Document:

Exhibit 10.1

 Exhibit 10.1 
 EXECUTION COPY 
 CREDIT AGREEMENT 
  
 by and among 
 GREEN MOUNTAIN POWER CORPORATION, 
  
 SOVEREIGN BANK, 
 KEYBANK NATIONAL ASSOCIATION 
 and 
 SOVEREIGN BANK, 
 AS AGENT 
  
  

  

  
 $30,000,000 
  
  

  

 Dated as of June 14, 2006 

 CREDIT AGREEMENT 
 This CREDIT AGREEMENT, dated as of June 14, 2006, by and among GREEN MOUNTAIN POWER CORPORATION, a Vermont corporation (the “Company”), the Signatory Banks hereto (each, a “Bank”
and, collectively, the “Banks”), and SOVEREIGN BANK, as agent hereunder (in such capacity, the “Agent”). 
 1.
DEFINITIONS. 
 1.1. Defined Terms. As used in this Agreement, terms defined in the Preamble above have the meanings
therein indicated, and the following terms have the following meaning: 
 “Accountants”: Deloitte & Touche LLP, or
such other firm of certified public accountants of recognized national standing selected by the Company. 
 “Act” as defined
in Section 17. 
 “Affected Loan”: as defined in Section 2.9. 
 “Affected Principal Amount”: (i) in the event that the Company shall fail for any reason to borrow a Loan constituting a LIBOR Loan
after it shall have delivered a Borrowing Request to the Agent, an amount equal to the principal amount of such LIBOR Loan; (ii) in the event that the right of the Company to have a LIBOR Loan outstanding hereunder shall be suspended or shall
terminate for any reason prior to the last day of the Interest Period applicable thereto, an amount equal to the principal amount of such LIBOR Loan; and (iii) in the event that the Company shall prepay or repay all or any part of the principal
amount of a LIBOR Loan prior to the last day of the Interest Period applicable thereto, an amount equal to the principal amount so prepaid or repaid. 
 “Affiliate”: a Person that directly or indirectly, or through one or more intermediaries, controls or is controlled by or is under common control with another Person. The term “control”
means possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Agent’s Fees”: as defined in Section 3.2. 
 “Aggregate Commitments”: the sum of the Commitments, as in effect from time to time. 
 “Agreement”: this Credit Agreement, as same may be amended, supplemented or otherwise modified from time to time. 
 “Alternate Base Rate”: the higher of (a) the annual rate of interest publicly announced from time to time by the Agent at the
Agent’s head office as its “prime rate” and (b) one-half of one percent (1/2%) above the Federal Funds Effective Rate. 
  

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 “Alternate Base Rate Loans”: Loans (or any portion thereof) at such time as they (or
such portions) are made or are being maintained at a rate of interest based upon the Alternate Base Rate. 
 “Applicable Lending
Office”: as to any Bank, such Bank’s Domestic Lending Office or LIBOR Lending Office, as the case may be. 
 “Applicable Margin”: the rate per annum determined by reference to Schedule I on Exhibit B hereto based upon the Debt Rating of the Company; provided that if the Company has no Debt Rating, the Applicable
Margin shall be the highest rate per annum (i.e., Pricing Level IV) applicable during the relevant period. 
 “Authorized
Signatory”: the president, any vice president, the treasurer, the secretary, or any other duly authorized officer of the Company acceptable to Agent. 
 “Bank” or “Banks”: the signatory Banks to this Credit Agreement and any other bank or lender that becomes a signatory hereto pursuant to Section 14.6. 
 “Borrowing”: (a) a borrowing of principal amounts pursuant to Section 2.3. 
 “Borrowing Request”: as defined in Section 2.3. 
 “Borrowing Date”: Any date specified in a Borrowing Request delivered pursuant to Section 2.3 as a date on which the Company
requests the Banks to make Loans hereunder. 
 “Business Day”: for all purposes other than as set forth in clause
(ii) below, (i) any day other than a Saturday, Sunday or other day on which commercial banks located in New York City or Boston are authorized or required by law or other governmental actions to close and (ii) with respect to all
notices and determinations in connection with, and payments of principal and interest on LIBOR Loans, any day other than a Saturday, Sunday, or other day on which commercial banks located in New York City or Boston are authorized or required to
close under the laws applicable to commercial banks located in New York City or Boston and, if the applicable day relates to a LIBOR Loan or an interest period for a LIBOR Loan, the day on which dealings in dollar deposits are also carried on in the
London interbank market and banks are open for business in London. 
 “Code”: the Internal Revenue Code of 1986, as the same
may be amended from time to time, or any successor thereto, and the rules and regulations issued hereunder, as from time to time in effect. 
 “Commitments”: as to any Bank, such Bank’s undertaking to make Revolving Credit Loans to and issue Letters of Credit for the account of Company, subject to the terms and conditions hereof, in an aggregate outstanding
principal amount equal to, but not exceeding, the amount set forth opposite the name of such Bank on Exhibit A under the heading ‘Commitment’, as the same may be reduced pursuant to Section 2.5. 
 “Commitment Percentage”: as to any Bank, the percentage set forth opposite the name of such Bank on Exhibit A under the heading
‘Commitment Percentage’. 
  

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 “Commonly Controlled Entity”: an entity, whether or not incorporated, which is under
common control with the Company within the meaning of Section 414(b) or 414(c) of the Code. 
 “Consolidated”: the
Company and its Subsidiaries taken as a whole. 
 “Consolidated Net Worth”: the means the aggregate of the capital stock and
other equity accounts (including, without limitation, retained earnings and paid-in capital) of the Consolidated Company. 
 “Conversion/Continuation Request”: as defined in Section 2.7. 
 “Conversion Date”:
the date on which a Loan of one Type is converted to a Loan of another Type or continued as a Loan of the same Type. 
 “Debt
Rating”: the public debt rating of the Company’s First Mortgage Bonds according to Standard & Poor’s Corporation or Moody’s Investor Service. In the event of a split rating, the higher of the two ratings will apply,
provided that if one rating is more than one notch above the other, than the rating to be used for the pricing grid will be one notch above the lower rating. In the event that neither Standard & Poor’s Corporation nor Moody’s
Investor Service have a public debt rating for the Company, the Company shall be deemed to have no Debt Rating. 
 “Dollars”
and “$”: dollars in lawful currency of the United States of America. 
 “Domestic Lending Office”: as to
any Bank, initially the office of such Bank designated as such on the signature page hereof, and thereafter such other office in the United States as reported by such Bank to the Agent, that shall be making or maintaining Alternate Base Rate Loans.

 “Effective Date”: as defined in Section 16. 
 “Environmental Law”: Any and all federal, state, local and foreign statutes, laws, regulations, ordinances, rules, judgments, orders,
decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions relating to the environment (but not including zoning and similar land use laws and regulations which have no Material Adverse Effect on the
Company) or to emissions, discharges, releases or threatened releases of pollutants, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes into the environment, including, without limitation, ambient air, surface water,
ground water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, chemicals or industrial, toxic or hazardous substances or wastes.

 “Environmental Notice”: any summons, citation, directive, information request, notice of potential responsibility, notice
of violation or deficiency, order, claim, complaint, investigation, proceeding, judgment, letter or other communication, written or oral, actual or threatened, from the United States Environmental Protection Agency or other federal, state or local
agency or authority, or any other entity or individual, public or private, concerning any intentional or unintentional act or omission which involves management of hazardous substances or wastes on or off any property owned or leased by the Company
or any Subsidiary or Affiliate of the Company; the imposition of any Lien on such property; and any alleged violation of or responsibility under Environmental Laws. 
  

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 “ERISA”: the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations issued thereunder, as from time to time in effect. 
 “Event of Default”: any of the
events specified in Section 9, provided that any requirement for the giving of notice, the lapse of time, or both, has been satisfied. 
 “Federal Funds Effective Rate”: for any day, the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published
for the prior day by the Federal Reserve Bank of Boston. 
 “Final Maturity Date”: if all required Governmental Approvals
have been received on or prior to the Effective Date or have been received not later than thirty (30) days prior to the Initial Maturity Date, June 14, 2011. 
 “First Mortgage Bonds”: (a) the Company’s First Mortgage Bonds as set forth in the Company’s 2005 Form 10-K filed on March 29, 2005 with the Securities and Exchange Commission.

 “Facility Fee”: as defined in Section 3.1. 
 “Financial Statements”: as defined in Section 4.8. 
 “Funded Debt”: all obligations of the Company evidenced by bonds (including, without limitation, the First Mortgage Bonds), debentures,
notes or other similar instruments and all other evidences of indebtedness of the Company (including, without limitation, Short-Term Funded Debt), and any other instrument or arrangement which would be treated as indebtedness under GAAP, including,
without limitation, capitalized leases but excluding trade obligations and normal accruals, including accounts payable, in the ordinary course of business not yet due and payable, or with respect to which the Company is contesting in good faith the
amount or validity thereof by appropriate proceedings and then only to the extent that the Company has set aside on its books adequate reserves therefor in accordance with GAAP and such contest does not have a Material Adverse Effect. 
 “GAAP”: generally accepted accounting principles from time to time followed by companies engaged in a business similar to that of the
Company, except as otherwise required by any applicable rules, regulations or orders of the VPSB, or other public regulatory authority having jurisdiction over the accounts of the Company; provided that the Company may at any time contest or
controvert in good faith the validity or applicability to the Company of any such rule, regulation or order; and provided, further, that the federal income tax liability of the Company may be computed as if the Company were filing separate returns
notwithstanding the fact that it may file consolidated returns as part of an affiliated group. 
 “Governmental Approvals”:
the approval of the Credit Agreement by the VPSB. 
  

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 “Governmental Body”: any nation or government, any state or other political subdivision
thereof, any entity exercising executive, legislative, judicial, regulatory, or administrative functions, of, or pertaining to, government, and any court or arbitrator. 
 “Initial Maturity Date” if all required Governmental Approvals are not received on or prior to the Effective Date, the date that is three hundred sixty-four (364) days following the Effective
Date. 
 “Initial Note” as defined in Section 2.4(b). 
 “Interest Payment Date”: (a) as to any Alternate Base Rate Loan, the last Business Day of each March, June, September and December
commencing on the first such day to occur after such Loan is made or any LIBOR Loan is converted to an Alternate Base Rate Loan, and the date each Alternate Base Rate Loan is paid in full, (b) as to any overnight LIBOR Loan, or any LIBOR Loan
in respect of which the Company has selected an Interest Period of one or two weeks, or one, two or three months, the last day of such Interest Period and (c) as to any LIBOR Loan having an Interest Period of six months, the last day and, in
addition, the numerically corresponding day (or, if there is no numerically corresponding day, the last day) in the calendar month that is three months after the first day, of such Interest Period. 
 “Interest Period”: 
 (a)
with respect to any LIBOR Loan, the period commencing on, as the case may be, the Borrowing Date or a Conversion Date with respect to such LIBOR Loan, and ending on the next day with respect to overnight LIBOR Loans or the date one week, two weeks
or one, two, three or six months thereafter, as selected by the Company in its irrevocable Borrowing Request as provided in Section 2.3 or its irrevocable Conversion/Continuation Request as provided in Section 2.7;.

 (b) All of the foregoing provisions relating to Interest Periods set forth in paragraph (a) above are subject to the following:

 (i) if any Interest Period pertaining to a LIBOR Loan comprising the same Borrowing would otherwise end on a day which is
not a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest Period shall end on
the immediately preceding Business Day; 
 (ii) if, with respect to the conversion of any Loan, the Company shall fail to give
due notice as provided in Section 2.7 for such Loan, such Loan shall be automatically converted to an Alternate Base Rate Loan upon the expiration of the Interest Period with respect thereto; 
 (iii) any Interest Period pertaining to a LIBOR Loan that begins on the last Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of a calendar month; 
  

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 (iv) the Company shall select Interest Periods relating to LIBOR Loans so as not to have
more than twelve different Interest Periods relating to LIBOR Loans outstanding at any one time; and 
 (v) the Company shall
select Interest Periods pertaining to LIBOR Loans such that, on the date the mandatory repayment is required to be made under Section 2.6(b), the outstanding principal amount of all Alternate Base Rate Loans and LIBOR Loans with Interest
Periods ending on the date of such payment shall equal the aggregate principal amount of the Loans required to be repaid on such date. 
 “Issuing Bank” Sovereign Bank or such other Bank which issues a Letter of Credit for the benefit of the Company. 
 “Letters of Credit”: letters of credit issued pursuant to Section 2.2. 
 “LIBOR”: as
applicable to any LIBOR Loan, the rate per annum as determined on the basis of the offered rates for deposits in U.S. Dollars, for a period of time comparable to the Interest Period for such LIBOR Loan which appears on the Telerate (or its
successor’s) page 3750 as of 11:00 a.m. London time on the day that is two (2) Business Days (as such definition relates to LIBOR Loans) preceding the first day of such LIBOR Loan; provided, however, if the rate described above does
not appear on the Telerate (or its successor’s) system on any applicable interest determination date, LIBOR shall be the rate (rounded upward, if necessary, to the nearest one hundred-thousandth of a percentage point), determined on the basis
of the offered rates for deposits in U.S. dollars for a period of time comparable to the Interest Period for such LIBOR Loan which are offered by four major banks in the London interbank market at approximately 11:00 a.m. London time, on the day
that is two (2) Business Days (as such definition relates to LIBOR Loans) preceding the first day of such LIBOR Loan as selected by Agent. The principal London office of each of the four major London banks will be requested to provide a
quotation of its U.S. Dollar deposit offered rate. If at least two such quotations are provided, the rate for that date will be the arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the rate for that
date will be determined on the basis of the rates quoted for loans in U.S. dollars to leading European banks for a period of time comparable to Interest Period for such LIBOR Loan offered by major banks in New York City at approximately 11:00 a.m.
New York City time, on the day that is two (2) Business Days (as such definition relates to LIBOR Loans) preceding the first day of such LIBOR Loan. In the event that Agent is unable to obtain any such quotation as provided above, it will be
deemed that LIBOR pursuant to a LIBOR Loan cannot be determined. In the event that the Board of Governors of the Federal Reserve System shall impose a Reserve Percentage (as defined below) with respect to LIBOR deposits of member banks of the
Federal Reserve System then for any period during which such Reserve Percentage shall apply, LIBOR shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve Percentage. “Reserve Percentage” shall mean
the maximum aggregate reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed on member banks of the Federal Reserve System against “Euro-currency Liabilities” as defined in Regulation D.

  

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 “LIBOR Lending Office”: as to any Bank, initially the office of such Bank designated as
such on the signature page hereof, and thereafter such other office as reported by such Bank to the Agent, that shall be making or maintaining LIBOR Loans. 
 “LIBOR Loan”: Loans (or any portions thereof) at such time as they (or such portions) are made or being maintained at a rate of interest based upon LIBOR. 
 “Lien”: any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), or preference,
priority or other security agreement or security interest of any kind or nature whatsoever (including, without limitation, any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as
any of the foregoing, and the filing of any financing statement under the Uniform Commercial Code or comparable law of any jurisdiction). 
 “Loan Documents”: collectively, this Agreement, the Notes, and any document and instrument executed and/or delivered in connection herewith or therewith. 
 “Loans”: Revolving Credit Loans made pursuant to Section 2.1 and Letters of Credit issued pursuant to
Section 2.2(a). 
 “Majority Banks”: either: (a) at any time when there are fewer than three (3) Banks
party hereto, Banks having at least 100% of the Aggregate Commitments or (b) at any time when there are three (3) or more Banks party hereto, two or more Bank(s) having at least 66 2/3% of the Aggregate Commitments. 
 “Material Adverse Change”: a material adverse change in the business, assets, liabilities, condition (financial or otherwise), results of operations or business prospects of (a) the Company or (b) the Company and
its Subsidiaries “taken as a whole” which would reasonably be expected to render the Company unable to perform its obligations under the Loan Documents. The term “Material Adverse Change” shall include, without limitation, any
change in any law, regulation, treaty or directive or in the interpretation or application thereof by any Governmental Body, charged with the administration thereof or compliance by the Company with any request or directive from any Governmental
Body, the result of which would have a Material Adverse Effect. The term “Material Adverse Change” shall also include, without limitation, the occurrence or failure to occur of any event, which occurrence or failure to occur has a Material
Adverse Effect with respect to the Company. 
 “Material Adverse Effect”: (a) with respect to any Person (including,
without limitation, the Company), any materially adverse effect on such Person’s business, assets, liabilities, condition (financial or otherwise), results of operations or business prospects, (b) with respect to a group of Persons
“taken as a whole” (including, without limitation, the Company and its Subsidiaries), any materially adverse effect on such Persons’ business, assets, liabilities, financial conditions, results of operations or business prospects
taken as a whole on, where appropriate, a consolidated basis in accordance with GAAP, and (c) with respect to any Loan Document, any adverse effect, WHETHER OR NOT MATERIAL on the binding nature, validity or enforceability thereof as an
obligation of the Company. 
  

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 “Maturity Date”: (a) if all required Governmental Approvals have not been received
on or prior to the Effective Date, the Initial Maturity Date or (b) if all Governmental Approvals have been received (either on the Effective Date or no later than 30 days prior to the Initial Maturity Date), the Final Maturity Date.

 “Multiemployer Plan”: a Plan which is a multiemployer plan as defined in Section 4001 (a)(3) of ERISA. 

“Notes”: as defined in Section 2.4. 
 “PBGC”: the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA, or any Government Body succeeding to the functions thereof. 
 “Person”: an individual, partnership, corporation, limited liability company, limited liability partnership, business trust, joint stock
company, trust, unincorporated association, joint venture, Governmental Body or any other entity of whatever nature. 
 “Plan”: any pension plan which is covered by Title IV of ERISA and in respect of which the Company or a Commonly Controlled Entity is an “employer” as defined in Section 3(5) of ERISA. 
 “Prior Credit Agreement”: the Fourth Amended and Restated Credit Agreement, dated of June 16, 2004, as amended, by and among the
Company, Bank of America, N.A. (as successor in interest of Fleet National Bank) and Sovereign Bank. 
 “Property”: all
types of real, personal, tangible, intangible or mixed property. 
 “Regulation D”: Regulation D of the Board of Governors
of the Federal Reserve System, as amended from time to time. 
 “Replacement Note” as defined in Section 2.4(c).

 “Reportable Event”: any event described in Section 4043(b) of ERISA, other than an event with respect to which the
30-day notice requirement has been waived. 
 “Responsible Officer” President, Chief Executive Officer, Vice President,
Secretary, Treasurer and Chief Financial Officer. 
 “Revolving Credit Loans” Loans made pursuant to
Section 2.1. 
 “Short-Term Funded Debt”: debt with initial maturities of less than one (1) year.

 “Special Counsel”: Goulston & Storrs, or such other firm selected by the Agent. 
 “Subsidiary”: any corporation a majority of the voting shares of which are at the time owned by the Company or by other subsidiaries of
the Company or by the Company and other subsidiaries of the Company. 
  

