Document:

Exhibit

Exhibit 4(a)

EXECUTION VERSION

U.S. $70,000,000
TERM LOAN CREDIT AGREEMENT
Dated as of December 18, 2019
Among
ENTERGY NEW ORLEANS, LLC
as Borrower
THE BANKS NAMED HEREIN
as Banks
BANK OF AMERICA, N.A.
as Administrative Agent 

    

TABLE OF CONTENTS

Page

		
	Article I DEFINITIONS AND ACCOUNTING TERMS
	1

		
	Section 1.01. Certain Defined Terms.
	1

		
	Section 1.02. Computation of Time Periods.
	13

		
	Section 1.03. Accounting Terms and Principles.
	13

		
	Article II AMOUNTS AND TERMS OF THE Term loans
	14

		
	Section 2.01. The Commitments.
	14

		
	Section 2.02. Making the Term Loans.
	14

		
	Section 2.03. Fees.
	15

		
	Section 2.04. Termination of the Commitments.
	15

		
	Section 2.05. Repayment of Term Loans.
	15

		
	Section 2.06. Interest on Term Loans.
	15

		
	Section 2.07. Prepayments.
	15

		
	Section 2.08. Increased Costs.
	16

		
	Section 2.09. Payments and Computations.
	17

		
	Section 2.10. Taxes.
	18

		
	Section 2.11. Sharing of Payments, Etc.
	22

		
	Section 2.12. Noteless Agreement; Evidence of Indebtedness.
	23

		
	Article III CONDITIONS OF Term Loans
	23

		
	Section 3.01. Conditions Precedent to Effectiveness.
	23

		
	Article IV REPRESENTATIONS AND WARRANTIES
	25

		
	Section 4.01. Representations and Warranties of the Borrower.
	25

		
	Article V COVENANTS OF THE BORROWER
	28

		
	Section 5.01. Affirmative Covenants.
	28

		
	Section 5.02. Negative Covenants.
	31

		
	Article VI EVENTS OF DEFAULT AND REMEDIES
	33

		
	Section 6.01. Events of Default.
	33

		
	Section 6.02. Remedies.
	35

		
	Article VII THE AGENT
	35

		
	Section 7.01. Authorization and Action.
	35

		
	Section 7.02. Administrative Agent’s Reliance, Etc.
	35

		
	Section 7.03. Bank of America and Affiliates.
	36

		
	Section 7.04. Lender Credit Decision.
	36

		
	Section 7.05. Indemnification.
	36

		
	Section 7.06. Successor Administrative Agent.
	37

		
	Section 7.07. Trust Indenture Act.
	38

		
	Article VIII MISCELLANEOUS
	38

		
	Section 8.01. Amendments, Etc.
	38

		
	Section 8.02. Notices, Etc.
	39

		
	Section 8.03. No Waiver; Remedies.
	39

		
	Section 8.04. Costs and Expenses; Indemnification.
	39

		
	Section 8.05. Right of Set-off.
	40

		
	Section 8.06. Binding Effect.
	41

		
	Section 8.07. Assignments and Participations.
	41

		
	Section 8.08. Governing Law.
	46

		
	Section 8.09. Consent to Jurisdiction; Waiver of Jury Trial.
	47

		
	Section 8.10. Execution in Counterparts.
	47

		
	Section 8.11. Electronic Communications.
	47

		
	Section 8.12. Severability.
	49

		
	Section 8.13. Headings.
	49

		
	Section 8.14. USA PATRIOT Act Notice.
	49

		
	Section 8.15. Confidentiality.
	49

		
	Section 8.16. Entire Agreement.
	50

		
	Section 8.17. Texas Revolving Credit Statute.
	50

		
	Section 8.18. Interest Rate Limitation.
	50

		
	Section 8.19. No Fiduciary Duty.
	51

		
	Section 8.20. Acknowledgement Regarding Any Supported QFCs
	51

		
	Section 8.21. Acknowledgment and Consent to Bail-In of EEA Financial Institutions.
	52

		
	Section 8.22. Certain ERISA Matters.
	53

SCHEDULES

Schedule I         -    List of Lending Offices
Schedule II        -    Commitment Schedule

EXHIBITS

Exhibit A    -    Form of Notice of Borrowing
Exhibit B    -    Form of Assignment and Assumption                
Exhibit C-1    -    Form of U.S. Tax Compliance Certificate (For Foreign Lenders
That Are Not Partnerships For U.S. Federal Income Tax Purposes)
		
	Exhibit C-2
	-        Form of U.S. Tax Compliance Certificate (For Foreign Participants 

That Are Not Partnerships For U.S. Federal Income Tax Purposes)
		
	Exhibit C-3
	-        Form of U.S. Tax Compliance Certificate (For Foreign Participants 

That Are Partnerships For U.S. Federal Income Tax Purposes)
Exhibit C-4    -    Form of U.S. Tax Compliance Certificate (For Foreign Lenders
		
	 
	That Are Partnerships For U.S. Federal Income Tax Purposes)

    

52
4

TERM LOAN CREDIT AGREEMENT

TERM LOAN CREDIT AGREEMENT, dated as of December 18, 2019, among ENTERGY NEW ORLEANS, LLC, a Texas limited liability company (the “Borrower”), the banks and other financial institutions (the “Banks”) listed on the signature pages hereof and Bank of America, N.A. (“Bank of America”), as administrative agent (the “Administrative Agent”) for the Lenders (as defined below) hereunder.

PRELIMINARY STATEMENTS

(1)    The Borrower has requested that the Lenders agree, on the terms and conditions set forth herein, to make term loans on the Closing Date (as defined below) to the Borrower in the aggregate amount of Seventy Million Dollars ($70,000,000).
 (2)    Subject to the terms and conditions of this Agreement, the Lenders severally, to the extent of their respective Commitments (as defined below), are willing to make the requested term loans to the Borrower.
NOW, THEREFORE, in consideration of the premises, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.01.    Certain Defined Terms.
As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):
“Administrative Agent” has the meaning specified in the preamble hereto.
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person.
“Agent Parties” has the meaning specified in Section 8.11(c).
 “Agreement” means this Term Loan Credit Agreement, as amended, supplemented or modified from time to time.
 “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction applicable to the Borrower or its Subsidiaries from time to time concerning or relating to bribery, money laundering or corruption.
 “Approved Fund” means any Fund that is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or (iii) an entity or an Affiliate of an entity that administers or manages a Lender. “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the form of Exhibit B hereto.
“Bank of America” has the meaning specified in the preamble hereto.

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
“Banks” has the meaning specified in the preamble hereto.
“Base Rate” means for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate”.  The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate.  Any change in such prime rate announced by Bank of America shall take effect at the opening of business on the day specified in the public announcement of such change.
 “Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.  
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
“Borrower” has the meaning specified in the preamble hereto. 
 “Borrowing” means the borrowing on the Closing Date consisting of simultaneous Term Loans made by each of the Lenders pursuant to Section 2.01.
“Business Day” means a day of the year on which banks are not required or authorized to close in New York City.
“Capitalization” means, as of any date of determination, with respect to the Borrower and its Subsidiaries determined on a consolidated basis, an amount equal to the sum of (i) the total principal amount of all Debt of the Borrower and its Subsidiaries outstanding on such date, (ii) Consolidated Net Worth as of such date and (iii) to the extent not otherwise included in Capitalization, all preferred stock and other preferred securities of the Borrower and its Subsidiaries, including preferred or preference securities issued by any subsidiary trust, outstanding on such date.
 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Body or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and 

Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted or issued.
“City Council” means the Council of the City of New Orleans.
“City Council Authorization” means the authorization of the City Council in Resolution number R-19-441 granted to the Borrower effective as of November 7, 2019, which authorization provides that it is effective through October 31, 2021, as amended, extended, supplemented, replaced or renewed from time to time to authorize the Borrower’s incurrence of long-term indebtedness.
“Charges” has the meaning specified in Section 8.18. 
“Closing Date” means the first date on which all the conditions precedent in Section 3.01 are satisfied (or waived in accordance with Section 8.01).
 “Code” means the Internal Revenue Code of 1986, as the same may be amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended or modified from time to time.
“Commitment” has the meaning specified in Section 2.01.
 “Common Equity” means the stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company membership interests) that have ordinary voting power for the election of directors, managers or trustees (or other persons performing similar functions) of the issuer, as applicable, provided that Preferred Equity, even if it has such ordinary voting power, shall not be Common Equity.
“Communication” has the meaning specified in Section 8.11(a).
“Connection Income Taxes” means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.
“Consolidated Net Worth” means the sum of the capital stock (excluding treasury stock and capital stock subscribed for and unissued) and surplus (including earned surplus, capital surplus and the balance of the current profit and loss account not transferred to surplus) accounts of the Borrower and its Subsidiaries appearing on a consolidated balance sheet of the Borrower and its Subsidiaries prepared as of the date of determination in accordance with GAAP, after eliminating all intercompany transactions and all amounts properly attributable to minority interests, if any, in such capital stock and surplus of Subsidiaries.
“Credit Parties” means the Administrative Agent and the Lenders.
“Debt” of any Person means (without duplication) all liabilities, obligations and indebtedness (whether contingent or otherwise) of such Person (i) for borrowed money or evidenced by bonds, debentures, notes, or other similar instruments, (ii) to pay the deferred purchase price of property or services (other than such obligations incurred in the ordinary course of business on customary trade terms, provided that such obligations are not more than 30 days past due), (iii) as lessee under leases 

which shall have been or should be, in accordance with GAAP, recorded as finance leases, (iv) under reimbursement agreements or similar agreements with respect to the issuance of letters of credit (other than obligations in respect of letters of credit opened to provide for the payment of goods or services purchased in the ordinary course of business) and (v) under any Guaranty Obligations.
“Debtor Relief Laws” means the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.
“Deferred Tax Note Obligations” means Debt of the Borrower in a maximum aggregate principal amount equal to $25,500,000 evidenced by that certain Intercompany Note, dated as of September 15, 2015, made by the Borrower in favor of Entergy Louisiana, LLC for deferred tax recoveries related to the Borrower’s purchase of assets that currently support the provision of service to customers in Algiers in Orleans Parish in the State of Louisiana.
“Disclosure Documents” means the Borrower’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and September 30, 2019 and Current Reports on Form 8-K filed in 2019 prior to the date hereof.
 “EDGAR” means the “Electronic Data Gathering, Analysis and Retrieval” system (or any successor system thereof) maintained by the SEC.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 8.07(b)(iii), (v) and (vi) (subject to such consents, if any, as may be required under Section 8.07(b)(iii)).
“Eligible Securitization Bonds” means securities, however denominated, that are issued by any direct or indirect Subsidiary of the Borrower or any other Person under which recourse is limited to assets that are primarily rights to collect charges that are authorized by law (including, without limitation, pursuant to any order of any governmental authority authorized by law to regulate public utilities) to be invoiced to customers of the Borrower.
 “Environmental Laws” means any federal, state or local laws, ordinances or codes, rules, orders, or regulations relating to pollution or protection of the environment, including, without limitation, laws relating to hazardous substances, laws relating to reclamation of land and waterways 

and laws relating 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, land surface or subsurface strata) or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollution, contaminants, chemicals, or industrial, toxic or hazardous substances or wastes.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder, each as amended and modified from time to time.
“ERISA Affiliate” of a Person or entity means any Person, trade or business (whether or not incorporated) that is a member of a group of which such Person or entity is a member and that is under common control with such Person or entity within the meaning of, or that would otherwise be aggregated with such Person or entity under, Section 414 of the Code.
“ERISA Plan” means an employee benefit plan maintained for employees of any Person or any ERISA Affiliate of such Person subject to Title IV of ERISA (other than a Multiemployer Plan).
“ERISA Termination Event” means (i) a Reportable Event described in Section 4043 of ERISA and the regulations issued thereunder (other than a Reportable Event not subject to the provision for 30-day notice to PBGC), or (ii) the withdrawal of the Borrower or any of its ERISA Affiliates from an ERISA Plan during a plan year in which the Borrower or any of its ERISA Affiliates was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (iii) the filing of a notice of intent to terminate an ERISA Plan or the treatment of an ERISA Plan amendment as a termination under Section 4041 of ERISA, or (iv) the institution of proceedings to terminate an ERISA Plan by the PBGC or to appoint a trustee to administer any ERISA Plan, or (v) any other event or condition that would constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any ERISA Plan.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 
“Events of Default” has the meaning specified in Section 6.01.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to be withheld or deducted from a payment to any Recipient, (i) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (A) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (B) that are Other Connection Taxes, (ii) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Term Loan or Commitment pursuant to a law in effect on the date on which (A) such Lender acquires such interest in the Term Loan or Commitment (other than pursuant to an assignment requested by the Borrower under Section 8.07(e)) or (B) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 2.10, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its Lending Office, (iii) Taxes attributable to such Recipient’s failure to comply with Section 2.10(g) and (iv) any U.S. federal withholding Taxes imposed under FATCA.

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreement entered into in connection with such sections of the Code and any legislation, law, regulation or practice enacted or promulgated pursuant to such intergovernmental agreement.
“Federal Funds Rate” means, for any day, the rate calculated by the NYFRB based on such day’s federal funds transactions by depositary institutions, as determined in such manner as the NYFRB shall set forth on its public website from time to time, and published on the next succeeding Business Day by the NYFRB as the effective federal funds rate, provided that if the Federal Funds Rate as so determined would be less than zero, such rate shall be deemed to zero for the purposes of this Agreement. 
“Fee Letter” means the letter agreement, dated as of December 18, 2019, between the Borrower and Bank of America.
“FERC Authorization” means, the authorization of the Federal Energy Regulatory Commission granted to the Borrower in Docket Number ES19-28-000 issued October 31, 2019 and effective as of November 1, 2019, which authorization provides that it is effective through October 31, 2021.
“Fixed Rate” has the meaning specified in Section 2.06.
“Foreign Lender” means a Lender that is not a U.S. Person.
“Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.
“GAAP” means, subject to Section 1.03, generally accepted accounting principles in the United States as in effect as of the date of determination thereof.
“Governmental Body” means the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Granting Lender” has the meaning specified in Section 8.07(g).
“Guaranty Obligations” means direct or indirect guaranties in respect of, and obligations to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, Debt of any Person, including, without limitation, Support Obligations.
“Hybrid Securities” means (i) debt or preferred or preference equity securities (however designated or denominated) of the Borrower or any of its Subsidiaries that are mandatorily convertible into Common Equity or Preferred Equity of the Borrower or any of its Subsidiaries, provided that such securities do not constitute Mandatorily Redeemable Stock, (ii) securities of the Borrower or any of its Subsidiaries that (A) are afforded equity treatment (whether full or partial) by S&P or Moody’s at the time of issuance, and (B) require no repayments or prepayments and no mandatory 

redemptions or repurchases, in each case, prior to 91 days after the Maturity Date, (iii) any other securities (however designated or denominated), that are (A) issued by the Borrower or any of its Subsidiaries, (B) not subject to mandatory redemption or mandatory prepayment, and (C) together with any guaranty thereof, subordinate in right of payment to the unsecured and unsubordinated indebtedness (other than trade liabilities incurred in the ordinary course of business and payable in accordance with customary terms) of the issuer of such securities or guaranty and (iv) QUIPS.
“Indemnified Person” has the meaning specified in Section 8.04(b).
“Indemnified Taxes” means (i) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Loan Document and (ii) to the extent not otherwise described in (i), Other Taxes.
“Laws” means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Body charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Body, in each case whether or not having the force of law.

