax  status of the interest on the Bonds) and the continuation of such failure for a period of  60 days after written notice specifying such failure and requesting that it be remedied shall  have been given to the Company and the Operating Company by the Issuer or the Trustee,  unless the Issuer shall agree in writing to an extension of such time prior to its expiration;  provided, however, if the failure stated in the notice cannot be corrected within the  applicable period, it shall not constitute an Event of Default if corrective action is instituted  by the Company and/or the Operating Company, as applicable, within the applicable period  and is being diligently pursued until the default is corrected.  (c) The dissolution or liquidation of the Company or the voluntary initiation by  the Company of any proceeding under any federal or state law relating to bankruptcy,  insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor  relief, or the initiation against the Company of any such proceeding which shall remain  undismissed for 60 days, or failure by the Company to promptly have discharged any  execution, garnishment or attachment of such consequence as would materially impair the  ability of the Company to carry on its operations, or assignment by the Company for the  benefit of creditors, or the entry by the Company into an agreement of composition with  creditors or the failure generally by the Company to pay its debts as they become due.  (d) The occurrence of an Event of Default as defined in the Indenture.  Any declaration of default under subparagraph (c) and the exercise of remedies upon any  such declaration will be subject to any applicable limitations of federal bankruptcy law affecting  

 

24  4869-4999-9400.5   or precluding that declaration or exercise during the pendency of or immediately following any  bankruptcy, liquidation or reorganization proceedings.  Section 7.02. Remedies on Default.  Whenever an Event of Default shall have happened  and be existing, any one or more of the following remedial steps may be taken:  (a) if acceleration of the principal amount of the Bonds has been declared  pursuant to Section 7.03 of the Indenture, the Issuer or the Trustee shall declare all  Installment Payments to be immediately due and payable, whereupon the same shall  become immediately due and payable; or  (b) the Issuer or the Trustee may pursue all remedies now or hereafter existing  at law or in equity to collect all amounts then due and thereafter to become due under this  Agreement or to enforce the performance and observance of any other obligation or  agreement of the Company and/or the Operating Company under this Agreement or the  Indenture.  Notwithstanding the foregoing, the Trustee shall not be obligated to take any step that in  its reasonable opinion will or might cause it to expend time or money or otherwise incur liability  unless and until satisfactory indemnity has been furnished to the Trustee at no cost or expense to  it.  Any amounts collected pursuant to action taken under this Section (except for amounts payable  directly to the Issuer or the Trustee or any Tender Agent or Remarketing Agent pursuant to  Section 3.04, 3.05, 4.02, 5.02, 7.04, 8.14 or 8.17) shall be paid into the Bond Fund and applied in  accordance with the provisions of the Indenture or, if the Outstanding Bonds have been paid and  discharged in accordance with the provisions of the Indenture, shall be paid as provided in  Section 9.01 of the Indenture for transfers of remaining amounts in the Bond Fund.  The provisions of this Section are subject to the further limitation that the rescission by the  Trustee of its declaration that all of the Bonds are immediately due and payable also shall constitute  an annulment of any corresponding declaration made pursuant to paragraph (a) of this Section and  a waiver and rescission of the consequences of that declaration and of the Event of Default with  respect to which that declaration has been made, provided that no such waiver or rescission shall  extend to or affect any subsequent or other default or impair any right consequent thereon.  Section 7.03. No Remedy Exclusive.  No remedy conferred upon or reserved to the Issuer  or the Trustee by this Agreement is intended to be exclusive of any other available remedy or  remedies, but each and every remedy shall be cumulative and shall be in addition to every other  remedy given under this Agreement, now or hereafter existing at law, in equity or by statute.  No  delay or omission to exercise any right or power accruing upon any default shall impair that right  or power or shall be construed to be a waiver thereof, but any such right and power may be  exercised from time to time and as often as may be deemed expedient.  In order to entitle the Issuer  or the Trustee to exercise any remedy reserved to it in this Article, it shall not be necessary to give  any notice, other than any notice required by law or for which express provision is made herein.  Section 7.04. Agreement to Pay Fees and Expenses.  If an Event of Default should occur  and the Issuer or the Trustee should incur expenses, including attorneys’ fees, in connection with  the enforcement of this Agreement or the collection of sums due hereunder, the Company shall  

 