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 “Taxes”: any present or future income, stamp or other taxes, levies, imposts, duties,
fees, assessments, deductions, withholdings, or other like charges, now or hereafter imposed, levied, collected, withheld, or assessed by any Governmental Body. 
 “Total Capitalization”: the sum of (a) all Consolidated Net Worth plus (b) Funded Debt. 
 “Type”: Loans made hereunder as Alternate Base Rate Loans or LIBOR Loans, as the case may be. 
 “Usage
Fee”: as defined in Section 3.6. 
 “VPSB”: the Vermont Public Service Board. 
 1.2. Other Definitional Provisions. 
 (a) All terms defined in this Agreement and not defined in Section 1.1 shall have the respective meanings given them in the text of this Agreement. 
 (b) Accounting terms relating to the Company not defined in Section 1.1, and accounting terms partly defined in Section 1.1, to the extent not defined, shall have the respective meanings given
to them under GAAP. 
 (c) The words “hereof”, “herein”, “hereto” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and paragraph, schedule and exhibit references, contained herein shall refer to paragraphs hereof or schedules
or exhibits hereto unless otherwise expressly provided herein. The word “or” shall not be exclusive. 
 2. AMOUNT AND TERMS OF LOANS AND
LETTERS OF CREDIT. 
 2.1. Loans. 
 (a) Subject to the terms and conditions of this Agreement, each Bank severally agrees to make Revolving Credit Loans to the Company from
time to time on and after the Effective Date to, but excluding the Maturity Date; provided that the sum of the aggregate unpaid principal amount of all Revolving Credit Loans made by or due to each Bank and such Bank’s share of the
aggregate outstanding face amount of all Letters of Credit at any one time shall not exceed an amount equal to such Bank’s Commitment; and provided further that the sum of the aggregate unpaid principal amount of the Revolving Credit
Loans at any one time outstanding and the aggregate outstanding face amount of all Letters of Credit shall not exceed the lesser of (i) the Aggregate Commitments and (ii) the aggregate outstanding principal balance of all Revolving Credit
Loans and Letters of Credit permitted to be outstanding hereunder. 
 (b) During the period from the Effective Date to the
Maturity Date, the Company may borrow, repay and reborrow Revolving Credit Loans hereunder, and may convert all or any part of the Revolving Credit Loans from one Type to another Type or continue all or any part of the Revolving Credit Loans as the
same Type in accordance with and subject to the terms and provisions hereof. 
  

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 2.2. Letters of Credit. 
 (a) Generally. Subject to and upon the terms and conditions contained herein, at the request of Company, prior to the Maturity Date
the Issuing Bank shall provide for one or more letters of credit in the aggregate amount not to exceed Ten Million Dollars ($10,000,000.00) for the account of Company containing terms and conditions acceptable to the applicable Issuing Bank and the
Agent (the “Letters of Credit”). Any payments made by the Issuing Bank in connection with the Letters of Credit shall constitute additional Loans to Company pursuant to Section 2.1 hereof. The Letters of Credit issued
hereunder and all obligations in connection therewith shall be obligations hereunder and under the Notes. 
 (b) Fees.
In addition to any charges, fees or expenses charged by any Issuing Bank in connection with the Letters of Credit, Company shall pay to Agent for the benefit of the Banks a letter of credit fee at a rate equal to the Applicable Margin in effect with
respect to LIBOR Loans per annum on the face amount of the Letters of Credit, payable in advance upon the issuance or renewal (including automatic renewals) of each such Letter of Credit and on each anniversary of the date of issuance for any Letter
of Credit having a term in excess of one year (any such amount that is payable upon the issuance (or any anniversary thereof) or renewal of such Letter of Credit is to be pro-rated for the period from the date of such issuance or renewal through the
expiration date of such Letter of Credit), except that Company shall pay to Agent for the benefit of the Banks such letter of credit fee, at Agent’s option, without notice, at the Applicable Margin plus 2.0% per annum on the face amount of
the Letters of Credit for the period from and after the date of the occurrence of an Event of Default for so long as such Event of Default is continuing, such amount to be payable in arrears (to the extent not previously paid upon issuance or
renewal) on the first day of each month for the immediately preceding month. Such letter of credit fee shall be calculated on the basis of a three hundred sixty (360) day year and actual days elapsed and the obligation of Company to pay such
fee shall survive the termination or non-renewal of the Agreement. In the event that, prior to the expiration date of any Letter of Credit, the original of such Letter of Credit is returned to the Agent such that the Agent no longer has any
obligation thereunder, the Banks shall credit the Company under this Agreement in an amount equal to that portion of the letter of credit fee that is attributable to the period from the date of such return to the date of such expiration. 

(c) Availability. No Letters of Credit shall be available unless on the date of the proposed issuance of any Letters of Credit,
the principal of the outstanding Loans does not exceed the sum of: (i) the Aggregate Commitments minus (ii) the face amount of all undrawn outstanding Letters of Credit minus (iii) the face amount of the proposed Letters
of Credit. Except in the sole discretion of 
  

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 the Issuing Bank and the Agent, no Letter of Credit shall be available unless its stated expiration date
is prior to the Maturity Date. Effective on the issuance of each Letter of Credit, the maximum amount of Loans that the Company may request hereunder shall be reduced by the face amount of such Letter of Credit. Upon the occurrence of and during the
continuation of an Event of Default, Company’s right to request Letters of Credit and each Issuing Bank’s commitment to issue Letters of Credit shall terminate. 
 (d) Maximum. Except in Banks’ discretion, the amount of all outstanding Loans and Letters of Credit shall not at any time
exceed $30,000,000.00. At any time an Event of Default exists or has occurred and is continuing, upon Agent’s request, Company will either furnish cash collateral to secure the reimbursement obligations to the Issuing Bank in connection with
any Letters of Credit or furnish cash collateral to Agent, for the benefit of the Issuing Bank, for the Letters of Credit in an amount equal to 105% of the aggregate face amount of such Letters of Credit. 
 (e) Indemnification. Company shall indemnify and hold Agent, any Issuing Bank and the other Banks harmless from and against any and
all losses, claims, damages, liabilities, costs and expenses which Agent, any Issuing Bank or the other Banks may suffer or incur in connection with any Letters of Credit and any documents, drafts or acceptances relating thereto, including any
losses, claims, damages, liabilities, costs and expenses due to any action taken by any Agent or an Issuing Bank or correspondent with respect to any Letters of Credit (except to the extent arising from the gross negligence or willful misconduct on
the part of the Agent, such Issuing Bank or the other Banks, as the case may be). Company assumes all risks with respect to the acts or omissions of the drawer under or beneficiary of any Letters of Credit and for such purposes the drawer or
beneficiary shall be deemed Company’s agent. Company assumes all risks for, and agrees to pay, all foreign, federal, state and local taxes, duties and levies relating to any goods subject to any Letters of Credit or any documents, drafts or
acceptances thereunder. Company hereby releases and holds Agent, any Issuing Bank and the other Banks harmless from and against any acts, waivers, errors, delays or omissions, whether caused by Company, by any issuer or correspondent or otherwise
with respect to or relating to any Letters of Credit (except to the extent arising from the gross negligence or willful misconduct on the part of the Agent, such Issuing Bank or the other Banks, as the case may be). The provisions of this
Section 2.2(d) shall survive the payment of obligations and the termination or non-renewal of this Agreement. 
 (f) Credit. Nothing contained herein shall be deemed or construed to grant Company any right or authority to pledge the credit of Agent, the Issuing Bank or any other Bank in any manner. Company shall be bound by any interpretation
made in good faith by Agent, any Issuing Bank or any other Banks under or in connection with any Letter of Credit or any documents, drafts or acceptances thereunder, notwithstanding that such interpretation may be inconsistent with any instructions
of Company. Agent shall have the sole and 
  

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 exclusive right and authority to, and Company shall not: (i) at any time an Event of Default exists
or has occurred and is continuing, (A) approve or resolve any questions of non-compliance of documents, (B) give any instructions as to acceptance or rejection of any documents or goods or (C) execute any and all indemnities or
delivery orders and (ii) at all times, (A) grant any extensions of the maturity of, time of payment for, or time of presentation of, any drafts, acceptances, or documents, and (B) agree to any amendments, renewals, extensions,
modifications, changes or cancellations of any of the terms or conditions of any of the applications, Letters of Credit, or documents, drafts or acceptances thereunder. Agent may take such actions either in its own name or in Company’s name.

 (g) Correspondents. Any rights, remedies, duties or obligations granted or undertaken by Company to Agent or any
correspondent in any application for any Letter of Credit, or any other agreement in favor of Agent or any Issuing Bank or any correspondent relating to any Letter of Credit, shall be deemed to have been granted or undertaken by Company to Agent or
such Issuing Bank. Any duties or obligations undertaken by Company to Agent or any Issuing Bank or any correspondent in any application for any Letter of Credit, or any other agreement by Agent, any Issuing Bank or any other Bank in favor of Agent,
any Issuing Bank or any correspondent relating to any Letter of Credit, shall be deemed to have been undertaken by Company to Agent, such Issuing Bank and the other Banks and to apply in all respects to Company. 
 (h) Conditions Precedent. No Issuing Bank shall have an obligation to issue any Letter of Credit hereunder unless and until all
conditions precedent in Sections 5 and 6 hereof are satisfied. 
 (i) Events of Default. Without limiting
any of the rights and remedies of the Agent, any Issuing Bank or the other Banks hereunder or otherwise, upon the occurrence of an Event of Default, Agent and each Issuing Bank may, at its option, without notice, (1) cease issuing or arranging
for Letters of Credit or reduce the amounts of Letters of Credit available to Company and/or (2) terminate any commitment providing for any future Letters of Credit to be made available by Agent or such Issuing Bank for Company. In addition to
the foregoing, upon termination of the Agreement, neither the Agent nor any Issuing Bank shall have any obligation or commitment to issue Letters of Credit. 
 (j) Fees; Reimbursement. Company shall pay all charges, fees and expenses reasonably incurred by Agent or any Issuing Bank or
charged by any Issuing Bank, other Bank or Agent in connection with the Letters of Credit. 
 (k) Participations.

 (i) Prior to issuance by the Issuing Bank of any Letter of Credit, the Agent shall notify each Bank of the issuance
thereof. Immediately upon the issuance by the Issuing Bank of any Letter of 
  

 13 

 Credit, each Bank shall be deemed to have irrevocably and unconditionally purchased and received from
such Issuing Bank, without recourse or warranty, an undivided interest and participation equal to the pro rata share of such Bank in all Letters of Credit and obligations arising in connection with such Letter of Credit and any security therefor or
guaranty pertaining thereto, but in no event greater than an amount which, when added to such Bank’s Revolving Credit Commitment with respect to Loans then outstanding, exceeds such Bank’s Revolving Credit Commitment. 
 (ii) If the Issuing Bank makes a payment on a Letter of Credit and the Company does not on such date repay or cause to be repaid the
amount of such payment, the Issuing Bank shall promptly notify the Agent and the Agent shall promptly notify each Bank of such payment and each Bank shall promptly and unconditionally pay to Agent, for the benefit of the Issuing Bank, in immediately
available funds, the amount of such Bank’s pro rata share of such payment. If a Bank does not make its pro rata share of the amount of such payment available to Agent, such Bank agrees to pay to Agent, for the benefit of the Issuing Bank,
forthwith on demand such amount together with interest thereon at the Federal Funds Effective Rate. The failure of any Bank to make available to Agent such Bank’s pro rata share shall not relieve any other Bank of its obligation hereunder to
make available to Agent its pro rata share, but no Bank nor the Agent shall be responsible for the failure of any other Bank to make available to Agent, for the benefit of the Issuing Bank, its pro rata share on the date such payment is to be made.

 (iii) Whenever the Agent receives a payment on account of the Letters of Credit, including any interest thereon, as to
which Agent has previously received payments from any Bank, the Agent shall promptly pay to each Bank which has funded its participating interest therein, in immediately available funds, an amount equal to such Bank’s pro rata share thereof.

 (iv) The obligation of each Bank to make payments to Agent, for the benefit of the Issuing Bank, in connection with any
payment under a Letter of Credit shall be absolute, unconditional and irrevocable, not subject to any counterclaim, setoff, qualification or exception whatsoever (other than for the gross negligence or willful misconduct of the Agent or the Issuing
Bank), and shall be made in accordance with the terms and conditions of this Agreement under all circumstances and irrespective of whether or not the Company may assert or have any claim for any lack of validity or unenforceability of this Agreement
or any of the other Loan Documents; the existence of any Event of Default; any draft, certificate or other document presented under a Letter of Credit having been determined to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or the existence of any setoff or defense the Company may have with respect to any of the Loans or Letters of Credit. 
  

 14 

 (v) Neither the Agent nor any Issuing Bank nor any of their respective officers,
directors, employees or agents shall be liable to any Banks for any action taken or omitted to be taken under or in connection with any of the Letters of Credit except as a result of gross negligence or willful misconduct on the part thereof. The
Agent and each Issuing Bank do not assume any responsibility for any failure or delay in performance or breach by the Company or any other Person of any of its obligations under any of the Letters of Credit or any documents, instruments, or
agreements executed or delivered in connection therewith. Neither the Agent nor any Issuing Bank makes to Banks any express or implied warranty, representation or guaranty with respect to the Letters of Credit or the Company. The Agent and each
Issuing Bank shall not be responsible to any Bank for any recitals, statements, information, representations or warranties contained in, or for the execution, validity, genuineness, effectiveness or enforceability of or any of the Letters of Credit
or any documents, instruments, or agreements executed or delivered in connection therewith; or the assets, liabilities, financial condition, results of operations, business, creditworthiness or legal status of the Company. With respect to any claims
by Banks, in connection with its administration of and enforcement of rights or remedies under any of the Letters of Credit or any documents, instruments, or agreements executed or delivered in connection therewith, the Issuing Bank shall be
entitled to act, and shall be fully protected in acting upon, any certification, notice or other communication in whatever form believed by such Issuing Bank, in good faith, to be genuine and correct and to have been signed or sent or made by a
proper Person. With respect to any claims by Banks, the Agent and any applicable Issuing Bank may consult with and employ legal counsel, accountants and other experts and to advise it concerning its rights, powers and privileges under the Letters of
Credit and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance upon, any advice given by such experts. With respect to any claims by Banks, the Agent and/or any Issuing Bank may employ agents and
attorneys-in-fact in connection with any matter relating to the Letters of Credit and shall not be liable for the negligence, default or misconduct of any such agents or attorneys-in-fact selected with reasonable care. Neither the Agent nor any
Issuing Bank shall have any liability to any Bank by reason of the Agent’s or such Issuing Bank’s refraining to take any action under any of the Letters of Credit or any documents, instruments, or agreements executed or delivered in
connection therewith without having first received written instructions from the Majority Banks to take such action. The Agent and each Issuing Bank will use the same degree of care and skill in administering all matters concerning any Letters of
Credit as it exercises in the administration of similar letters of credit issued by it in which no participations exist. The applicable Issuing Bank shall be solely responsible for examining drawing documents presented with any drawing under any
Letter of Credit in accordance with standards it applies to other Letters of Credit issued by it. 
  

 15 

 (vi) Each Bank agrees to indemnify and defend Agent and any applicable Issuing Bank (to
the extent the Agent or such Issuing Bank is not reimbursed by Company, but without limiting the indemnification obligations of Company under this Agreement), on a pro rata basis, from and against any and all claims which may be imposed on, incurred
by or asserted against Agent or such Issuing Bank in any way related to or arising out of the administration or enforcement of rights or remedies under any of the Letters of Credit or any of the transactions contemplated thereby (including costs and
expenses which Company is obligated to pay hereunder), provided that no Bank shall be liable to Agent or such Issuing Bank for any of the foregoing to the extent that they result solely from the Agent’s or such Issuing Bank’s willful
misconduct or gross negligence. 
 2.3. Procedure for Borrowings. 
 The Company may effect a Borrowing of a Loan on any Business Day occurring on or after the Effective Date by giving the Agent an irrevocable written
notice of borrowing (each, a “Borrowing Request” in the form of Exhibit C) (which Borrowing Request must be received by the Agent (a) prior to 10:00 a.m., Boston time, three Business Days (or fewer days, if each Bank in
its sole discretion agrees) prior to the requested Borrowing Date, if the Company is requesting that LIBOR Loans be made as part of such Borrowing, and (b) prior to 10:00 a.m., Boston time, one Business Day prior to the requested Borrowing
Date, if the Company is requesting that Alternate Base Rate Loans be made as part of such Borrowing), specifying (i) the amount to be borrowed, (ii) the requested Borrowing Date, (iii) whether such Borrowing is to consist of LIBOR
Loans, Alternate Base Rate Loans or a combination thereof, and (iv) if the Loans are to be LIBOR Loans, the length of the initial Interest Period for each thereof. Subject to the provisions of Sections 2.8 and 2.9, Loans may be Alternate
Base Rate Loans or LIBOR Loans, or any combination thereof. If the Borrower fails to specify a Type of Loan in a Borrowing Request or if the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans
shall be made as, or converted to, Alternative Base Rate Loans. If the Borrower requests a Borrowing of, conversion to or continuation of LIBOR Loans in any Borrowing Request, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month. 
 Each Borrowing shall be in an aggregate principal amount equal to or greater than $100,000 or,
if less, the undrawn balance of the Revolving Credit Commitments. The principal amount of each Bank’s Revolving Credit Loan made on a Borrowing Date shall be in an amount equal to such Bank’s Revolving Credit Commitment Percentage of the
Revolving Credit Loans made on such Borrowing Date. 
 Upon receipt of each Borrowing Request from the Company, the Agent shall promptly
notify each Bank thereof (such notice to be promptly confirmed in writing). Each Bank will make the amount of its Commitment Percentage of each Borrowing available to the 
  

 16 

 Agent for the account of the Company at the office of the Agent set forth in Section 11.1, not later than
12:00 noon (or 2:00 pm in the case of an Alternate Base Rate Loan), Boston time on the Borrowing Date requested by the Company, in funds immediately available to the Agent at such office. Amounts so made available to the Agent on a Borrowing Date
will, subject to the satisfaction of the terms and conditions of this Agreement as determined by the Agent, be made immediately available on such date to the Company by the Agent at the office of the Agent specified in Section 11.1 by
crediting the account of the Company on the books of such office with the aggregate of said amounts, in like funds as received by the Agent. 
 Unless the Agent shall have received prior notice from a Bank (by telephone or otherwise, such notice to be promptly confirmed by telex, telecopy or other writing) that such Bank will not make available to the Agent such Bank’s pro
rata share of the Loans requested by the Company, the Agent may assume that such Bank has made such share available to the Agent on such Borrowing Date in accordance with this paragraph; provided that such Bank received notice of the proposed
borrowing from the Agent, and the Agent may, in reliance upon such assumption, make available to the Company on such Borrowing Date a corresponding amount. If and to the extent such Bank shall not have so made such pro rata share available to the
Agent on such Borrowing Date, such Bank shall pay to the Agent on demand (in addition to such Bank’s pro rata share of the Loans to be funded on such Borrowing Date) an amount equal to the product of (i) the average computed for the period
referred to in clause (iii) below, of the weighted average interest rate paid by the Agent for federal funds acquired by the Agent during each day included in such period, times (ii) the amount of such Bank’s Commitment
Percentage of such Loans, times (iii) a fraction, the numerator of which is the number of days that elapse from and including such Borrowing Date to the date on which the amount of such Bank’s Commitment Percentage of such Loans
shall become immediately available to the Agent, and the denominator of which is 365. Such Bank shall not be entitled to receive interest on its pro rata share of the Loans for any period prior to the date it actually funds its pro rata share. If
and to the extent such Bank shall not have so made such pro rata share available to the Agent within three (3) days following such Borrowing Date (and if and to the extent Agent has funded Bank’s pro rata share of the Loans), the Company
shall pay to the Agent forthwith on demand (but without duplication) an amount equal to such Bank’s Commitment Percentage of such Loans, together with interest thereon for each day from the date such amount is made available to the Company
until the date such amount is paid to the Agent, at the applicable interest rate for such Loans as set forth in Section 2.8. Such payment by the Company, however, shall be without prejudice to its rights against such Bank. 
 2.4. Notes. 
 (a) Loans made by
each Bank with respect to Alternate Base Rate Loans and LIBOR Loans shall be evidenced by a promissory note of the Company, substantially in the form of Exhibit D, all with appropriate insertions therein (as endorsed and as amended or
otherwise modified from time to time, a “Note” and, collectively, the “Notes”), payable to the order of such Bank and representing the obligation of the Company to pay the aggregate unpaid principal amount of all
Loans made by such Bank, with interest thereon as prescribed or determined herein. Each Bank is hereby authorized to record the date and amount of each Loan made by such Bank and the other information applicable thereto, and each payment or
prepayment of principal of such Loan, on the applicable grid (and any continuations thereof annexed to and constituting a part of its Notes. No failure to so record or any error in so recording shall affect the obligation of the Company to repay
such Loans, with interest thereon, as herein provided. 
  