 “Lenders” means the Banks listed on the signature pages hereof and each Person that shall become a party hereto pursuant to Section 8.07. 
“Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Lending Office” opposite its name on Schedule I hereto or in the Assignment and Assumption pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify in writing to the Borrower and the Administrative Agent.
“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset.  For the purposes of this Agreement, a Person or any of its Subsidiaries shall be deemed to own, subject to a Lien, any asset that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset.
“Loan Documents” means this Agreement, each promissory note delivered under Section 2.12 and the Fee Letter, in each case, as any of the foregoing may be amended, supplemented or modified from time to time.
“Majority Lenders” means at any time Lenders to which are owed more than 50% of the then aggregate unpaid principal amount of the Term Loans or, if there are no outstanding Term Loans, Lenders having more than 50% of the Commitments (without giving effect to any termination in whole of the Commitments pursuant to Section 6.02); provided, that for purposes hereof, neither the Borrower, nor any of its Affiliates, if a Lender, shall be included in (i) the Lenders holding such amount of the Term Loans or Commitments or (ii) determining the aggregate unpaid principal amount of the Term Loans or the total Commitments.
“Mandatorily Redeemable Stock” means, with respect to any Person, such Person’s Common Equity or Preferred Equity to the extent that it is (i) redeemable, payable or required to be purchased or otherwise retired or extinguished, or convertible into any Debt or other liability of such Person, (A) at a fixed or determinable date, whether by operation of a sinking fund or otherwise, (B) at the 

option of any Person other than such Person, or (C) upon the occurrence of a condition not solely within the control of such Person, such as a redemption required to be made out of future earnings, or (ii) presently convertible into Mandatorily Redeemable Stock.
“Margin Stock” has the meaning assigned to that term in Regulation U issued by the Board of Governors of the Federal Reserve System, and as amended and in effect from time to time.
“Material Adverse Effect” means (i) any material adverse effect on the business, condition (financial or otherwise), operations, properties or prospects of the Borrower and its Subsidiaries considered on a consolidated basis, or (ii) any material adverse effect on the legality, validity or enforceability against the Borrower of any Loan Document. 
“Maturity Date” means May 31, 2022 (except that, if such date is not a Business Day, the Maturity Date shall be the immediately preceding Business Day).
“Maximum Rate” has the meaning specified in Section 8.18.
“Moody’s” means Moody’s Investors Service, Inc. or any successor thereto.
“Mortgage Indenture” means the Mortgage and Deed of Trust, dated as of May 1, 1987, between the Borrower and The Bank of New York Mellon, as successor trustee, as amended, restated, supplemented or otherwise modified from time to time (except as expressly provided otherwise herein), together with any supplemental indentures issued pursuant thereto. 
“Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding three plan years made or accrued an obligation to make contributions.
“Non-Consenting Lender” means any Lender hereunder that does not approve any consent, waiver or amendment that (a) requires the approval of all affected Lenders in accordance with the terms of Section 8.01 and (b) has been approved by the Majority Lenders.  
“Non-Recourse Debt” means any Debt of any Subsidiary of the Borrower that does not constitute Debt of the Borrower or any Significant Subsidiary.
“Notice of Borrowing” has the meaning specified in Section 2.02(a).
“NYFRB” means the Federal Reserve Bank of New York.
“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Term Loan or Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection 

Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 8.07(e)).
 “Parent” means Entergy Corporation, a Delaware corporation, or its successors and permitted assigns.
“Participant” has the meaning specified in Section 8.07(d).
“Participant Register” has the meaning specified in Section 8.07(d).
“Patriot Act” means USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), as in effect from time to time.
“PBGC” means the U.S. Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.
 “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.
“Platform” has the meaning specified in Section 8.11(b).
“Preferred Equity” means any stock, shares or other ownership interests in the issuer thereof howsoever evidenced (including, without limitation, limited liability company membership interests), whether with or without voting rights, that is entitled to dividends or distributions prior to the payment of dividends or distributions with respect to Common Equity.
“Prepayment Fee” has the meaning specified in Section 2.07(b).
“PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“QUIPS” means, on any date of determination, all outstanding preferred stock and other preferred securities of the Borrower and its Subsidiaries, including preferred securities issued by any subsidiary trust.
“Recipient” means the Administrative Agent, any Lender or any other recipient of any payment to be made by or on account of any obligation of the Borrower or its Subsidiaries hereunder.
“Register” has the meaning specified in Section 8.07(c).
“Related Parties” means with respect to any specified Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person’s Affiliates and any Person that possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise.
“Removal Effective Date” has the meaning specified in Section 7.06(b).
“Reportable Event” has the meaning assigned to that term in Title IV of ERISA.
“Resignation Effective Date” has the meaning specified in Section 7.06(a).

“S&P” means S&P Global Ratings, acting through Standard & Poor’s Financial Services LLC business, or any successor thereto.
“Sanctioned Country” means, at any time of determination, a country, region or territory which is the subject or target of any Sanctions.
“Sanctioned Person” means, at any time of determination, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state or Her Majesty’s Treasury of the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) any Person owned or controlled by or acting on behalf of any such Person described in the preceding clause (a) or (b), or (d) any Person, to the Borrower’s knowledge, with which any Lender is prohibited under Sanctions relevant to it from dealing or engaging in transactions.  For purposes of the foregoing, control of a Person shall be deemed to include where a Sanctioned Person (i) owns or has power to vote 25% or more of the issued and outstanding equity interests having ordinary voting power for the election of directors of the Person or other individuals performing similar functions for the Person, or (ii) has the power to direct or cause the direction of the management and policies of the Person, whether by ownership of equity interests, contracts or otherwise.
“Sanctions” means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by (a) the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or by the U.S. Department of State, or (b) the United Nations Security Council, the European Union, any EU member state, or Her Majesty’s Treasury of the United Kingdom.
“SEC” means the United States Securities and Exchange Commission.
“Significant Subsidiary” means any Subsidiary of the Borrower: (i) the total assets (after intercompany eliminations) of which exceed 10% of the total assets of the Borrower and its Subsidiaries or (ii) the net worth of which exceeds 10% of the Consolidated Net Worth of the Borrower and its Subsidiaries, in each case as shown on the most recent audited consolidated balance sheet of the Borrower and its Subsidiaries.
“SPC” has the meaning specified in Section 8.07(g).
“Subsidiary” means, with respect to any Person, any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions are at the time directly or indirectly owned by such a Person, or one or more Subsidiaries, or by such Person and one or more of its Subsidiaries.
“Support Obligations” means any financial obligation, contingent or otherwise, of any Person guaranteeing or otherwise supporting any Debt of any other Person in any manner, whether directly or indirectly, and including, without limitation, any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or to purchase (or to advance or supply funds for the purchase of) any security for the payment of such Debt, (ii) to purchase property, securities or services for the purpose of assuring the owner of such Debt of the payment of such Debt, (iii) to maintain working capital, equity capital, available cash or other financial statement condition of the primary obligor so as to enable the primary obligor to pay such Debt, (iv) to provide equity capital under or in respect of equity subscription arrangements so as to assure any 

Person with respect to the payment of such Debt, or (v) to provide financial support for the performance of, or to arrange for the performance of, any non-funded debt payment obligations of the primary obligor of such Debt.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Body, including any interest, additions to tax or penalties applicable thereto.
“Trust Indenture Act” has the meaning specified in Section 7.08.
“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
“U.S. Tax Compliance Certificate” shall have the meaning specified in Section 2.10(g)(ii)(B)(3).
“Withholding Agent” means the Borrower and the Administrative Agent.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
SECTION 1.02.    Computation of Time Periods.

In this Agreement and any other Loan Document, in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and “until” each means “to but excluding”.
SECTION 1.03.    Accounting Terms and Principles.

All accounting terms not specifically defined herein shall be construed in accordance with GAAP.  If changes in GAAP after the date hereof or the application thereof used in the preparation of any financial statement of the Borrower affect compliance with the provisions of this Agreement, including but not limited to compliance with the financial covenant contained in Section 5.02(b) hereof, the Borrower, the Administrative Agent or the Majority Lenders may request, by written notice to the others, an amendment to any provision hereof to eliminate the effect of any such change, regardless of whether any such notice is given before or after such change in GAAP or in the application thereof. On and after such request for an amendment, such provisions shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until (i) such notice shall have been withdrawn or (ii) such provisions shall have been amended in accordance herewith. Upon the receipt of any such notice requesting such an amendment, the parties agree to negotiate in good faith such modifications as are necessary as a result of such changes in GAAP.

ARTICLE II 

AMOUNTS AND TERMS OF THE TERM LOANS

SECTION 2.01.    The Commitments.

Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make a single Term Loan to the Borrower on the Closing Date in an aggregate amount not to exceed the amount set forth opposite such Lender’s name on Schedule II hereto (such Lender’s “Commitment”).  Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.
SECTION 2.02.    Making the Term Loans.

(a)The Borrowing under Section 2.01 shall be made on notice, given not later than 9:00 A.M. (New York City time) on the date of the proposed Borrowing, by the Borrower to the Administrative Agent, which shall give to each Lender prompt notice thereof.  Such notice of a Borrowing (a “Notice of Borrowing”) shall be transmitted by facsimile or email in substantially the form of Exhibit A hereto, specifying therein the requested (A) date of such Borrowing, (B) aggregate amount of such Borrowing and (C) wire instructions of the Borrower.  Each Lender shall, before (x) 11:00 A.M. (New York City time) on the date of the Borrowing make available for the account of its Lending Office to the Administrative Agent at its address referred to in Section 8.02, in same day funds, such Lender’s ratable portion of such Borrowing.  After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent will make such funds available to the Borrower at the Administrative Agent’s aforesaid address.

(b)Each Notice of Borrowing shall be irrevocable and binding on the Borrower.  The Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article III, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired, or the hedging of the interest rate risks associated with respect to such funds, by such Lender to fund the Term Loan to be made by such Lender as part of such Borrowing, when such Term Loan, as a result of such failure, is not made on such date.

(c)Unless the Administrative Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of such Borrowing, the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If and to the extent that such Lender shall not have so made such ratable portion available to the Administrative Agent, such Lender and the Borrower (following the Administrative Agent’s demand on such Lender for the corresponding amount) severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate applicable at the time to the Term Loans made in connection with such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate.  If such Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender’s Term Loan as part of such Borrowing for purposes of this Agreement.

(d)The failure of any Lender to make the Term Loan to be made by it as part of the Borrowing on the Closing Date shall not relieve any other Lender of its obligation, if any, hereunder to make its Term Loan on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Term Loan to be made by such other Lender on the date of the Borrowing hereunder.

SECTION 2.03.    Fees.

The Borrower agrees to pay the fees payable by it in such amounts and on such terms as set forth in the Fee Letter.
SECTION 2.04.    Termination of the Commitments.

The Commitments shall automatically and permanently terminate on the Closing Date upon the funding of the Term Loans.
SECTION 2.05.    Repayment of Term Loans.

The Borrower shall repay the principal amount of each Term Loan made by each Lender no later than the Maturity Date.
SECTION 2.06.    Interest on Term Loans.

The Borrower shall pay interest on the unpaid principal amount of each Term Loan made by each Lender from the date of such Term Loan until such principal amount shall be paid in full, at a rate equal to 3.00% per annum (the “Fixed Rate”), payable quarterly on the last day of each March, June, September and December, starting with the quarter ending March 31, 2020, and on the date such Term Loan shall be paid in full.
SECTION 2.07.    Prepayments.

(a)    The Borrower may, upon at least two Business Days’ notice to the Administrative Agent, stating the proposed date and aggregate principal amount of the prepayment, prepay the outstanding principal amounts of the Term Loans in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that each partial prepayment shall be in an aggregate principal amount not less than $1,000,000 or any integral multiple of $100,000 in excess thereof. The Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure of the Borrower to make such prepayment on the date and in the amount specified in any such notice, including, without limitation, any loss, cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds of such Lender, or the termination of swaps or other hedging arrangements with respect to the interest rate risks associated with respect to the funds acquired by such Lender to fund its Term Loan, or otherwise.
(b)    Each prepayment, whether voluntary, by reason of acceleration or otherwise, will be accompanied by the amount of accrued interest on the amount prepaid, and a prepayment fee (a “Prepayment Fee”) calculated by the Administrative Agent (which shall be conclusive absent manifest error).  The Prepayment Fee with respect to any such prepayment shall be equal to the present value of the difference, if positive, between (i) the sum of the interest payments that would have accrued through the Maturity Date on the principal amount of the Term Loan being prepaid at the Fixed Rate, as if the prepayment had not been made, less (ii) the sum of the interest payments that would have accrued through the Maturity Date on the principal amount of the Term Loan being prepaid at a fixed interest rate equal to the Reinvestment Rate, as 

if the prepayment had not been made. For purposes of the calculation of the Prepayment Fee, "Reinvestment Rate" means with respect to the principal amount of the Term Loan being prepaid on any date, the Swap Rate on the date the Prepayment Fee is calculated by the Administrative Agent for a term corresponding to the period of time remaining to the Maturity Date, interpolated, if necessary, and "Swap Rate" means, as of any date, the offered U.S. Dollar interest rate swap rate for a fixed rate payer determined by the Administrative Agent on such date by reference to the Bloomberg service or such other similar data source then used by the Administrative Agent for determining such rate.
SECTION 2.08.    Increased Costs.

a.Increased Costs Generally.  If any Change in Law shall:

i.impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender; 

ii.subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (ii) through (iv) of the definition of “Excluded Taxes” and (C) Connection Income Taxes) on its loans, loan principal, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or

iii.impose on any Lender any other condition, cost or expense (other than Taxes) affecting this Agreement or the Term Loan made by such Lender;
and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, continuing or maintaining such Term Loan or of maintaining its obligation to make such Term Loan, or to reduce the amount of any sum received or receivable by such Lender or other Recipient hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or other Recipient, the Borrower will pay to such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.

b.Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or the Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement, the Commitment of such Lender or the Term Loan made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender, as the case may be, such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.

c.Certificates for Increased Costs.  A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in subsection (a) or (b) of this Section 2.08 and delivered to the Borrower, shall be conclusive absent manifest error.  The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

d.Delay in Requests.  Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs incurred or reductions suffered more than nine months prior to the date that such Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

SECTION 2.09.    Payments and Computations.
(e)The Borrower shall make each payment hereunder not later than 12:00 noon (New York City time) on the day when due in United States dollars to the Administrative Agent free and clear of and without condition or reduction for any defense, setoff, recoupment or counterclaim at its address referred to in Section 8.02 in same day funds.  The Administrative Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest ratably (other than amounts payable pursuant to Section 2.02(c), 2.03, 2.08 or 2.10) to the Lenders for the account of their respective Lending Offices, and like funds relating to the payment of any other amount payable to any Lender, to such Lender for the account of its Lending Office to be applied in accordance with the terms of this Agreement.  Upon its acceptance of an Assignment and Assumption and recording of the information contained therein in the Register pursuant to Section 8.07(c), from and after the effective date specified in such Assignment and Assumption, the Administrative Agent shall make all payments hereunder in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Assumption shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.
(f)The Borrower hereby authorizes each Lender, if and to the extent payment owed to such Lender is not made when due hereunder, to charge from time to time to the extent permitted by law against any or all of the Borrower’s accounts with such Lender any amount so due.
(g)All computations of interest shall be made by the Administrative Agent on the basis of a 360-day year of twelve 30-day months and for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest is payable.  Each determination by the Administrative Agent of interest hereunder shall be conclusive and binding for all purposes, absent manifest error. 
(h)Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the immediately succeeding Business Day, and such extension of time shall in such case be included in the computation of the payment of any interest due on such amount, provided that in the case of interest payments on the Term Loans, such payment on the next succeeding Business Day shall be made in the same amount as if made on the original payment date therefor, and, if such payment of interest is made on such next succeeding Business Day, no interest shall accrue on the amounts so payable for the period from and after such original payment date to such next succeeding Business Day. 
(i)Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Lenders hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent that the Borrower shall not have so made such payment in full to the Administrative Agent, each Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate.

