Document:

Exhibit 10.2

  

   

    

  
    FIRST AMENDED AND RESTATED REVOLVING CREDIT NOTE

     

    	
            $

          	
            10,000,000

          	 	
            Greenwood Village, Colorado

          
	 	 	 	
             July 30, 2021

          

    

    

    FOR VALUE RECEIVED, SOUTHWEST IOWA RENEWABLE ENERGY, LLC, a limited liability company organized and existing under the laws of Iowa (the “Company”),

      hereby promises to pay to the order of FARM CREDIT SERVICES OF AMERICA, PCA (which, together with its endorsees, successors, and assigns, is referred to herein as the “Bank”), at the office of CoBank, ACB (the
      “Agent”) located at 6340 S. Fiddlers Green Circle, Greenwood Village, Colorado 80111 (or at such other place of payment designated by the holder hereof to the Company), the lesser of (i) the principal sum of
      TEN MILLION DOLLARS ($10,000,000) (the “Revolving Credit Commitment”) or (ii) the aggregate unpaid principal balance of all loans made under the Revolving Credit Commitment by the Bank to or for the benefit of
      the Company (each loan and any one or more portions of any loan being referred to herein as a “Loan”) pursuant to that Credit Agreement dated as of June 24, 2014, Amendment No. 1 to Credit Agreement dated as of
      February 11, 2015, Amendment No. 2 to Credit Agreement dated as of February 11, 2015, Amendment No. 3 to Credit Agreement dated as of January 25, 2016, Amendment No. 4 to Credit Agreement dated as of November 8, 2019, Amendment No. 5 to Credit
      Agreement dated as of February 26, 2021 and Amendment No. 6 to Credit Agreement dated as of even date herewith, in each case, between the Company, Farm Credit Services of America, FLCA, the Bank and the Agent (as amended, restated, modified or
      supplemented from time to time, collectively the “Agreement”), in lawful money of the United States of America in immediately available funds, payable together with interest thereon, as set forth below, without
      presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Company, and without set-off, counterclaim or other deduction of any nature at the earlier of November 1, 2021 (the “Revolving

        Credit Facility Expiration Date”), or as otherwise set forth below or in the Agreement. Capitalized terms not otherwise defined in this First Amended and Restated Revolving Credit Note (as amended, restated, modified, supplemented, replaced,
      refinanced or renewed from time to time, this “Note”) shall have the respective meanings ascribed to them by the Agreement, including Annex A thereto, and the Rules of Construction set forth in such Annex A
      shall apply to this Note. This Note amends and restates, but does not constitute payment of the indebtedness evidenced by, the Revolving Credit Note, dated as of February 26, 2021, by the Company to the order of the Bank.

     

    1.       Principal Payments and Prepayments. Payments and prepayments of principal shall be due and payable as set forth in the
      Agreement and this Note. The entire remaining indebtedness evidenced by this Note, if not sooner paid in accordance with the terms of the Agreement or this Note, shall be due and payable on the Revolving Credit Facility Expiration Date. If at any
      time, the aggregate principal amount of Loans outstanding exceeds the Revolving Credit Commitment at such time, the Company shall immediately notify the Agent and shall immediately prepay the principal amount of the outstanding Loans in an amount
      sufficient to eliminate such excess.

     

    2.         Purpose of Revolving Credit Facility. The proceeds of the Revolving Credit Facility shall be used to provide Working
      Capital for the Company and for any other lawful purpose.

     

    
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    3.      Unused Commitment Fee. Accruing from the date hereof until the Revolving Credit Facility Expiration Date, the Company agrees
      to pay to the Agent a nonrefundable commitment fee (the “Unused Commitment Fee”) equal to 0.35% per annum (computed on the basis of a year of 360 days for the actual number of days elapsed) multiplied by the
      average daily positive difference between the amount of (i) the Revolving Credit Commitment minus (ii) the aggregate principal amount of all Loans then outstanding. All Unused Commitment Fees shall accrue to the first day of each month and be
      payable monthly in arrears on the 20th day of each month hereafter and on the Revolving Credit Facility Expiration Date.

     

    4.         Interest Payments; Interest Rate. The Company hereby further promises to pay to the order of the Agent, at the times and on
      the dates provided in the Agreement, interest on the unpaid principal amount of the Loans from the date hereof until the Payment in Full of all of the Loans at the LIBOR Index Rate with a LIBOR Index Spread of 3,40% per annum (the “LIBOR Index
      Spread”). All Loans shall be deemed to be LIBOR Index Rate Loans.

     

    5.         Loan Requests. Subject to the terms and conditions of this Note and the Agreement, the Company may prior to the Revolving
      Credit Facility Expiration Date request the Bank to make Loans by delivering, in accordance with the notice provisions of the Agreement, to the Agent not later than 12:00 noon (Denver time), the same Business Day as the proposed Business Day of
      borrowing, a duly completed request therefor substantially in the form of Exhibit A hereto (or a request made by CoLink or by telephone, but subject to the same deadline and containing substantially the same information, and in the case of a
      telephone request, immediately confirmed in writing substantially in the form of Exhibit A and delivered in accordance with the terms hereof) by physical delivery, facsimile, or electronic mail (each such request, whether telephonic or
      written and regardless how delivered, a “Loan Request”), it being understood that the Agent may rely on the authority of any individual making such a telephonic request without the necessity of receipt of such written confirmation. Each Loan Request
      shall be irrevocable and shall specify the amount of the proposed Loan. All notices and requests hereunder shall be given, and all borrowings shall occur, only on Business Days.