 17 

 (b) If all Governmental Approvals are received by the Borrower on or prior to the Effective Date, the
Company shall issue Note to each Bank (each a “Note”). Each Note shall (i) be dated as of the Effective Date, (ii) be stated to mature on the Final Maturity Date and (iii) bear interest for the period from and
including the date thereof on the unpaid principal amount thereof from time to time outstanding at the applicable interest rate per annum determined as provided herein. 
 (c) If all required Government Approvals have not been received by the Borrower on or prior to the Effective Date, then on the Effective Date the Company shall issue a Note to each Bank (each, an “Initial
Note”). Each Initial Note shall (i) be dated as of the Effective Date, (ii) be stated to mature on the Initial Maturity Date and (iii) bear interest for the period from and including the date thereof on the unpaid principal
amount thereof from time to time outstanding at the applicable interest rate per annum determined as provided herein. 
 (d) If all
Governmental Approvals were not received on the Effective Date but are received before the date which is 30 days prior to the Initial Maturity Date, the Company shall issue new a Note to each Bank (each a “Replacement Note”). Each
Replacement Note shall (i) be dated as of the Effective Date, (ii) be stated to mature on the Final Maturity Date and (iii) bear interest for the period from and including the date thereof on the unpaid principal amount thereof from
time to time outstanding at the applicable interest rate per annum determined as provided herein. Upon each Bank’s receipt of the applicable Replacement Note, such Bank will stamp “Cancelled” upon such Bank’s Initial Note and
return the Initial Note to the Company via overnight courier, at the sole cost and expense of the Company. 
 2.5. Reductions of the
Aggregate Revolving Credit Commitments. 
 (a) Voluntary Reductions of Revolving Credit Commitments. During the period from the
Effective Date to the Maturity Date the Company shall have the right, upon at least two Business Days’ prior written notice to the Agent, to reduce permanently the Aggregate Commitments in whole at any time, or in part from time to time,
without premium or penalty, provided, however, that (A) each partial reduction of such Aggregate Commitments shall be in an amount equal to at least $500,000 or such amount plus a whole multiple of $500,000, and (B) such Aggregate
Commitments shall not be reduced to an amount less than the aggregate principal balance of the Loans outstanding on the date of such reduction (after giving effect to reductions in such balance made on such date). 
 (b) General. Reductions of the Aggregate Commitments under clause (a) above shall reduce each Bank’s Commitment pro rata according to
the Commitment Percentage of such Bank. The Agent shall promptly notify each Bank of each reduction in the Aggregate Commitments under clause (a) above upon its receipt of notice thereof, and remit to each Bank its pro rata share of any
accompanying prepayments of the Loans according to the outstanding principal balance of the Loans. Simultaneously with each reduction of the Aggregate Commitments under this Section 2.5, the Company shall prepay the Revolving Credit
Loans in the amount, if any, by which the aggregate unpaid principal balance of the Loans exceeds the amount of the Aggregate Commitments as so reduced. 
  

 18 

 If any prepayment is made under this Section 2.5 or Section 2.6 with respect to
any LIBOR Loans, in whole or in part, prior to the last day of the applicable Interest Period with respect thereto, the Company agrees that it shall indemnify the Banks in accordance with Section 2.12. After giving effect to any
prepayment with respect to LIBOR Loans, no LIBOR Loans made (whether as a result of Borrowing or a conversion) on the same date and having the same Interest Period shall be outstanding in an aggregate principal amount of less than $500,000.

 2.6. Prepayments and Payment of Loans. 
 (a) Voluntary Prepayments. The Company may, at its option, prepay Alternate Base Rate Loans or LIBOR Loans in whole or in part, without premium or penalty, subject to its obligation to indemnify provided in
Section 2.12 (in the case of LIBOR Loans), at any time and from time to time upon at least one (1) Business Day’s prior irrevocable written notice to the Agent with respect to Alternate Base Rate Loans and at least three
(3) Business Days prior irrevocable written notice to the Agent with respect to LIBOR Loans, in each case specifying the amount to be prepaid, and the date and amount of prepayment. Upon receipt of such notice, the Agent shall promptly notify
each Bank thereof. Any such notice shall be irrevocable and the amount specified in such notice shall be due and payable on the date specified therein, together with accrued interest to the date of such payment on the amount being prepaid.
Prepayments shall be in an aggregate principal amount of at least Five Hundred Thousand ($500,000) Dollars, or, if less, the outstanding principal balance of the applicable Notes, provided, however, that after giving effect to any such
prepayment, no LIBOR Loans made (whether as the result of Borrowing or a conversion) on the same date and having the same Interest Period shall be outstanding in an aggregate principal amount of less than $500,000. 
 (b) Mandatory Repayment. On the applicable Maturity Date, (i) the Company shall repay in full the aggregate principal balance of all
Revolving Credit Loans outstanding on such date, together with accrued interest on such amount to such date and any Facility Fees, Closing Fees, Usage Fees, Agent’s Fees or other amounts owing hereunder with respect to the Letters of Credit,
the Revolving Credit Loans or under the Revolving Credit Notes and (ii) with respect to any then outstanding Letters of Credit, will either furnish cash collateral to secure the reimbursement obligations to the Agent in connection with any
Letters of Credit or furnish cash collateral to the Agent for the Letters of Credit in an amount equal to 105% of the aggregate face amount of such Letters of Credit in accordance with Section 2.2(d) hereof. 
 2.7. Conversion Options. 
 (a)
Conversion of Loans. The Company may elect from time to time to convert LIBOR Loans to Alternate Base Rate Loans by giving the Agent at least one Business Day’s prior written notice of such election (a “Conversion/Continuation
Request”) (in substantially the form of the Conversion/Continuation Request attached hereto as Exhibit E), specifying the amount to be so converted, provided, that any such conversion of LIBOR Loans shall only be made on the last day of
the Interest Period applicable thereto. In addition, in the absence of an Event of Default, the Company may elect from time to time to convert Alternate Base Rate Loans to 
  

 19 

 LIBOR Loans, by giving the Agent at least three Business Day’s (or fewer days, if each Bank in its sole discretion
agrees) prior irrevocable notice of such election, specifying the amount to be so converted and the Interest Period selected, provided that any such conversion of Alternate Base Rate Loans to LIBOR Loans shall only be made on a Business Day. In
either case, the Conversion/Continuation Notice shall be substantially in the form of the Conversion/Continuation Request in the form of Exhibit E. The Agent shall promptly provide the Banks with notice of any such election. Loans may be
converted pursuant to this Section 2.7, in whole or in part, provided that conversions of Alternate Base Rate Loans to LIBOR Loans or LIBOR Loans to Alternate Base Rate Loans shall each be in an aggregate principal amount of at least
$500,000. After giving effect to any such conversion, no LIBOR Loans made (whether as the result of a borrowing or a conversion) on the same date and having the same Interest Period shall be outstanding in an aggregate principal amount of less than
$500,000. 
 (b) Continuation of Loans. Any LIBOR Loans may be continued as such upon the expiration of any Interest Period with
respect thereto by the Company’s giving irrevocable written notice (in substantially the form of the Continuation/Conversion Request attached hereto as Exhibit E) to the Agent of its intention to do so three Business Days (or fewer days,
if each Bank in its sole discretion agrees) prior to the last day of such Interest Period, specifying the new Interest Period therefor, provided, however, that (i) if the Company shall fail to give notice as provided above, the
relevant LIBOR Loan shall convert to an Alternate Base Rate Loan immediately upon the expiration of the then current Interest Period with respect thereto, (ii) any LIBOR Loans that are being continued as such shall be in an aggregate principal
amount of at least $500,000 and (iii) no LIBOR Loans may be continued as such when any Event of Default has occurred and is continuing, but shall be automatically converted to an Alternate Base Rate Loan on the last day of the Interest Period
with respect thereto during which the Agent obtained knowledge of such Event of Default. The Agent shall notify the Banks promptly upon obtaining knowledge that an automatic conversion will occur pursuant to clause (iii) hereof. 
 2.8. Interest Rate and Payment Dates for Loans. 
 (a) Interest Rates for Loans Prior to Maturity. (i) Loans made as Alternate Base Rate Loans shall bear interest for the period from and including the date thereof, or, in the case of a Loan that has been
converted from a LIBOR Loan, from the Conversion Date thereof, until maturity or until converted into LIBOR Loans, on the unpaid principal amount thereof at the Alternate Base Rate and (ii) Loans made as LIBOR Loans shall bear interest for each
Interest Period with respect thereto on the unpaid principal amount thereof at the sum of the applicable rate of interest per annum based on LIBOR for each such Interest Period plus the Applicable Margin. Any change in the Applicable Margin
with respect to any Loans resulting from a change in the Debt Rating of the Company shall be effective as of the opening of business on the day of the change in the Debt Rating of the Company. 
 (b) Overdue Amounts. If any amounts payable hereunder shall not be paid when due (whether at the stated maturity thereof, by acceleration, notice
of intention to prepay or otherwise), such overdue amounts shall bear interest payable on demand at a rate per annum equal to 2% above the (i) Alternate Base Rate for Alternate Base Rate Loans at such time from the date of such nonpayment until
paid in full, and whether before or after the entry of any judgment thereon and (ii) sum of the applicable LIBOR plus the Applicable Margin for LIBOR Loans, from the date of such nonpayment until the end of the Interest Period with
respect thereto and whether before or after the entry of any judgment thereon. 
  

 20 

 (c) General. Interest on the Loans shall be payable in arrears on each Interest Payment Date and
upon payment (including prepayment) in full thereof; provided, however, that after an Event of Default has occurred and is continuing, interest on all Loans shall be payable on demand made from time to time. 
 (d) Interest Rate Hedging. The Company and each and every Bank, each in their individual discretion, may enter with each other into interest rate
hedging agreements or instruments with respect to the Company’s obligations under this Agreement. 
 2.9. Substituted Interest
Rate. In the event that the Agent shall have reasonably determined in good faith (which determination shall be conclusive and binding upon the Company) that by reason of circumstances affecting the London interbank market, (i) either
adequate and reasonable means do not exist for ascertaining the applicable LIBOR applicable pursuant to Section 2.8(a) or (ii) any Bank shall have notified the Agent that it has reasonably determined in good faith (which
determination shall be conclusive and binding on the Company) that the applicable LIBOR will not adequately and fairly reflect the cost to such Bank of making or maintaining its funding of a LIBOR Loan with respect to (a) a proposed Loan that
the Company has requested be made as a LIBOR Loan or (b) a LIBOR Loan that will result from the requested conversion of any Loan into a LIBOR Loan (any such Loan being herein called an “Affected Loan”), the Agent shall promptly
notify the Company and the Banks (by telephone or otherwise) of such determination no later than 10:00 a.m. (Boston time) one Business Day prior to the requested Borrowing Date for such Affected Loan, or the requested Conversion Date of such Loan,
as the case may be. If the Agent shall give such notice, the Company may by no later than 11:00 a.m. (Boston time) on the same Business Day, (i) cancel the Borrowing Request and/or Continuation/Conversion Request with respect to such Affected
Loan or request that such Affected Loan be made as an Alternate Base Rate Loan in accordance with Section 2.3 hereof or (ii) cancel its request to convert to an Affected Loan or request that any Loan that was to have been converted
to an Affected Loan be converted to an Alternate Base Rate Loan in accordance with Section 2.7 hereof. Until such notice has been withdrawn by the Agent (by notice to the Company promptly upon the Agent having been notified by such Bank
that circumstances would no longer render any Loan an Affected Loan) no further Affected Loans shall be made and Company shall not have the right to convert any Loan to an Affected Loan. 
 2.10. Illegality. Notwithstanding any provision hereof to the contrary, if any change in any law, regulation, treaty or directive, or in
the interpretation or application thereof, shall make it unlawful for any Bank to make or maintain LIBOR Loans as contemplated by this Agreement, (a) the commitment of such Bank hereunder to make LIBOR Loans or to convert Alternate Base Rate
Loans to LIBOR Loans or to continue LIBOR Loans as such shall forthwith be suspended and (b) such Bank’s Loans then outstanding as LIBOR Loans shall be converted to Alternate Base Rate Loans on the last day of the then current Interest
Period applicable thereto, or within such earlier period as required by law. If the commitment of any Bank with respect to LIBOR Loans is suspended pursuant to this Section 2.10 and it shall once again become legal for such Bank to make
or maintain its funding of LIBOR Loans, such Bank’s commitment to make or maintain such LIBOR Loans shall be reinstated. Each Bank agrees to promptly notify the Company and the Agent upon learning of any change referred to above, as well as of
any reinstatement of its ability to make and maintain LIBOR Loans as contemplated by this Agreement. 
  

 21 

 2.11. Increased Costs. 
 In the event that any change in any law, regulation, treaty or directive or in the interpretation or application thereof by any Governmental Body charged
with the administration thereof or compliance by any Bank with any request or directive from any central bank or other Governmental Body (a “Regulatory Change”): 
 (i) subjects any Bank to any tax of any kind whatsoever with respect to any LIBOR Loan or its obligations under this Agreement to make
LIBOR Loans, or changes the basis of taxation of payments to such Bank of principal, interest or any other amount payable hereunder in respect of its LIBOR Loans (except for imposition of, or change in the rate of, tax on the overall net income of
such Bank); 
 (ii) imposes, modifies or makes applicable any reserve, special deposit, compulsory loan, assessment or similar
requirement against assets held by, or deposits of, or advances or loans by, or other credit committed or extended by, or any other acquisition of funds by, any office of such Bank in respect of its LIBOR Loans which is not otherwise included in the
determination of LIBOR; or 
 (iii) imposes on such Bank any other condition with respect to Loans hereunder, the Commitments,
or Letters of Credit; 
 and the result of any of the foregoing is to increase the cost to such Bank of making, renewing, converting or maintaining its LIBOR
Loans, or to reduce any amount receivable in respect of its LIBOR Loans, then, in any such case, the Company shall promptly pay to such Bank, upon its demand, any additional amounts necessary to compensate such Bank for such additional cost or
reduction in such amount receivable. A statement setting forth the calculations of any additional amounts payable pursuant to the foregoing sentence submitted by a Bank to the Company shall be presumed to be correct absent manifest error.

 2.12. Indemnity. Notwithstanding anything contained herein to the contrary, if the Company shall fail to borrow on a
Borrowing Date after it shall have given a Borrowing Request, to the extent only that such Borrowing Request includes LIBOR Loans, or if the right of the Company to have LIBOR Loans outstanding hereunder shall be suspended or terminated in
accordance with the provisions of this Agreement prior to the last day of the Interest Period applicable thereto, or if, while a LIBOR Loan is outstanding, any repayment or prepayment of the principal amount of such LIBOR Loan is made for any reason
(including, without limitation, as a result of acceleration or illegality) on a date which is prior to the last day of the Interest Period applicable thereto, the Company agrees to indemnify each Bank against, and to pay on demand directly to such
Bank, an amount, if greater than zero, equal to (i): 
  

					
	A x (B-C)	 	x	 	D   

		 		 	365

 where: 
 “A” equals the Affected Principal Amount; 
  

 22 

 “B” equals LIBOR (expressed as a decimal), as the case may be, applicable to such LIBOR Loan;

 “C” equals the applicable LIBOR (expressed as a decimal), as the case may be, in effect on the date of such failure to borrow,
termination, prepayment or repayment, based on the applicable rates offered or bid, as the case may be, on such date (or, if no such rate is determinable on such date, the rate or rates offered or bid, as the case may be, determinable on the date
closest thereto), for deposits in an amount equal approximately to the Affected Principal Amount with an Interest Period equal approximately to the period commencing on the first day of such Remaining Interest Period and ending on the last day of
such Remaining Interest Period or ending on the last day of the applicable Interest Payment Period, as the case may be, as determined by the Bank; 
 “D” equals the number of days from and including the first day of the Remaining Interest Period to but excluding the last day of such Remaining Interest Payment Period; 
 and (ii) any additional amounts necessary to compensate such Bank for such additional cost or reduction in such amount receivable and any other out-of-pocket loss
or expense (including any internal processing charge customarily charged by such Bank) suffered by such Bank in liquidating deposits prior to maturity in amounts which correspond to the proposed borrowing, prepayment or repayment. The determination
by each Bank of the amount of any such loss or expense shall be presumed to be correct absent manifest error. 
 2.13. Use of
Proceeds. The proceeds of the Loans shall be used only to refinance the existing debt of the Company (including the obligations owed under the Prior Credit Agreement), for working capital, capital expenditures, and other general corporate
purposes (including, without limitation, the acquisition of capital stock of the Company to the extent otherwise permitted hereunder). 
 2.14. Capital Adequacy. If either (i) the introduction of, or any change or phasing in of, any law or regulation or in the interpretation thereof by any Governmental Body charged with the administration thereof or
(ii) compliance with any directive, guideline or request from any central bank or Governmental Body (whether or not having the force of law) promulgated or made after the date hereof (but including, in any event, any law, rule, regulation,
interpretation, directive, guideline or request contemplated by the report dated July 1988 entitled “International Convergence of Capital Measurement and Capital Standards” issued by the Basle Committee on Banking Regulations and
Supervisory Practices) affects or would affect the amount of capital required or expected to be maintained by a Bank (or any lending office of such Bank) or any 
  

 23 

 corporation directly or indirectly owning or controlling such Bank (or any lending office of such Bank) and such Bank
shall have determined that such introduction, change or compliance has or would have the effect of reducing the rate of return on such Bank’s capital or the asset value to such Bank of any Loan made by such Bank as a consequence, directly or
indirectly, of its obligations to make and maintain the funding of Loans hereunder to a level below that which such Bank could have achieved but for such introduction, change or compliance (after taking into account such Bank’s policies
regarding capital adequacy) by an amount deemed by such Bank to be material then, upon demand by such Bank, the Company shall promptly pay to such Bank such additional amount or amount as shall be sufficient to compensate such Bank for such
reduction on the rate of return. Each Bank shall calculate such amount or amounts payable to it under this paragraph 2.14 in a manner consistent with the manner in which it shall calculate similar amounts payable to it by other borrowers having
provisions in their credit agreements comparable to this paragraph 2.14. Each Bank agrees to provide the Company with a certificate setting forth a description of any such amount in respect of which it seeks payment under this
Section 2.14. Each Bank’s determination of such amount or amounts that will compensate such Bank for such reductions shall be presumed correct absent manifest error. 
 2.15. Notice of Costs: Substitution of Banks. Each Bank will notify the Company of any event that will entitle such Bank to compensation
under Sections 2.11 and 2.14 as promptly as practicable, but in any event within 45 days after an officer of the Bank responsible for matters concerning this Agreement has knowledge of such event. If such Bank fails to give such notice, such
Bank shall only be entitled to such compensation for the period commencing forty-five (45) days prior to the date of the giving of such notice. Each Bank shall use its best efforts to avoid the need to give a notice under Section 2.11
or 2.14 by designating a different Applicable Lending Office outside of the United States if such designation would avoid the need to give such notice and will not, in the sole opinion of such Bank, be disadvantageous to such Bank. In the event
the Company receives such notice or is otherwise required under the provisions of Section 2.11 or 2.14 to make payments in a material amount to any Bank, the Company may, so long as no Event of Default shall have occurred and be
continuing, elect to substitute such Bank as a party to this Agreement; provided that, concurrently with such substitution, (i) the Company shall pay that Bank all principal, interest and fees and other amounts (including without limitation,
amounts, if any, owed under Section 2.2, 2.11, 2.12 or 2.14) owed to such Bank in connection with the Loans and any applicable fees in connection with the Letters of Credit through such date of termination, (ii) another commercial
bank satisfactory to the Company and the Agent (or if the Agent is also the Bank to be substituted, the successor Agent) shall agree, as of such date, to become a Bank (whether by assignment or amendment) for all purposes under this Agreement and to
assume all obligations of the Bank to be substituted as of such date, and (iii) all documents, supporting materials and fees necessary, in the judgment of the Agent (or if the Agent is also the Bank to be substituted, the successor Agent) to
evidence the substitution of such Bank shall have been received and approved by the Agent as of such date. 
 2.16. Extension of Maturity
Date. 
 If all required Governmental Approvals are not received on or prior to the Effective Date but are received prior to the date
which is 30 days prior to the Initial Maturity Date, and subject to (i) the terms and conditions set forth in this Agreement (including satisfaction of the 
  