(j)Notwithstanding anything to the contrary contained herein, any Term Loan or other amount payable by the Borrower hereunder that is not paid when due (whether at stated maturity, by acceleration or otherwise), and all Term Loans at any time an Event of Default shall have occurred and be continuing, shall (to the fullest extent permitted by law) bear interest from the date when due until paid in full at a rate per annum equal at all times, in the case of each Term Loan, to the applicable interest rate in effect from time to time for such Term Loan plus 2% per annum, and, in the case of other amounts, to the Base Rate plus 2% per annum, payable in each case upon demand.  

SECTION 2.10.    Taxes.
(k)Defined Terms.  For purposes of this Section 2.10, the term “applicable law” includes FATCA.
(l)Payments Free of Taxes.  Any and all payments by or on account of any obligation of the Borrower under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by applicable law.  If any applicable law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Body in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made.
(m)Payment of Other Taxes by the Borrower.  The Borrower shall timely pay to the relevant Governmental Body in accordance with applicable law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
(n)Indemnification by the Borrower.  The Borrower shall indemnify each Recipient, within 30 days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Body.  A certificate as to the amount of such payment or liability delivered to the Borrower by such Recipient (with a copy to the Administrative Agent, unless the Administrative Agent is such Recipient), or by the Administrative Agent on its own behalf or on behalf of any other Recipient, shall be conclusive absent manifest error.  
(o)Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 8.07(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Body.  A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this subsection (e).
(p)Evidence of Payments.  As soon as practicable after any payment of Taxes by the Borrower to a Governmental Body pursuant to this Section 2.10, the Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt issued by such Governmental Body evidencing such payment, a 

copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent.
(q)Status of Lenders.  (i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements.  Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in paragraphs (ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.
(i)Without limiting the generality of the foregoing,
(A)     any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax; 
(B)     any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), whichever of the following is applicable:
(1)    in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
(2)    executed copies of IRS Form W-8ECI;
(3)     in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed copies of IRS Form W-8BEN or W-8BEN-E; or

(4)     to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner;
(C)    any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and
(D)    if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

(r)Treatment of Certain Refunds.  If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.10 (including by the payment of additional amounts pursuant to this Section 2.10), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Body with respect to such refund).  Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this subsection (h) (plus any penalties, interest or other charges imposed by the relevant Governmental Body) in the event that such indemnified party is required to repay such refund to such Governmental Body.  Notwithstanding anything to the contrary in this subsection (h), in no event will the indemnified party be required to pay any amount to an indemnifying 

party pursuant to this subsection (h) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This subsection shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.
(s)FATCA.  For purposes of determining withholding Taxes imposed under FATCA, from and after the date hereof, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Sections 1.1471-2(b)(2)(i) and 1.1471-2T(b)(2)(i).
(t)Survival.  Each party’s obligations under this Section 2.10 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 2.11.    Sharing of Payments, Etc.

If any Lender shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Term Loan made by it (other than pursuant to the Fee Letter or to Section 2.02(c), 2.03, 2.08 or 2.10), such Lender shall forthwith purchase from the other Lenders such participations in the Term Loans made by them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them, provided, however, that (i) if all or any portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together with an amount equal to such Lender’s ratable share (according to the proportion of (A) the amount of such Lender’s required repayment to (B) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered and (ii) the provisions of this Section 2.11 shall not be construed to apply to (A) any payment made by the Borrower pursuant to and in accordance with the express terms of this Agreement or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any portion of its Term Loan to any assignee or participant, other than to the Borrower or any Subsidiary thereof (as to which the provisions of this Section 2.11 shall apply).  The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.11 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation.
SECTION 2.12.    Noteless Agreement; Evidence of Indebtedness.
(u)Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from the Term Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder.
(v)The Administrative Agent shall also maintain accounts in which it will record (i) the amount of each Term Loan made hereunder, (ii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iii) the amount of any sum received by the Administrative Agent hereunder from the Borrower and each Lender’s share thereof.
(w)The entries maintained in the accounts maintained pursuant to subsections (a) and (b) above shall be prima facie evidence of the existence and amounts of the obligations therein recorded; provided, however, that the failure of the Administrative Agent or any Lender to maintain such accounts or any error 

therein shall not in any manner affect the obligation of the Borrower to repay such obligations in accordance with their terms.
(x)Any Lender may request that its Term Loan be evidenced by one or more promissory notes.  In such event, the Borrower shall prepare, execute and deliver to such Lender one or more promissory notes payable to such Lender and in a form acceptable to the Borrower and the Administrative Agent.  Thereafter, the Term Loans evidenced by such note(s) and interest thereon shall at all times (including after any assignment pursuant to Section 8.07) be represented by notes from the Borrower, payable to the payee named therein or any assignee pursuant to Section 8.07, except to the extent that any such Lender or assignee subsequently returns any such notes for cancellation and requests that such Borrowings once again be evidenced as in subsections (a) and (b) above.
ARTICLE III

CONDITIONS OF Term Loans

SECTION 3.01.    Conditions Precedent to Effectiveness.

The effectiveness of this Agreement and the obligation of each Lender to make its Term Loan hereunder on the Closing Date is subject to satisfaction of each the following conditions precedent on or before such date:
(y)The Administrative Agent shall have received the following on or before the Closing Date, each dated such date (except for the Disclosure Documents and the Fee Letter), in form and substance satisfactory to the Administrative Agent and (except for the notes described in paragraph (i) and the Fee Letter) with one copy for each Lender:
(i)(A) This Agreement, duly executed by each of the parties hereto, and (B) a promissory note payable to the order of each Lender that requests one pursuant to Section 2.12, duly completed and executed by the Borrower;
(ii)Certified copies of the resolutions of the governing body of the Borrower approving this Agreement, and of all documents evidencing other necessary limited liability company action with respect to this Agreement;
(iii)A certificate of the Secretary or an Assistant Secretary of the Borrower certifying (A) the names and true signatures of the officers of the Borrower authorized to sign this Agreement and the other documents to be delivered hereunder; (B) that attached thereto are true and correct copies of the organizational documents of the Borrower, in each case as in effect on the Closing Date; and (C) that attached thereto are true and correct copies of all governmental and regulatory authorizations and approvals (if any) required for the due execution, delivery and performance by the Borrower of this Agreement;
(iv)Copies of all the Disclosure Documents (it being agreed that such Disclosure Documents will be deemed to have been delivered under this clause (iv) if such documents are publicly available on EDGAR or on the Borrower’s website no later than the third Business Day immediately preceding the Closing Date);
(v)One or more favorable opinions of counsel (including special New York and Texas counsel) for the Borrower in form and substance satisfactory to the Administrative Agent; 
(vi)The Fee Letter duly executed by each of the parties thereto;
(vii)All documentation and information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Patriot Act, to the extent such documentation or information is requested by the Administrative Agent on behalf of the Lenders prior to the Closing Date; and 

(viii)At least five (5) days prior to the Closing Date, if the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, the Borrower must deliver a Beneficial Ownership Certification in relation to Borrower.
(z)The Administrative Agent shall have received the fees payable pursuant to the Fee Letter.
(aa)The Administrative Agent shall have received from the Borrower a Notice of Borrowing requesting the Term Loans as required by Section 2.02.
(ab)The following statements shall be true (and each of the giving of the Notice of Borrowing and the acceptance by the Borrower of any proceeds of a Borrowing shall constitute a representation and warranty by the Borrower that on the Closing Date such statements are true):
(i)The representations and warranties contained in Section 4.01 (excluding those contained in the last sentence of subsection (e) and in subsections (f) and (n) thereof) are true and correct on and as of the Closing Date, before and after giving effect to the making of the Term Loans and to the application of the proceeds therefrom, as though made on and as of such date; 
(ii)Such Term Loans are being made in accordance with the terms and conditions of the City Council Authorization and the FERC Authorization; and
(iii)No event has occurred and is continuing, or would result from the making of the Term Loans or from the application of the proceeds therefrom, that constitutes an Event of Default or would constitute an Event of Default with notice or lapse of time or both.
(ac)The Administrative Agent shall have received such other certifications, opinions, financial or other information, approvals and documents as the Administrative Agent or any Lender may reasonably request through the Administrative Agent.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

SECTION 4.01.    Representations and Warranties of the Borrower.
The Borrower represents and warrants as follows:
(ad)The Borrower is (i) duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and (ii) duly qualified to do business as a foreign organization in each jurisdiction in which the nature of the business conducted or the property owned, operated or leased by it requires such qualification, except where failure to so qualify would not materially adversely affect its business, condition (financial or otherwise), operations, properties or prospects.
(ae)The execution, delivery and performance by the Borrower of each Loan Document to which it is, or is to become, a party, are within the Borrower’s organizational powers, have been duly authorized by all necessary organizational action and do not contravene (i) the Borrower’s organizational documents, (ii) law applicable to the Borrower or its properties, or (iii) any contractual or legal restriction binding on or affecting the Borrower or its properties.
(af)No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the due execution, delivery and performance by the Borrower of this Agreement (including obtaining the Term Loans under this Agreement) or any other Loan Document to which it is, or is to become, a party, except for the City Council Authorization and FERC Authorization, both of which have been duly obtained and are in full force and effect, and except that each such Term Loan must be made in accordance with the terms and conditions of the City Council Authorization and the FERC Authorization.
(ag)This Agreement and the other Loan Documents to which it is, or is to become, a party have been or will be (as the case may be) duly executed and delivered by it, and this Agreement is, and upon 

execution and delivery thereof each other Loan Document will be, the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its terms, subject, however, to any applicable bankruptcy, reorganization, rearrangement, moratorium or similar laws affecting generally the enforcement of creditors’ rights and remedies and to general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).
(ah)The consolidated financial statements of the Borrower and its Subsidiaries as of December 31, 2018 and for the year ended on such date, as set forth in the Borrower’s Annual Report on Form 10-K for the fiscal year ended on such date, as filed with the SEC, accompanied by an opinion of Deloitte & Touche LLP, and the consolidated financial statements of the Borrower and its Subsidiaries as of March 31, 2019, June 30, 2019 and September 30, 2019, and for the fiscal quarters ended on such dates, as set forth in the Borrower’s Quarterly Reports on Form 10-Q for the fiscal quarters ended on such dates, as filed with the SEC, copies of each of which have been furnished to each Bank, fairly present the consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the consolidated results of the operations of the Borrower and its Subsidiaries for the periods ended on such dates, in accordance with GAAP, subject, in the case of such financial statements for the fiscal quarters ended March 31, 2019, June 30, 2019, and September 30, 2019, to year-end adjustments and the absence of detailed footnotes.  Except as disclosed in the Disclosure Documents, since December 31, 2018, there has been no material adverse change in the financial condition or operations of the Borrower.
(ai)Except as disclosed in the Disclosure Documents, there is no pending or threatened action or proceeding affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect.  There has been no change in any matter disclosed in such filings that could reasonably be expected to result in such a Material Adverse Effect.
(aj)No event has occurred and is continuing that constitutes an Event of Default or that would constitute an Event of Default but for the requirement that notice be given or time elapse or both.
(ak)The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Term Loan will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.  After applying the proceeds of each Term Loan, not more than 25% of the value of the assets of the Borrower and its Subsidiaries subject to the restrictions of Section 5.02(a), (c) or (d) will consist of or be represented by Margin Stock.
(al)The Borrower is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended.
(am)Except as could not reasonably be expected to result in a Material Adverse Effect, no ERISA Termination Event has occurred, or is reasonably expected to occur, with respect to any ERISA Plan.
(an)Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) with respect to each ERISA Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Banks, is complete and accurate and fairly presents the funding status of such ERISA Plan, and since the date of such Schedule B there has been no change in such funding status that could reasonably be expected to result in a Material Adverse Effect.
(ao)Except as could not reasonably be expected to result in a Material Adverse Effect, the Borrower has not incurred, and does not reasonably expect to incur, any withdrawal liability under ERISA to any Multiemployer Plan.
(ap)The reports, financial statements and other written information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender pursuant to or in connection with the Loan Documents and the transactions contemplated thereby, when considered in their totality together with the information set forth in the Borrower’s periodic reports filed as of any date of determination with the SEC under the Securities Exchange Act of 1934, as amended, do not contain and will not contain, when taken as a whole, any untrue statement of a material fact and do not omit and will not omit, when taken as a whole, to state 

any fact necessary to make the statements therein, in the light of the circumstances under which they were or will be made, not misleading in any material respect; provided that, with respect to projections and forward looking statements, the Borrower represents only that such information was prepared in good faith based upon assumptions and estimates believed to be reasonable at the time made and notes that whether or not such projections or forward looking statements are in fact achieved will depend upon future events some of which are not within the control of the Borrower and actual results may vary from the projections and such variations may be material and, accordingly, the Borrower gives no representation and warranty that such projections and forward looking statements will be achieved.
(aq)As of the date delivered, the information included in the Beneficial Ownership Certification, if any, is true and correct in all respects.  
(ar)The Borrower has implemented and maintains in effect policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower, its Subsidiaries and their respective officers and employees and, to the knowledge of the Borrower, its directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects.  None of (a) the Borrower, any Subsidiary thereof or any of their respective officers or employees, or (b) to the knowledge of the Borrower, any director or agent of the Borrower or any Subsidiary that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person.  No Borrowing or use of proceeds thereof or other transaction contemplated by this Agreement will violate Anti-Corruption Laws or applicable Sanctions.