25  4869-4999-9400.5   reimburse the Issuer and the Trustee, as applicable, for their reasonable and documented out-of- pocket expenses so incurred upon demand.  Section 7.05. No Waiver.  No failure by the Issuer or the Trustee to insist upon the  performance by the Company or the Operating Company of any provision hereof shall constitute  a waiver of their right to performance and no express waiver shall be deemed to apply to any other  existing or subsequent right to remedy the failure by the Company or the Operating Company to  observe or comply with any provision hereof.  Section 7.06. Notice of Default.  The Company and the Operating Company shall notify  a Responsible Officer of the Trustee (with a copy to the Issuer) immediately and in writing if it  becomes aware of the occurrence of any Event of Default hereunder or of any fact, condition or  event which, with the giving of notice or passage of time or both, would become an Event of  Default.  ARTICLE VIII  MISCELLANEOUS  Section 8.01. Term of Agreement.  This Agreement shall be and remain in full force and  effect from the Date of Issuance of the Bonds until such time as all of the Bonds shall have been  fully paid (or provision made for such payment) pursuant to the Indenture and all other sums  payable by the Company under this Agreement shall have been paid, except for obligations of the  Company under Sections 3.04, 3.05, 4.02, 5.02, 7.04, 8.14 and 8.17 which shall survive any  termination of this Agreement.  Notwithstanding any termination of this Agreement, any payment of any or all of the Bonds  or any discharge of the Indenture, if Bonds are redeemed pursuant to the Extraordinary Mandatory  Redemption provisions of Section 4.02(e) of the Indenture, the Company shall pay all additional  amounts required to be paid, if any, under Article IV of the Indenture at the time provided therein.  Section 8.02. Amounts Remaining in Funds.  Any amounts in the Bond Fund remaining  unclaimed by the Holders of Bonds (whether at stated maturity, by redemption or otherwise), shall  be deemed to belong, and shall be paid, to the proper party pursuant to applicable escheat laws.   Further, any other amounts remaining in the Bond Fund, the Project Fund and any other special  fund or account created under this Agreement or the Indenture after all of the outstanding Bonds  shall be deemed to have been paid and discharged under the provisions of the Indenture and all  other amounts required to be paid under this Agreement and the Indenture have been paid, shall  be paid to the Company to the extent that those moneys are in excess of the amounts necessary to  effect the payment and discharge of the outstanding Bonds.  Section 8.03. Notices.  All notices, certificates, requests or other communications  hereunder shall be in writing and shall be deemed to be sufficiently given at the applicable Notice  Address as provided in Section 13.03 of the Indenture.  Section 8.04. Extent of Covenants of Issuer; No Personal Liability.  All covenants,  obligations and agreements of the Issuer contained in this Agreement or the Indenture shall be  effective to the extent authorized and permitted by applicable law.  No such covenant, obligation  

 

26  4869-4999-9400.5   or agreement shall be deemed to be a covenant, obligation or agreement of any present or future  director, member, trustee, officer, agent or employee of the Issuer in other than his or her official  capacity, and no official executing the Bonds shall be liable personally on the Bonds or be subject  to any personal liability or accountability by reason of the issuance thereof or by reason of the  covenants, obligations or agreements of the Issuer contained in this Agreement or in the Indenture.  The Issuer shall not be obligated to pay the principal of, Purchase Price or premium, if any,  or interest on the Bonds, except from the Pledged Receipts, with no obligation to seek collection  thereof.  The Company hereby acknowledges that the Issuer’s sole source of moneys to repay the  Bonds will be provided by the payments made by the Company pursuant to this Agreement,  together with other Pledged Receipts, including investment income on certain funds held by the  Trustee under the Indenture, and hereby agrees that if the payments to be made hereunder shall  ever prove insufficient to pay all principal of, Purchase Price, and premium, if any, and interest on  the Bonds as the same shall become due (whether by maturity, redemption, acceleration or  otherwise), the Company shall pay such amounts as are required from time to time to prevent any  deficiency or default in the payment of such principal, Purchase Price, premium or interest.  Section 8.05. Binding Effect.  This Agreement shall inure to the benefit of and shall be  binding in accordance with its terms upon the Issuer, the Company, the Operating Company and  their respective permitted successors and assigns.  Section 8.06. Amendments and Supplements.  Except as otherwise expressly provided  in this Agreement or the Indenture, subsequent to the issuance of the Bonds and prior to all  conditions provided for in the Indenture for release of the Indenture having been met, this  Agreement may not be effectively amended, changed, modified, altered or terminated except in  accordance with the provisions of Article XI of the Indenture, as applicable.  Section 8.07. Execution Counterparts.  This Agreement may be executed in any number  of counterparts, each of which shall be regarded as an original and all of which shall constitute but  one and the same instrument.  Section 8.08. Severability.  If any provision of this Agreement, or any covenant,  obligation or agreement contained herein is determined by a court to be invalid or unenforceable,  that determination shall not affect any other provision, covenant, obligation or agreement, each of  which shall be construed and enforced as if the invalid or unenforceable portion were not contained  herein.  That invalidity or unenforceability shall not affect any valid and enforceable application  thereof, and each such provision, covenant, obligation or agreement shall be deemed to be  effective, operative, made, entered into or taken in the manner and to the full extent permitted by  law.  Section 8.09. Governing Law; Venue.  This Agreement shall be deemed to be a contract  made under the laws of the State and for all purposes shall be governed by and construed in  accordance with the laws of the State, without regard to the choice of law rules of the State.  Venue  for any action under this Agreement to which the Issuer is a party shall lie within the district courts  of the State, and the parties hereto consent to the jurisdiction and venue of any such court and  hereby waive any argument that venue in such forums is not convenient.  