 24 

 conditions precedent set forth in Sections 5 and 6 hereof), (ii) the receipt by the Company of all necessary
Governmental Approvals, including, without limitation, the approval of the VPSB of the Credit Agreement, or the determination by VPSB that its approval is not required, (iii) the payment of the portion of the Closing Fee not paid on the
Effective Date and (iv) the receipt by each Bank of an executed Replacement Note in the form described in Section 2.4(c) made payable to such Bank, upon the delivery of a written notice to the Agent by the Company substantially in
the form of Exhibit I hereto (an “Extension Request”), no later than thirty (30) days prior to the Initial Maturity Date, the aggregate principal amount of all Revolving Credit Loans remaining outstanding on the close of
the Agent’s business on the Initial Maturity Date shall automatically convert to Revolving Loans of like amount with a Maturity Date of June 14, 2011. 
 2.17. Increase in Commitments. 
 (a) Request for Increase. Provided there exists no
Default or Event of Default, upon notice to the Agent (which shall promptly notify the Banks), the Borrower may, from time to time, request an increase in the Aggregate Commitments by an amount (for all such requests) not exceeding $15,000,000.00;
provided that (i) any such request for an increase shall be in a minimum amount of $5,000,000, (ii) the Borrower may make a maximum of three (3) such requests and (iii) each Bank shall have a right of first refusal to
increase its Commitment by an amount equal to its Pro Rata Share of such requested increase. At the time of sending such notice, the Borrower (in consultation with the Agent) shall specify the time period within which each Bank is requested to
respond (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Bank). 
 (b)
Bank Elections to Increase. Each Bank shall notify the Agent in writing within such time period whether or not it agrees to increase its Commitment by an amount less than or equal to its Pro Rata Share of such requested increase. Any Bank not
responding within such time period shall be deemed to have declined to increase its Commitment. 
 (c) Notification by Agent; Additional
Banks. The Agent shall notify the Borrower and each Bank of the Banks’ responses to each request made hereunder. To achieve the full amount of a requested increase and subject to the approval of the Agent (which approval shall not be
unreasonably withheld), the Borrower may also invite additional Eligible Assignees to become Banks pursuant to a joinder agreement in form and substance reasonably satisfactory to the Agent and its counsel. 
 (d) Effective Date and Allocations. If the Aggregate Commitments are increased in accordance with this Section, the Agent and the Borrower shall
determine the effective date (the “Increase Effective Date”). The Agent shall promptly notify the Borrower and the Banks of the Increase Effective Date. 
 (e) Conditions to Effectiveness of Increase. As a condition precedent to such increase, the Borrower shall deliver to the Agent a certificate, dated as of the Increase Effective Date signed by a Responsible
Officer of the Borrower (i) certifying and attaching the resolutions adopted by the Borrower approving or consenting to such increase and (ii) certifying that, before and after giving effect to such increase, (A) all Governmental
Approvals required in connection 
  

 25 

 with such increase have been received; (B) the representations and warranties contained in Section 3 and
the other Loan Documents are true and correct in all material respects on and as of the Increase Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and
correct in all material respects as of such earlier date and (C) no Default or Event of Default exists. 
 3. FEES; PAYMENTS. 

3.1. Facility Fee. The Company agrees to pay to the Agent for the account of the those Banks with Commitments or Loans outstanding a fee
(the “Facility Fee”) equal to the rate per annum determined by reference to Schedule II on Exhibit B hereto based upon the Debt Rating of the Company multiplied by the Aggregate Commitments, which Facility Fee
shall be payable in arrears on the last day of each March, June, September and December of each year, commencing on the first such date following the Effective Date and continuing until the later of the Maturity Date or the date on which all
Commitments are terminated and all sums due hereunder in respect of Loans and under the Notes are paid in full; provided that if the Company has no Debt Rating, the Facility Fee shall be determined at the highest rate per annum for the relevant
period set forth on Exhibit B. 
 3.2. Fees of the Agent. The Company agrees to pay to the Agent for its own account,
such fees (the “Agent’s Fees”) for its services hereunder in such amounts and at such times as previously agreed upon by the Company and the Agent under that certain Agent’s Fee Letter dated as of or about the date hereof.

 3.3. Computation of Interest and Fees. 
 (a) Interest in respect of Alternate Base Rate Loans and all other fees payable by the Company hereunder shall be calculated on the basis of a 365-day year (or 366-day year in a leap year) for the actual number of
days elapsed. Interest in respect of LIBOR Loans shall be calculated on the basis of a 360-day year for the actual number of days elapsed. Any change in the interest rate on a Loan resulting from a change in the Alternate Base Rate or LIBOR shall
become effective as of the opening of business on the day on which such change shall become effective. The Agent shall, as soon as practicable, notify the Company and the Banks of the effective date and the amount of each such change but failure of
the Agent to do so shall not in any manner affect the obligation of the Company to pay interest on the Loans in the amounts and on the dates required. 
 (b) Each determination of the Alternate Base Rate or LIBOR by the Agent pursuant to any provision of this Agreement shall be presumed to be correct absent manifest error. 
 3.4. Pro Rata Treatment and Application of Principal Payments. Each Borrowing by the Company from the Banks, any conversion of Loans from
one Type to the same or another Type, and any reduction of the Aggregate Commitments of the Banks, shall be made pro rata according to the Commitment Percentage of each Bank. Subject to the following sentence (a) prior to the occurrence of an
Event of Default, all payments (including prepayments) on account of principal and interest on Loans shall be applied as directed by the Company; and (b) upon and following the occurrence of an Event of Default, all payments (including

  

 26 

 prepayments) on account of principal, interest, fees, and charges shall be applied to such principal, interest, fees, and
charges in the order and in the amounts determined by the Agent in its discretion. All payments (including prepayments) to be made by the Company on account of principal and interest on Loans comprising the same Borrowing (whether such Borrowing is
selected to be paid (or prepaid) by the Company under clause (a) of the foregoing sentence or selected to be paid (or prepaid) by the Agent under clause (b) of the foregoing sentence) shall be made pro rata according to the outstanding
principal amount of each Bank’s Loans. All payments by the Company on all Loans shall be made without set-off or counterclaim and shall be made prior to 12:00 noon, Boston time, on the date such payment is due, to the Agent for the account of
the Banks at the Agent’s office specified in Section 11.1, in each case in lawful money of the United States of America and in immediately available funds, and, as between the Company and the Banks, any payment by the Company to the
Agent for the account of the Banks shall be deemed to be payment by the Company to the Banks; provided, however, that any payment received by the Agent on any Business Day after 12:00 noon shall be deemed to have been received on the immediately
succeeding Business Day. The Agent shall distribute such payments to the Banks promptly upon receipt in like funds as received. If any payment hereunder or on any Note becomes due and payable on a day other than a Business Day, the maturity thereof
shall be extended to the next succeeding Business Day (unless, in the case of LIBOR Loans, the result of such extension would be to extend such payment into another calendar month, in which event such payment shall be made on the immediately
preceding Business Day) and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. 
 3.5. Closing Fee. 
 (a) If, prior to the Effective Date, the Company has received all
Governmental Approvals required for the Commitments to extend until the Final Maturity Date, the Company agrees to pay on the Effective Date to the Agent for the account of the Banks a closing fee (the “Closing Fee”) in an amount
equal to $24,000, to be divided among those Banks that are parties hereto as of the Effective Date, pro rata according to the Commitment Percentage of each Bank. 
 (b) If, on the Effective Date, the Company has not received all Governmental Approvals required for the Commitments to extend until the Final Maturity Date, the Company will pay a portion of the Closing Fee in an
amount equal to $9,000 on the Effective Date and will pay the remaining $15,000 of the Closing Fee once all required Governmental Approvals are received and the Commitments are extended until the Final Maturity Date; provided, however, if the
Borrower does not receive all necessary Governmental Approvals at least thirty (30) days prior to the Initial Maturity Date, the Closing Fee shall be reduced to $9,000. 
 3.6. Usage Fee. 
 With respect
to any period during which the sum of the unpaid aggregate principal balance of the Revolving Credit Loans and the aggregate outstanding face amount of all Letters of Credit exceeds fifty (50%) percent of the Aggregate Commitments (as the same
may be reduced pursuant to Section 2.5(a), the Company agrees to pay to the Agent, for the account of the Banks, a per annum fee equal to one-tenth of one percent (0.10%) of the sum of the unpaid principal balance of all Revolving Credit Loans
(whether consisting of Alternate Base Rate 
  

 27 

 Loans or LIBOR Loans) and the aggregate outstanding face amount of all Letters of Credit, which Usage Fee shall be
payable in arrears on the last Business Day of each March, June, September and December of each year, commencing on the first date following the Effective Date and continuing until the Maturity Date. 
 4. REPRESENTATIONS AND WARRANTIES. In order to induce the Agent and the Banks to enter into this Agreement, the Company hereby represents and warrants to
the Agent and to each Bank that: 
 4.1. Subsidiary. The Company has only the Subsidiaries set forth in Exhibit F. The
shares of each corporate Subsidiary owned by the Company are duly authorized, validly issued, fully paid and non-assessable and are owned free and clear of any Liens, except Liens permitted by Section 8.2. 
 4.2. Corporate Existence and Power. The Company is a corporation duly organized, validly existing and in good standing under the laws of
the State of Vermont and has all requisite corporate power and authority to own its Property and to carry on its business as now conducted. The Company is in good standing and duly qualified to do business in each jurisdiction in which the failure
to so qualify would have a Material Adverse Effect. 
 4.3. Corporate Authority. The Company has full corporate power and
authority to enter into, execute, deliver and carry out the terms of this Agreement and to make the borrowings contemplated hereby, to execute, deliver and carry out the terms of the Notes and to incur the obligations provided for herein and
therein, all of which have been duly authorized by all necessary corporate action on its part and are in full compliance with its Charter and By-Laws, provided that the consent of the VPSB (or a determination by the VPSB that no such consent is
required) shall be necessary for the extension of the Maturity Date pursuant to Section 2.16. No consent or approval of, or exemption by, shareholders or any Governmental Body is required to authorize, or is required in connection with
the execution, delivery and performance of, this Agreement and the Notes, or is required as a condition to the validity or enforceability of this Agreement and the Notes, except that the Company may be required to obtain the consent of the VPSB (or
a determination by the VPSB that such consent is not required) for the extension of the Maturity Date pursuant to Section 2.16. 
 4.4. Binding Agreement. This Agreement constitutes, and the Notes, when issued and delivered pursuant hereto for value received, will constitute, the valid and legally binding obligations of the Company enforceable against the
Company in accordance with their respective terms, except as such enforceability may be limited by equitable principles and by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors generally.

 4.5. Litigation. On the Closing Date, and except for the matters set forth in Schedule 4.5 hereto, there are no
actions, suits or arbitration proceedings (whether or not purportedly on behalf of the Company or any Subsidiary) pending or to the knowledge of the Company threatened against the Company or any Subsidiary, or maintained by the Company or

  

 28 

 any Subsidiary, in law or in equity before any Governmental Body which, if decided adversely to the Company or such
Subsidiary, would have a Material Adverse Effect upon the Company after giving effect to reserves reflected in the Financial Statements or the footnotes thereto. On the Closing Date, there are no proceedings pending or to the knowledge of the
Company threatened against the Company which call into question the validity and enforceability of this Agreement or the Notes. 
 4.6.
Non Conflicting Agreements. Except for the matters set forth in Schedule 4.6 hereto, the Company is not in default under any agreement to which it is a party or by which it or any of its Property is bound, the effect of which would
have a Material Adverse Effect upon the Company. No provision of the Charter or By-Laws of the Company, and no provision of any existing mortgage, indenture contract, agreement, statute (including, without limitation, any applicable usury or similar
law), rule, regulation, judgment, decree or order binding on the Company or any Subsidiary could in any way prevent the execution, delivery or carrying out of the terms of this Agreement and the Notes, and the taking of any such action will not
constitute a default under, or result in the creation or imposition of, or obligation to create, any Lien not permitted by paragraph 8.2 upon the Property of the Company pursuant to the terms of any such mortgage, indenture, contract or agreement,
provided that the consent of the VPSB to the Credit Agreement (or a determination by the VPSB that no such consent is required) may be necessary for the Maturity Date to be extended from the Initial Maturity Date to the Final Maturity Date.

 4.7. Taxes. The Company has filed or caused to be filed all tax returns material to the Company required by law to be filed,
and has paid, or has made adequate provision for the payment of, all taxes shown to be due and payable on said returns or in any assessments made against it. No tax Liens have been filed and no claims are being asserted with respect to such taxes
which are required by GAAP to be reflected in the Financial Statements and are not so reflected therein. The Internal Revenue Service has audited and settled upon, or the applicable statutes of limitation have run upon, all Federal income tax
returns of the Company through the tax year ended December 31, 2005, and, to the extent required by GAAP, the results of all such audits are reflected in the Financial Statements. The charges, accruals and reserves on the books of the Company
with respect to all taxes are considered by the management of the Company to be adequate, and the Company knows of no unpaid assessment which is due and payable against the Company which would have a Material Adverse Effect, except such thereof as
are being contested in good faith and by appropriate proceedings diligently conducted and for which adequate reserves have been set aside in accordance with GAAP. 
 4.8. Financial Statements. The Company heretofore delivered to each Bank (i) copies of the Consolidated Balance Sheet at December 31, 2005, and the related Consolidated Statements of Income,
Cash Flows and Capitalization Data for the year ended December 31, 2005 and (ii) copies of the Consolidated quarterly report of the Company and its Subsidiaries as of March 31, 2006, containing a Consolidated balance sheet and
Consolidated statements of income and cash flows of the Company and its Subsidiaries (the statements in (i) and (ii) above being sometimes referred to herein as the “Financial Statements”). The financial statements set
forth in (i) above were audited and reported on by the Accountants on March 14, 2006 and the financial statements set forth in (ii) above were prepared by the Company. The Financial Statements fairly present the Consolidated financial
condition and the Consolidated results of operations of the Company and its Subsidiaries as of the dates and for the periods indicated 
  

 29 

 therein, and have been prepared in conformity with GAAP. Except (a) as reflected in the financial statements
specified in (i) above or in the footnotes thereto, or (b) as otherwise disclosed to the Banks in a writing specifically referring to this paragraph 4.8, neither the Company nor any Subsidiary has any obligation or liability of any kind
(whether fixed, accrued, contingent, unmatured or otherwise) which is material to the Company and its Subsidiaries on a Consolidated basis and which, in accordance with GAAP, should have been shown on such financial statements and were not, other
than those incurred in the ordinary course of their respective businesses since December 31, 2005. Since December 31, 2005, each of the Company and each Subsidiary has conducted its business only in the ordinary course, and as of the
Effective Date, except for the matters set forth in Schedule 4.8 hereto, there has been no Material Adverse Change. 
 4.9.
Compliance with Applicable Laws. Except as set forth in Schedule 4.9 hereto, neither the Company nor any Subsidiary is in default with respect to any judgment, order, writ, injunction, decree or decision of any Governmental Body
applicable to the Company or such Subsidiary which default would have a Material Adverse Effect upon the Company. Except as set forth in Schedule 4.9 hereto, each of the Company and each Subsidiary is complying in all material respects with
all applicable material statutes and regulations of all Governmental Bodies, including ERISA and all Environmental Laws, a violation of which would have a Material Adverse Effect upon the Company. 
 4.10. Governmental Regulations. The Company is not an “Investment Company” as such term is defined in the Investment Company Act
of 1940, as amended. 
 4.11. Property. The Company has good and marketable title to all of its Property, title to which is
material to the Company, subject to no Lien, except as permitted by Section 8.2. 
 4.12. Federal Reserve
Regulations. The Company is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System, as amended. No part of the proceeds of the Loans will be used (i) to purchase or carry any such margin stock, (ii) to extend credit to others for the purpose of purchasing or carrying any margin
stock, (iii) for a purpose which violates the provisions of Regulations T, U and X of the Board of Governors of the Federal Reserve System, as amended, or (iv) for a purpose which violates any other applicable law, rule or regulation of
any Governmental Body. 
 4.13. No Misrepresentation. No representation or warranty contained herein and no certificate or
report furnished or to be furnished by the Company in connection with the transactions contemplated hereby, contains or will contain a misstatement of material fact, or omits or will omit to state a material fact required to be stated in order to
make the statements herein or therein contained not misleading in the light of the circumstances under which made. 
 4.14. Pension
Plans. Each Plan, and to the best of the Company’s knowledge each Multiemployer Plan, established or maintained by the Company and its Subsidiaries, is in material compliance with the applicable provisions of ERISA and the Code, and the
Company and its Subsidiaries have filed all material reports required to be filed with respect to each such 
  

 30 

 Plan by ERISA and the Code. The Company and its Subsidiaries have met all requirements with respect to funding the Plans
imposed by ERISA or the Code. Since the effective date of ERISA, there have not been, nor are there now existing, any events or conditions which would permit any Plan and to the best of the Company’s knowledge any Multiemployer Plan to be
terminated under circumstances which would cause the Lien provided under Section 4068 of ERISA to attach to the Property of the Company or any of its Subsidiaries. Since the effective date of ERISA, no reportable event as defined in Title IV of
ERISA, which constitutes grounds for the termination of any Plan and to the best of the Company’s knowledge any Multiemployer Plan, has occurred and no Plan or any related trust has been terminated in whole or in part which would have a
Material Adverse Effect. 
 4.15. Approvals. The Company has obtained all authorizations, approvals or consents of and made all
filings or registrations with all Governmental Bodies as are necessary to be obtained or made by the Company for the execution, delivery or performance by the Company of this Agreement or the Notes and all such authorizations, approvals and consents
are in full force and effect, provided that the consent of the VPSB (or a determination by the VPSB that no such consent is required) may be necessary for the extension of the Maturity Date pursuant to Section 2.16. 
 4.16. Payoff of Prior Credit Agreement. The Company shall have repaid all obligations owed with respect to the Prior Credit
Agreement. 
 4.17. No Adverse Change or Event. On the Effective Date, except for the matters set forth in Schedule
4.17, no change in the business, assets, liabilities, condition (financial or otherwise), results of operations or business prospects of the Company has occurred, including, without limitation as a result of any decision of any Governmental
Body, and no event has occurred or failed to occur, including, without limitation as a result of any decision of any Governmental Body, that has had or would reasonably be expected to have, either alone or in conjunction with all other such changes,
events and failures, a Material Adverse Effect on (a) the Company or (b) any Loan Document. 
 5. CONDITIONS OF BORROWING - FIRST BORROWING
AND EFFECTIVE DATE. In addition to the requirements set forth in Section 6, the obligations of the Banks to make the first Loans on the initial Borrowing Date are subject to the fulfillment of the conditions precedent set forth
in Section 5.1 through Section 5.6 below. 
 5.1. Evidence of Corporate Action. The Agent shall have
received a certificate, dated the Effective Date, of the Secretary or an Assistant Secretary of the Company (i) attaching a true and complete copy of the resolutions of its Board of Directors (or its Executive Committee, if so authorized under
the By-Laws) and of all documents evidencing other necessary corporate action (in form and substance satisfactory to the Agent and to Special Counsel) taken by the Company to authorize this Agreement, the Notes and the borrowings hereunder, provided
that the consent of the VPSB (or a determination by the VPSB that no such consent is required) may be necessary for the extension of the Maturity Date pursuant to Section 2.16, (ii) attaching a true and complete copy of the Charter
and the By-Laws of the Company, and (iii) setting forth the incumbency of the officer or officers of the Company who sign this Agreement and the Notes, including therein a signature specimen of such officer or officers, 
  

 31 

 together with a certificate of the Secretary of State of Vermont as to the good standing of, and the payment of franchise
taxes therein by, the Company, together with such other documents as the Agent or Special Counsel shall reasonably require. 
 5.2.
Revolving Credit Notes. The Agent shall have received and be in possession of the Revolving Credit Notes executed by the duly authorized officer or officers of the Company. 
 5.3. Reserved. 
 5.4.
Opinion of Counsel to the Company. The Agent shall have received the opinion of Sheehey Furlong & Behm P.C., counsel to the Company, or its successor, if any, addressed to the Banks and to the Agent, dated the Effective Date,
substantially in the form of Exhibit G. 
 5.5. Fees. The fees of Special Counsel and the Closing Fee shall have been
paid, together with any portion of the Agent’s Fees that is required to have been paid on the Effective Date. 
 5.6. Consents,
Licenses. The Agent shall have received a certificate of the Secretary of the Company to the effect that no other consents, approvals or licenses are necessary in connection with the borrowings hereunder, provided that the consent of
the VPSB (or a determination by the VPSB that no such consent is required) may be necessary for the extension of the Maturity Date pursuant to Section 2.16. 
 6. CONDITIONS OF BORROWING - ALL BORROWINGS. The obligations of the Banks to make all Loans hereunder on each Borrowing Date are subject to the fulfillment of the following conditions precedent:

 6.1. Compliance. On each Borrowing Date, and after giving effect to the Loans to be made on such date (a) the Company
and each Subsidiary shall be in compliance with all of the terms, covenants and conditions of this Agreement, (b) there shall exist no Event of Default and (c) the representations and warranties contained in this Agreement, or otherwise in
writing made by the Company in connection herewith shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on such Borrowing Date (except such thereof as specifically refer
to an earlier date). 
 6.2. Loan Closings. All documents required by Sections 4 and 5 of this Agreement to be executed
and/or delivered to the Agent on or before the applicable Borrowing Date shall have been executed and delivered at the office of the Agent set forth in Section 11 on or before such Borrowing Date. 
 6.3. Approval of Counsel. All legal matters in connection with the making of each Loan on the Borrowing Date shall be reasonably
satisfactory to such counsel with whom the Agent may deem it necessary to consult. 
  