ARTICLE V

COVENANTS OF THE BORROWER

SECTION 5.01.    Affirmative Covenants.
So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will, unless the Majority Lenders shall otherwise consent in writing:
(as)Keep Books; Existence; Maintenance of Properties; Compliance with Laws; Insurance; Taxes; Inspection Rights.
(i)keep proper books of record and account, all in accordance with GAAP;
(ii)except as otherwise permitted by Section 5.02(c), preserve and keep in full force and effect its existence and preserve and keep in full force and effect its licenses, rights and franchises to the extent necessary to carry on its business; provided, however, that the Borrower may change its form of organization from a corporation to a limited liability company or from a limited liability company to a corporation if (A) such change shall not affect any obligations of the Borrower under the Loan Documents and (B) the Borrower shall deliver to the Administrative Agent (x) prompt notice of such change, (y) certified true and correct copies of the organizational documents of the Borrower after giving effect to such change and (z) all information requested by the Administrative Agent or any Lender in order to comply with its obligations under the Patriot Act referred to in Section 8.14;
(iii)maintain and keep, or cause to be maintained and kept, its properties in good repair, working order and condition, and from time to time make or cause to be made all needful and proper repairs, renewals, replacements and improvements, in each case to the extent such properties are not obsolete and not necessary to carry on its business;
(iv)comply with all applicable laws, rules, regulations and orders, except to the extent that the failure to comply could not reasonably be expected to result in a Material Adverse Effect, such compliance to include, without limitation, paying before the same become delinquent all taxes, 

assessments and governmental charges imposed upon it or its property, except to the extent being contested in good faith by appropriate proceedings, and compliance with ERISA and Environmental Laws;
(v)maintain insurance with responsible and reputable insurance companies or associations or through its own program of self-insurance in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which it operates and furnish to the Administrative Agent, within a reasonable time after written request therefor, such information as to the insurance carried as any Lender, through the Administrative Agent, may reasonably request;
(vi)pay and discharge its obligations and liabilities in the ordinary course of business, except to the extent that such obligations and liabilities are being contested in good faith by appropriate proceedings; and
(vii)from time to time upon reasonable notice, permit or arrange for the Administrative Agent, the Lenders and their respective agents and representatives to inspect the records and books of account of the Borrower and its Subsidiaries during regular business hours; provided, that such inspections shall not occur more frequently than once per calendar year unless a default or Event of Default shall have occurred and be continuing.
(at)Use of Proceeds.  Use the proceeds of the Term Loans for general corporate purposes.
(au)Reporting Requirements.  Furnish to the Lenders:
(i)as soon as available and in any event within 60 days after the end of each of the first three quarters of each fiscal year of the Borrower, (A) consolidated balance sheets of the Borrower and its Subsidiaries as of the end of such quarter and (B) consolidated statements of income and retained earnings of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, each certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;
(ii)as soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the annual report for such year for the Borrower and its Subsidiaries, containing consolidated financial statements for such year certified without qualification by Deloitte & Touche LLP (or such other nationally recognized public accounting firm selected by the Borrower), and certified by a duly authorized officer of the Borrower as having been prepared in accordance with GAAP;
(iii)concurrently with the delivery of the financial statements specified in clauses (i) and (ii) above, a certificate of the chief financial officer, treasurer, assistant treasurer or controller of the Borrower, (A) stating that no Event of Default has occurred and is continuing, or if an Event of Default has occurred and is continuing, a statement setting forth details of such Event of Default, as the case may be, and the action that the Borrower has taken and proposes to take with respect thereto and (B) setting forth in a true and correct manner, the calculation of the ratio contemplated by Section 5.02(b) hereof, as of the date of the most recent financial statements accompanying such certificate, to show the Borrower’s compliance with or the status of the financial covenant contained in Section 5.02(b) hereof;
(iv)as soon as possible and in any event within five days after the Borrower has knowledge of the occurrence of each Event of Default and each event that, with the giving of notice or lapse of time or both, would constitute an Event of Default, continuing on the date of such statement, a statement of the duly authorized officer of the Borrower setting forth details of such Event of Default or event, as the case may be, and the actions that the Borrower has taken and proposes to take with respect thereto;
(v)as soon as possible and in any event within ten days after the Borrower knows or has reason to know that any litigation against, or any arbitration, administrative, governmental or regulatory proceeding involving, the Borrower or any of its Subsidiaries could reasonably be expected 

to have a Material Adverse Effect, notice of such litigation describing in reasonable detail the facts and circumstances concerning such litigation and the Borrower’s or such Subsidiary’s proposed actions in connection therewith;
(vi)promptly after the sending or filing thereof, copies of all reports that the Borrower sends to any of its securities holders, and copies of all reports and registration statements which the Borrower files with the SEC or any national securities exchange pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended;
(vii)as soon as possible and in any event within 30 days after the Borrower knows or has reason to know that any ERISA Termination Event with respect to any ERISA Plan has occurred, a statement of a duly authorized officer of the Borrower describing such ERISA Termination Event and the action, if any, that the Borrower proposes to take with respect thereto;
(viii)promptly and in any event within ten Business Days after receipt thereof by the Borrower from the PBGC, copies of each notice received by the Borrower of the PBGC’s intention to terminate any ERISA Plan or to have a trustee appointed to administer any ERISA Plan;
(ix)promptly and in any event within 30 days after the filing thereof with the Internal Revenue Service, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each ERISA Plan;
(x)promptly and in any event within ten Business Days after receipt thereof by the Borrower from a Multiemployer Plan sponsor, a copy of each notice concerning the imposition of withdrawal liability pursuant to Section 4202 of ERISA;
(xi)promptly and in any event within five Business Days after S&P or Moody’s has changed any rating assigned to the Borrower’s senior unsecured long-term debt (or the Borrower’s issuer or corporate rating, as applicable), notice of such change;
(xii)subject to Sections 5.02(c) and 5.02(d), promptly and in any event within 30 days of any disposition, merger or consolidation that would result in a name change or significant change in the organizational structure of the Borrower, notice of such change; 
(xiii)promptly after the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to Borrower; and
(xiv)such other information respecting the condition or operations, financial or otherwise, of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender through the Administrative Agent may from time to time reasonably request.
The financial statements and reports described in paragraphs (i), (ii) and (vi) above will be deemed to have been delivered hereunder if such documents are publicly available on EDGAR or on the Borrower’s website no later than the date specified for delivery of the same under paragraph (i), (ii) or (vi), as applicable, above.  If any financial statements or report described in (i) and (ii) above is due on a date that is not a Business Day, then such financial statements or report shall be delivered on the next succeeding Business Day.
(av)Compliance with Anti-Corruption Laws and Sanctions.  Maintain in effect and enforce policies and procedures designed to ensure compliance by the Borrower, its Subsidiaries and their respective directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

SECTION 5.02.    Negative Covenants.
So long as any amount payable by the Borrower hereunder shall remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will not, without the written consent of the Majority Lenders:
(aw)Liens, Etc.  Create or suffer to exist any Lien upon or with respect to any of its properties (including, without limitation, any shares of any class of equity security of any of its Significant 

Subsidiaries), in each case to secure or provide for the payment of Debt, other than: (i) Liens in existence on the date hereof; (ii) Liens for taxes, assessments or governmental charges or levies to the extent not past due, or which are being contested in good faith in appropriate proceedings diligently conducted and for which the Borrower has provided adequate reserves for the payment thereof in accordance with GAAP; (iii) pledges or deposits in the ordinary course of business to secure obligations under worker’s compensation laws or similar legislation; (iv) other pledges or deposits in the ordinary course of business (other than for borrowed monies) that, in the aggregate, are not material to the Borrower; (v) purchase money mortgages or other liens or purchase money security interests upon or in any property acquired or held by the Borrower in the ordinary course of business to secure the purchase price of such property or to secure indebtedness incurred solely for the purpose of financing the acquisition of such property; (vi) Liens imposed by law such as materialmen’s, mechanics’, carriers’, workers’ and repairmen’s Liens and other similar Liens arising in the ordinary course of business for sums not yet due or currently being contested in good faith by appropriate proceedings diligently conducted; (vii) attachment, judgment or other similar Liens arising in connection with court proceedings, provided that such Liens, in the aggregate, shall not exceed $20,000,000 at any one time outstanding; (viii)  Liens created by or pursuant to the Mortgage Indenture of the Borrower; (ix) other Liens not otherwise referred to in the foregoing clauses (i) through (viii) above, provided that such Liens, in the aggregate, shall not secure obligations in excess of $20,000,000 at any one time; (x) Liens created for the sole purpose of extending, renewing or replacing in whole or in part Debt secured by any Lien referred to in the foregoing clauses (i) through (vi) and (viii) above, provided that the principal amount of indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement and that such extension, renewal or replacement, as the case may be, shall be limited to all or a part of the property or Debt that secured the Lien so extended, renewed or replaced (and any improvements on such property); and (xi) Liens on rights or other property purported to be transferred to the issuer of Eligible Securitization Bonds or another entity to secure Eligible Securitization Bonds; provided, further, that no Lien permitted under the foregoing clauses (i) through (xi) shall be placed upon any shares of any class of equity security of any Significant Subsidiary unless the obligations of the Borrower to the Lenders hereunder are simultaneously and ratably secured by such Lien pursuant to documentation satisfactory to the Lenders.
(ax)Limitation on Debt.   Permit the total principal amount of all Debt of the Borrower and its Subsidiaries, determined on a consolidated basis and without duplication of liability therefor, at any time to exceed 65% of Capitalization determined as of the last day of the most recently ended fiscal quarter of the Borrower; provided, however, that for purposes of this Section 5.02(b), (i) “Debt” and “Capitalization” shall not include (A) Hybrid Securities, (B) any Debt of any Subsidiary of the Borrower that is Non-Recourse Debt, (C) Eligible Securitization Bonds and (D) the Deferred Tax Note Obligations, and (ii) “Capitalization” shall exclude changes to other comprehensive income resulting from (x) pension and other post-retirement benefits liability adjustments and (y) mark-to-market non-cash adjustments relating to accounting for derivatives.
(ay)Mergers, Etc.  Merge with or into or consolidate with or into any other Person, except that the Borrower may merge with any other Person, provided that, immediately after giving effect to any such merger, (i) the Borrower is the surviving Person or the merger is to effect a change in the Borrower’s form of organization permitted by the proviso in Section 5.01(a)(ii), (ii) no event shall have occurred and be continuing that constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both, and (iii) the Borrower shall not be liable with respect to any Debt or allow its property to be subject to any Lien which would not be permissible with respect to it or its property under this Agreement on the date of such transaction.
(az)Disposition of Assets.  (i) Sell, lease, transfer or otherwise dispose of any shares of Common Equity of any Significant Subsidiary, whether now owned or hereafter acquired by the Borrower, or permit 

any Significant Subsidiary to do so or (ii) sell, lease, transfer or otherwise dispose of (whether in one transaction or a series of transactions), or permit any Significant Subsidiary to sell, lease, transfer or otherwise dispose of (whether in one transaction or a series of transactions), assets representing in the aggregate amount more than 10% (determined at the time of each such transaction) of its Consolidated Net Worth to any entity other than any wholly owned Subsidiary of the Borrower.
(ba)No Violation of Anti-Corruption Laws or Sanctions.  Request any Term Loan, or use or permit any of its Subsidiaries or its or their respective directors, officers, employees and agents to use any proceeds of any Term Loan (A) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws, (B) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country, or (C) in any manner that would result in the violation of  any Sanctions applicable to any party hereto.

ARTICLE VI

EVENTS OF DEFAULT AND REMEDIES

SECTION 6.01.    Events of Default.

Each of the following events shall constitute an “Event of Default” hereunder:
(bb)The Borrower shall fail to pay any principal of any Term Loan when the same becomes due and payable, or shall fail to pay interest thereon or any other amount payable under this Agreement within five (5) Business Days after the same becomes due and payable; or
(bc)Any representation or warranty made by the Borrower herein or by the Borrower (or any of its officers) in connection with this Agreement shall prove to have been incorrect or misleading in any material respect when made; or
(bd)The Borrower shall fail to perform or observe (i) any term, covenant or agreement contained in Section 5.01(b) or 5.02 or (ii) any other term, covenant or agreement contained in this Agreement on its part to be performed or observed if the failure to perform or observe such other term, covenant or agreement shall remain unremedied for 30 days after written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or
(be)The Borrower shall fail to pay any principal of or premium or interest on any Debt of the Borrower that is outstanding in a principal amount in excess of $1,000,000 in the aggregate (but excluding Debt hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or 
(bf)The occurrence of any event or the existence of any condition under any agreement or instrument relating to any Debt of a Significant Subsidiary that is outstanding in a principal amount in excess of $1,000,000 in the aggregate, which occurrence or event results in the declaration (after the applicable grace period, if any) of such Debt being due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or
(bg)The Borrower or any Significant Subsidiary shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Borrower or any Significant Subsidiary seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the 

appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed for a period of 30 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its property) shall occur; or the Borrower or any Significant Subsidiary shall take any organizational action to authorize or to consent to any of the actions set forth above in this subsection (f); or
(bh)Any judgment or order for the payment of money in excess of $20,000,000 shall be rendered against the Borrower and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 10 consecutive Business Days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or
(bi)(i)  An ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall fail to maintain the minimum funding standards required by Section 412 of the Code for any plan year or a waiver of such standard is sought or granted under Section 412(d) of the Code, or (ii) an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower is, shall have been or will be terminated or the subject of termination proceedings under ERISA, or (iii) the Borrower or any ERISA Affiliate of the Borrower has incurred or will incur a liability to or on account of an ERISA Plan under Section 4062, 4063 or 4064 of ERISA, or (iv) any ERISA Termination Event with respect to an ERISA Plan of the Borrower or any ERISA Affiliate of the Borrower shall have occurred, and in the case of any event described in clauses (i) through (iv), such event could reasonably be expected to result in a Material Adverse Effect; or
(bj)The Parent shall cease to own (directly or indirectly) 100% of the Common Equity of the Borrower, provided, however, that in the case of indirect ownership, Persons other than the Parent may own Preferred Equity of intermediate Subsidiaries as long as no such Preferred Equity is convertible into Common Equity; or
(bk)(i) any Person or two or more Persons acting in concert shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the SEC under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Parent (or other securities convertible into such securities) representing 30% or more of the combined voting power of all securities of the Parent entitled to vote in the election of directors; or (ii) commencing after the date of this Agreement, individuals who as of the date of this Agreement were directors shall have ceased for any reason to constitute a majority of the Board of Directors of the Parent unless the Persons replacing such individuals were nominated by the stockholders or the Board of Directors of the Parent in accordance with the Parent’s organizational documents.