     

    6.         Usury. In no event shall the interest rate(s) applicable to principal outstanding hereunder exceed the maximum rate of
      interest allowed by applicable Law, as amended from time to time; any payment of interest or in the nature of interest in excess of such limitation shall be credited as a payment of principal unless the Company requests the return of such amount.

     

    7.         Miscellaneous.

     

     (a)        This Note is the Revolving Credit Note referred to in, and is entitled to the benefits of, the Agreement and the other Loan Documents referred to therein. Reference is made to the
      Agreement for a description of the relative rights and obligations of the Company, the Bank and the Agent, including rights and obligations of prepayment, collateral securing payment hereof, Events of Default, and rights of acceleration of maturity
      upon the occurrence of an Event of Default.

     

    
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     (b)       No delay on the part of the holder hereof in exercising any of its options, powers, or rights, or partial or single exercise thereof, shall constitute a waiver thereof. The options,
      powers, and rights specified herein of the holder hereof are in addition to those otherwise created or permitted by Law, the Agreement, and the other Loan Documents. There are no claims, set-offs, or deductions of any nature as of the date hereof
      that could be made or asserted by the Company against the Bank and / or the Agent or against any amount due or to become due under this Note; all such claims, set-offs, or deductions are hereby waived by the Company.

     

     (c)       Delivery of an executed signature page of this Note by telecopy or email (as a .pdf attachment thereto or otherwise) shall be as effective as
      delivery of a manually executed counterpart of this Note, but shall in any event be promptly followed by delivery of the original manually executed signature page (provided, however, that the failure to do so shall in no event adversely affect the
      rights of the Bank and / or the Agent hereunder whatsoever). THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF COLORADO, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.

     

    [SIGNATURE PAGE FOLLOWS]

     

    

    
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    IN WITNESS WHEREOF and intending to be legally bound hereby, the Company has executed this Note as of the date hereof by its duly Authorized Officer.

     

    	

          	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          
	

          	 	

          
	

          	
            By:

          	
            /s/ Michael D. Jerke

          
	

          	
            Name:

          	
            Michael D. Jerke

          
	

          	
            Title:

          	
            Chief Executive Officer

          
	

          	 	 
	
            AGREED AND ACCEPTED:

          	 	 
	 	 	 
	
            COBANK, ACB

          	 	 
	

          	 	 
	
            By:

          	
            /s/ Brook Stromer

          	 	 
	 	
            Name:

          	
            Brook Stromer

          	 	 
	 	
            Title:

          	
            Vice President

          	 	 

    

    

    
      [Revolving Credit Note Signature Page]

       

      

    

    
      
        

    

    EXHIBIT A

     

    FORM OF REVOLVING CREDIT LOAN REQUEST

     

    [___________________], 20[___]

    

    

    To: CoBank, ACB (the “Agent”)

     

    From: Southwest Iowa Renewable Energy, LLC (the “Company”)

     

    	Re:	
            Credit Agreement (as amended, restated, modified or supplemented from time to time, the “Credit Agreement”), dated as of June 24, 2014, by and between the Company, Farm Credit Services of America, FLCA and Farm Credit Services of America,
              PCA, as Lender, and the Agent

          

     

    Pursuant to Section 2.3(a) of the Credit Agreement, the Company hereby gives notice of its desire to receive a Revolving Credit Loan in accordance with the terms set forth below (all capitalized terms used herein and
      not defined herein shall have the meaning given them in the Credit Agreement):

     

    	(a)	
            The Revolving Credit Loan requested pursuant to this Revolving Credit Loan Request shall be made on [___________________], 20[___].

          

     

    	(b)	
            The aggregate principal amount of the Revolving Credit Loan requested hereunder is [________________________] Dollars ($[_______________]).

          

     

    	(c)	
            The Revolving Credit Loan requested hereunder shall bear interest at the LIBOR Index Option.

          

     

    	 	
            SOUTHWEST IOWA RENEWABLE ENERGY, LLC

          

    	 	 
	 	
            By:

          	

          
	 	
            Name:

          	

          
	 	
            Title:Exhibit 10.1

 

Execution
Version

 

INCREMENTAL ASSUMPTION AGREEMENT

 

THIS
INCREMENTAL ASSUMPTION AGREEMENT (this “Agreement”) dated and effective as of August 12, 2021 (the “Effective
Date”), is among ELANCO ANIMAL HEALTH INCORPORATED, an Indiana corporation (the “Company”), ELANCO US INC.,
a Delaware corporation (together with the Company, collectively, the “Borrowers” and each, individually, a “Borrower”),
THE SUBSIDIARY LOAN PARTIES party hereto, FARM CREDIT MID-AMERICA, PCA (“FCMA”) and each other person (if any)
party hereto as a 2021 Incremental Term Lender (collectively, the “2021 Incremental Term Lenders” and each, individually,
a “2021 Incremental Term Lender”) and GOLDMAN SACHS BANK USA (“Goldman
Sachs”), as term facility agent (in such capacity, the “Term Loan Administrative
Agent”).

 

Recitals:

 

A.            The
Borrowers, the lenders party thereto, the Term Loan Administrative Agent, Goldman Sachs Bank USA, as collateral agent and security trustee,
and JPMorgan Chase Bank, N.A., as revolving facility agent, have entered into that certain Credit Agreement dated as of August 1,
2020 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized
terms used and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

B.            Pursuant
to Section 2.21 of the Credit Agreement, the Borrowers have requested an Incremental Term Facility in an aggregate principal
amount of $500,000,000.