 

27  4869-4999-9400.5   Section 8.10. Further Assurances and Corrective Instruments.  The Issuer (at the sole  cost and expense of the Company), the Company and the Operating Company agree that they will,  from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and  delivered, such supplements hereto and such further instruments as may reasonably be required  for the further assurance, correction or performance of the expressed intention of this Agreement.  Section 8.11. Issuer, Company and Operating Company Representatives.  Whenever  under the provisions of this Agreement the approval of the Issuer, the Company or the Operating  Company is required or the Issuer, the Company or the Operating Company is required to take  some action at the request of the others, such approval or such request shall be given for the Issuer  by a Designated Officer, for the Company by an Authorized Company Representative and for the  Operating Company by an Authorized Operating Company Representative.  The Trustee and any  Tender Agent and Remarketing Agent shall be authorized to act on any such approval or request.  Section 8.12. Immunity of Incorporators, Stockholders, Officers and Directors.  No  recourse under or upon any obligation, covenant or agreement contained in this Agreement or in  any agreement supplemental hereto, or in the Bonds, or because of any indebtedness evidenced  thereby, shall be had against any incorporator, or against any stockholder, member, officer or  director, as such, past, present or future, of the Company, the Operating Company or of any  predecessor or, subject to Section 5.04, successor legal entity, either directly or through the  Company, the Operating Company or any predecessor or successor legal entity, under any rule of  law, statute or constitutional provision or by the enforcement of any assessment or by any legal or  equitable proceeding or otherwise, all such liability being expressly waived and released by the  acceptance of the Bonds by the Holders thereof and as part of the consideration for the issuance of  the Bonds.  Section 8.13. Delegation of Duties and Assignment of Rights by Issuer.  Pursuant to  this Agreement and the Indenture, the Issuer has delegated certain of its duties under this  Agreement to the Company, and, pursuant to the Indenture, the Issuer has assigned all of its rights  under this Agreement (other than the Issuer’s Unassigned Rights) to the Trustee.  The fact of such  delegation under this Agreement, and the assignment under the Indenture, shall be deemed  sufficient compliance by the Issuer to satisfy its duties so delegated, and the Issuer shall not be  liable in any way by reason of acts done or omitted by the Company or the Trustee (nothing herein  being deemed to create an obligation of the Trustee to indemnify the Issuer).  The Issuer shall have  the right at all times to act in reliance upon (y) any authorization, representation or certification of  the Company, or (z) any representation or certification of the Trustee. Section 8.14. Survival of Fee Obligation.  The right of the Issuer and the Trustee to  receive any fees or be reimbursed for any expenses incurred pursuant to this Agreement, and the  right of the Issuer and the Trustee to be protected from any liability as provided in this Agreement,  shall survive the retirement of the Bonds and the termination of this Agreement.  Section 8.15. Liability of Issuer Limited.  Notwithstanding anything in this Agreement  or in the Bonds, the Issuer shall not be required to advance any moneys derived from any source  other than the Pledged Receipts and other assets pledged under the Indenture for any of the  purposes in the Indenture mentioned, whether for the payment of the principal of or interest on the  Bonds or for any other purpose of the Indenture.  The Issuer shall not be liable for any costs,  