SECTION 6.02.    Remedies.
If any Event of Default shall occur and be continuing, then, and in any such event, the Administrative Agent (i) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the obligation of each Lender to make any Term Loan be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the request, or may with the consent, of the Majority Lenders, by notice to the Borrower, declare the Term Loans, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Term Loans, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower or any Significant Subsidiary under the Federal Bankruptcy Code, (A) the obligation of each Lender to make its Term Loan shall automatically be terminated and (B) the Term Loans, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower.

ARTICLE VII

THE AGENT

SECTION 7.01.    Authorization and Action.

Each Lender hereby appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Administrative Agent by the terms hereof, together with such powers as are reasonably incidental thereto.  As to any matters not expressly provided for by this Agreement (including, without limitation, enforcement or collection of the Term Loans), the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Majority Lenders, and such instructions shall be binding upon all Lenders; provided, however, that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or applicable law, including for the avoidance of doubt, any action that may be in violation of the automatic stay under any Debtor Relief Law.  The Administrative Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement.
SECTOPM 7.02.    Administrative Agent’s Reliance, Etc.

Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement, except for its or their own gross negligence or willful misconduct.  Without limitation of the generality of the foregoing, the Administrative Agent:  (i) may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement; (iii) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement on the part of the Borrower or to inspect the property (including the books and records) of the Borrower; (iv) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, this Agreement or any other instrument or document furnished pursuant hereto; and (v) shall incur no liability under or in respect of this Agreement by acting upon any notice, consent, certificate or other instrument or writing (which may be by facsimile, e-mail, electronic message, Internet or intranet website posting or other distribution) believed by it to be genuine and signed or sent by the proper party or parties.
SECTION 7.03.    Bank of America and Affiliates.

With respect to its Commitment and the Term Loan made by it, Bank of America shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not the Administrative Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include Bank of America in its individual capacity.  Bank of America and its affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, the Borrower, any of its Subsidiaries and any Person who may do business with or own securities of the 

Borrower or any such Subsidiary, all as if Bank of America were not the Administrative Agent and without any duty to account therefor to the Lenders.
SECTION 7.04.    Lender Credit Decision.

Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on the financial statements referred to in Section 4.01(e) and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative 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 this Agreement.
SECTION 7.05.    Indemnification.

The Lenders agree to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower), ratably according to the respective principal amounts of the Term Loans then outstanding to each of them (or if no Term Loans are at the time outstanding, ratably according to the respective amounts of their Commitments), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any action taken or omitted by the Administrative Agent (in its capacity as such) under this Agreement, provided that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent’s gross negligence or willful misconduct.  Without limitation of the foregoing, each Lender agrees to reimburse the Administrative Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including reasonable counsel fees) incurred by the Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, to the extent that such expenses are reimbursable by the Borrower but for which the Administrative Agent is not reimbursed by the Borrower.
SECTION 7.06.    Successor Administrative Agent.
(bl)    The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Majority Lenders shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed), to appoint a successor, which shall be a bank with an office in the United States of America and a combined capital and surplus of at least $500,000,000; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing.  If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Majority Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.
(bm)The Majority Lenders may at any time, to the extent permitted by applicable law, by notice in writing to the Borrower and to the Person serving as Administrative Agent remove such Person as Administrative Agent and, with the consent of the Borrower (such consent not to be unreasonably withheld 

or delayed), appoint a successor; provided that, the consent of the Borrower shall not be required if an Event of Default, or an event that would constitute an Event of Default with notice or lapse of time or both, has occurred and is continuing.  If no such successor shall have been so appointed by the Majority Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Majority Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.  On the Removal Effective Date, the Borrower shall pay in full all amounts due and payable to the removed Administrative Agent hereunder and under the other Loan Documents.
(bn)    With effect from the Resignation Effective Date or the Removal Effective Date (as applicable) (1) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (2) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Majority Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Borrower and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 8.04 shall continue in effect for the benefit of such retiring or removed Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Administrative Agent was acting as Administrative Agent.

SECTION 7.07.    Trust Indenture Act.

In the event that the Administrative Agent or any of its Affiliates shall be or become an indenture trustee under the Trust Indenture Act of 1939 (as amended, the “Trust Indenture Act”) in respect of any securities issued or guaranteed by the Borrower, the parties hereto acknowledge and agree that any payment or property received in satisfaction of or in respect of any of the Borrower’s obligations hereunder by or on behalf of Bank of America in its capacity as Administrative Agent for the benefit of any Lender hereunder (other than Bank of America or an Affiliate of Bank of America) and that is applied in accordance with the terms hereof shall be deemed to be exempt from the requirements of Section 311 of the Trust Indenture Act pursuant to Section 311(b)(3) of the Trust Indenture Act.

ARTICLE VIII

MISCELLANEOUS

SECTION 8.01.    Amendments, Etc.

No amendment or waiver of any provision of this Agreement, nor consent to any departure by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Majority Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall, unless in writing and signed by all the Lenders, do any of the following:  (a) waive any of the conditions specified in 

Section 3.01, (b) increase the Commitments of the Lenders or subject the Lenders to any additional obligations, (c) reduce the principal of, or interest (or rate of interest) on, the Term Loans or any fees or other amounts payable hereunder, (d) postpone any date fixed for any payment of principal of, or interest on, the Term Loans or any fees or other amounts payable hereunder, (e) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Term Loans, or change the definition of “Majority Lenders” or the number of Lenders that shall be required for the Lenders or any of them to take any action hereunder, (f) change the provisions requiring pro rata sharing of payments under Section 2.09 or amend or waive Section 2.11 or (g) amend this Section 8.01; and provided further, that no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above to take such action, affect the rights or duties of the Administrative Agent under this Agreement, and provided further, that this Agreement may be amended and restated without the consent of any Lender or the Administrative Agent if, upon giving effect to such amendment and restatement, such Lender or the Administrative Agent, as the case may be, shall no longer be a party to this Agreement (as so amended and restated) or have any Commitment or other obligation hereunder and shall have been paid in full all amounts payable hereunder to such Lender or the Administrative Agent, as the case may be.
SECTION 8.02.    Notices, Etc.  
(a)Notices.  All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including via electronic communication pursuant to Section 8.11) and mailed, emailed, sent by facsimile or delivered, if to the Borrower, at its address at 639 Loyola Avenue, New Orleans, Louisiana 70113, Attention: Kevin J. Marino, Assistant Treasurer, Email: kmarino@entergy.com; if to any Bank, at its Lending Office specified opposite its name on Schedule I hereto; if to any other Lender, at its Lending Office specified in the Assignment and Assumption pursuant to which it became a Lender and if to the Administrative Agent, at its address at 100 North Tryon Street, Charlotte, North Carolina 28255, Attention: Maggie Halleland, Facsimile: (980) 683-6306, Email: Maggie.halleland@bofa.com; or, as to each party, at such other address as shall be designated by such party in a written notice to the other parties.  All such notices and communications shall be deemed to have been given on the date of receipt (i) if mailed, sent by facsimile or delivered by hand or overnight courier service and received during the normal business hours of such party as provided in this Section or in accordance with the latest unrevoked direction from such party given in accordance with this Section and (ii) if emailed and received in accordance with Section 8.11.  If such notices and communications are received after the normal business hours of such party, receipt shall be deemed to have been given upon the opening of the recipient’s next Business Day.  Except as otherwise provided in Section 5.01(c), notices and other communications given by the Borrower to the Administrative Agent shall be deemed given to the Lenders.
(b)Change of Address, etc.  Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto.

SECTION 8.03.    No Waiver; Remedies.

No failure on the part of any Lender or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law.
SECTION 8.04.    Costs and Expenses; Indemnification.
(a)The Borrower agrees to pay on demand all costs and expenses incurred by the Administrative Agent in connection with the preparation, execution, delivery, syndication administration, modification and amendment of this Agreement and the other Loan Documents, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto and with respect 

to advising the Administrative Agent as to its rights and responsibilities under this Agreement.  Any invoices to the Borrower with respect to the aforementioned expenses shall describe such costs and expenses in reasonable detail.  The Borrower further agrees to pay on demand all costs and expenses, if any (including, without limitation, counsel fees and expenses of outside counsel and of internal counsel), incurred by the Administrative Agent and the Lenders in connection with the enforcement (whether through negotiations, legal proceedings or otherwise) of, and the protection of the rights of the Lenders under, this Agreement and the other Loan Documents, including, without limitation, reasonable counsel fees and expenses in connection with the enforcement of rights under this Section 8.04(a).
(b)The Borrower hereby agrees to indemnify and hold each Lender, the Administrative Agent and each Related Party of any of the foregoing Persons (each, an “Indemnified Person”) harmless from and against any and all claims, damages, losses, liabilities, costs or expenses (including reasonable attorney’s fees and expenses, whether or not such Indemnified Person is named as a party to any proceeding or is otherwise subjected to judicial or legal process arising from any such proceeding) that any of them may incur or which may be claimed against any of them by any Person or entity by reason of or in connection with the execution, delivery or performance of this Agreement or any other Loan Document or any transaction contemplated hereby or thereby, or the use by the Borrower or any of its Subsidiaries of the proceeds of any Term Loan, AND THE FOREGOING INDEMNIFICATION SHALL APPLY WHETHER OR NOT SUCH INDEMNIFIED LIABILITIES ARE IN ANY WAY OR TO ANY EXTENT OWED, IN WHOLE OR IN PART, UNDER ANY CLAIM OR THEORY OF STRICT LIABILITY, OR ARE CAUSED, IN WHOLE OR IN PART, BY ANY NEGLIGENT ACT OR OMISSION OF ANY KIND BY ANY INDEMNIFIED PERSON, except that no Indemnified Person shall be entitled to any indemnification hereunder to the extent that such claims, damages, losses, liabilities, costs or expenses are finally determined by a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Person.  The Borrower’s obligations under this Section 8.04(b) shall survive the repayment of all amounts owing to the Lenders and the Administrative Agent under this Agreement and the termination of the Commitments.  If and to the extent that the obligations of the Borrower under this Section 8.04(b) are unenforceable for any reason, the Borrower agrees to make the maximum contribution to the payment and satisfaction thereof which is permissible under applicable law.  The Borrower also agrees not to assert, and hereby waives, any claim against any Lender, any of such Lender’s affiliates, or any of their respective directors, officers, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive damages arising out of or otherwise relating to this Agreement or any other Loan Document, any of the transactions contemplated herein or therein or the actual or proposed use of the proceeds of the Term Loans.  No Indemnified Person referred to in this subsection (b) shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

SECTION 8.05.    Right of Set-off.
Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 6.02 to authorize the Administrative Agent to declare the Term Loans due and payable pursuant to the provisions of Section 6.02, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement, whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured.  Each Lender agrees promptly to notify the Borrower after any such set-off and application made by such Lender, provided that the failure to give such notice shall not affect the validity of such set-off and 

application.  The rights of each Lender under this Section 8.05 are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such Lender may have.
SECTION 8.06.    Binding Effect.

This Agreement shall become effective when it shall have been executed by the Borrower, the Lenders and the Administrative Agent and thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign or delegate any rights hereunder (or any interest herein) or duties or obligations under this Agreement or any other Loan Document without the prior written consent of the Administrative Agent and all the Lenders.
SECTION 8.07.    Assignments and Participations.
(a)Successors and Assigns by Lenders Generally.  No Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and Term Loan at the time owing to it); provided that any such assignment shall be subject to the following conditions: 
(i)Minimum Amounts.  
(A)    in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Term Loan at the time owing to it or contemporaneous assignments to related Approved Funds (determined after giving effect to such assignments) that equal at least the amount specified in subsection (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B)    in any case not described in subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Term Loan of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $5,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed). 
(ii)Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Term Loan or the Commitment assigned.
(iii)Required Consents.  No consent shall be required for any assignment except to the extent required by subsection (b)(i)(B) of this Section and, in addition:

(A)    the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment, or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within five Business Days after having received notice thereof;  and
(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments if such assignment is to a Person that is not a Lender with a Commitment, an Affiliate of such Lender or an Approved Fund with respect to such Lender.
(iv)Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; provided that the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.
(v)No Assignment to Certain Persons.  No such assignment shall be made to the Borrower or any of the Borrower’s Affiliates or Subsidiaries.
(vi)No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 2.08, 2.10 and 8.04 with respect to facts and circumstances occurring prior to the effective date of such assignment.  Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section.
(c)Register.  The Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at its address referred to in Section 8.02 a copy of each Assignment and Assumption delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Term Loans owing to, each Lender from time to time (the “Register”).  The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement, notwithstanding notice to the contrary.  The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice.  
(d)Participations.  Each Lender may at any time sell participations to one or more banks, financial institutions or other entities (other than a natural person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitment and the Term Loans owing to it); provided, however, that (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitment to the Borrower hereunder) shall remain unchanged, (ii) such Lender shall remain 

solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the maker of any such Term Loan for all purposes of this Agreement and (iv) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 7.05 with respect to any payments made by such Lender to its Participant(s).
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any  provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver with respect to the provision in Section 8.01 relating to amendments, waivers or consents requiring unanimous consent of the Lenders that affects such Participant.  The Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.08 and 2.10 (subject to the requirements and limitations therein) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to subsection (b) of this Section.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.05 as though it were a Lender, provided such Participant agrees to be subject to Section 2.11 as though it were a Lender.  A Participant shall not be entitled to receive any greater payment under Sections 2.08 and 2.10 than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent.  A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.10 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.10(d) as though it were a Lender.  Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Term Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loans or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

(e)Mitigation Obligations; Replacement of Lenders.  
(i)Designation of a Different Lending Office.  If any Lender requests compensation under Section 2.08, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.10, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different Lending Office for funding or booking its Term Loan hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.08 or 2.10, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender.  The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

(ii)Replacement of Lenders.  If any Lender requests compensation under Section 2.08, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Body for the account of any Lender pursuant to Section 2.10 and, in each case, such Lender has declined or is unable to designate a different Lending Office in accordance with Section 8.07(e)(i), or if any Lender is a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 8.07(b)), all of its interests, rights (other than its existing rights to payments pursuant to Section 2.08 or Section 2.10) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
(A)no event has occurred and is continuing that constitutes an Event of Default or that would constitute an Event of Default but for the requirement that notice be given or time elapse or both;
(B)the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 8.07(b);
(C)such Lender shall have received payment of an amount equal to the outstanding principal of its Term Loan, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);
(D)in the case of any such assignment resulting from a claim for compensation under Section 2.08 or payments required to be made pursuant to Section 2.10, such assignment will result in a reduction in such compensation or payments thereafter; 
(E)such assignment does not conflict with applicable law; and
(F)in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable extension, amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