 

C.            Subject
to the terms and conditions set forth below, each 2021 Incremental Term Lender is willing to provide commitments in respect of such Incremental
Term Facility, and each of the Term Loan Administrative Agent and each 2021 Incremental Term Lender have agreed to amend and supplement
the Credit Agreement as specifically set forth herein in connection therewith.

 

In furtherance of the foregoing,
the parties hereto agree as follows:

 

Section 1.          2021
Incremental Term Facility.

 

(a)            2021
Incremental Term Loan Commitments. Subject to the terms and conditions set forth herein, each 2021 Incremental Term Lender agrees
to make a single term loan denominated in Dollars (each such term loan, a “2021 Incremental Term Loan”) to the Borrowers
on the Funding Date (as defined below) in a principal amount not to exceed the commitment of such 2021 Incremental Term Lender as set
forth on Schedule I attached hereto (such commitment, with respect to each 2021 Incremental Term Lender, its “2021 Incremental
Term Loan Commitment”). Amounts of 2021 Incremental Term Loans borrowed hereunder that are repaid or prepaid may not be reborrowed.

 

(b)            Availability/Borrowing.
The borrowing of the 2021 Incremental Term Loans shall be funded in a single draw made on a Business Day occurring after the Effective
Date and on or prior to August 27, 2021 (such date, the “2021 Incremental Term Loan Commitment Termination Date”
and the date of such borrowing, the “Funding Date”) and shall be (i) subject to the occurrence of the Effective
Date and the satisfaction of each of the conditions set forth in Section 4.01 of the Credit Agreement and (ii) made in
accordance with Section 2.03 of the Credit Agreement. The 2021 Incremental Term Loan Commitment of each 2021 Incremental Term
Lender will terminate on the earlier of (i) 5:00 p.m. (Eastern time) on the 2021 Incremental Term Loan Commitment Termination
Date and (ii) the occurrence of the Funding Date after giving effect to the funding of the 2021 Incremental Term Loans to occur on
such date.

 

     

     

    

 

(c)            Repayment
of 2021 Incremental Term Loans. The Borrowers shall repay the 2021 Incremental Term Loans on the last day of each March, June, September and
December of each year (commencing on December 31, 2021) and on August 12, 2028 (the “2021 Incremental Term Loan
Maturity Date”) or, if any such date is not a Business Day, on the next preceding Business Day, in an aggregate principal amount
of such 2021 Incremental Term Loans equal to (i) in the case of quarterly payments due prior to the 2021 Incremental Term Loan Maturity
Date, an amount equal to 0.25% of the aggregate principal amount of the 2021 Incremental Term Loans outstanding immediately after the
Funding Date and (ii) in the case of such payment due on the 2021 Incremental Term Loan Maturity Date, an amount equal to the then
unpaid principal amount of such 2021 Incremental Term Loans outstanding.

 

(d)            Prepayment
of 2021 Incremental Term Loans. The 2021 Incremental Term Loans shall be subject to the voluntary and mandatory prepayment provisions
set forth in Sections 2.10 and 2.11 of the Credit Agreement and all prepayments thereof shall be made in accordance therewith
(and, subject to the terms thereof, shall participate on a pro rata basis with the other Term Loans with respect to mandatory prepayments).

 

(e)            Interest.
The 2021 Incremental Term Loans shall be ABR Term Loans or Eurocurrency Term Loans as provided in the Credit Agreement and subject to,
and paid in accordance with, the provisions of the Credit Agreement in respect thereto (including, without limitation, Sections 2.13
through 2.17). The Applicable Margin with respect to the 2021 Incremental Term Loans shall be, for any day, 1.75% per annum in
the case of any Eurocurrency Term Loan and 0.75% per annum in the case of any ABR Term Loan.

 

(f)            Use
of Proceeds. The proceeds of the 2021 Incremental Term Loan shall be used solely by the Borrowers to repay in full the Company’s
3.912% Senior Notes due August 27, 2021.

 

(g)            2021
Incremental Term Facility. Each of the parties hereto acknowledges and agrees that (i) the 2021 Incremental Term Facility is
an “Incremental Term Facility” established as a separate and distinct “Class” and “Facility” of “Other
Term Loans” pursuant to Section 2.21 of the Credit Agreement, (ii) the 2021 Incremental Term Loan Commitments are
 “Incremental Term Loan Commitments” under the Credit Agreement, (iii) the 2021 Incremental Term Loans are “Incremental
Term Loans” under the Credit Agreement and, as a result thereof, are “Term Loans” and “Loans” under the
Credit Agreement (including, without limitation, for purposes of the definition of “Loan Obligations” and “Required
Prepayment Lenders”), (iv) the 2021 Incremental Term Loan Commitments, the 2021 Incremental Term Loans and all obligations
in respect thereof are secured by the Security Documents, are guaranteed by the Subsidiary Guarantee Agreement and rank pari passu in
right of payment and security with all of the other Obligations under the Credit Agreement, (v) except as otherwise expressly provided
herein, are subject to the same terms as the other Term Loans under the Credit Agreement and (vi) this Agreement is an “Incremental
Assumption Agreement” under the Credit Agreement and, as a result thereof, a “Loan Document” under the Credit Agreement.
In addition, each of the parties hereto acknowledges and agrees that FCMA has acted as the sole lead arranger and sole bookrunner with
respect to the 2021 Incremental Term Facility and, as a result thereof, from and after the Effective Date, FCMA shall be an “Arranger”
under the Credit Agreement and entitled to the benefits that such designation provides under the Loan Documents (including, without limitation,
for purposes of Sections 8.11, 9.05 and 9.21 of the Credit Agreement).