 32 

 6.4. Borrowing Request. The Agent shall have received a Borrowing Request duly executed by
the chief financial officer (or the chief executive officer or controller, in the absence of the chief financial officer) of the Company. 
 6.5. Other Documents. The Agent shall have received such other documents as the Agent shall reasonably require. 
 7.
AFFIRMATIVE COVENANTS. 
 The Company covenants and agrees that on and after the Effective Date until the later of the termination
of the Commitments or the payment in full of the Notes and the performance by the Company of all other obligations of the Company hereunder, unless the Agent shall otherwise consent in writing as provided in Section 13, the Company will:

 7.1. Corporate Existence. Maintain its corporate existence, in good standing in the jurisdiction of its incorporation or
organization and in each other jurisdiction in which the character of the Property owned or leased by it therein or the transaction of its business makes such qualification necessary, except as otherwise expressly permitted hereunder. 
 7.2. Taxes. Pay and discharge when due all taxes, assessments and governmental charges and levies upon the Company, and upon the income,
profits and Property of the Company, which if unpaid would have a Material Adverse Effect or become a Lien not permitted under Section 8.2, unless and to the extent only that such taxes, assessments, charges and levies, (a) shall be
contested in good faith and by appropriate proceedings diligently conducted by the Company, provided that such reserve or other appropriate provision, if any, as shall be required in accordance with GAAP shall have been made therefor or (b) are
not in the aggregate material to the financial condition, Property or operations of the Company. 
 7.3. Insurance. Maintain
insurance with financially sound insurance carriers on such of its Property in such amounts, subject to such deductibles and self-insured amounts and against such risks as is customarily maintained by similar businesses, including, without
limitation, public liability, workers’ compensation and employee fidelity insurance. 
 7.4. Payment of Indebtedness and
Performance of Obligations. Pay and discharge promptly as and when due all lawful indebtedness, obligations and claims for labor, materials and supplies or otherwise (including, without limitation, Funded Debt) which, if unpaid, would
(a) have a Material Adverse Effect, or (b) become a Lien not permitted by Section 8.2, provided that the Company shall not be required to pay and discharge or cause to be paid and discharged any such indebtedness, obligation or
claim so long as the validity thereof shall be contested in good faith and by appropriate proceedings diligently conducted by the Company, and further provided that such reserve or other appropriate provision as shall be required in accordance with
GAAP shall have been made therefor. 
 7.5. Observance of Legal Requirements; ERISA. Observe and comply, and cause each
Subsidiary to observe and comply, in all material respects with all laws (including ERISA and all Environmental Laws), ordinances, orders, judgments, rules, regulations, certifications, franchises, permits, licenses, directions and requirements of
all Governmental Bodies, which now or at any time hereafter may be applicable to the Company or such 
  

 33 

 Subsidiary, a violation of which would have a Material Adverse Effect upon the Company, except such thereof as shall be
contested in good faith and by appropriate proceedings diligently conducted by the Company or such Subsidiary, provided that such reserve or other appropriate provision, if any, as shall be required in accordance with GAAP shall have been made
therefor. 
 7.6. Financial Statements and Other Information. Furnish to the Agent and the Banks: 
 (a) as soon as available, but in no event more than ninety (90) days after the close of each fiscal year of the Company, copies of its audited
Consolidated Balance Sheet and the related audited Consolidated Statements of Income, Shareholders’ Equity and Changes in Financial Position for such fiscal year setting forth in each case in comparative form the corresponding figures for the
preceding fiscal year all reported by the Accountants which report shall state that said financial statements fairly present the financial position and results of operations of the Company as at the end of and for such fiscal year except as
specifically stated therein, as of and through the end of such fiscal year, prepared in accordance with GAAP and accompanied by a report with respect thereto of the Accountants, together with a certificate signed on behalf of the Company by the
principal financial officer thereof to the effect that having read this Agreement, and based upon an examination which in the opinion of such officer was sufficient to enable such officer to make an informed statement, (x) such statements
fairly present the financial position and results of the operations of the Company and its Subsidiaries on a Consolidated basis to the best of such officer’s knowledge, and (y) nothing came to such officer’s attention which caused
such officer to believe that an Event of Default has occurred, or if an Event of Default has occurred, stating the facts with respect thereto and whether the same has been cured prior to the date of such certificate, and, if not, what action is
proposed to be taken with respect thereto; 
 (b) as soon as available, but in no event more than forty five (45) days after the close
of each quarter (except the last quarter) of each fiscal year of the Company a Consolidated Balance Sheet and Consolidated Statements of Income and Changes in Financial Position of the Company and its Subsidiaries as of and through the end of such
quarter, together with a certificate signed on behalf of the Company by the principal financial officer thereof to the effect that having read this Agreement, and based upon an examination which in the opinion of such officer was sufficient to
enable such officer to make an informed statement, (x) such statements fairly present the financial position and results of the operations of the Company and its Subsidiaries on a Consolidated basis to the best of such officer’s knowledge,
and (y) nothing came to such officer’s attention which caused such officer to believe that an Event of Default has occurred, or if an Event of Default has occurred, stating the facts with respect thereto and whether the same has been cured
prior to the date of such certificate, and, if not, what action is proposed to be taken with respect thereto; 
 (c) prompt notice if:
(x) any obligation of the Company (other than its obligations under this Agreement or the Notes) for a payment in excess of $500,000 of any Funded Debt is not paid when due or within any grace period for the payment thereof or is declared or
shall become due and payable prior to its stated maturity, or (y) to the knowledge of any Authorized Signatory of the Company there shall occur and be continuing an event which constitutes, or which with the giving of notice or the lapse of
time, or both, would constitute an event of default (or, in the case of this Agreement, an Event of Default) under any agreement with respect to Funded Debt of the Company (including this Agreement); 
  

 34 

 (d) prompt written notice in the event that (i) the Company or any Subsidiary shall fail to make any
payments when due and payable under any Plan or Multiemployer Plan, or (ii) the Company or any Subsidiary shall receive notice from the Internal Revenue Service or the Department of Labor that the Company or such Subsidiary shall have failed to
meet the minimum funding requirements of any Plan or Multiemployer Plan, including therewith a copy of such notice; 
 (e) promptly upon
becoming available, copies of all regular, periodic or special reports or other material which may be filed with or delivered by the Company to the Securities and Exchange Commission, or any other Governmental Body succeeding to the functions
thereof; 
 (f) prompt written notice in the event the Debt Rating of the Company shall change or the Company shall have no Debt Rating;

 (g) prompt written notice and a copy of any Environmental Notice excluding, however, any such Environmental Notices relating to the Pine
Street canal site in Burlington, Vermont (the “Pine Street Site”) if the effect of such Environmental Notice relating to the Pine Street Site (i) does not change the status of the Pine Street Site as it exists as of the date hereof as
it relates to the Company and (ii) would not have a Material Adverse Effect; 
 (h) a certificate of the Company, dated the date of each
such annual report or quarterly report required pursuant to Sections 7.6(a) and (b), and signed on behalf of the Company by the President, chief financial officer, chief accounting officer or Treasurer, which sets forth all relevant
calculations needed to determine whether the Company is in compliance with Section 8.8 hereof, which calculations are based on the most recent fiscal quarter required to be supplied pursuant to Sections 7.6(a) and (b); and

 (i) such other information and reports relating to the affairs of the Company and its Subsidiaries, as the Agent or any Bank at any time
or from time to time may reasonably request. 
 7.7. Inspection. Permit representatives of the Agent or any Bank to visit the
offices of the Company, to examine the books and records thereof and to make copies or extracts therefrom, and to discuss the affairs of the Company with the officers, including the financial officers, thereof, at reasonable times, at reasonable
intervals and with reasonable prior notice. 
 7.8 Use of Proceeds. Use the proceeds of the Loans only to refinance the
existing debt of the Company (including the obligations owed under the Prior Credit Agreement), for working capital, capital expenditures, and other general corporate purposes (including, without limitation, the acquisition of capital stock of the
Company to the extent otherwise permitted hereunder). 
 7.9 Further Assurances. Cooperate with the Agent and the other Banks
and execute such further instruments and documents as the Agent or the Banks shall reasonably request to carry out to their satisfaction the transactions contemplated by this Agreement. 
  

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 8. NEGATIVE COVENANTS. The Company covenants and agrees that from the Effective Date until the later of the
termination of all of the Commitments or the payment in full of all of the Notes and the performance by the Company of all other obligations of the Company hereunder, unless the Agent shall otherwise consent in writing as provided in
Section 13, the Company will not: 
 8.1. Funded Debt. Create, incur, assume, guarantee or suffer to exist any
Short-Term Funded Debt (excluding the Loans) in excess of $500,000, individually or in the aggregate, excluding, however, the Company’s payment obligations meeting the capital lease accounting requirements under SFAS 13 pursuant to certain
thirty-year support agreements among the Company, VELCO and other New England Power Pool members and Hydro-Quebec in connection with the construction of the second phase of the interconnection between the New England electric systems and that of
Hydro-Quebec, other than Short-Term Funded Debt permitted or allowed in connection with the provisions of the First Mortgage Bonds specifically relating to restrictions on Funded Debt, which provisions are incorporated by reference herein as if
fully set forth herein. 
 8.2. Liens. Create, incur, assume or suffer to exist any Lien upon any of its Property, whether now
owned or hereafter acquired, to secure any indebtedness or other obligation, except for (i) Liens existing as of the Effective Date and (ii) Liens arising in connection with the First Mortgage Bonds, except for the following: 

(i) materialmens’, mechanics’, suppliers’, tax and other like Liens arising in the ordinary course of business securing
obligations which are not overdue, or if overdue are being contested in good faith by appropriate proceedings and then only to the extent that the Company has set aside on its books adequate reserves therefor in accordance with GAAP and such contest
does not have a Material Adverse Effect; Liens arising in connection with workers’ compensation, unemployment insurance, and appeal and release bonds, and other Liens incident to the conduct of business or the operation of property and assets
and not incurred in connection with the obtaining of any advance or credit and which Liens do not, or would not, have a Material Adverse Effect; 
 (ii) Liens arising out of judgments or awards against the Company with respect to which at the time an appeal or proceeding for review is being prosecuted in good faith and with respect to which there shall have been
secured a stay of execution pending such appeal or proceeding for review and which Liens do not, or would not, have a Material Adverse Effect; and 
 (iii) any other Liens, including, without limitation, Liens incurred in connection with any leases or the sale of any assets, not in excess of $10,000,000 in the aggregate. 
 8.3. Mergers and Consolidations. Consolidate with or merge into any other Person without the prior written consent of the Agent and the
other Banks, such consent not to be unreasonably withheld. 
  

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 8.4. Sale of Property. Sell, lease or otherwise dispose of any significant part of its
Property (including, without limitation, the right to receive income), except (i) in the ordinary course of business and (ii) obsolete or worn out Property which is no longer used or useful to the Company. 
 8.5. Dividends; Distributions. Declare or pay any dividends (other than dividends payable in shares of common stock of the Company) on, or
make any other distribution in respect of, any shares of any class of capital stock of the Company, or apply any of its property or assets to, or set aside any sum for, the payment, purchase, redemption or other acquisition or retirement of, any
shares of any class of capital stock of the Company, if, after giving effect to such dividend or other distribution, the result of such dividend or other distribution would have a Material Adverse Effect. 
 8.6. Guaranties. Except as set forth in the Financial Statements, guarantee, endorse or otherwise in any way become or be responsible for
obligations of any other Person (including without limitation any officer, director, employee or stockholder of the Company) in excess of $500,000 in the aggregate, whether by agreement to purchase the indebtedness of any other Person or through the
purchase of goods, supplies or services, or maintenance of working capital or other balance sheet covenants or conditions, or by way of stock purchase, capital contribution, advance or loan for the purpose of paying or discharging any indebtedness
or obligation of such other Person or otherwise, unless the same is permitted or allowed in connection with the provisions of the First Mortgage Bonds specifically relating to the same, which provisions are incorporated by reference herein as if
fully set forth herein. 
 8.7. Amendment of Charter or By-Laws. Amend its Charter or By-Laws or change its fiscal year end if
the result of any such amendment or change in its fiscal year end would adversely affect or otherwise impair the rights and remedies of the Banks hereunder or under any other Loan Document. 
 8.8. Funded Debt to Capitalization Test. Permit the total amount of Consolidated Funded Debt to exceed sixty percent (60%) of
Consolidated Total Capitalization. 
 9. EVENTS OF DEFAULT. The following shall each constitute an Event of Default hereunder: 
 (a) the failure of the Company to pay (i) any amounts of principal due hereunder or under the Notes when such amounts are due or declared due, or
(ii) any other amounts, including interest and fees, due hereunder or under the Notes within five (5) Business Days after such amounts are due or declared due, in any case whether at stated maturity by acceleration or otherwise; or

 (b) the failure of the Company to observe or perform any covenant or agreement contained in Section 8 and, with respect to
Section 8.2 only, such failure shall have continued unremedied for a period of five (5) Business Days after the Company knows, or should have known, of such default; or 
 (c) the failure of the Company to observe or perform any other term, covenant, or agreement contained in this Agreement and such failure shall have
continued unremedied for a period of ten (10) days after written notice, specifying such failure and requiring it to be remedied, shall have been given to the Company by the Agent; or 
  

 37 

 (d) any material representation or warranty made herein or in any certificate, report, or notice
delivered or to be delivered by the Company pursuant hereto, shall prove to have been incorrect in any material respect when made; or 
 (e)
if the Company shall default (as principal or guarantor, surety or other obligor) in the payment of any principal of, or premium, if any, or interest on any Funded Debt in excess of $1,000,000 (other than its obligations under this Agreement and the
Notes), or with respect to any of the terms of any evidence of such indebtedness or of any agreement relating thereto, and such default shall entitle the holder of such indebtedness to accelerate the maturity thereof, unless, in the case of any
non-payment default, such default has been affirmatively waived by or on behalf of the holder of such indebtedness; or 
 (f) the Company
shall (i) make an assignment for the benefit of creditors, (ii) admit in writing its inability to pay its debts as they become due or generally fail to pay its debts as they become due, (iii) file a voluntary petition in bankruptcy,
(iv) become insolvent (however such insolvency shall be evidenced), (v) file any petition or answer seeking for itself any reorganization, arrangement, composition, readjustment of debt, liquidation or dissolution or similar relief under
any present or future statute, law or regulation of any jurisdiction, (vi) petition or apply to any tribunal for any trustee, receiver, custodian, liquidator or fiscal agent for any substantial part of its Property, (vii) be the subject of
any proceeding referred to in clause (vi) above or an involuntary bankruptcy petition filed against it which remains undischarged for a period of 60 days, (viii) file any answer admitting or not contesting the material allegations of any
such petition filed against it, or of any order, judgment or decree approving such petition in any such proceeding, (ix) seek, approve, consent to, or acquiesce in any such proceeding, or in the appointment of any trustee, receiver, custodian,
liquidator, or fiscal agent for it, or any substantial part of its Property, or an order is entered appointing any such trustee, receiver, custodian, liquidator or fiscal agent and such order remains in effect for 60 days, (x) take any formal
action for the purpose of effecting any of the foregoing or looking to the liquidation or dissolution of the Company or (xi) suspend or discontinue its business (except as otherwise expressly permitted herein); or 
 (g) an order for relief is entered under the United States bankruptcy laws or any other decree or order is entered by a court having jurisdiction
(i) adjudging the Company a bankrupt or insolvent, or (ii) approving as properly filed a petition seeking reorganization, liquidation, arrangement, adjustment or composition of or in respect of the Company under the United States
bankruptcy laws or any other applicable Federal or state law, or (iii) appointing a trustee, receiver, custodian, liquidator, or fiscal agent (or other similar official) of the Company or of any substantial part of its Property, or
(iv) ordering the winding up or liquidation of the affairs of the Company; or 
 (h) judgments or decrees against the Company in excess
of $3,000,000 in the aggregate (excluding such judgments or decrees which are insured and as to which the insurer has admitted liability) or for an aggregate amount in excess of $6,000,000 (whether or not insured) shall remain unpaid, unstayed on
appeal, undischarged, unbonded or undismissed for a period of 30 days; or 
  

 38 

 (i) any fact or circumstance, including any Reportable Event as defined in Title IV of ERISA, at a time
when there exists an underfunding of the Plan in an amount in excess of $500,000, which constitutes grounds for the termination of any Plan by the PBGC or for the appointment of a trustee to administer any Plan, shall have occurred and be continuing
for a period of 30 days; or 
 (j) the occurrence of any Event of Default (other than an Event of Default which is waived by the party or
parties entitled to take remedial action upon the occurrence of such Event of Default) under any of the other Loan Documents, or any other document or instrument evidencing, securing or relating to the liabilities or obligations of the Company to
the Banks hereunder or thereunder. 
 Upon the occurrence and during the continuance of an Event of Default under this Section 9,
the Agent, upon the request of the Majority Banks, shall notify the Company that the Commitments have been terminated and that the Notes, all accrued interest thereon and all other amounts owing under this Agreement are immediately due and payable,
provided that upon the occurrence of an event specified in Sections 9(f) or 9(g), the Commitments shall automatically terminate and the Notes (with accrued interest thereon) and all other amounts owing under this Agreement shall become
immediately due and payable without notice to the Company. Except for any notice expressly provided for in this Section 9, the Company hereby expressly waives any presentment, demand, protest, notice of protest or other notice of any
kind. The Company hereby further expressly waives and covenants not to assert any appeasement, valuation, stay, extension, redemption or similar laws, now or at any time hereafter in force which might delay, prevent or otherwise impede the
performance or enforcement of this Agreement or the Notes. 
 In the event that the unpaid principal balance of the Notes, all accrued
interest thereon and all other amounts owing under this Agreement shall have been declared due and payable pursuant to the provisions of this Section 9, the Agent may, and, upon (i) the request of the Majority Banks and
(ii) the providing by all of the Banks to the Agent of an indemnity in form and substance satisfactory to the Agent in accordance with Section 10.3 against all expenses and liabilities, shall, proceed to enforce the rights of the
holders of the Notes by suit in equity, action at law and/or other appropriate proceedings, whether for payment or the specific performance of any covenant or agreement contained in this Agreement or the Notes. The Agent shall be justified in
failing or refusing to take any action hereunder and under the Notes unless it shall be indemnified to its reasonable satisfaction by the Banks pro rata according to the aggregate outstanding principal balance of the Notes against any and all
liabilities and expenses which may be incurred by it by reason of taking or continuing to take any such action. In the event that the Agent, having been so indemnified, or not being indemnified to its reasonable satisfaction, shall fail or refuse so
to proceed, any Bank shall be entitled to take such action as it shall deem appropriate to enforce its rights hereunder and under its Notes with the consent of the Majority Banks, it being understood and intended that no one or more of the holders
of the Notes shall have any right to enforce payment thereof except as provided in this Section 9 and in Section 12. 
  