(f)Certain Pledges.  Anything in this Section 8.07 to the contrary notwithstanding, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank or any other central bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(g)Notwithstanding anything to the contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”) of such Granting Lender identified as such in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower, the option to provide to the Borrower all or any part of any Term Loan that such Granting Lender would otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any such SPC to make any Term Loan, (ii) if such SPC elects not to exercise such option or otherwise fails to provide all or any part of such Term Loan, the Granting Lender shall be obligated to make such Term Loan pursuant to the terms hereof and (iii) no SPC or Granting Lender shall be entitled to receive any greater amount pursuant to Section 2.08 than the Granting Lender would have been entitled to receive had the Granting Lender not otherwise granted such SPC the option to provide any Term Loan to the Borrower.  The making of a Term Loan by an SPC hereunder shall utilize the Commitment of the Granting 

Lender to the same extent, and as if, such Term Loan were made by such Granting Lender.  Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement for which a Lender would otherwise be liable so long as, and to the extent that, the related Granting Lender provides such indemnity or makes such payment.  In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it will not institute against or join any other person in instituting against such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of the United States or any State thereof.  Notwithstanding the foregoing, the Granting Lender unconditionally agrees to indemnify the Borrower, the Administrative Agent and each Lender against all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be incurred by or asserted against the Borrower, the Administrative Agent or such Lender, as the case may be, in any way relating to or arising as a consequence of any such forbearance or delay in the initiation of any such proceeding against its SPC.  Each party hereto hereby acknowledges and agrees that no SPC shall have the rights of a Lender hereunder, such rights being retained by the applicable Granting Lender.  Accordingly, and without limiting the foregoing, each party hereby further acknowledges and agrees that no SPC shall have any voting rights hereunder and that the voting rights attributable to any Term Loan made by an SPC shall be exercised only by the relevant Granting Lender and that each Granting Lender shall serve as the administrative agent and attorney-in-fact for its SPC and shall on behalf of its SPC receive any and all payments made for the benefit of such SPC and take all actions hereunder to the extent, if any, such SPC shall have any rights hereunder.  In addition, notwithstanding anything to the contrary contained in this Agreement any SPC may (i) with notice to, but without the prior written consent of any other party hereto, assign all or a portion of its interest in any Term Loan to the Granting Lender and (ii) disclose on a confidential basis any information relating to its Term Loan to any rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC.  This Section 8.07(g) may not be amended without the prior written consent of each Granting Lender, all or any part of whose Term Loan is being funded by an SPC at the time of such amendment.

SECTION 8.08.    Governing Law.

THIS AGREEMENT AND ANY NOTE ISSUED PURSUANT TO SECTION 2.12 SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 8.09.    Consent to Jurisdiction; Waiver of Jury Trial.
(a)To the fullest extent permitted by law, the Borrower hereby irrevocably (i) submits to the exclusive jurisdiction of any New York State or Federal court sitting in New York City, Borough of Manhattan, and any appellate court from any thereof in any action or proceeding arising out of or relating to this Agreement or any other Loan Document, and (ii) agrees that all claims in respect of such action or proceeding shall be heard and determined in such New York State court or in such Federal court.  The Borrower hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding.  The Borrower also irrevocably consents, to the fullest extent permitted by law, to the service of any and all process in any such action or proceeding by the mailing by certified mail of copies of such process to the Borrower at its address specified in Section 8.02.  The Borrower agrees, to the fullest extent permitted by law, that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
(b)THE BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN 

DOCUMENT OR ANY INSTRUMENT OR DOCUMENT DELIVERED HEREUNDER OR THEREUNDER.

SECTION 8.10.    Execution in Counterparts.

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
SECTION 8.11.    Electronic Communications.
(a)The Borrower hereby agrees that, to the extent the Borrower is so able, it will provide to the Administrative Agent all information, documents and other materials that it is obligated to furnish to the Administrative Agent pursuant to this Agreement, including, without limitation, all notices, requests, financial statements, financial and other reports, certificates and other information materials, but excluding any such communication that (i) relates to a request for a borrowing or other extension of credit, (ii) relates to the payment of any principal or other amount due under this Agreement prior to the scheduled date therefor, (iii) provides notice of any default or event of default under this Agreement or (iv) is required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement and/or any borrowing or other extension of credit thereunder (all such non-excluded communications being referred to herein collectively as “Communications”), by transmitting the Communications in an electronic/soft medium in a format acceptable to the Administrative Agent to katlyn.tran@bofa.com.  In addition, the Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner specified in this Agreement but only to the extent requested by the Administrative Agent.  To the extent the Borrower is unable to deliver any portion of the Communications in an electronic/soft medium form, the Borrower shall promptly deliver hard copies of such Communications to the Administrative Agent. 
(b)The Borrower further agrees that the Administrative Agent may make the Communications available to the Lenders by posting the Communications on SyndTrak, the Internet or another similar electronic system (the “Platform”).  The Borrower acknowledges that the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution.
(c)THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”.  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM.  IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS 

AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF THE BORROWER’S OR THE ADMINISTRATIVE AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE PLATFORM OR OTHERWISE THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.
(d)The Administrative Agent agrees that the receipt of the Communications by the Administrative Agent at its e-mail address set forth above shall constitute effective delivery of the Communications to the Administrative Agent for purposes of this Agreement.  Each Lender agrees that notice to it (as provided in the next sentence) specifying that the Communications have been posted to the Platform shall constitute effective delivery of the Communications to such Lender for purposes of this Agreement.  Each Lender agrees to notify the Administrative Agent in writing (including by electronic communication) from time to time of such Lender’s e-mail address to which the foregoing notice may be sent by electronic transmission and that the foregoing notice may be sent to such e-mail address.
(e)Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give any notice or other communication pursuant to this Agreement in any other manner specified in this Agreement.

SECTION 8.12.    Severability.  

Any provision of this Agreement that is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction.
SECTION 8.13.    Headings.  

Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
SECTION 8.14.    USA PATRIOT Act Notice.

  Each Lender that is subject to the Patriot Act and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower pursuant to the requirements of the Patriot Act that 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 Lender or the Administrative Agent, as applicable, to identify the Borrower in accordance with the Patriot Act.  The Borrower shall, and shall cause each of its Subsidiaries to, provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by the Administrative Agent or any Lender in order to assist the Administrative Agent and the Lenders in maintaining compliance with the Patriot Act.
SECTION 8.15.    Confidentiality.  

Each of the Administrative Agent and each Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (i) to its Affiliates and to its and 

its Affiliates’ respective managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives on a “need to know” basis (it being understood that the Persons to which such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (ii) to the extent requested by any regulatory authority purporting to have jurisdiction over it or its Affiliates (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party hereto, (v) in connection with the exercise of any remedies hereunder or any action or proceeding relating to this Agreement or the enforcement of rights hereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 8.15, to (A) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations under this Agreement or (B) any actual or prospective party (or its managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and other representatives) to any swap or derivative or similar transaction under which payments are to be made by reference to the Borrower and its obligations, this Agreement or payments hereunder, (C) any rating agency, (D) the CUSIP Service Bureau or any similar organization or (E) any credit insurance provider relating to the Borrower and its obligations, (vii) with the consent of the Borrower or (viii) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section 8.15 or (y) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates on a nonconfidential basis from a source other than the Borrower.  In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of this Agreement, the other Loan Documents and the Commitments.
For purposes of this Section, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries, provided that, in the case of information received from the Borrower or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section 8.15 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.
SECTION 8.16.    Entire Agreement.

This Agreement, the Fee Letter and the promissory notes issued hereunder constitute the entire agreement among the parties relative to the subject matter hereof.  Any previous agreement among the parties with respect to the subject matter hereof is superseded by this Agreement, except (i) as expressly agreed in any such previous agreement and (ii) for the Fee Letter.  Except as is expressly provided for herein, nothing in this Agreement, expressed or implied, is intended to confer upon any party other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Agreement.
SECTION 8.17.    Texas Revolving Credit Statute.

If, notwithstanding the provisions of Section 8.08, Texas law shall be applied by any Governmental Body to this Agreement, any other Loan Document or the obligations of the Borrower hereunder or thereunder, the Borrower hereby agrees that Chapter 346 of the Texas Finance Code, as amended, shall not govern or in any manner apply to its obligations hereunder.

SECTION 8.18.    Interest Rate Limitation.

  Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Term Loan, together with all fees, charges and other amounts which are treated as interest on such Term Loan under applicable law (collectively, the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender making such Term Loan in accordance with applicable law, the rate of interest payable in respect of such Term Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and charges that would have been payable in respect of such Term Loan but were not payable as a result of the operation of this Section 8.18 shall be cumulated and the interest and charges payable to such Lender in respect of other Term Loans or periods shall be increased (but not above the Maximum Rate applicable thereto) until such cumulated amount, together with interest thereon at the Applicable Margin to the date of repayment, shall have been received by such Lender; provided that if Texas law shall establish the Maximum Rate, the Maximum Rate shall be the applicable weekly ceiling under Chapter 303 of the Texas Finance Code.
SECTION 8.19.    No Fiduciary Duty.

  The Credit Parties and their respective Affiliates (collectively, solely for purposes of this Section, the “Lender Parties”), may have economic interests that conflict with those of the Borrower, its securities holders and/or their Affiliates.  The Borrower agrees that nothing in the Loan Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Lender Party, on the one hand, and the Borrower, its securities holders or its Affiliates, on the other hand.  The Borrower acknowledges and agrees that (i) the transactions contemplated by the Loan Documents (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between the Lender Parties, on the one hand, and the Borrower, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Lender Party has assumed an advisory or fiduciary responsibility in favor of the Borrower, its securities holders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Lender Party has advised, is currently advising or will advise the Borrower, its securities holders or its Affiliates on other matters) or any other obligation to the Borrower except the obligations expressly set forth in the Loan Documents, and (y) each Lender Party is acting solely as principal and not as the agent or fiduciary of the Borrower, its management, securities holders, creditors or any other Person.  The Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees that it will not claim that any Lender Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to the Borrower, in connection with such transaction or the process leading thereto.
SECTION 8.20.    Acknowledgement Regarding Any Supported QFCs.

  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for any agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

(a)In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. 
(b)As used in this Section 8.20, the following terms have the following meanings:
“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Covered Entity” means any of the following: 
(i)a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b)
(ii)a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or 
(iii)a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).
SECTION 8.21.    Acknowledgment and Consent to Bail-In of EEA Financial Institutions. 
 
Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
		
	(a)
	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

		
	(b)
	the effects of any Bail-in Action on any such liability, including, if applicable:

(i)a reduction in full or in part or cancellation of any such liability;
(ii)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any 

rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii)the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

SECTION 8.22.    Certain ERISA Matters.
(a)Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that at least one of the following is and will be true: 
(i)Such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments or this Agreement, 
(ii)The transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement,
(iii)(A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Term Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement, or
(iv) such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(b)In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of the Borrower, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).
[The remainder of this page intentionally left blank.]
S-__

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

ENTERGY NEW ORLEANS, LLC

By /s/ Kevin J. Marino    
Name: Kevin J. Marino
Title: Assistant Treasurer

BANK OF AMERICA, N.A.,
as Administrative Agent and Bank

By      /s/ Maggie Halleland    
Name: Maggie Halleland
Title:  Vice President

SCHEDULE I

LIST OF LENDING OFFICES
ENTERGY NEW ORLEANS, LLC
U.S. $70,000,000 Term Loan Credit Agreement

	
		
	Name of Bank     
	Lending Office

	 
	 

	Bank of America, N.A.
	100 North Tryon Street
NC1-007-17-18
Charlotte, North Carolina 28255

Attention: Maggie Halleland 
Office: 980-386-0270
Facsimile: 980-683-6306

Email: Maggie.halleland@bofa.com

SCHEDULE II

COMMITMENT SCHEDULE
	
		
	Name of Lender
	Commitment Amount

	 
	 

	Bank of America, N.A. 
	$70,000,000.00

	TOTAL
	$70,000,000.00

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

EXHIBIT A
FORM OF NOTICE OF BORROWING
Bank of America, N.A., as Administrative Agent
for the Lenders party
to the Term Loan Credit Agreement
referred to below
101 North Tryon Street, NC1-001-05-46
Charlotte, North Carolina 28255
Fax: (704) 409-0486
maggie.halleland@bofa.com
[Date]

Attention:    Bank Loan Syndications

Ladies and Gentlemen:

The undersigned, Entergy New Orleans, LLC, refers to the Term Loan Credit Agreement, dated as of December 18, 2019 (as amended, supplemented or modified as of the date hereof, the “Credit Agreement”, the terms defined therein being used herein as therein defined), among the undersigned, certain Lenders parties thereto and Bank of America, N.A., as Administrative Agent for said Lenders, and hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the undersigned hereby requests a Borrowing under the Credit Agreement, and in that connection sets forth below the information relating to such Borrowing (the “Proposed Borrowing”) as required by Section 2.02(a) of the Credit Agreement:
(i)The Business Day of the Proposed Borrowing is December__, 2019.
(ii)The aggregate amount of the Proposed Borrowing is $70,000,000.
(iii)The interest rate applicable to the Term Loans constituting the Borrowing is requested to be 3.00%. 
(iv)First payment of interest due on March 31, 2020 for the period from the date specified in (i) above to March 31, 2020.
(v)Wire instructions:
Bank: [*]
ABA #: [*]
Acct. #: [*]
Acct. Name: [*]
The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed Borrowing:
(A)the representations and warranties contained in Section 4.01 of the Credit Agreement (excluding those contained in the last sentence of subsection (e) and in subsections (f) and (n) thereof) are true and correct, before and after giving effect to the Proposed Borrowing and to the application of the proceeds therefrom, as though made on and as of such date;

(B)      the Proposed Borrowing is being made in accordance with the terms and conditions of the City Council Authorization and the FERC Authorization; and
(C)no event has occurred and is continuing, or would result from such Proposed Borrowing or from the application of the proceeds therefrom, that constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapse or both.

Very truly yours,

ENTERGY NEW ORLEANS, LLC

By            
Name:
Title:

EXHIBIT B

FORM OF ASSIGNMENT AND ASSUMPTION
This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered into by and between [the][each]1      Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each] 2     Assignee identified in item 2 below ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3  hereunder are several and not joint.] 4      Capitalized terms used but not defined herein shall have the meanings given to them in the Term Loan Credit Agreement identified below (as amended prior to the date hereof, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full.
For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below, and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).  Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.  
		
	1.
	Assignor[s]:    ______________________________

______________________________

1.    For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language.  If the assignment is from multiple Assignors, choose the second bracketed language.
2.    For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language.  If the assignment is to multiple Assignees, choose the second bracketed language.
3.    Select as appropriate. 
4.    Include bracketed language if there are either multiple Assignors or multiple Assignees.