 

(h)            Waivers;
Amendment. Pursuant to Section 9.08(e) of the Credit Agreement, each of the parties hereto acknowledges and agrees
that, notwithstanding anything in the Credit Agreement (including, without limitation, Section 9.08) to the contrary, (i) when
determining “Required Lenders” at any time prior to the funding of the 2021 Incremental Term Loans, the unused portion of
the 2021 Incremental Term Loan Commitments shall be included in such determination in the same manner as Available Unused Commitments
and (ii) neither Section 2 below nor any provision of this Agreement or the Credit Agreement relating to the funding
of the 2021 Incremental Term Loans may be waived, amended or modified except pursuant to an agreement or agreements in writing entered
into by the Borrowers, the Term Loan Administrative Agent and each of the 2021 Incremental Term Lenders.

 

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The amendments to the Credit
Agreement are limited to the extent specifically set forth in this Section 1 and no other terms, covenants or provisions of
the Loan Documents are intended to be affected hereby.

 

Section 2.          Certain
Farm Credit Matters.

 

(a)            Waiver
of Borrower’s Rights Under Farm Credit Law.  Each Borrower acknowledges and agrees that, to the extent the provisions
of the Agricultural Credit Act of 1987, including, without limitation, 12 U.S.C. §§ 2199 through 2202e, and the implementing
Farm Credit Administration regulations, 12 C.F.R. § 617.7000, et seq. (collectively, the “Farm Credit Law”) apply
to a Borrower or to the transactions contemplated by this Agreement, the Credit Agreement or the other Loan Documents, each Borrower hereby
irrevocably waives, relinquishes and agrees not to assert at any time any and all rights that such Borrower may be afforded under the
Farm Credit Law (“Borrower Rights”), including but not limited to all statutory or regulatory rights of a borrower
to disclosure of effective interest rates, differential interest rates, review of credit decisions, distressed loan restructuring, and
rights of first refusal. Each Borrower acknowledges and agrees that the waiver of Borrower Rights provided by this Section 2(a) is
knowingly and voluntarily made after each Borrower has consulted with legal counsel of its choice and has been represented by counsel
of its choice in connection with the negotiation of this Agreement and the waiver of Borrower Rights set forth in this Section 2(a).
Each Borrower acknowledges that its waiver of Borrower Rights set forth in this Section 2(a) is based on its recognition
that such waiver is material to induce the Agents and the Lenders to participate in the extensions of credit contemplated by this Agreement,
the Credit Agreement and the other Loan Documents and to provide extensions of credit to the Borrowers. Nothing contained in this Section 2(a),
nor the delivery to any Borrower of any summary of any rights under, or any notice pursuant to, the Farm Credit Law shall be deemed to
be, or be construed to indicate the determination or agreement by any Borrower, any Agent or any Lender that the Farm Credit Law, or any
rights thereunder, are or will be applicable to any Borrower or to the transactions contemplated by this Agreement, the Credit Agreement
and the other Loan Documents. It is the intent of each Borrower that the waiver of Borrower Rights contained in this Section 2(a) complies
with and meets all requirements of 12 C.F.R. § 617.7010(c).

 

(b)            Farm
Credit Equity and Eligibility.

 

(i)        So
long as a Farm Credit System Institution (as defined below) is a Lender under the Credit Agreement, each Borrower will acquire equity
in such Farm Credit System Institution in such amounts and at such times as such Farm Credit System Institution may require in accordance
with such Farm Credit System Institution’s Bylaws and Capital Plan (or their equivalent) (as each may be amended from time to time),
except that the maximum amount of equity that such Borrower shall be required pursuant to this sentence to purchase in such Farm Credit
System Institution in connection with the Loans made by such Farm Credit System Institution shall not exceed the maximum amount required
by the Bylaws and the Capital Plan (or the equivalent) on the Effective Date (or such other date that such Farm Credit System Institution
initially becomes a Lender, as applicable), and at all times maintain its eligibility to be a borrower of loans from a Farm Credit System
Institution. Each Borrower acknowledges receipt of documents from each Farm Credit System Institution that describe the nature of such
Borrower’s cash patronage, stock and other equities in such Farm Credit System Institution acquired in connection with its patronage
loan from such Farm Credit System Institution (the “Farm Credit Equities”) as well as capitalization requirements,
and agrees to be bound by the terms thereof. As used herein, “Farm Credit System Institution” means any farm credit
bank, any federal land bank association, agricultural credit association, federal land credit association, any production credit association,
the banks for cooperatives, and such other institutions as may be subject to regulation by the Farm Credit Administration, including,
without limitation, any federally-chartered Farm Credit System lending institution organized under the Farm Credit Act of 1971, as the
same may be amended or supplemented from time to time.

 

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(ii)       Each
party hereto acknowledges and agrees that each Farm Credit System Institution’s Bylaws and capital plans (or their equivalent) (as
each may be amended from time to time) shall govern (A) the rights and obligations of the parties with respect to the Farm Credit
Equities and any patronage refunds or other distributions made on account thereof or on account of any Borrower’s patronage with
such Farm Credit System Institution, (B) any Borrower’s eligibility for patronage distributions from such Farm Credit System
Institution (in the form of Farm Credit Equities and cash) and (C) patronage distributions, if any, in the event of a sale of a participation
interest. Each Farm Credit System Institution reserves the right to assign or sell participations in all or any part of its Commitments
or outstanding Loans hereunder on a non-patronage basis.