 39 

 If an Event of Default shall have occurred and shall be continuing, the Agent may, and at the request of
the Majority Banks shall, notify the Company (by telephone or otherwise) that all or such lesser amount as the Majority Banks shall designate of the outstanding LIBOR Loans automatically shall be converted to Alternate Base Rate Loans, in which
event such LIBOR Loans automatically shall be converted to Alternate Base Rate Loans on the date such notice is given. If such notice is given, notwithstanding anything in Section 2.7 to the contrary, no Alternate Base Rate Loan may be
converted to a LIBOR Loan if an Event of Default has occurred and is continuing at the time the Company shall notify the Agent of its election to so convert. 
 10. THE AGENT. The Banks and the Agent agree by and among themselves that: 
 10.1. Appointment.
Sovereign Bank is hereby irrevocably designated the Agent by each of the other Banks to perform such duties on behalf of the other Banks and itself, and to have such powers, as are set forth herein and as are reasonably incidental thereto.

 10.2. Delegation of Duties, Etc. The Agent may execute any duties and perform any powers hereunder by or through agents or
employees, and shall be entitled to consult with legal counsel and any accountant or other professional selected by it. Any action taken or omitted to be taken or suffered in good faith by the Agent in accordance with the opinion of such counsel or
accountant or other professional shall be full justification and protection to the Agent. 
 10.3. Indemnification. The Banks
agree to indemnify the Agent in its capacity as such, to the extent not reimbursed by the Company, pro rata according to their respective Commitments, from and against any and all claims, liabilities, obligations, losses, damages, penalties,
actions, judgment, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Agent in any way relating to or arising out of this Agreement or the Notes or any action taken
or omitted to be taken or suffered in good faith by the Agent hereunder or thereunder, provided that no Bank shall be liable for any portion of any of the foregoing items resulting from the gross negligence or willful misconduct of the Agent.
Without limitation of the foregoing, each Bank agrees to reimburse the Agent promptly for its pro-rata share of any reasonable out-of-pocket expenses (including counsel fees) incurred by the Agent in connection with the preparation, execution,
administration or enforcement of, or legal advice in respect of rights or responsibilities under, this Agreement and the Notes, to the extent that the Agent, having sought reimbursement for such expenses from the Company, is not promptly reimbursed
by the Company. Any reference herein and in any document executed in connection herewith, to the Banks providing an indemnity in form and substance reasonably satisfactory to the Agent prior to the Agent taking any action hereunder shall be
satisfied by the Banks executing an agreement confirming their agreement to promptly indemnify the Agent in accordance with this Section 10.3. 
 10.4. Exculpatory Provisions. Neither Agent, nor any of its officers, directors, employees or agents, shall be liable for any action taken or omitted to be taken or suffered by it or them hereunder or
under the Notes, or in connection herewith or therewith, including without limitation any action taken or omitted to be taken in connection with any telephonic communication pursuant to Section 2.3 hereof, except that the Agent shall be
liable for its own gross negligence or willful misconduct. The Agent shall not be liable in any manner for the 
  

 40 

 effectiveness, enforceability, collectibility, genuineness, validity or the due execution of this Agreement or the Notes,
or for the due authorization, authenticity or accuracy of the representations and warranties contained herein or in any other certificate, report, notice, consent, opinion, statement, or other document furnished or to be furnished hereunder, and the
Agent shall be entitled to rely upon any of the foregoing believed by it to be genuine and correct and to have been signed and sent or made by the proper Person. The Agent shall not be under any duty or responsibility to any Bank to ascertain or to
inquire into the performance or observance by the Company or any Subsidiary of any of the provisions hereof or of the Notes or of any document executed and delivered in connection herewith or therewith. Each Bank expressly acknowledges that the
Agent has not made any representations or warranties to it and that no act taken by the Agent shall be deemed to constitute any representation or warranty by the Agent to any Bank. Each Bank acknowledges that it has taken and will continue to take
such action and has made and will continue to make such investigation as it deems necessary to inform itself of the affairs of the Company and each Subsidiary, and each Bank acknowledges that it has made and will continue to make its own independent
investigation of the creditworthiness and the business and operations of the Company and its Subsidiaries, and that, in entering into this Agreement, and in agreeing to make its Loans, it has not relied and will not rely upon any information or
representations furnished or given by the Agent or any other Bank. 
 10.5. Agent in its Individual Capacity. With respect to
its Loans and any renewals, extensions or deferrals of the payment thereof and any Note issued to or held by it, the Agent shall have the same rights and powers hereunder as any Bank, and may exercise the same as though it were not the Agent, and
the term “Bank” or “Banks” shall, unless the context otherwise requires, include the Agent in its individual capacity. Sovereign Bank and its affiliates may accept deposits from, lend money to, act as trustee or other fiduciary
in connection with transactions, including, without, limitation, interest rate hedging agreements or instruments, involving, and otherwise engage in any business with the Company and its affiliates and any Person who may do business with or own
securities of the Company or any affiliate of the Company, all as if Sovereign Bank were not the Agent hereunder and without any obligation to account or report therefor to any Bank. 
 10.6. Knowledge of Default. It is expressly understood and agreed that the Agent shall be entitled to assume that no Event of Default has
occurred and is continuing, unless the offices of the Agent who are responsible for matters concerning this Agreement shall have actual knowledge of such occurrence or shall have been notified in writing by a Bank that such Bank considers that an
Event of Default has occurred and is continuing and specifying the nature thereof. 
 In the event the Agent shall have acquired actual
knowledge of any Event of Default, it shall promptly give notice thereof to the Banks. 
 10.7. Resignation of Agent. If at any
time the Agent deems it advisable, in its sole discretion, it may submit to each of the Banks a written notification of its resignation as Agent under this Agreement, such resignation to be effective on the earlier to occur of (a) the
forty-fifth (45th) day after the date of such notice or (b) the date upon which a successor Agent accepts its appointment as successor Agent. If the Agent resigns hereunder, the Company shall have the right to appoint, with the prior
written approval of the Banks, which approval shall not be 
  

 41 

 unreasonably withheld, a successor Agent hereunder, provided, however that upon the occurrence and during the continuance
of an Event of Default, the Banks shall have the right to appoint such successor Agent hereunder without the consent or approval of the Company. The successor Agent shall be a commercial bank or other financial institution organized under the laws
of the United States of America or of any State thereof and having a combined capital and surplus of at least $100,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the Agent hereunder, and the retiring Agent shall be discharged from any further duties and obligations under this Agreement. The Company and the Banks agree to execute such
documents as shall be necessary to effect such appointment. After the retiring Agent’s resignation or removal hereunder, the provisions of this Section 10 shall inure to its benefit as to any actions taken or omitted to be taken by
it while the Agent under this Agreement. If at any time hereunder there shall not be a duly appointed and acting Agent, the Company agrees to make each payment due hereunder and under the Notes directly to the Banks entitled thereto. 
 10.8. Requests to the Agent. Whenever the Agent is authorized and empowered hereunder on behalf of the Banks to give any approval or
consent, or to make any request, or to take any other action on behalf of the Banks, the Agent shall be required to give such approval or consent, or to make such request or to take such other action only when so requested in writing by the Majority
Banks subject, however, to the provisions of Section 13. 
 11. NOTICES. 
 11.1. Manner of Delivery. Except as otherwise specifically provided herein, all notices and demands shall be in writing and shall be mailed
by certified mail return receipt requested or sent by telegram, telecopy or telex or delivered in person or by nationally recognized overnight courier, and all statements, reports, documents, consents, waivers, certificates and other papers required
to be delivered hereunder shall be mailed by first-class mail or delivered in person, in each case to the respective parties to this Agreement as follows: 
  

 42 

 if to the Company, to: 
 Green Mountain Power Corporation 
 163 Acorn Lane 
 Colchester, VT 05446-6611 
 Attention: Dawn
Bugbee, Chief Financial Officer 
 Telephone: 802-655-8768 
 Telecopy: 802-655-8550 
 with a copy to: 
 Richard Kozlowski, Esq. 
 Sheehey
Furlong & Behm P.C. 
 30 Main Street 
 P.O. Box 66 
 Burlington, Vermont 05402 
 Telephone: (802) 864-9891 
 Telecopy:
(802) 864-6815] 
 if to the Agent, to: 
 Sovereign Bank 
 75 State Street, MA1 SST 04-10 
 Boston, Massachusetts 02109 
 Attention:
Robert D. Lanigan, Senior Vice President 
 Telephone: (617) 346-7384 
 Telecopy: (617) 346-7350 
 with a copy
to: 
 Philip A. Herman, Esq. 
 Goulston & Storrs 
 400 Atlantic Avenue 
 Boston, MA 02110 
 Telephone: (617) 574-4114 
 Telecopy: (617) 574-7592 
 if to the
Banks, to: 
 Sovereign Bank 
 75
State Street, MA1 SST 04-10 
 Boston, Massachusetts 02109 
 Attention: Robert D. Lanigan, Senior Vice President 
 Telephone: (617) 346-7384 
 Telecopy: (617) 346-7350 
  

 43 

 with a copy to: 
 Philip A. Herman, Esq. 
 Goulston & Storrs 
 400 Atlantic Avenue 
 Boston, MA 02110

 Telephone: (617) 574-4114 
 Telecopy: (617) 574-7592 
 and: 
 KeyBank National Association 
 149 Bank Street, 
 Burlington, VT 05401 
 Attention: Tony F.
Martin, Vice President 
 Telephone: (802) 660-4477 
 Telecopy: (802) 660-4228 
 or to such other Person or address as a party hereto shall designate to the other parties
hereto from time to time in writing forwarded in like manner. Any notice or demand given in accordance with the provisions of this Section 11.1 shall be effective when received and any consent, waiver or other communication given in
accordance with the provisions of this Section 11.1 shall be conclusively deemed to have been received by a party hereto and to be effective on the day on which received by such party at its address specified above or, if sent by first
class mail, on the third Business Day after the day when deposited in the mail, postage prepaid, and addressed to such party at such address, provided that a notice of change of address shall be deemed to be effective when actually received.

 11.2. Distribution of Copies. Whenever the Company is required to deliver any statement, report, document, certificate or
other paper (other than Borrowing Request or Conversion/Continuation Request) to the Agent, the Company shall simultaneously deliver a copy thereof to each Bank. 
 11.3. Notices by the Agent or a Bank. In the event that the Agent or any Bank takes any action or gives any consent or notice provided for by this Agreement, notice of such action, consent or notice
shall be given forthwith to all the Banks by the Agent or the Bank taking such action or giving such consent or notice, provided that the failure to give any such notice shall not invalidate any such action, consent or notice in respect of the
Company. 
 12. RIGHT OF SET-OFF. Regardless of the adequacy of any collateral, upon the occurrence and during the continuance of any Event of
Default, each Bank is hereby expressly and irrevocably authorized by the Company at any time and from time to time, without notice to the Company, to set-off, appropriate, and apply all moneys, securities and other Property and the proceeds thereof
now or hereafter held or received by or in transit to such Bank from or for the account of the Company, whether for safekeeping, pledge, transmission, collection or otherwise, and also upon any and all deposits (general and special), account
balances and credits of the Company with such Bank at any time existing against any and all obligations of the Company to 
  

 44 

 the Banks and to each of them arising under this Agreement, the Letters of Credit, and the Notes, and the Company shall
continue to be liable to each Bank for any deficiency with interest at the rate or rates set forth in Subsection 2.8(b). Each of the Banks agrees with each other Bank that (a) if an amount to be set off is to be applied to any
obligations of the Company to such Bank, other than obligations evidenced by the Notes held by such Bank, such amount shall be applied ratably to such other obligations and to the obligations evidenced by all such Notes held by such Bank and
(b) if such Bank shall receive from the Company, whether by voluntary payment, exercise of the right of setoff, counterclaim, cross action, enforcement of the claim evidenced by the Notes held by such Bank by proceedings against the Company at
law or in equity or by proof thereof in bankruptcy, reorganization, liquidation, receivership or similar proceedings, or otherwise, and shall retain and apply to the payment of the Note or Notes held by such Bank any amount in excess of its ratable
portion of the payments received by all of the Banks with respect to the Notes held by all of the Banks, such Bank will make such disposition and arrangements with the other Banks with respect to such excess, either by way of distribution, pro tanto
assignment of claims, subrogation or otherwise as shall result in each Bank receiving in respect of the Notes held by each Bank, its proportionate payment as contemplated by this Agreement; provided that if all or any part of such excess payment is
thereafter recovered from such Bank, such disposition and arrangements shall be rescinded and the amount restored to the extent of such recovery, but without interest. 
 13. AMENDMENTS WAIVERS AND CONSENTS. Except as otherwise expressly set forth herein, with the written consent of the Majority Banks, the Agent shall, subject to the provisions of this
Section 13, from time to time enter into agreements amendatory or supplemental hereto with the Company for the purpose of changing any provisions of this Agreement or the Notes, or changing in any manner the rights of the Banks, the
Agent or the Company hereunder and thereunder, or waiving compliance with any provision of this Agreement or consenting to the non-compliance thereof. Notwithstanding the foregoing, the consent of all of the Banks shall be required with respect to
any amendment, waiver or consent (i) increasing the Aggregate Commitments or the Commitment of any Bank, (ii) postponing or extending the Maturity Date (other than such extension from the Initial Maturity Date to the Final Maturity Date),
or the time of payment of interest on or principal of, or the principal amount of any Loan, or the time of payment of any fees hereunder, (iii) decreasing the rate of interest on or the amount of any fees hereunder or (iv) modifying this
Section 13 or the definition of “Majority Banks”. Any such amendment or supplemental agreement, waiver or consent shall apply equally to each of the Banks and shall be binding on the Company and all of the Banks and the Agent.
Any waiver or consent shall be for such period and subject to such conditions or limitations as shall be specified therein, but no waiver or consent shall extend to any subsequent or other Event of Default, or impair any right or remedy consequent
thereupon. In the case of any waiver or consent, the rights of the Company, the Banks and the Agent under this Agreement and the Notes shall be otherwise unaffected. Nothing contained herein shall be deemed to require the Agent to obtain the consent
of any Bank with respect to any change in the amount or terms of payment of the Agent’s Fees. The Company shall be entitled to rely upon the provisions of any such amendatory or supplemental agreement, waiver or consent if it shall have
obtained any of the same in writing from the Agent who therein shall have represented that such agreement, waiver or consent has been authorized in accordance with the provisions of this Section 13. 
  

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 14. OTHER PROVISIONS. 
 14.1. No Waiver of Rights by the Banks. No failure on the part of the Agent or of any Bank to exercise, and no delay in exercising, any right or remedy hereunder or under the Notes shall operate as a
waiver thereof, except as provided in Section 13, nor shall any single or partial exercise by the Agent or any Bank of any right, remedy or power hereunder or under the Notes preclude any other or future exercise thereof, or the exercise
of any other right, remedy or power. The rights, remedies and powers provided herein and in the Notes are cumulative and not exclusive of any other rights, remedies or powers which the Agent or the Banks or any holder of a Note would otherwise have.
Notice to or demand on the Company in any circumstance in which the terms of this Agreement or the Notes do not require notice or demand to be given shall not entitle the Company to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the Agent or any Bank or the holder of any Note to take any other or further action in any circumstances without notice or demand. 
 14.2. Headings; Plurals. Paragraph and subparagraph headings have been inserted herein for convenience only and shall not be construed to
be a part of this Agreement. Unless the context otherwise requires, words in the singular number include the plural, and words in the plural include the singular. 
 14.3. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute one agreement. It shall not be necessary in making
proof of this Agreement or of any document required to be executed and delivered in connection herewith or therewith to produce or account for more than one counterpart. 
 14.4. Severability. Every provision of this Agreement and the Notes is intended to be severable, and if any term or provision hereof or thereof shall be invalid, illegal or unenforceable for any reason,
the validity, legality and enforceability of the remaining provisions hereof or thereof shall not be affected or impaired thereby, and any invalidity, illegality or unenforceability in any jurisdiction shall not affect the validity, legality or
enforceability of any such term or provision in any other jurisdiction. 
 14.5. Integration. All exhibits to this Agreement
shall be deemed to be a part of this Agreement. This Agreement, the exhibits hereto and the Notes embody the entire agreement and understanding between the Company, the Agent and the Banks with respect to the subject matter hereof and thereof and
supersede all prior agreements and understandings between the Company, the Agent and the Banks with respect to the subject matter hereof and thereof. 
 14.6. Sales and Participations in Loans and Notes; Successors and Assigns, Survival of Representations and Warranties. 
 (a) Each Bank shall have the right with the prior written consent of the Company (which consent shall not be unreasonably withheld or delayed), provided, however, that no such consent shall be required after
and during the continuance of an Event of Default, upon written notice to the Agent and the Company to sell, assign, transfer or negotiate all or any part (but not less than $5,000,000, unless it is such Bank’s entire Commitment) of the Loans
and the Notes and its 
  

 46 

 Commitment to one or more commercial banks or other financial institutions including, without limitation, the Banks. In
the case of any sale, assignment, transfer or negotiation of all or any such part of the Loans, the Notes, or interests in respect of Letters of Credit authorized under this Section 14.6(a), the assignee or transferee shall have, to the
extent of such sale, assignment, transfer or negotiation, the same rights, benefits and obligations as it would if it were a Bank hereunder and a holder of such Note or interests in respect of Letters of Credit, including, without limitation,
(x) the right to approve or disapprove of actions which in accordance with the terms hereof, require the approval of the Majority Banks (y) the obligation to fund Loans directly to the Agent pursuant to Section 2.3; and
(z) obligations in respect of Letters of Credit under Section 2.2. 
 (b) Notwithstanding Section 14.6(a), each
Bank may grant participations in all or any part of its Loans, Notes, and interests in respect of Letters of Credit to one or more commercial banks, insurance companies, or other financial institutions, pension funds or mutual funds; provided that
(i) any such disposition shall not, without the prior written consent of the Company, require the Company to file a registration statement with the Securities and Exchange Commission or apply to qualify the Loans, Notes, interests in respect of
Letters of Credit under the blue sky laws of any state and (ii) the holder of any such participation, other than an Affiliate of such Bank, shall not have any rights or obligations hereunder and shall not be entitled to require such Bank to
take or omit to take any action hereunder except action directly affecting the extension of the maturity of any portion of the principal amount of, or interest on, the Loan allocated to such participation, or a reduction of the principal amount of,
or the rate of interest payable on, such Loans or interests in respect of Letters of Credit. 
 (c) Notwithstanding the foregoing provisions
of this Section 14.6, each Bank may at any time and from time to time sell, assign, transfer, or negotiate all or any part of the Loans or interests in respect of Letters of Credit to any Affiliate of such Bank; provided that an
Affiliate to whom such disposition has been made shall not be considered a “Bank”, and the assigning Bank shall be considered not to have disposed of any Loans or interests in respect of Letters of Credit so assigned for purposes of
determining the Majority Banks under any provision hereof, but such Affiliate shall otherwise be considered a “Bank”, and the assigning Bank shall otherwise be considered to have disposed of any Loans or interests in respect of Letters of
Credit so assigned, for purposes hereof, including, without limitation, Sections 3.1 and 12 hereof. 
 (d) In addition,
notwithstanding anything to the contrary contained in this Section 14.6, any Bank may at any time and from time to time pledge or assign all or any portion of its rights under this Agreement with respect to its Loans, its Commitments,
interests in respect of Letters of Credit and its Notes to any of the twelve (12) Federal Reserve Banks. No such pledge or assignment or enforcement thereof shall release the assignor Bank from its obligations hereunder. 
 (e) No Bank shall, as between the Company and such Bank, be relieved of any of its obligations hereunder as a result of granting participations in all or
any part of the Loans or interests in respect of Letters of Credit and the Notes of such Bank or other obligations owed to such Bank. 
  