 

28  4869-4999-9400.5   expenses, losses, damages, claims or actions, of any conceivable kind on any conceivable theory,  under or by reason of or in connection with this Agreement, the Bonds or the Indenture, except  only to the extent amounts are received for the payment thereof from the Company under this  Agreement.  The Company hereby acknowledges that the Issuer’s sole source of moneys to repay the  Bonds will be provided by the payments made by the Company to the Trustee pursuant to this  Agreement, together with investment income on certain funds held by the Trustee under the  Indenture, and hereby agrees that if the payments to be made hereunder shall ever prove  insufficient to pay all principal (or redemption price) and interest on the Bonds as the same shall  become due (whether by maturity, redemption, acceleration or otherwise), the Company shall pay  such amounts in accordance with Section 4.01 hereof.  The provisions of this Section 8.15 shall be in addition to, and not in lieu of, any other  provisions limiting the liability of the Issuer hereunder.  Section 8.16. Waiver of Personal Liability.  No member, officer, agent or employee of  the Issuer or any direct or indirect owner, director, officer, agent or employee of the Company  shall be individually or personally liable for the payment of any principal (or redemption price) or  interest on the Bonds or any sum hereunder or under the Indenture or be subject to any personal  liability or accountability by reason of the execution and delivery of this Agreement; but nothing  herein contained shall relieve any such member, direct or indirect owner, director, officer, agent  or employee from the performance of any official duty provided by law or by this Agreement.  Section 8.17. No Constitutional Debt.  It is understood and agreed by the Company and  the Holders that no covenant, provisions or agreement of the Issuer herein or in the Bonds or in  any other document executed by the Issuer in connection with the issuance, sale and delivery of  the Bonds, or any obligation herein or therein imposed upon the Issuer or breach thereof, shall give  rise to a pecuniary liability of the Issuer, its directors, officers, employees or agents or a charge  against the Issuer’s general credit or general fund or shall obligate the Issuer, its directors, officers,  employees or agents financially in any way.  No failure of the Issuer to comply with any term,  condition, covenant or agreement herein or in the Indenture shall subject the Issuer, its directors,  officers, employees or agents to liability for any claim for damages, costs or other financial or  pecuniary charges.  No execution on any claim, demand, cause of action or judgment shall be  levied upon or collected from the general credit or general fund of the Issuer.  In making the  agreements, provisions and covenants set forth herein, the Issuer has not obligated itself except  with respect to the Indenture and the funds and accounts held thereunder and the application of the  Pledged Receipts therefrom and from this Agreement, and from the proceeds of the Bonds, as  hereinabove provided.  The Bonds constitute special, limited revenue obligations of the Issuer, payable solely from  proceeds of the Bonds, the Pledged Receipts pledged to the payment thereof pursuant to the  Indenture and this Agreement, and the funds and accounts held under and pursuant to the Indenture  and pledged therefor.  The Bonds, the interest thereon and any other payments or costs incident  thereto do not constitute a debt or general obligation of the Issuer, the State or any political  subdivision thereof within the meaning of any constitutional or statutory provisions.  No provision  in this Agreement or any obligation herein imposed upon the Issuer, or the breach thereof, shall  

 