 

(iii)      Each
party hereto further acknowledges and agrees that each Farm Credit System Institution has a statutory first lien pursuant to the Farm
Credit Act of 1971, as the same may be amended or supplemented from time to time, on all Farm Credit Equities that any Borrower may now
own or hereafter acquire, which statutory lien shall be for such Farm Credit System Institution’s sole and exclusive benefit. The
Farm Credit Equities shall not constitute security for the Obligations due to any other party hereto. Neither the Farm Credit Equities
nor any accrued patronage shall be offset against the Obligations except that, in the event of an Event of Default, a Farm Credit System
Institution may elect, solely at its discretion, to apply the cash portion of any patronage distribution or retirement of equity to amounts
owed to such Farm Credit System Institution under this Agreement, whether or not such amounts are currently due and payable. Each Borrower
acknowledges that any corresponding tax liability associated with such application is the sole responsibility of such Borrower. No Farm
Credit System Institution shall have any obligation to retire any Farm Credit Equities upon any Event of Default, Default or any other
default by any Borrower or any other Loan Party, or at any other time, either for application to the Obligations or otherwise.

 

Section 3.          Incremental
Term Lender Joinder. By its execution of this Agreement, each 2021 Incremental Term Lender hereby acknowledges, agrees
and confirms that, on and after the Effective Date:

 

(a)            it
will be deemed to be a party to the Credit Agreement as a “Lender” and an “Incremental Term Lender” for all purposes
of the Credit Agreement and the other Loan Documents, and shall have all of the obligations of, and shall be entitled to the benefits
of, a Lender and an Incremental Term Lender under the Credit Agreement, all with the same force and effect as if it had executed the Credit
Agreement;

 

(b)            it
has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 5.04
thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into
this Agreement and become a Lender and an Incremental Term Lender under the Credit Agreement;

 

(c)            it
will independently and without reliance upon any Agent or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement;

 

(d)            it
appoints and authorizes the Term Loan Administrative Agent and Collateral Agent to take such action as agent on its behalf and to exercise
such powers under the Credit Agreement as are delegated to such Agent by the terms of the Credit Agreement, together with such powers
as are reasonably incidental thereto; and

 

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(e)            it
will perform in accordance with their terms all the obligations which by the terms of the Credit Agreement are required to be performed
by it as a Lender.

 

Section 4.          Conditions
Precedent.  The effectiveness of this Agreement and the amendments and other agreements contemplated hereby is subject
to the satisfaction of each of the following conditions precedent:

 

(a)            Documentation.
The Term Loan Administrative Agent and the 2021 Incremental Term Lenders shall have received each of the following (each in form and substance
reasonably satisfactory to them):

 

(i)        this
Agreement, duly executed and delivered by the Borrowers, the Subsidiary Loan Parties, the Term Loan Administrative Agent and the 2021
Incremental Term Lenders;

 

(ii)       to
the extent requested by any 2021 Incremental Term Lender, a Note evidencing the 2021 Incremental Term Loans of such Incremental Term Lender,
duly executed and delivered by the Borrowers;

 

(iii)      a
certificate executed by a Responsible Officer of each Borrower dated as of the Effective Date and certifying as to the satisfaction of
the conditions set forth in Section 4(d) and (e) below;

 

(iv)      a
written opinion of Paul, Weiss, Rifkind, Wharton & Garrison LLP, as special New York and Delaware counsel for the Loan Parties,
and Barnes & Thornburg LLP, as special Indiana counsel for the Loan Parties, (A) dated the Effective Date, (B) addressed
to each Issuing Bank, the Administrative Agents, the Collateral Agent and the Lenders on the Effective Date and (C) covering such
matters relating to this Agreement and the other Loan Documents as the Term Loan Administrative Agent and the 2021 Incremental Term Lenders
shall reasonably request;

 

(v)       a
certificate of the Secretary, Assistant Secretary, Director or similar officer of each Loan Party (other than each Australian Loan Party)
dated as of the Effective Date and certifying:

 

(A)            a
copy of the memorandum, certificate or articles of incorporation, certificate of limited partnership, certificate of formation or other
equivalent constituent and governing documents, including all amendments thereto, of such Loan Party, (1) in the case of a corporation,
certified (to the extent available in any non-U.S. jurisdiction) as of a recent date by the Secretary of State (or other similar official
or Governmental Authority in the case of any Loan Party organized outside the United States of America) of the jurisdiction of its organization,
or (2) otherwise certified by the Secretary, Assistant Secretary, Director or similar officer of such Loan Party or other person
duly authorized by the constituent documents of such Loan Party;

 

(B)            with
the exception of any English Loan Party or German Loan Party, a certificate as to the good standing (to the extent such concept or a similar
concept exists under the laws of such jurisdiction) of such Loan Party as of a recent date from such Secretary of State (or other similar
official or Governmental Authority in the case of any Loan Party organized outside the United States of America);

 

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(C)            that
attached thereto is a true and complete copy of the by-laws (or partnership agreement, limited liability company agreement, constitution
or other equivalent constituent and governing documents) (to the extent such concept or a similar concept exists under the laws of such
Loan Party’s jurisdiction of formation) of such Loan Party as in effect on the Effective Date and at all times since a date prior
to the date of the resolutions described in clause (D) below;

 

(D)            that
attached thereto is a true and complete copy of resolutions duly adopted by the Board of Directors (or equivalent governing body) of such
Loan Party (other than a German Loan Party unless required by law) (or its managing general partner or managing member), and, if required
by law or customary in the jurisdiction of incorporation of such Loan Party (including, without limitation, England and Germany), the
shareholders and other relevant corporate body, approving the 2021 Incremental Term Facility, authorizing the execution, delivery and
performance of this Agreement and the other Loan Documents to be executed by such Loan Party in connection with this Agreement and, in
the case of the Borrowers, the borrowings under the 2021 Incremental Term Facility, and that such resolutions have not been modified,
rescinded or amended and are in full force and effect on the Effective Date;