 47 

 (f) This Agreement shall be binding upon and inure to the benefit of the Banks, the Agent and the Company
and their respective successors and assigns. All covenants, agreements, warranties and representations made herein, and in all certificates or other documents delivered in connection with this Agreement by or on behalf of the Company shall survive
the execution and delivery hereof and thereof, and all such covenants, agreements, representations and warranties shall inure to the respective successors and assigns of the Banks and the Agent whether or not so expressed. 
 (g) The Agent shall maintain a copy of each assignment delivered to it and a register or similar list for the recordation of the names and addresses of
the Banks and the Commitment Percentages of the Banks and the principal amount of the Loans, Notes, and interests in respect of Letters of Credit assigned from time to time. The entries in such register shall be conclusive, in the absence of
manifest error and provided that any required consent of the Company has been obtained, and the Company, the Agent and the Banks may treat each Person whose name is recorded in such register as a Bank hereunder for all purposes of this Agreement.
Upon each such recordation, the assigning Bank agrees to pay to the Agent a registration fee in the sum of Three Thousand Five Hundred Dollars ($3,500). 
 14.7. Applicable Law. This Agreement and the Notes are being delivered in and are intended to be performed in The Commonwealth of Massachusetts and shall be construed and enforceable in accordance with,
and be governed by, the internal laws of The Commonwealth of Massachusetts without regard to its principles of conflict of laws. 
 14.8.
Interest. At no time shall the interest rate payable on the Loans and Notes, together with the Facility Fee, the Closing Fee, the Usage Fee, the Agent’s Fees and any other fee in connection with the Letters of Credit, and all other
fees and amounts payable hereunder, to the extent same are construed to constitute interest, exceed the maximum rate of interest permitted by law. The Company acknowledges that to the extent interest payable on the Loans and Notes is based on the
Alternate Base Rate, such rate is only one of the bases for computing interest on loans made by the Banks, and by basing interest payable on the Loans and Notes on the Alternate Base Rate, the Banks have not committed to charge, and the Company has
not in any way bargained for, interest based on a lower or the lowest rate at which the Banks may now or in the future make loans to other borrowers. 
 14.9. Accounting Terms and Principles. All accounting terms not herein defined by being capitalized shall be interpreted in accordance with GAAP, unless the context otherwise expressly requires.

 14.10. WAIVER OF TRIAL BY JURY. THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE FULLEST EXTENT
PERMITTED OR NOT PROHIBITED BY APPLICABLE LAW) ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING OUT OF, UNDER OR IN CONNECTION WITH THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREIN. FURTHER, THE COMPANY HEREBY
ACKNOWLEDGES THAT NO REPRESENTATIVE OF THE AGENT OR THE BANKS OR COUNSEL TO THE AGENT OR THE BANKS HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE AGENT OR THE BANKS WOULD NOT, IN THE EVENT OF 
  

 48 

 SUCH LITIGATION, SEEK TO ENFORCE SUCH WAIVER. THE COMPANY ACKNOWLEDGES THAT THE AGENT AND THE BANKS HAVE BEEN INDUCED TO
ENTER INTO THE LOAN DOCUMENTS BY, INTER ALIA, THE PROVISIONS OF THIS PARAGRAPH. 
 14.11. CONSENT TO JURISDICTION. THE COMPANY
HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF THE COMMONWEALTH OF MASSACHUSETTS OR ANY FEDERAL COURT SITTING IN THE COMMONWEALTH OF MASSACHUSETTS OVER ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS.
THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED OR NOT PROHIBITED BY APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT
AND ANY CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. THE COMPANY HEREBY AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH A COURT, AFTER
ALL APPROPRIATE APPEALS, SHALL BE CONCLUSIVE AND BINDING UPON IT. 
 14.12. SERVICE OF PROCESS. PROCESS MAY BE SERVED IN ANY
SUIT, ACTION, COUNTERCLAIM OR PROCEEDING OF THE NATURE REFERRED TO IN PARAGRAPH 14.11 BY MAILING COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, RETURN RECEIPT REQUESTED, TO THE ADDRESS OF THE COMPANY SET FORTH IN PARAGRAPH 11.1 OR
TO ANY OTHER ADDRESS OF WHICH THE COMPANY SHALL HAVE GIVEN WRITTEN NOTICE TO THE AGENT. THE COMPANY HEREBY AGREES THAT SUCH SERVICE (I) SHALL BE DEEMED IN EVERY RESPECT EFFECTIVE SERVICE OF PROCESS UPON IT IN ANY SUCH SUIT, ACTION, COUNTERCLAIM
OR PROCEEDING, AND (II) SHALL TO THE FULLEST EXTENT PERMITTED OR NOT PROHIBITED BY APPLICABLE LAW, BE TAKEN AND HELD TO BE VALID PERSONAL SERVICE UPON AND PERSONAL DELIVERY TO IT. 
 14.13. NO LIMITATION ON SERVICE OR SUIT. NOTHING IN THE LOAN DOCUMENTS, OR ANY MODIFICATION, WAIVER, OR AMENDMENT THERETO, SHALL AFFECT THE
RIGHT OF THE AGENT OR ANY BANK TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR LIMIT THE RIGHT OF THE AGENT OR ANY BANK TO BRING PROCEEDINGS AGAINST THE COMPANY IN THE COURTS OF ANY OTHER JURISDICTION OR JURISDICTIONS. 
 15. OTHER OBLIGATIONS OF THE COMPANY. 
 15.1. Taxes and Fees. Should any tax (other than a tax based upon the net income of any Bank), recording or filing fee become payable in respect of this Agreement or the Notes or any amendment, modification or supplement
hereof or thereof, the Company agrees to pay the same together with any interest or penalties thereon and agrees to hold the Agent and the Banks harmless with respect thereto. 
  

 49 

 15.2. Expenses. Whether or not the transactions contemplated by this Agreement shall be
consummated, the Company agrees to pay the reasonable out-of-pocket expenses of the Agent (including the reasonable fees and expenses of counsel to the Agent and, without limitation, Special Counsel) in connection with the preparation, reproduction,
execution and delivery of this Agreement and the Notes and the other exhibits annexed hereto, and any modifications, waivers, consents or amendments hereto and thereto, and the Company further agrees to pay the reasonable out-of-pocket expenses of
the Agent and the Banks (including the reasonable fees and expenses of their respective counsel) incurred in connection with the interpretation and enforcement of any provision of this Agreement or collection under the Notes, whether or not suit is
instituted. 
 15.3. Indemnification. 
 The Company shall indemnify, defend, and hold the Banks and Agent and any of their respective employees, officers, or agents (each, an “Indemnified Person”) harmless of and from any claim brought or
threatened against any Indemnified Person by the Company, any guarantor or endorser of the liabilities obligations of the Company hereunder or under the Notes, or any other Person (as well as from attorneys’ reasonable fees, expenses, and
disbursements in connection therewith) on account of the relationship of the Company or of any other guarantor or endorser of the liabilities and obligations of the Company hereunder or under the Notes (each of claims which may be defended,
compromised, settled, or pursued by the Indemnified Person with counsel of the Banks’ or Agent’s selection, but at the expense of the Company) other than any claim as to which a final determination is made in a judicial proceeding (in
which the Banks or Agent and any other Indemnified Person has had an opportunity to be heard), which determination includes a specific finding that the Indemnified Person seeking indemnification had acted in a grossly negligent manner or in actual
bad faith. This indemnification shall survive payment of the liabilities and obligations of the Company hereunder or under the Notes and/or any termination, release, or discharge executed by the Banks or Agent in favor of the Company, other than a
termination, release, or discharge duly executed on behalf of the Banks or Agent which makes specific reference to this Section 15.3. 
 15.4. Lost Notes. Upon receipt of an affidavit of an officer of any Bank as to the loss, theft, destruction or mutilation of any Note and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of
such Note or other security document, Company will issue, in lieu thereof, a replacement note in the same principal amount thereof and otherwise of like tenor. 
 16. EFFECTIVE DATE. This Agreement shall be effective as an instrument under seal as of the date first set forth above (the “Effective Date”). 
 17. USA PATRIOT ACT NOTICE. Each Bank that is subject to the Act (as hereinafter defined) and the Agent (for itself and not on behalf of any Bank) hereby notifies the Borrower that pursuant to the requirements
of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and
address of the Borrower and other information that will allow such Bank or the Agent, as applicable, to identify the Borrower in accordance with the Act. 
  

 50 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the date first
written above. 
  

			
	GREEN MOUNTAIN POWER CORPORATION
		
	By:	 	 /s/ Dawn D. Bugbee

	Name:	 	Dawn D. Bugbee
	Title:	 	Chief Financial Officer
	
	SOVEREIGN BANK, Individually and as Agent
		
	By:	 	 /s/ Robert D. Lanigan

	Name:	 	Robert D. Lanigan
	Title:	 	Senior Vice President
	
	KEYBANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Tony F. Martin

	Name:	 	Tony F. Martin
	Title:	 	Vice President

 Signature Page to Credit Agreement 

 EXHIBIT A 
 REVOLVING CREDIT COMMITMENTS 
  

							
	 Bank
	  	Revolving Credit
Commitment	  	Revolving Credit
Commitment Percentage	 
	 Sovereign Bank
	  	$	20,000,000	  	66	%
	 KeyBank National Association
	  	$	10,000,000	  	34	%
	 Aggregate Revolving Credit Commitments
	  	$	30,000,000	  	100	%

  

 A-1 

 EXHIBIT B 
 PRICING GRID/FACILITY FEE 
 SCHEDULE I 
 Green Mountain Power Corporation Loan Pricing Grid* 
  

							
	 Level
	  	 Senior Secured
 Debt Rating
	  	 Applicable
 LIBOR Margin
	  	 Applicable
 Base Rate
 Margin

				
	 I
	  	 3A-/A3
	  	  35.0 bps
	  	 0 bps

				
	 II
	  	 BBB+/Baa1
	  	  40.0 bps
	  	 0 bps

				
	 III
	  	 BBB/Baa2
	  	  55.0 bps
	  	 0 bps

				
	 IV
	  	 BBB-/Baa3
	  	  75.0 bps
	  	 0 bps

				
	 V
	  	 < BBB-/Baa3
	  	 150.0 bps
	  	 0 bps

  

	*	The applicable pricing level is based upon the Debt Rating. 

  

	**	Expressed as basis points. 

  

 B-1 

 SCHEDULE II 
 Green Mountain Power Corporation Facility Fee Grid*** 
  

					
	 Level
	 	 Senior Secured
 Debt Rating
	 	 Facility Fee

			
	 I
	 	 3A-/A3
	 	   7.5 bps

			
	 II
	 	 BBB+/Baa1
	 	  10.0 bps

			
	 III
	 	 BBB/Baa2
	 	  12.5 bps

			
	 IV
	 	 BBB-/Baa3
	 	  20.0 bps

			
	 V
	 	 < BBB-/Baa3
	 	 37.5 bps

  

	***	Based upon the Debt Rating. 

  

	****	Expressed in basis points. 

  

 B-2 

 EXHIBIT C 
 FORM OF BORROWING REQUEST 
                     ,          
 Sovereign Bank 
 75 State Street 
 Boston, Massachusetts 02109 
  

			
	Attention:	  	 Robert D. Lanigan, Senior Vice President
 Telephone:
(617) 346-7384
 Telecopy: (617) 346-7350

  

	Re:	Credit Agreement, dated as of June 14, 2006, as further amended from time to time, by and among Green Mountain Power Corporation, the signatory Banks thereto and Sovereign
Bank, as Agent (the “Agreement”) 

 Capitalized terms used herein without definition which are defined in the
Agreement shall have the meanings therein defined. 
 Pursuant to Section 2.1 of the Agreement, the Company hereby gives notice
of its intention to effect a Borrowing as a Revolving Credit Loan in the amount of $             on             ,
            . 
 Pursuant to Section 2.3 of the Agreement, the
Company has elected to have the following portions of such Borrowing be subject to the Type and Interest Period(s) set forth below: 
  

					
	 Type
	  	Amount	  	 Interest
 Period

	 1.
	  		  	
	 2.
	  		  	
	 3.
	  		  	
	 4.
	  		  	
	 5.
	  		  	

 The Company hereby certifies that on the date hereof and on the Borrowing Date set forth above,
and after giving effect to the Loans to be made on such Borrowing Date: 
 (a) The Company is and shall be in compliance with all the terms,
covenants and conditions of the Agreement. 
  

 C-1 

 (b) There exists and there shall exist no Event of Default under the Agreement. 
 (c) The Company represents and warrants that each of the material representations and warranties contained in the Agreement is and shall be true and
correct in all material respects with the same force and effect as if made on and as of the date hereof and as of the Borrowing Date, except such representations and warranties as specifically refer to an earlier date. 
 The Company hereby certifies that on the date hereof the Debt Rating of the Company is
             according to Standard & Poor’s Corporation and              according to Moody’s
Investor Service. 
 The undersigned hereby certifies that he/she is the chief financial officer of the Company. 
 [Remainder of page intentionally left blank.] 
  

 C-2 

 IN WITNESS WHEREOF, the undersigned has caused this Borrowing Request and certification to be executed as
of the date and year first above written. 
  

			
	GREEN MOUNTAIN POWER CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	Chief Financial Officer

  

 Signature Page to Borrowing Request 

 EXHIBIT D 
 FORM OF NOTE 
  

			
		 	Boston, Massachusetts
	$                    	 	June 14, 2006

 For value received, GREEN MOUNTAIN POWER CORPORATION, a Vermont corporation (the
“Company”), hereby promises to pay to the order of
                                        
(the “Bank”) at the offices of SOVEREIGN BANK (the “Agent”), 75 State Street, Boston, Massachusetts, 02109, in lawful money of the United Sates of America, the principal amount of each Revolving Credit Loan made by the Bank to
the Company pursuant to the Credit Agreement, dated as of June 14, 2006, by and among the Company, the signatory Banks thereto and the Agent (as the same may be further amended from time to time the “Agreement”), on the Maturity Date,
together with interest on the unpaid principal amount of each Revolving Credit Loan, from the date of each Revolving Credit Loan until such principal amount is paid in full, at such interest rates, and payable at such times, as is provided or
determined under the Agreement. In no event shall the interest rate payable hereon exceed the maximum rate of interest permitted by law. Capitalized terms used herein without definition which are defined in the Agreement shall have the meanings
therein defined. 
 The principal amount of each Revolving Credit Loan made by the Bank to the Company, and all prepayments made on account
of such principal by the Company shall be recorded by the Bank on the schedule attached hereto. The aggregate unpaid principal balance of all Loans made by the Bank and set forth in such schedule shall be presumptive evidence of the principal
balance owing and unpaid on this Note. The Bank may attach one or more continuations to such schedule as and when required. 
 This Note is
one of the Notes referred to in the Agreement and is entitled to the benefits of, and is subject to the terms set forth in the Agreement. The principal of this Note is prepayable in the amounts and under the circumstances, and its maturity is
subject to acceleration upon the terms, set forth in the Agreement. All payments on this Note shall be made in funds immediately available in Boston, Massachusetts, by 12:00 noon, Boston time, on the due date for such payment. Except as otherwise
expressly provided in the Agreement, if any payment on this Note becomes due and payable on a day which is not a Business Day, the maturity thereof shall be extended to the next Business Day and interest shall be payable at the rate or rates
specified in the Agreement during such extension period. 
 Presentment for payment, demand, notice of dishonor, protest, notice of protest
and all other demands and notices in connection with the delivery, performance and enforcement of this Note are hereby waived, except as specifically otherwise provided in Section 9 of the Agreement. 
  

 D-1 

 This note is being delivered under seal in, is intended to be performed in, shall be construed and
enforceable in accordance with, and be governed by the internal laws of, the Commonwealth of Massachusetts without regard to principles of conflict of laws. 
 This note may be amended only an instrument in writing executed pursuant to the provisions of Section 13 of the Agreement. 
 [Remainder of page intentionally left blank.] 
  

 D-2 

 IN WITNESS WHEREOF, the undersigned has caused this Note to be duly executed as of the date first above
written. 
  

			
	GREEN MOUNTAIN POWER CORPORATION

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 Signature Page to Note 

 GRID 
  

							
	 Date
	 	 Amount of Loan
	 	 Amount of
 Principal Repaid
	 	 Notation
 Made By

	
	  

	
	  

	
	  

	
	  

	
	  

	
	  

	
	  

	
	  

	
	  

	
	  

  

 D-4 

 EXHIBIT E 
 FORM OF CONVERSION/CONTINUATION REQUEST 
 Sovereign Bank 
 75 State Street 
 Boston, Massachusetts 02109 
  

	Attention:	Robert D. Lanigan, Senior Vice President 

 Telephone:
(617) 346-7384 
 Telecopy: (617) 346-7350 
  

	Re:	Credit Agreement dated as of June 14, 2006, as further amended from time to time, by and among Green Mountain Power Corporation, the signatory Banks thereto and Sovereign Bank,
as Agent (the “Agreement”) 

 Capitalized terms used herein without definition which are defined in the Agreement
shall have the meanings therein defined. 
 Pursuant to Section 2.7 of the Agreement, the Company hereby gives notice of its
intention to effect a [continuation][conversion] of a Borrowing under Section 2.1 as [a LIBOR Loan][an Alternate Base Rate Loan] in the amount of $             on
            ,             . 
 Pursuant to Section 2.3 of the Agreement, the Company has elected to have the following portions of such Borrowing be subject to the Type and Interest Period(s) set forth below: 
  

							
	  	  	 	  	Interest
	 Loan
	  	Type	  	Amount	  	Period
	 1.
	  		  		  	
	 2.
	  		  		  	
	 3.
	  		  		  	
	 4.
	  		  		  	
	 5.
	  		  		  	

 The Company hereby certifies that on the date hereof and on the date of conversion/continuation
set forth above, and after giving effect to the Loans to be converted and/or continued: 
 (a) The Company is and shall be in compliance with
all the terms, covenants and conditions of the Agreement; 
 (b) There exists and there shall exist no Event of Default under the Agreement;
and 
 (c) The Company represents and warrants that each of the material representations and warranties contained in the Agreement is and
shall be true and correct in all 
  

 E-1 

 material respects with the same force and effect as if made on and as of the date hereof and as of the Borrowing Date,
except such representations and warranties as specifically refer to an earlier date. 
 The Company hereby certifies that on the date hereof
the Debt Rating of the Company is              according to Standard & Poor’s Corporation and
             according to Moody’s Investor Service. 
 The
undersigned hereby certifies that he/she is the chief financial officer of the Company. 
 [Remainder of page intentionally left
blank.] 
  

 E-2 

 IN WITNESS WHEREOF, the undersigned has caused this Notice of Conversion/Continuation and certification
to be executed as of the date and year first above written. 
  

			
	GREEN MOUNTAIN POWER CORPORATION
		
	By:	 	  

	Name:	 	
	Title:	 	Chief Financial Officer

 Signature Page to Conversion/Continuation Request 

 EXHIBIT F 
 SUBSIDIARIES 
  

			
	 Name of Subsidiary
	 	 State of Incorporation

	 Green Mountain Power Investment Company
	 	Vermont
	 GMP Real Estate Corporation
	 	Vermont
	 Northern Water Resources, Inc. (formerly Mountain Energy, Inc.)
	 	Vermont

  

 F-1 

 EXHIBIT G 
 FORM OF LEGAL OPINION 
 See attached. 
  