29  4869-4999-9400.5   constitute or give rise to or impose upon the Issuer, the State or any political subdivision thereof a  pecuniary liability or a charge upon their general credit or taxing powers.  No officer, director,  employee, member or agent of the Issuer shall be personally liable under this Agreement.  NEITHER THE STATE NOR ANY POLITICAL CORPORATION, SUBDIVISION  OR AGENCY OF THE STATE WILL BE OBLIGATED TO PAY THE PRINCIPAL OF,  PREMIUM, IF ANY, OR INTEREST ON THE BONDS, AND NEITHER THE FAITH  AND CREDIT NOR ANY TAXING POWERS OF THE ISSUER, THE STATE OR ANY  OTHER POLITICAL CORPORATION, SUBDIVISION OR AGENCY THEREOF IS  PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY,  PURCHASE PRICE FOR OR INTEREST ON THE BONDS.  THE ISSUER HAS NO  TAXING POWER. IT IS FURTHER UNDERSTOOD AND AGREED BY THE COMPANY AND THE  HOLDERS THAT THE ISSUER, ITS DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS  SHALL INCUR NO PECUNIARY LIABILITY HEREUNDER AND SHALL NOT BE LIABLE  FOR ANY EXPENSES RELATED HERETO, ALL OF WHICH THE COMPANY AGREES TO  PAY.  IF, NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, THE ISSUER, ITS  DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS INCUR ANY EXPENSE, OR SUFFER  ANY LOSSES, CLAIMS OR DAMAGES OR INCURS ANY LIABILITIES, THE COMPANY  WILL INDEMNIFY AND HOLD HARMLESS THE ISSUER, ITS DIRECTORS, OFFICERS,  EMPLOYEES OR AGENTS FROM THE SAME AND WILL REIMBURSE THE ISSUER, ITS  DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS IN RELATION THERETO, AND THIS  COVENANT TO INDEMNIFY, HOLD HARMLESS AND REIMBURSE THE ISSUER, ITS  DIRECTORS, OFFICERS, EMPLOYEES OR AGENTS SHALL SURVIVE PAYMENT AND  DISCHARGE OF THE BONDS.  Section 8.18. Section Headings.  The table of contents and headings of the various  articles and sections of this Agreement are for convenience of reference only and shall not modify,  define or limit any of the terms or provisions hereof.  References to article and section numbers  are references to articles and sections in this Agreement unless otherwise indicated.  Section 8.19. Concerning the Trustee.  The rights, privileges, protections, indemnities  and immunities of the Trustee under the Indenture are hereby incorporated herein as if set forth  herein in full and shall be extended to, and shall be enforceable by, the Trustee hereunder.  Section 8.20. Joinder of Operating Company.  The Operating Company has joined in  the execution of this Agreement for the purpose of making and confirming its applicable  representations, warranties and covenants contained herein as the owner and operator of the Project  Facilities.  The Operating Company has no obligation with respect to the obligations of the  Company contained herein including, without limitation, the payment obligations of the Company  set forth in Sections 4.01 and 4.02, as well as those in Sections 3.05, 5.02, 7.04, 8.14 and 8.17.  [Remainder of Page Intentionally Left Blank.]  

 

IN WITNESS WHEREOF, the Issuer has caused this Agreement to be duly executed in its  name and its seal to be hereunto affixed by its duly authorized officer, and each of the Company  and the Operating Company has caused this Agreement to be duly executed in its name by its duly  authorized officer, all as of the date first above written. [SEAL] ARKANSAS DEVELOPMENT FINANCE AUTHORITY Title: President UNITED STATES STEEL CORPORATION By:___________________________________ Name: Ame S. Jahn Title: Vice President - Treasurer & Chief Risk Officer EXPLORATORY VENTURES, LLC By:___________________________________ Name: Ame S. Jahn Title: Treasurer [Signature Page to Loan Agreement] 

 

[Signature Page to Loan Agreement]  IN WITNESS WHEREOF, the Issuer has caused this Agreement to be duly executed in its  name and its seal to be hereunto affixed by its duly authorized officer, and each of the Company  and the Operating Company has caused this Agreement to be duly executed in its name by its duly  authorized officer, all as of the date first above written.   ARKANSAS DEVELOPMENT FINANCE  AUTHORITY  [SEAL]  By:   Name: Mark A. Conine  Title:   President  UNITED STATES STEEL CORPORATION  By: __________________________________  Name: Arne S. Jahn  Title:   Vice President - Treasurer & Chief Risk  Officer  EXPLORATORY VENTURES, LLC  By: __________________________________  Name: Arne S. Jahn  Title:   Treasurer  

 

A-1  4869-4999-9400.5   EXHIBIT A  PROJECT FACILITIES  The Project Facilities consist of certain solid waste disposal facilities financed or  refinanced with the proceeds of $290,000,000 Environmental Improvement Revenue Bonds,  Series 2022 (United States Steel Corporation Project) (Green Bonds) issued by the Arkansas  Development Finance Authority (the “Issuer”), including two electric arc furnaces, a ladle furnace  and an endless casting and rolling facility and other equipment and facilities, located and to be  located at the flat-rolled steel making facility under construction by Exploratory Ventures, LLC  (the “Operating Company”), an indirect subsidiary of United States Steel Corporation (the  “Company”), near the City of Osceola in Mississippi County, Arkansas, all as more fully described  in the Tax Regulatory Agreement, dated as of the date of delivery of such Bonds, between the  Issuer and each of the Company and the Operating Company.  