 

(E)            as
to the incumbency and specimen signature of each officer executing this Agreement or any other Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party;

 

(F)            that
attached thereto is a true and complete copy of the companies register or commercial register, list of shareholders and the rules of
procedure of any corporate body of such Loan Party (in each case, to the extent such concept or a similar concept exists under the laws
of such Loan Party’s jurisdiction of formation and delivery of such document in a formalities certificate is customary in the relevant
jurisdiction) of such Loan Party as in effect as at the Effective Date; and

 

(G)            except
for any German Loan Party, confirming that, subject to the guarantee limitations set out in the Credit Agreement, borrowing or guaranteeing
or securing (as appropriate) the Commitments (including the 2021 Incremental Term Commitments) would not cause any borrowing, guarantee,
security or other similar limit binding on it to be exceeded;

 

(vi)      in
respect of each Australian Loan Party, (x) ASIC company extracts and Australian PPS Register searches in relation to such Australian
Loan Party and (y) a verification certificate dated as of the Effective Date and signed by a director of such Australian Loan Party,
(A) certifying the following items: (1) a copy of the constitution (or other equivalent constituent and governing documents)
of such Australian Loan Party, (2) a copy of a true, complete and up-to-date extract board resolutions (or equivalent) approving
the entry by such Australian Loan Party into this Agreement, (3) a copy of a true, complete and up-to-date shareholders’ resolutions
(or equivalent) approving the resolutions referred to under (2) (if required), (4) any power of attorney under which such Australian
Loan Party is signing this Agreement (if applicable) and (5) a true and complete specimen of signatures for each of the directors
or authorized signatories of such Australian Loan Party authorized by the extract board resolutions (or equivalent) referred to above
to execute this Agreement and otherwise be appointed for the purposes of this Agreement and other Loan Documents and (B) confirming
that: (1) such Australian Loan Party is solvent and (2) such Australian Loan Party is not prevented by Chapter 2E of the Australian
Corporations Act from entering into this Agreement; and

 

    6 

     

    

 

(vii)     (A) with
respect to each such Mortgaged Property located in the United States of America, the Flood Documentation as the Term Loan Administrative
Agent or FCMA may reasonably request and (B) except to the extent permitted to be delivered pursuant to Section 5(b) below,
such additional customary documents and filings (including amendments to the Mortgages and other Security Documents and title date-down
and modification endorsements) as the Term Loan Administrative Agent may reasonably request to assure that the 2021 Incremental Term Loans
are secured by the Collateral ratably with the then-existing Term Loans and Revolving Facility Loans.

 

(b)            Farm
Credit Equities. The Borrowers shall have made at least the minimum equity investment in FCMA as required by Section 2(b) above.

 

(c)            Fees
and Expenses. The Borrowers shall have paid (i) all fees due and payable on the Effective Date pursuant to that certain engagement
letter (the “Engagement Letter”) dated as of July 12, 2021 between FCMA and the Borrowers, (ii) all expenses
of FCMA required to be reimbursed in connection herewith pursuant to the Engagement Letter and (iii) all fees and expenses of the
Term Loan Administrative Agent required to be reimbursed in connection herewith pursuant to the Credit Agreement.

 

(d)            Representations
and Warranties. The representations and warranties set forth in the Loan Documents shall be true and correct in all material respects
as of the date hereof (except to the extent such representations and warranties are qualified by “materiality” or “Material
Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects as of the date hereof),
in each case, with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties
expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects
as of such earlier date (except to the extent such representations and warranties are qualified by “materiality” or “Material
Adverse Effect,” in which case such representations and warranties shall be true and correct in all respects as of such earlier
date)).

 

(e)            No
Default or Event of Default. No Event of Default or Default shall have occurred and be continuing, nor will an Event of Default or
Default occur as a result of this Agreement or the incurrence of the Indebtedness contemplated hereby.

 

(f)            KYC,
USA PATRIOT Act, Etc. The Term Loan Administrative Agent and the 2021 Incremental Term Lenders shall have received all documentation
and other information required by Section 3.25 of the Credit Agreement no later than three (3) business days in advance
of the Effective Date, to the extent such information has been requested not less than ten (10) days prior to the Effective Date.
Upon the reasonable request of any 2021 Incremental Term Lender made at least ten (10) days prior to the Effective Date, the Borrowers
shall have provided to such 2021 Incremental Term Lender the documentation and other information so requested in connection with applicable
 “know your customer” and anti-money-laundering rules and regulations, including the USA PATRIOT Act, Beneficial Ownership
Certification and the Canada PCTFA, in each case at least three (3) business days prior to the Effective Date (including, without
limitation, a Beneficial Ownership Certification for any Borrower that qualifies as a “legal entity customer” under the Beneficial
Ownership Regulation).