 G-1BioElectronics Corporation: Exhibit 4.1 - Prepared by TNT Filings Inc.

Exhibit 4.1

 

THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO BIOELECTRONICS CORPORATION THAT SUCH REGISTRATION IS NOT REQUIRED.

 

	 	
  
  Right to Purchase ________ shares of Common Stock of
  BioElectronics Corporation (subject to adjustment as provided herein)

 

COMMON STOCK PURCHASE WARRANT

No. 2005-A-001

Issue Date: December 8, 2005

BIOELECTRONICS CORPORATION, a corporation organized under the laws of the State of Maryland (the “Company”), hereby certifies that, for value received, __________________________________, ___________________________, Fax: _______________ or its assigns (the “Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any time after the Issue Date until 5:00 p.m., E.S.T on the fifth (5th) anniversary of the Issue Date (the “Expiration Date”), up to ________ fully paid and nonassessable shares of Common Stock at a per share purchase price of $_____ 120% of the closing bid price on the Closing Date as reported by Bloomberg L.P. for the last trading day preceding the Closing Date, which price shall not exceed $0.50.  The aforedescribed purchase price per share, as adjusted from time to time as herein provided, is referred to herein as the “Purchase Price.”  The number and character of such shares of Common Stock and the Purchase Price are subject to adjustment as provided herein.  The Company may reduce the Purchase Price without the consent of the Holder.  Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Subscription Agreement (the “Subscription Agreement”), dated December ____, 2005, entered into by the Company and Holders of the Warrants.

As used herein the following terms, unless the context otherwise requires, have the following respective meanings:
 

(a)

The term “Company” shall include BioElectronics Corporation and any corporation which shall succeed or assume the obligations of BioElectronics Corporation hereunder.
 

(b)

The term “Common Stock” includes (a) the Company’s Common Stock, $0.001 par value per share, as authorized on the date of the Subscription Agreement, and (b) any other securities into which or for which any of the securities described in (a) may be converted or exchanged pursuant to a plan of recapitalization, reorganization, merger, sale of assets or otherwise.

(c)

The term “Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the holder of this Warrant at any time shall be entitled to receive, or shall have received, on the exercise of this Warrant, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 5 or otherwise.
 

(d)

The term “Warrant Shares” shall mean the Common Stock issuable upon exercise of this Warrant.

1

1.

Exercise of Warrant.

1.1.

Number of Shares Issuable upon Exercise.  From and after the Issue Date through and including the Expiration Date, the Holder hereof shall be entitled to receive, upon exercise of this Warrant in whole in accordance with the terms of subsection 1.2 or upon exercise of this Warrant in part in accordance with subsection 1.3, shares of Common Stock of the Company, subject to adjustment pursuant to Section 4.

1.2.

Full Exercise.  This Warrant may be exercised in full by the Holder hereof by delivery of an original or facsimile copy of the form of subscription attached as Exhibit A hereto (the “Subscription Form”) duly executed by such Holder and surrender of the original Warrant within four (4) days of exercise, to the Company at its principal office or at the office of its Warrant Agent (as provided hereinafter), accompanied by payment, in cash, wire transfer or by certified or official bank check payable to the order of the Company, in the amount obtained by multiplying the number of shares of Common Stock for which this Warrant is then exercisable by the Purchase Price then in effect.
 

1.3.

Partial Exercise.  This Warrant may be exercised in part (but not for a fractional share) by surrender of this Warrant in the manner and at the place provided in subsection 1.2 except that the amount payable by the Holder on such partial exercise shall be the amount obtained by multiplying (a) the number of whole shares of Common Stock designated by the Holder in the Subscription Form by (b) the Purchase Price then in effect.  On any such partial exercise, the Company, at its expense, will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, the whole number of remaining shares of Common Stock for which such Warrant may still be exercised.

1.4.

Fair Market Value. Fair Market Value of a share of Common Stock as of a particular date (the “Determination Date”) shall mean:
 

(a)

If the Company’s Common Stock is traded on an exchange or is quoted on the National Association of Securities Dealers, Inc. Automated Quotation (“NASDAQ”), National Market System, the NASDAQ SmallCap Market or the American Stock Exchange, LLC, then the closing or last sale price, respectively, reported for the last business day immediately preceding the Determination Date;

(b)

If the Company’s Common Stock is not traded on an exchange or on the NASDAQ National Market System, the NASDAQ SmallCap Market or the American Stock Exchange, Inc., but is traded in the over-the-counter market, then the average of the closing bid and ask prices reported for the last business day immediately preceding the Determination Date;

(c)

Except as provided in clause (d) below, if the Company’s Common Stock is not publicly traded, then as the Holder and the Company agree, or in the absence of such an agreement, by arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be chosen from a panel of persons qualified by education and training to pass on the matter to be decided; or

(d)

If the Determination Date is the date of a liquidation, dissolution or winding up, or any event deemed to be a liquidation, dissolution or winding up pursuant to the Company’s charter, then all amounts to be payable per share to holders of the Common Stock pursuant to the charter in the event of such liquidation, dissolution or winding up, plus all other amounts to be payable per share in respect of the Common Stock in liquidation under the charter, assuming for the purposes of this clause (d) that all of the shares of Common Stock then issuable
upon exercise of all of the Warrants are outstanding at the Determination Date.

2

1.5.

Company Acknowledgment. The Company will, at the time of the exercise of this Warrant, upon the request of the Holder hereof acknowledge in writing its continuing obligation to afford to such Holder any rights to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant. If the Holder shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford to such Holder any such rights.

1.6.

Trustee for Warrant Holders. In the event that a bank or trust company shall have been appointed as trustee for the Holder of the Warrants pursuant to Subsection 3.2, such bank or trust company shall have all the powers and duties of a warrant agent (as hereinafter described) and shall accept, in its own name for the account of the Company or such successor person as may be entitled thereto, all amounts otherwise payable to the Company or such successor, as the case may be, on exercise of this Warrant pursuant to this Section 1.
 

 

1.7

Delivery of Stock Certificates, etc. on Exercise. The Company agrees that the shares of Common Stock purchased upon exercise of this Warrant shall be deemed to be issued to the Holder hereof as the record owner of such shares as of the close of business on the date on which this Warrant shall have been surrendered and payment made for such shares as aforesaid. As soon as practicable after the exercise of this Warrant in full or in part, and in any event within three (3) business days thereafter, the Company at its expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct in compliance with applicable securities laws, a certificate or certificates for the number of duly and validly issued, fully paid and nonassessable shares of Common Stock (or Other Securities) to which such Holder shall be entitled on such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to such fraction multiplied by the then Fair Market Value of one full share of Common Stock, together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant to Section 1 or otherwise.
 

 2.

Cashless Exercise.

(a)

Payment upon exercise of this Warrant may be made at the option of the Holder either in (i) cash, wire transfer or by certified or official bank check payable to the order of the Company equal to the applicable aggregate Purchase Price, (ii) by cashless exercise in accordance with Section (b) below or (iii) by a combination of any of the foregoing methods, for the number of Common Stock specified in such form (as such exercise number shall be adjusted to reflect any adjustment in the total number of shares of Common Stock issuable to the holder per the terms of this Warrant) and the holder shall thereupon be entitled to receive the number of duly authorized, validly issued, fully-paid and non-assessable shares of Common Stock (or Other Securities) determined as provided herein.

(b)

If the Fair Market Value of one share of Common Stock is greater than the Purchase Price (at the date of calculation as set forth below), in lieu of exercising this Warrant for cash, the holder may elect to receive shares equal to the value (as determined below) of this Warrant (or the portion thereof being cancelled) by surrender of this Warrant at the principal office of the Company together with the properly endorsed Subscription Form in which event the Company shall issue to the holder a number of shares of Common Stock computed using the following formula:

X=Y (A-B)

          A

Where

X=

the number of shares of Common Stock to be issued to the Holder

 

3

Y=

the number of shares of Common Stock purchasable under the Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being exercised (at the date of such calculation)

A=

the Fair Market Value of one share of the Company’s Common Stock (at the date of such calculation)

B=

Purchase Price (as adjusted to the date of such calculation)

(a)

For purposes of Rule 144 promulgated under the 1933 Act, it is intended, understood and acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued pursuant to the Subscription Agreement.

3.

Adjustment for Reorganization, Consolidation, Merger, etc.

3.1.

Reorganization, Consolidation, Merger, etc.  In case at any time or from time to time, the Company shall (a) effect a reorganization, (b) consolidate with or merge into any other person or (c) transfer all or substantially all of its properties or assets to any other person under any plan or arrangement contemplating the dissolution of the Company, then, in each such case, as a condition to the consummation of such a transaction, proper and adequate provision shall be made by the Company whereby the Holder of this Warrant, on the exercise hereof as provided in Section 1, at any time after the consummation of such reorganization, consolidation or merger or the effective date of such dissolution, as the case may be, shall receive, in lieu of the Common Stock (or Other Securities) issuable on such exercise prior to such consummation or such effective date, the stock and other securities and property (including cash) to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case may be, if such Holder had so exercised this Warrant, immediately prior thereto, all subject to further adjustment thereafter as provided in Section 4.

3.2.

Dissolution.  In the event of any dissolution of the Company following the transfer of all or substantially all of its properties or assets, the Company, prior to such dissolution, shall at its expense deliver or cause to be delivered the stock and other securities and property (including cash, where applicable) receivable by the Holder of the Warrants after the effective date of such dissolution pursuant to this Section 3 to a bank or trust company (a “Trustee”) having its principal office in New York, NY, as trustee for the Holder of the Warrants.
 

3.3.

Continuation of Terms.  Upon any reorganization, consolidation, merger or transfer (and any dissolution following any transfer) referred to in this Section 3, this Warrant shall continue in full force and effect and the terms hereof shall be applicable to the Other Securities and property receivable on the exercise of this Warrant after the consummation of such reorganization, consolidation or merger or the effective date of dissolution following any such transfer, as the case may be, and shall be binding upon the issuer of any Other Securities, including, in the case of any such transfer, the person acquiring all or substantially all of the properties or assets of the Company, whether or not such person shall have expressly assumed the terms of this Warrant as provided in Section 4.  In the event this Warrant does not continue in full force and effect after the consummation of the transaction described in this Section 3, then only in such event will the Company’s securities and property (including cash, where applicable) receivable by the Holder of the Warrants be delivered to the Trustee as contemplated by Section 3.2.

3.4

Share Issuance.  Until the Expiration Date, if the Company shall issue any Common Stock except for the Excepted Issuances (as defined in the Subscription Agreement), prior to the complete exercise of this Warrant for a consideration less than the Purchase Price that would be in effect at the time of such issue, then, and thereafter successively upon each such issue, the Purchase Price shall be reduced to such other lower issue price.  For purposes of this adjustment, the issuance of any security or debt instrument of the Company carrying the right to convert such security or debt instrument into Common Stock or of any warrant, right or option to purchase Common Stock shall result in an adjustment to the Purchase Price upon the issuance of the above-described security, debt instrument, warrant, right, or option and again at any time upon any subsequent issuances of shares of Common Stock upon exercise of such conversion or purchase rights if such issuance is at a price lower than the Purchase Price in effect upon such issuance.  The reduction of the Purchase Price described in this Section 3.4 is in addition to the other rights of the Holder described in the Subscription Agreement.

4

4.

Extraordinary Events Regarding Common Stock.  In the event that the Company shall (a) issue additional shares of the Common Stock as a dividend or other distribution on outstanding Common Stock, (b) subdivide its outstanding shares of Common Stock, or (c) combine its outstanding shares of the Common Stock into a smaller number of shares of the Common Stock, then, in each such event, the Purchase Price shall, simultaneously with the happening of such event, be adjusted by multiplying the then Purchase Price by a fraction, the numerator of which shall be the number of shares of Common Stock outstanding immediately prior to such event and the denominator of which shall be the number of shares of Common Stock outstanding immediately after such event, and the product so obtained shall thereafter be the Purchase Price then in effect. The Purchase Price, as so adjusted, shall be readjusted in the same manner upon the happening of any successive event or events described herein in this Section 4. The number of shares of Common Stock that the Holder of this Warrant shall thereafter, on the exercise hereof as provided in Section 1, be entitled to receive shall be adjusted to a number determined by multiplying the number of shares of Common Stock that would otherwise (but for the provisions of this Section 4) be issuable on such exercise by a fraction of which (a) the numerator is the Purchase Price that would otherwise (but for the provisions of this Section 4) be in effect, and (b) the denominator is the Purchase Price in effect on the date of such exercise.

5.

Certificate as to Adjustments.  In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable on the exercise of the Warrants, the Company at its expense will promptly cause its Chief Financial Officer or other appropriate designee to compute such adjustment or readjustment in accordance with the terms of the Warrant and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, including a statement of (a) the consideration received or receivable by the Company for any additional shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold, (b) the number of shares of Common Stock (or Other Securities) outstanding or deemed to be outstanding, and (c) the Purchase Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant. The Company will forthwith mail a copy of each such certificate to the Holder of the Warrant and any Warrant Agent of the Company (appointed pursuant to Section 11 hereof).

6.

Reservation of Stock, etc. Issuable on Exercise of Warrant; Financial Statements.   The Company will at all times reserve and keep available, solely for issuance and delivery on the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time issuable on the exercise of this Warrant.  This Warrant entitles the Holder hereof to receive copies of all financial and other information distributed or required to be distributed to the holders of the Company’s Common Stock.
 

7.

Assignment; Exchange of Warrant.  Subject to compliance with applicable securities laws, this Warrant, and the rights evidenced hereby, may be transferred by any registered holder hereof (a “Transferor”). On the surrender for exchange of this Warrant, with the Transferor’s endorsement in the form of Exhibit B attached hereto (the “Transferor Endorsement Form”) and together with an opinion of counsel reasonably satisfactory to the Company that the transfer of this Warrant will be in compliance with applicable securities laws, the Company at its expense, twice only, but with payment by the Transferor of any applicable transfer taxes, will issue and deliver to or on the order of the Transferor thereof a new Warrant or Warrants of like tenor, in the name of the Transferor and/or the transferee(s) specified in such Transferor Endorsement Form (each a “Transferee”), calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant so surrendered by the Transferor.  No such transfers shall result in a public distribution of the Warrant.

5

8.

Replacement of Warrant.  On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement or security reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of this Warrant, the Company at its expense, twice only, will execute and deliver, in lieu thereof, a new Warrant of like tenor.

9.

Registration Rights.  The Holder of this Warrant has been granted certain registration rights by the Company.  These registration rights are set forth in the Subscription Agreement.

10.

Maximum Exercise.  The Holder shall not be entitled to exercise this Warrant on an exercise date, in connection with that number of shares of Common Stock which would be in excess of the sum of (i) the number of shares of Common Stock beneficially owned by the Holder and its affiliates on an exercise date, and (ii) the number of shares of Common Stock issuable upon the exercise of this Warrant with respect to which the determination of this limitation is being made on an exercise date, which would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock on such date.  For the purposes of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended, and Regulation 13d-3 thereunder.  Subject to the foregoing, the Holder shall not be limited to aggregate exercises which would result in the issuance of more than 4.99%.  The restriction described in this paragraph may be waived, in whole or in part, upon sixty-one (61) days prior notice from the Holder to the Company.  The Holder may decide whether to convert a Note or exercise this Warrant to achieve an actual 4.99% ownership position.

11.

Warrant Agent.  The Company may, by written notice to the Holder of the Warrant, appoint an agent (a “Warrant Agent”) for the purpose of issuing Common Stock (or Other Securities) on the exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant to Section 7, and replacing this Warrant pursuant to Section 8, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such Warrant Agent.
 

12.

Transfer on the Company’s Books.  Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.
 

13.

Notices.   All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur or (c) three business days after deposited in the mail if delivered pursuant to subsection (ii) above.  The addresses for such communications shall be: (i) if to the Company to: BioElectronics Corporation, 401 Rosemont Avenue, Rosenstock Hall, Third Floor, Frederick, MD 21701, Attn: Andrew J. Whelan, President, telecopier: (301) 874-0329, with a copy by telecopier only to: Pryor Cashman Sherman & Flynn, LLP, 410 Park Avenue, New York, NY 10022, Attn: Eric M. Hellige, Esq., telecopier: (212) 326-0806, and (ii) if to the Holder, to the addresses and telecopier number set forth in the first paragraph of this Warrant, with an additional copy by telecopier only to: Grushko & Mittman, P.C., 551 Fifth Avenue, Suite 1601, New York, New York 10176, telecopier number: (212) 697-3575.

6

14.

Miscellaneous.  This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. This Warrant shall be construed and enforced in accordance with and governed by the laws of New York.  Any dispute relating to this Warrant shall be adjudicated in New York County in the State of New York.  The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
 

IN WITNESS WHEREOF, the Company has executed this Warrant as of the date first written above.
 

	 	
    
    BIOELECTRONICS CORPORATION

    
	 	 
	 	By:	 
			
    Name:

    Title: 

 

 

 

 

Witness:

	 	 

7

Exhibit A

FORM OF SUBSCRIPTION

(to be signed only on exercise of Warrant)

TO:  BIOELECTRONICS CORPORATION  

The undersigned, pursuant to the provisions set forth in the attached Warrant (No.____), hereby irrevocably elects to purchase (check applicable box):

 

                
                         
shares of the Common Stock covered by such Warrant; or

 

                the maximum number of shares of Common Stock covered by such Warrant pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned herewith makes payment of the full purchase price for such shares at the price per share provided for in such Warrant, which is $___________.  Such payment takes the form of (check applicable box or boxes):

                 $__________ in lawful money of the United States; and/or

 

                the cancellation of the Warrant to the extent necessary, in accordance with the formula set forth in Section 2, to exercise this Warrant with respect to the maximum number of shares of Common Stock purchasable pursuant to the cashless exercise procedure set forth in Section 2.

The undersigned requests that the certificates for such shares be
issued in the name of, and delivered to
_____________________________________________________ whose address is 

	 
	 

Number of Shares of Common Stock Beneficially Owned on the date of exercise: Less than five percent (5%) of the outstanding Common Stock of BioElectronics Corporation

The undersigned represents and warrants that the representations and warranties in Section 4 of the Subscription Agreement (as defined in this Warrant) are true and accurate with respect to the undersigned on the date hereof.

The undersigned represents and warrants that all offers and sales by the undersigned of the securities issuable upon exercise of the within Warrant shall be made pursuant to registration of the Common Stock under the Securities Act of 1933, as amended (the “Securities Act”), or pursuant to an exemption from registration under the Securities Act.

	
    Dated:___________________	 	
    ( Signature must conform to name of holder as specified on the face of the Warrant)
	 	 
	 	 
	 	 
	 	
    (Address)

 
8

Exhibit B

FORM OF TRANSFEROR ENDORSEMENT

(To be signed only on transfer of Warrant)

 

For value received, the undersigned hereby sells, assigns, and transfers unto the person(s) named below under the heading “Transferees” the right represented by the within Warrant to purchase the percentage and number of shares of Common Stock of BIOELECTRONICS CORPORATION to which the within Warrant relates specified under the headings “Percentage Transferred” and “Number Transferred,” respectively, opposite the name(s) of such person(s) and appoints each such person Attorney to transfer its respective right on the books of BIOELECTRONICS CORPORATION with full power of substitution in the premises.

	
    Transferees	
    Percentage Transferred	
    Number Transferred
	 	 	 
	 	 	 
	 	 	 

	Dated:  ______________, ___________	 	
    (Signature must conform to name of holder as specified on the face of the warrant)
	 	 	 
	 	 	 
	Signed in the presence of:		
	 	 	 
	 	 	 
	
    (Name)
	 	 
	 	 	
    (address)

	 	 	 
	

ACCEPTED AND AGREED:

    		
	[TRANSFEREE]		
    
	 	 	
    (address)

			
	 	 	 
	
    (Name)

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