		
	2.
	Assignee[s]:    ______________________________

______________________________
[Assignee is an [Affiliate][Approved Fund] of [identify Lender]]
		
	3.
	Borrower(s):    Entergy New Orleans, LLC 

		
	4.
	Administrative Agent:    Bank of America, N.A., as the administrative agent under the Credit Agreement

		
	5.
	Credit Agreement:    $70,000,000 Term Loan Credit Agreement, dated as of December 18, 2019, among Entergy New Orleans, LLC, the Lenders parties thereto and Bank of America, N.A., as Administrative Agent

		
	6.
	Assigned Interest[s]:

	
						
	Assignor[s] 5
	Assignee[s] 6
	Aggregate Amount of Commitment/Term Loans for all Lenders 7
	Amount of 
Commitment/Term Loans Assigned 8
	Percentage of
 Assigned Commitment/Term Loans
	CUSIP Number

	 
	 
	$
	$
	%
	 

	 
	 
	$
	$
	%
	 

	 
	 
	$
	$
	%
	 

[7.Trade Date:______________] 9
[Page break]

5.    List each Assignor, as appropriate.
6.    List each Assignee, as appropriate.
7.    Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.
8.    Set forth, to at least 9 decimals, as a percentage of the Commitment/Term Loans of all Lenders thereunder.
9.    To be completed if the Assignor(s) and the Assignee(s) intend that the minimum assignment amount is to be determined as of the Trade Date.

Effective Date:   _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR[S] 10    
[NAME OF ASSIGNOR]

By:______________________________
      Title:
[NAME OF ASSIGNOR]

By:______________________________
      Title:
ASSIGNEE[S] 11    
[NAME OF ASSIGNEE]

By:______________________________
      Title:
[NAME OF ASSIGNEE]

By:______________________________
      Title:

[Consented to and] 12 Accepted:
Bank of America, N.A., as 
   Administrative Agent
By: _________________________________
      Title:

10.    Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).
11.    Add additional signature blocks as needed. Include both Fund/Pension Plan and manager making the trade (if applicable).
 12.    To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 

[Consented to:

ENTERGY NEW ORLEANS, LLC
By: ________________________________
      Title:] 13    

13.    To be added only if the consent of the Borrower is required by the terms of the Credit Agreement.

ANNEX 1
$70,000,000 Term Loan Credit Agreement, dated as of December 18, 2019, among Entergy New Orleans, LLC, the Lenders parties thereto and Bank of America, N.A., as Administrative Agent  

STANDARD TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1.    Representations and Warranties.  
1.1    Assignor[s].  [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document, or (iv) the performance or observance by the Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.
1.2.    Assignee[s].  [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under Section 8.07 of the Credit Agreement (subject to such consents, if any, as may be required thereunder), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by the Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire the Assigned Interest, is experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Sections 5.01(c)(i) and 5.01(c)(ii) thereof, as applicable, and such other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, [the][any] Assignor 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 Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

2.    Payments.  From and after the Effective Date, the Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignee whether such amounts have accrued prior to, on or after the Effective Date.  The Assignor[s] and the Assignee[s] shall make all appropriate adjustments in payments by the Administrative Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between themselves.  Notwithstanding the foregoing, the Administrative Agent shall make all payments of interest, fees or other amounts paid or payable in kind from and after the Effective Date to [the][the relevant] Assignee.
3.    General Provisions.  This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.  This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this Assignment and Assumption by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be governed by, and construed in accordance with, the law of the State of New York.

EXHIBIT C-1

FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Not Partnerships 
For U.S. Federal Income Tax Purposes)

U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Term Loan Credit Agreement, dated as of December 18, 2019 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Entergy New Orleans, LLC, Bank of America, N.A., as the administrative agent (the “Administrative Agent”), and each lender from time to time party thereto.  
Pursuant to the provisions of Section 2.10(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Term Loan(s) (as well as any promissory note(s) evidencing such Term Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Administrative Agent and the Borrower, and (2) the undersigned shall have at all times furnished the Administrative Agent and the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:    
      Name:  
      Title:  
Date: ________ __, 20[  ]

EXHIBIT C-2

FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Not Partnerships 
For U.S. Federal Income Tax Purposes)

U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Term Loan Credit Agreement, dated as of December 18, 2019 (as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Entergy New Orleans, LLC, Bank of America, N.A., as the administrative agent (the “Administrative Agent”), and each lender from time to time party thereto.  
Pursuant to the provisions of Section 2.10(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:    
      Name:  
      Title:  
Date: ________ __, 20[  ]

EXHIBIT C-3

FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Partnerships 
For U.S. Federal Income Tax Purposes)

U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Term Loan Credit Agreement, dated as of December 18, 2019 (as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Entergy New Orleans, LLC, Bank of America, N.A., as the administrative agent (the “Administrative Agent”), and each lender from time to time party thereto.  
Pursuant to the provisions of Section 2.10(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 
The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF PARTICIPANT]
By:    
      Name:  
      Title:  
Date: ________ __, 20[  ]

EXHIBIT C-4

FORM OF U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Partnerships 
For U.S. Federal Income Tax Purposes)

U.S. TAX COMPLIANCE CERTIFICATE
(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)
Reference is hereby made to the Term Loan Credit Agreement, dated as of December 18, 2019 (as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Entergy New Orleans, LLC, Bank of America, N.A., as the administrative agent (the “Administrative Agent”), and each lender from time to time party thereto.  
Pursuant to the provisions of Section 2.10(g) of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Term Loan(s) (as well as any promissory note(s) evidencing such Term Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Term Loan(s) (as well as any promissory note(s) evidencing such Term Loan(s)), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.
The undersigned has furnished the Administrative Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Administrative Agent and the Borrower, and (2) the undersigned shall have at all times furnished the Administrative Agent and the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.
Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
[NAME OF LENDER]
By:    
     Name:  
     Title:  
Date: ________ __, 20[  ]EX-10.1

 EXHIBIT 10.1 

DECEMBER 2019 EXCHANGE AGREEMENT AND 

AMENDMENT TO FACILITY AGREEMENT, SENIOR SECURED CONVERTIBLE NOTES AND WARRANTS 

This DECEMBER 2019 EXCHANGE AGREEMENT AND AMENDMENT TO FACILITY AGREEMENT, SENIOR SECURED CONVERTIBLE NOTES AND
WARRANTS (including the schedules, annexes and exhibits hereto, this “Agreement”), dated as of December 17, 2019, is by and among KemPharm, Inc., a Delaware corporation (the “Borrower”), Deerfield
Private Design Fund III, L.P. (“DPDF”), Deerfield Special Situations Fund, L.P. (“DSS” and, together with DPDF, the “Deerfield Lenders”), Delaware Street Capital Master Fund, L.P.
(“DSCM” and, together with the Deerfield Lenders, the “Lenders”). Capitalized terms used but not otherwise defined in this Agreement shall have the meanings given to them in the Facility Agreement (as defined
below). 
 RECITALS: 

A. The Lenders own an aggregate of $70,673,000 principal amount of the Borrower’s 5.50% Senior Convertible Notes due 2021 (the
“Indenture Notes”) issued pursuant to the Indenture, dated as of February 9, 2016 (the “Indenture”), between the Borrower and U.S. Bank National Association, as trustee under the Indenture (together with any
successor thereto, the “Trustee”). 
 B. The Borrower and DPDF have entered into that certain Facility Agreement, dated as
of June 2, 2014 (as the same previously has been amended, modified, restated or otherwise supplemented from time to time, the “Existing Facility Agreement”). Upon the execution and delivery of the Existing Facility Agreement,
DPDF disbursed the First Disbursement (as defined in the Existing Facility Agreement), which (i) included (among other loans) a term loan of $10,000,000, which is evidenced by the Senior Secured Convertible Note (as defined in the Existing
Facility Agreement) (the “Existing FA Note”); and (ii) obligated the Borrower to issue the Warrant (as defined in the Existing Facility Agreement). 

C. Prior to the date hereof, the Borrower has satisfied a portion of the principal amount under the Existing FA Note, leaving $6,980,824.22 in
principal amount of the Existing FA Note outstanding. 
 D. The Existing Facility Agreement obligates the Borrower to pay to DPDF
$3,333,333.33 of the outstanding principal amount of the Existing FA Note, including the applicable PIK Increase Amount, on February 14, 2020 (the “February 2020 Payment”) and the balance of the outstanding principal amount of
the Existing FA Note, together with all accrued and unpaid interest on the Existing FA Note, on June 1, 2020 (the “Final Payment”). 

E. Pursuant to this Agreement (and subject to the terms and conditions hereof), the Lenders will exchange all of the Indenture Notes for Senior
Secured Convertible Notes of the Borrower in substantially the form attached hereto as Exhibit A (the “December 2019 Notes”) in an aggregate principal amount equal to the sum of the outstanding principal amount of all of the
Indenture Notes, plus 50% of the accrued and unpaid interest thereon through the Effective Date. The December 2019 Notes will be issued pursuant to the Facility Agreement (as defined below). 

 

 F. Subject to the terms and conditions of this Agreement, DPDF has agreed with the Borrower
to (y) amend the Existing Facility Agreement and the Warrants, among other things, (i) to defer the February 2020 Payment and the Final Payment until, and to provide for payment of principal and interest on the Existing FA Note on,
March 31, 2021, (ii) to modify the definition of “Permitted Indebtedness” to permit the Borrower to incur additional Indebtedness as set forth herein, and (iii) to make such other changes as may be necessary or appropriate to
provide for the exchange of Indenture Notes for December 2019 Notes as provided herein and (z) amend and restate the Existing FA Note to be in substantially the form attached hereto as Exhibit B (as so amended and restated, the
“A&R Senior Secured Convertible Note” and, together with the December 2019 Notes, the “Notes”). The Existing Facility Agreement, as amended hereby and as the same may in the future be amended, modified, restated
or otherwise supplemented from time to time is referred to herein as the “Facility Agreement.” 
 G. Subject to the terms
and conditions of this Agreement, the Lenders have agreed with the Borrower to, among other things, (i) allow the “payment in kind” of interest on the indebtedness currently evidenced by the Indenture Notes, (ii) defer the
maturity date in respect of the indebtedness evidenced by the Indenture Notes to March 31, 2021, and (iii) modify certain rights of the Lenders under the Indenture Notes that would result from a delisting of the Borrower’s Common
Stock, all to be effected through the Exchange (as defined below) and the amendments to the Existing Facility Agreement contemplated hereby. 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 

ARTICLE I. 
 EXCHANGE

 Section 1.01. Exchange. Subject to the terms and conditions hereof, each Lender hereby agrees to exchange all of the
Indenture Notes held by it for the issuance by the Borrower to such Lender of a December 2019 Note with an initial principal amount equal to the sum of the outstanding principal amount of such Lender’s Indenture Notes (the
“Exchange”), in each case as set forth on Schedule 1 hereto. The Exchange and the related amendments to the Transaction Documents are being made as part of and pursuant to a plan of reorganization of the Borrower described in
Section 368(a)(1)(E) of the Code. 
 Section 1.02. Exchange Settlement; Joinder to Facility Agreement. 

(a) As soon as practicable following the effectiveness of the Exchange, which shall be deemed to occur at 8:00 a.m. (New York time) on
December 18, 2019 (such time on such date, the “Effective Time”) (subject to satisfaction (or waiver by the Lenders) of the conditions set forth in Article VI hereto), but in any event prior to 4:00 p.m. (New York time)
on December 18, 2019 (such date, the “Effective Date”), (i) each Lender shall assign and transfer all right, title and interest in and to its Indenture Notes to the Borrower, and deliver or cause to be delivered all of the
Indenture Notes held by such Lender to the Trustee, by book-entry transfer through the facilities of The Depositary Trust Company (“DTC”) from the account(s) of such Lender, free and

  
 2 

 
clear of any mortgage, lien, pledge, charge, security interest, encumbrance, title retention agreement, option, equity or other adverse claim thereto (collectively, “Liens”),
together with any customary documents of conveyance or transfer that the Borrower or Trustee may reasonably deem necessary or desirable to transfer such Indenture Notes to the Borrower; (ii) the Borrower shall issue and deliver to each Lender a
December 2019 Note, duly executed on behalf of the Borrower in the principal amount set forth across from such Lender’s name on Schedule 1 hereto in the column captioned “December 2019 Notes (principal amount)” which, in the case of
each December 2019 Note issued to any Lender other than DSCM, shall not bear any restrictive legend (or be subject to stop transfer instructions or similar restrictions on the transfer thereof) and shall provide for the 4.985% Cap (as defined in the
December 2019 Notes) (and not the 19.985% Cap) (as defined in the form December 2019 Note) and, which, in the case of DSCM shall provide for the 19.985% Cap; (iii) the Borrower shall record in the Register the interests of each Lender in the
Loans and each December 2019 Note, including the amount of the Loan evidenced by each December 2019 Note (which, for the avoidance of doubt, shall be the amount set forth across from the applicable Lender’s name in Schedule 1 hereto in the
column captioned “December 2019 Notes (principal amount)”) and (iv) the Borrower shall pay, in cash, by wire transfer of immediately available funds to an account designated by each Lender, fifty percent (50%) of the accrued and
unpaid interest on such Lender’s Indenture Notes through the Effective Date. The Borrower and each Lender acknowledge and agree that (y) the aggregate amount of accrued and unpaid interest on the Indenture Notes held by such Lender through
the Effective Date is the amount set forth across from such Lender’s name on Schedule 1 hereto under the column captioned “Accrued and Unpaid Interest on Indenture Notes”); and (z) the portion of such interest that is not paid in
cash on the Effective Date shall be paid by including such amount in the original principal amount of such Lender’s December 2019 Note issued hereunder, as set forth in Schedule 1 hereto. 

(b) Upon the Effective Time, (i) each Lender shall be deemed for all purposes to have become the legal, beneficial and record holder of
the December 2019 Notes to which it is entitled pursuant to Section 1.02(a) and (ii) such Lender’s Indenture Notes shall be deemed cancelled. 

(c) For the avoidance of doubt, from and after the date hereof, the Borrower shall not incur any Indebtedness under the Indenture, or otherwise
issue any Global Note (as defined in the Indenture) or any other Note (as defined in the Indenture) pursuant to the Indenture. 

Section 1.03. Joinder to Facility Agreement. Each of DSS and DSCM (each a “New Senior Lender”) hereby
acknowledges that it has been provided with, and has had an opportunity to review, the Facility Agreement and the Guaranty and Security Agreement (as defined in the Facility Agreement). Each of the Borrower and each New Senior Lender (severally and
not jointly) agree that, effective as of the Effective Time, each such New Senior Lender shall (i) become a party to the Facility Agreement as a “Lender” (within the meaning of the Facility Agreement), (ii) be fully bound by, and
subject to, all of the covenants, terms, conditions, restrictions and provisions of the Facility Agreement and the other Transaction Documents applicable to a Lender that holds December 2019 Notes, (iii) be entitled to the rights, remedies,
benefits and privileges of a Lender that holds December 2019 Notes under the Facility Agreement and the other Transaction Documents, and (iv) shall designate DPDF as collateral agent under the Guaranty and Security Agreement and such New Senior
Lender’s “representative” for purposes of any filings under the uniform commercial code. Each New Senior Lender acknowledges and agrees that such New Senior Lender shall have no rights as a Lender in respect of the repayment of any
Loans or Disbursements made prior to the date hereof pursuant to the Existing Facility Agreement or any right to receive any Warrants. 