 

    7 

     

    

 

Section 5.          Post-Closing
Obligations. Each relevant Loan Party shall deliver, or cause to be delivered, to the Term Loan Administrative Agent and
FCMA, each in form and substance reasonably satisfactory to them:

 

(a)            as
soon as reasonably practicable, but in no event later than thirty (30) days after the Effective Date (or such longer period as agreed
to by the Term Loan Administrative Agent and FCMA):

 

(i)        junior
ranking share pledge agreement(s) governed by German law over all the shares in Lohmann Animal Health GmbH, Bayer Animal Health GmbH,
Elanco Deutschland GmbH and KVP Pharma+Veterinär Produkte GmbH;

 

(ii)       junior
ranking account pledge agreement governed by German law over bank accounts by Elanco GmbH, Elanco Deutschland GmbH, Lohmann Animal Health
GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as pledgors;

 

(iii)      junior
ranking intellectual property pledge agreement governed by German law over intellectual property by Lohmann Animal Health GmbH and Bayer
Animal Health GmbH as pledgors;

 

(iv)      security
confirmation agreement(s) governed by German law in relation to the existing global assignment agreement by Elanco GmbH, Elanco Deutschland
GmbH, Lohmann Animal Health GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as assignors, the existing security
transfer agreement by Lohmann Animal Health GmbH, Bayer Animal Health GmbH and KVP Pharma+Veterinär Produkte GmbH as transferors
and the existing security purpose agreement in relation to land charges by Lohmann Animal Health GmbH and KVP Pharma+Veterinär Produkte
GmbH as chargors, each dated December 21, 2020;

 

(v)       a
security confirmation agreement governed by Swiss law to be entered into between Elanco International, Inc., Elanco Tiergesundheit
AG, Elanco Financing SA and Elanco Europe GmbH as Security Providers, and Goldman Sachs Bank USA as Collateral Agent, in respect of security
confirmation of, inter alia, the security interests granted under the existing Swiss Security Documents; and

 

(vi)      customary
legal opinions from Homburger AG, legal advisor to the Loan Parties, and from Walder Wyss AG, legal advisor to the Term Loan Administrative
Agent and the other Lenders, in each case, as to Swiss law, addressed to each Issuing Bank, the Administrative Agents, the Collateral
Agent and the Lenders and covering capacity and enforceability matters, which shall be in form and substance reasonably satisfactory to
the Term Loan Administrative Agent and FCMA; and

 

(b)            as
soon as reasonably practicable, but in no event later than ninety (90) days after the Effective Date (or such longer period as agreed
to by the Term Loan Administrative Agent and FCMA), such amendments to the Mortgages and title date-down and modification endorsements
as the Term Loan Administrative Agent and FCMA may reasonably request to assure that the 2021 Incremental Term Loans are secured by the
Collateral ratably with the then-existing Term Loans and Revolving Facility Loans.

 

Section 6.          Representations
and Warranties. In order to induce the Term Loan Administrative Agent and the 2021 Incremental Term Lenders to enter into
this Agreement, each Loan Party represents and warrants to the Term Loan Administrative Agent and each 2021 Incremental Term Lender as
follows:

 

(a)            The
representations and warranties set forth in the Loan Documents are true and correct in all material respects as of the date hereof (except
to the extent such representations and warranties are qualified by “materiality” or “Material Adverse Effect,”
in which case such representations and warranties are true and correct in all respects as of the date hereof), in each case, with the
same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to
an earlier date (in which case such representations and warranties are true and correct in all material respects as of such earlier date
(except to the extent such representations and warranties are qualified by “materiality” or “Material Adverse Effect,”
in which case such representations and warranties are true and correct in all respects as of such earlier date)).

 

    8 

     

    

 

(b)            No
Event of Default or Default has occurred and is continuing, nor will an Event of Default or Default occur as a result of this Agreement
or the incurrence of the Indebtedness contemplated hereby.

 

(c)            This
Agreement has been duly authorized, executed and delivered by such Loan Party and constitutes a legal, valid and binding obligation of
such Loan Party enforceable against such Loan Party, in accordance with its terms, subject to (i) the effects of bankruptcy, insolvency,
moratorium, arrangement, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally, (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) implied
covenants of good faith and fair dealing.

 

Section 7.          Miscellaneous.

 

(a)            Ratification
and Confirmation of Loan Documents. Each Loan Party hereby consents, acknowledges and agrees to the amendments and other agreements
set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Loan Party is a party (including, without
limitation, the continuation of such Loan Party’s payment and performance obligations thereunder and the continuation and extension
of the liens and security interests granted by such Loan Party thereunder), in each case after giving effect to the amendments and other
agreements contemplated hereby. Other than as expressly provided for in this Agreement, the rights and obligations under the Credit Agreement
and each other Loan Document are not affected by the execution of this Agreement and the transactions contemplated by this Agreement and
the Credit Agreement and each other Loan Document to which any Loan Party is a party prior to the Effective Date continues in full force
and effect and continues to secure all amounts owing to any Lender, despite the execution of this Agreement or any other document, the
transactions contemplated by this Agreement and/or any other document. Nothing in this Agreement (i) affects the validity or enforceability
of any Loan Document; (ii) prejudices or adversely affects any right, power, authority, discretion or remedy arising under the Loan
Documents other than as expressly stated by the terms of this Agreement; and/or (iii) discharges, releases or otherwise affects any
liability or obligation arising under any Loan Document other than as expressly stated by this Agreement.

 

(b)            Fees
and Expenses. Without limiting the generality of Section 4(d) above or the Engagement Letter, the Borrowers shall
pay all reasonable out-of-pocket costs and expenses of the Term Loan Administrative Agent and FCMA in connection with the preparation,
negotiation, execution, and delivery of this Agreement and any other documents prepared in connection herewith, including, without limitation,
reasonable legal fees and expenses.