 

B-1  4869-4999-9400.5   EXHIBIT B  FORM OF DISBURSEMENT REQUEST  Statement No. ____ Requesting Disbursement of Funds from Project Fund  pursuant to Section 3.03 of Loan Agreement between the Arkansas Development  Finance Authority and each of United States Steel Corporation and Exploratory Ventures, LLC  Pursuant to Section 3.03 of the Loan Agreement, dated as of September 1, 2022 (the  “Agreement”), between the Arkansas Development Finance Authority (the “Issuer”) and each of  United States Steel Corporation (the “Company”) and Exploratory Ventures, LLC (the “Operating  Company”), the undersigned Authorized Company Representative hereby requests and authorizes  The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”) under the Trust  Indenture, dated as of September 1, 2022 (the “Indenture”), by and between the Issuer and the  Trustee, to pay to the Company or the Operating Company or to the person(s) listed on the  Disbursement Schedule, if any, attached hereto out of the moneys deposited in the Project Fund  (as established pursuant to the Indenture) the aggregate sum of $_____________, to reimburse the  Company or the Operating Company in full, or to pay such person(s) as indicated in any  Disbursement Schedule, for the advances, payments and expenditures made by it in connection  with the acquisition, construction, equipping and installation of the Project Facilities.  Capitalized  terms used but not defined herein shall have the meanings set forth in the Agreement.  In connection with the foregoing request and authorization, the undersigned hereby  certifies that:  (a) Each item for which disbursement is requested hereunder is properly  payable out of the Project Fund in accordance with the terms and conditions of the  Agreement and none of those items has formed the basis for any disbursement heretofore  made from the Project Fund;  (b) This statement and all exhibits hereto, including the Disbursement  Schedule, shall be conclusive evidence of the facts and statements set forth herein and shall  constitute full warrant, protection and authority to the Trustee for its actions taken pursuant  hereto; and  (c) This statement constitutes the approval of the Company of each  disbursement hereby requested and authorized.  This _________ day of ________________, 20__.  Authorized Company Representative 

 

B-2  4869-4999-9400.5   Disbursement Schedule Payee Amount Purpose 

 

C-1  4869-4999-9400.5   EXHIBIT C  FORM OF COMPLETION CERTIFICATE  Pursuant to Section 3.02 of the Loan Agreement, dated as of September 1, 2022 (the  “Agreement”), between the Arkansas Development Finance Authority (the “Issuer”) and each of  United States Steel Corporation (the “Company”) and Exploratory Ventures, LLC (the “Operating  Company”), the undersigned hereby certifies to the Trustee (all capitalized terms used and not  otherwise defined herein having the meaning set forth in the Agreement) the following:  (a) the acquisition, construction, equipping and installation of the Project Facilities was  substantially completed on or about ____________, 20__;  (b) all other facilities necessary in connection with the Project Facilities have been  acquired, constructed, equipped and installed;  (c) the total amount disbursed as of the date hereof from the Project Fund for the  purposes described in Section 3.03 of the Agreement is $_______________;  (d) $________________ shall be retained in the Project Fund for the payment of costs  of the Project Facilities not yet due or for liabilities which the Company or the  Operating Company is contesting or which otherwise should be retained, because  __________________________________________________________________  [explain the reasons such amounts are being contested or should be retained]; and  (e) other than the amount referred to in (d) above, the remaining balance in the Project  Fund of $________________ shall be transferred or disbursed to  ______________________________________________________________ for  __________________________________________________________________ __________________________________________________________________ [explain the reasons such amounts are being transferred or disbursed and provide  the Trustee with an Opinion of Nationally Recognized Bond Counsel to the effect  that such transfer or disbursement will not cause the interest on the Bonds to be  included in the gross income of the Holders thereof for federal income tax purposes  in accordance with Section 5.01(f) of the Indenture].  This _________ day of ________________, 20__.  _  Authorized [Operating] Company Representative

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