 

(c)            Headings.
Section and subsection headings in this Agreement are for convenience of reference only, are not part of this Agreement and are not
to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

    9 

     

    

 

(d)            Governing
Law; Jurisdiction; Consent to Jurisdiction. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSES OF ACTION (WHETHER IN CONTRACT
OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT COULD REQUIRE THE APPLICATION OF ANY OTHER LAW.
Section 9.15 of the Credit Agreement is hereby incorporated by reference with respect to each Loan Party as if set forth fully
herein, mutatis mutandis.

 

(e)            WAIVER
OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF
THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (I) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 6(e).

 

(f)            Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which, when taken together,
shall constitute but one contract, and shall become effective as provided in Section 4. Delivery of an executed signature
page of this Agreement by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart
hereof. Any signature to this Agreement may be delivered by facsimile, electronic mail (including pdf) or any electronic signature complying
with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method and any counterpart
so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes to the fullest extent
permitted by applicable law. Each of the parties executing this Agreement through electronic means represents and warrants to the other
parties that it has the corporate capacity and authority to execute this Agreement through electronic means and there are no restrictions
for doing so in that party’s constitutive documents.

 

(g)            Entire
Agreement. This Agreement, the other Loan Documents and the Engagement Letter, constitute the entire contract between the parties
relative to the subject matter hereof. Any previous agreement among or representations from the parties or their Affiliates with respect
to the subject matter hereof is superseded by this Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan
Documents, expressed or implied, is intended to confer upon any party other than the parties hereto and thereto any rights, remedies,
obligations or liabilities under or by reason of this Agreement or the other Loan Documents.

 

(h)            Severability.
In the event any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions.

 

    10 

     

    

 

(i)            Successors
and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted
successors and assigns of such party and all covenants, promises and agreements by or on behalf of any party hereto that are contained
in this Agreement shall bind and inure to the benefit of their respective permitted successors and assigns.

 

(j)            Direction
to Execute. Each 2021 Incremental Term Loan Lender authorizes and directs Goldman Sachs, as Term Loan Administrative Agent, to execute
this Agreement.

 

[Remainder of Page Intentionally Left Blank;
Signature Pages Follow]

 

    11 

     

    

 

The following parties have
caused this Agreement to be executed as of the date first written above.

 

	 	BORROWERS:
	 	 
	 	ELANCO ANIMAL HEALTH INCORPORATED
	 	 
	 	By:	                      
	 	Name:
	 	Title:

 

	 	ELANCO US INC.
	 	 
	 	By:	        
	 	Name:
	 	Title:

 

 

	 	SUBSIDIARY LOAN
PARTIES:
	 	 
	 	ELANCO INTERNATIONAL, INC.
	 	 
	 	By:	                         
	 	Name:
	 	Title:

 

	 	LOHMANN ANIMAL HEALTH INTERNATIONAL, INC.
	 	 
	 	By:	                          
	 	Name:
	 	Title:

 

	 	ELANCO MISSOURI INC.
	 	 
	 	By:	          
	 	Name:
	 	Title:

 

	 	ELANCO CANADA LIMITED
	 	 
	 	By:	        
	 	Name:
	 	Title:

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature Page

 

     

     

    

 

	 	ELANCO DEUTSCHLAND GMBH
	 	 
	 	By:	                
	 	Name:
	 	Title:

 

	 	ELANCO GMBH
	 	 
	 	By:	         
	 	Name:
	 	Title:

 

	 	LOHMANN ANIMAL HEALTH GMBH
	 	 
	 	By:	         
	 	Name:
	 	Title:

 

	 	BAYER ANIMAL HEALTH GMBH
	 	 
	 	By:	            
	 	Name:
	 	Title:

 

	 	KVP PHARMA+VETERINÄR PRODUKTE GMBH
	 	 
	 	By:	                           
	 	Name:
	 	Title:

 

	 	ELANCO EUROPE GMBH
	 	 
	 	By:	          
	 	Name:
	 	Title:

 

	 	ELANCO TIERGESUNDHEIT AG
	 	 
	 	By:	                  
	 	Name:
	 	Title:

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature Page

 

    

     

    

 

	 	ELANCO FINANCING SA
	 	 
	 	By:	                  
	 	Name:
	 	Title:

 

	 	ELANCO UK AH LIMITED
	 	 
	 	By:	       
	 	Name:
	 	Title:

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature
Page

 

    

     

    

 

	Executed by Elanco Australia Holding Pty Limited in accordance with section 127 of the Corporations Act 2001 (Cth) by:

                                                                                 

                                                                                 
	 	 
	Signature of director

                                                                                 

                                                                                 
	 	Signature of director/secretary
	Name of director (print)	 	Name of director/secretary (print)

 

	Executed by Elanco Australasia Pty Ltd in accordance with section 127 of the Corporations Act 2001 (Cth) by:	 	 
	Signature of director

                                                                                 

                                                                                 
	 	Signature of director/secretary
	Name of director (print)	 	Name of director/secretary (print)

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature
Page

 

    

     

    

 

	 	GOLDMAN
SACHS BANK USA,
	 	as Term Loan Administrative
Agent
	 	 
	 	By:	                  
	 	Name:
	 	Title:

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature
Page

 

    

     

    

 

	 	FARM CREDIT MID-AMERICA, PCA, as a 2021 Incremental 

Term Lender
	 	 
	 	 
	 	By:	                    
	 	Name:
	 	Title:

 

INCREMENTAL ASSUMPTION AGREEMENT

Signature
Page

 

    

     

    

 

SCHEDULE 1

 

2021 Incremental Term Loan Commitments

 

	2021 Incremental Term Lender	2021 Incremental Term Loan Commitment
	Farm Credit Mid-America, PCA	$500,000,000.00
	Total	$500,000,000.00

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