  
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 ARTICLE II. 

AMENDMENT OF EXISTING FACILITY AGREEMENT, SENIOR SECURED CONVERTIBLE NOTES AND WARRANTS 

Section 2.01. Amendments to Existing Facility Agreement. Upon the terms and subject to the conditions set forth in this Agreement,
effective immediately prior to the Effective Time, the Existing Facility Agreement shall hereby be amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following
example: double-underlined text) as set forth in the pages
of the Facility Agreement attached as Exhibit C hereto. 
 Section 2.02. Amended and Restated Senior Secured
Convertible Note. Upon the terms and subject to the conditions set forth in this Agreement, effective as of the Effective Time, the outstanding Senior Secured Convertible Notes shall hereby be amended and restated to give effect to the
amendments contained, and be, in the form of the A&R Senior Secured Convertible Note attached hereto. As promptly as possible following the date hereof, the Borrower shall deliver to DPDF a duly executed A&R Senior Secured Convertible Note,
and DPDF shall promptly thereafter deliver the Existing FA Note to the Borrower for cancellation. For the avoidance of doubt, the amendments of the Existing FA Note as provided herein and in the A&R Senior Secured Convertible Note shall not be
conditioned upon, or be subject to, the delivery of such A&R Senior Secured Convertible Note by the Borrower or delivery of the Existing FA Note by DPDF, and the Existing FA Note held by DPDF shall, upon the Effective Time, be deemed to give
effect to such amendments. 
 Section 2.03. Amendment to Warrants. Upon the terms and subject to the conditions set forth in
this Agreement, effective as of the Effective Time, the Warrants shall hereby be amended as follows: 
 (a) The definition of “Eligible
Market” in Section 5 of the Warrants shall hereby be amended and restated to read in its entirety as follows: 

““Eligible Market” means the New York Stock Exchange, Inc., the NYSE American, the NASDAQ Capital Market, the NASDAQ Global
Market, or the NASDAQ Global Select Market (or, in each case, any successor thereto).” 
 (b) Clause (E) of the definition of
“Major Transaction” in Section 5(c)(i) of the Warrants shall hereby be amended to read in its entirety as follows: 

“(E) at any time after March 31, 2021, the shares of Common Stock are not listed on an Eligible Market.” 

  
 4 

 ARTICLE III. 

REPRESENTATIONS AND WARRANTIES 

Section 3.01. Representations and Warranties of the Lenders. Each Lender, severally and not jointly, hereby represents and
warrants to the Borrower as of the date of this Agreement and as of the Effective Date as follows: 
 (a) Organization and Good
Standing. Such Lender is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its
properties and assets and to carry on its business as currently conducted. 
 (b) Authority. Such Lender has the requisite corporate
power and authority to enter into and to consummate the transactions contemplated by this Agreement and each Transaction Document to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
by such Lender of this Agreement and each Transaction Document to which it is a party and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of such Lender and no
further action is required in connection herewith or therewith. 
 (c) Valid and Binding Agreement. This Agreement and each
Transaction Document to which such Lender is a party have been duly executed and delivered by such Lender and constitute the valid and binding obligations of such Lender, enforceable against such Lender in accordance with their terms, except
(i) as limited by general equitable principles and applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally and
(ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 
 (d) Non-Contravention. The execution and delivery by such Lender of this Agreement and each Transaction Document to which such Lender is a party and the performance by such Lender of its obligations hereunder and
thereunder, do not and will not (i) violate any provision of such Lender’s organizational documents, or (ii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which such Lender is subject, or by which any of such Lender’s Indenture Notes is bound or affected except, in each instance of clauses (i) and (ii) hereof, where such violation or conflict would
not reasonably be expected, individually or in the aggregate, to result in a material adverse effect on the ability of such Lender to timely perform its obligations under this Agreement or any other Transaction Document to which such Lender is a
party. 
 (e) Exemption. Such Lender has held such Lender’s Indenture Notes of record and beneficially for a period of at least
one (1) year for purposes of Rule 144 under the Securities Act and, other than DSCM, is not, and during the three-month period prior to the date hereof has not been, an “affiliate” (as such term is used in Rule 144 under the
Securities Act) of the Borrower. Such Lender understands that the Notes and the shares of Common Stock issuable upon conversion thereof (the “Conversion Shares”) are being offered, sold, issued and delivered to it in reliance upon
specific exemptions from registration or qualification under federal and applicable state securities laws. 

  
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 (f) Ownership of the Notes. Such Lender is the record and beneficial owner of, and
has good and valid title to, such Lender’s Indenture Notes, free and clear of all Liens, and has full power to dispose thereof and to exercise all rights thereunder (other than as restricted by this Agreement or the Indenture (as defined below)
and other than pledges or security interests that such Lender may have created in favor of a prime broker under and in accordance with its prime brokerage account with such broker), without the consent or approval of, or any other action on the part
of, any other Person. Other than the transactions contemplated by this Agreement, there is no outstanding contract, vote, plan, pending proposal or other right of any Person to acquire such Lender’s Indenture Notes or any portion thereof. Such
Lender has not, in whole or in part, (a) assigned, transferred, hypothecated, pledged, exchanged or otherwise disposed of any of its Indenture Notes or its rights in its Indenture Notes, or (b) except as would not materially and adversely
affect the ability of such Lender to consummate the transactions contemplated hereby, given any person or entity any transfer order, power of attorney or other authority of any nature whatsoever with respect to its Indenture Notes. Upon such
Lender’s delivery of its Indenture Notes to the Borrower pursuant to the Exchange, such Indenture Notes shall be free and clear of all Liens created by such Lender. 

(g) Accredited Investor/Qualified Institutional Buyer. Such Lender is an “accredited investor” as that term is defined in Rule
501(a) of Regulation D under the Securities Act. Such Lender is a “qualified institutional buyer” as that term is defined in Rule 144A under the Securities Act. Such Lender understands the economic risk of its investment in the December
2019 Notes and the Conversion Shares, and has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an investment in the December 2019 Notes and the Conversion Shares. 

(h) Information. Such Lender acknowledges and agrees that (i) such Lender has had the opportunity to review the Borrower’s SEC
Reports (as defined below) and this Agreement (including the exhibits hereto), (ii) such Lender has had an opportunity to submit questions to the Borrower concerning the Borrower, its business, operations, financial performance, financial condition
and prospects, and the terms and conditions of the Exchange and has all information that it considers necessary in making an informed investment decision, (iii) such Lender has had the opportunity to consult with its accounting, tax, financial
and legal advisors to be able to evaluate the risks involved in the Exchange and to make an informed investment decision with respect to the Exchange. Notwithstanding anything to the contrary contained herein, the rights and remedies available to
such Lender, neither any such review nor any due diligence investigation conducted by such Lender or its advisors, if any, or its representatives shall modify, amend or otherwise affect such Lender’s right to rely on the representations,
warranties, covenants and agreements of the Borrower contained in this Agreement and the other Transaction Documents. 
 (i) Transactions
in Borrower’s Securities. Such Lender has not, directly or indirectly, and no person acting on behalf of or pursuant to any understanding with it has, engaged in any purchase or sale of the securities of the Borrower (including, without
limitation, any Short Sales (as defined below) involving any of the Borrower’s securities) from October 29, 2019 

  
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through the date of this Agreement, “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 of Regulation SHO promulgated under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and all types of direct and indirect forward sale contracts, options, puts, calls, short sales, swaps, derivatives and similar arrangements (including on a total
return basis), and sales and other transactions through non-U.S. broker-dealers or foreign regulated brokers. Solely for purposes of this Section 3.01(i), subject to such Lender’s compliance with
their respective obligations under the U.S. federal securities laws and such Lender’s internal policies, (a) such “Lender” shall not be deemed to include any employees, subsidiaries or affiliates of such Lender that are
effectively walled off by appropriate information barriers approved by such Lender’s respective legal or compliance department (and thus have not been privy to any information concerning the Transactions), and (b) the foregoing
representations and covenants of this Section 3.01(i) shall not apply to any transaction by or on behalf of an account of such Lender that was effected without the advice or participation of, or such account’s receipt of information
regarding the Transactions provided by, such Lender. 
 Section 3.02. Representations and Warranties of the Borrower. The
Borrower hereby represents and warrants to the Lenders as of the date of this Agreement and as of the Effective Time as follows: 
 (a)
Organization and Good Standing. The Borrower is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and
authority to own and use its properties and assets and to carry on its business as currently conducted. 
 (b) Authority. The Borrower
has the requisite corporate power and authority, as applicable, to enter into and to consummate the transactions contemplated by this Agreement, the Notes and other Transaction Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery by the Borrower of this Agreement, the December 2019 Notes and the other Transaction Documents and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all
necessary action on the part of the Borrower, and no further action of the Borrower, its board of directors, managers, members or stockholders, as applicable, is required in connection herewith or therewith. 

(c) Consents. The Borrower is not required to obtain any consent from, authorization or order of, or make any filing or registration
with any governmental authority or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its respective obligations under or contemplated by this Agreement, the Notes or any other
Transaction Document, in accordance with the terms hereof or thereof, other than filing an amendment to the Certificate of Designation of Preferences, Rights and Limitations of Series B-2 Preferred Stock (the
“Certificate of Designation Amendment”) and filing the Announcing 8-K Filing (as defined below) with the U.S. Securities and Exchange Commission (the “Commission”). The
December 2019 Notes are not being issued in violation of, any preemptive or similar rights of any Person, or otherwise subject to any preemptive or similar rights of any Person that have not been validly waived. 

  
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 (d) Valid and Binding Agreement. This Agreement has been duly executed and delivered
by the Borrower, and constitutes, and upon the execution and delivery by the Borrower thereof, each Note and each other Transaction Document being executed or amended in connection herewith will constitute the valid and binding obligations of the
Borrower, enforceable against the Borrower in accordance with their terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally and (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies. 

(e) Non-Contravention. The execution and delivery by the Borrower of this Agreement, each Note
and each other Transaction Document being executed and delivered by the Borrower in connection herewith and the performance by the Borrower of its obligations hereunder and under the Notes and the other Transaction Documents do not and will not
(i) violate any provision of the Borrower’s organizational documents, (ii) conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental
authority to which the Borrower is subject, or by which any property or asset of the Borrower is bound or affected, (iii) require any permit, authorization, consent, approval, exemption or other action by, notice to or filing with, any court or
other federal, state, local or other governmental authority or other Person, other than filing the Certificate of Designation Amendment with the Secretary of State of the State of Delaware and filing the Announcing
8-K Filing with the Commission, (iv) violate, conflict with, result in a material breach of, or constitute (with or without notice or lapse of time or both) a material default under, or an event which
would give rise to any right of notice, modification, acceleration, payment, cancellation or termination under, or in any manner release any party thereto from any obligation under, any permit or contract to which the Borrower is a party or by which
any of its properties or assets are bound, (v) violate, conflict with, result in a material breach of, or constitute (with or without notice or lapse of time or both) a material default under, or an event which would give rise to any right of
notice, modification, acceleration, payment, cancellation or termination under, or in any manner release any party thereto from any obligation under, the Indenture or the GPC License Agreement, or (vi) result in the creation or imposition of
any Lien on any part of the properties or assets of the Borrower, except, in each instance of clauses (ii), (iii), (iv) and (vi) hereof, where such violation, conflict, breach, default or Lien would not reasonably be expected, individually or
in the aggregate, to result in a material adverse effect on (a) the business, operations, results of operations, condition (financial or otherwise) or properties of the Borrower and its Subsidiaries, taken as a whole, (b) the legality,
validity or enforceability of any provision of this Agreement, the December 2019 Notes or any other Transaction Document, (c) the ability of the Borrower to timely perform its obligations under this Agreement, the Notes or any other Transaction
Documents, or (d) the rights and remedies of the Lenders under this Agreement, the Notes or any other Transaction Document. As of the date hereof, no Event of Default (as defined in the Indenture) under the Indenture exists and no Event of
Default (as defined in the Facility Agreement) under the Facility Agreement exists, and, to the knowledge of the Borrower, no event has occurred, and no fact or circumstance exists, that, with or without notice, lapse of time or both would
reasonably be expected to result in an Event of Default under either the Indenture or the Facility Agreement. 
 (f) Issuance of
Conversion Shares. The Conversion Shares issuable upon conversion of the Notes are duly authorized and, when issued in accordance with the applicable Note, will be duly and validly issued, fully paid and nonassessable, free and clear of all
Liens imposed by the Borrower, and will not be issued in violation of, or subject to, any preemptive or 

  
 8 

 
similar rights of any person. The Borrower has reserved from its duly authorized capital stock an aggregate of 5,384,788 shares of Common Stock for issuance hereafter upon conversion of the Notes
in accordance with the terms thereof (plus any additional shares of Common Stock that may be issuable as a result of the anti-dilution provisions of the Notes), in each case, free and clear of preemptive or similar rights. As of the date of this
Agreement, there are 33,230,543 shares of Common Stock issued and outstanding. 
 (g) SEC Reports; Nasdaq. The Borrower has filed all
reports, schedules, forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (the foregoing
materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”). None of the SEC Reports, when filed, contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. Except as set forth in the
Borrower’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, as filed with the Commission on November 14, 2019, and the Borrower’s Current Reports on Form 8-K filed with the Commission on May 23, 2019, October 3, 2019 and November 21, 2019 (such disclosure the “Potential Delisting”), the Borrower is not in violation of the requirements
of the Nasdaq Global Market (“Nasdaq GM”) and has no knowledge of any facts or circumstances which could reasonably lead to delisting or suspension of trading of the Common Stock in the foreseeable future. 

(h) Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Borrower or any of its affiliates or
representatives to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Lenders shall have no obligation with respect to
any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 3.02(h) that may be due in connection with the transactions contemplated hereby. 

(i) Exemption from Registration. No registration under the Securities Act or any state securities laws is or will be required for the
offer and issuance of the December 2019 Notes by the Borrower to the Lenders as contemplated hereby or for the offer and issuance of the Conversion Shares by the Borrower to the Lenders as contemplated hereby and by the Notes. The amendments and
transactions contemplated hereby or entered into in connection herewith, including the issuance and sale of the December 2019 Notes hereunder and the issuance and sale of the Conversion Shares pursuant to the terms of the Notes do not and will not
contravene, or require stockholder approval pursuant to, the rules and regulations of The Nasdaq Stock Market LLC, as currently in effect. Assuming each Lender to which December 2019 Notes or Conversion Shares are to be issued is not as of the date
of issuance, and for a period of three (3) months prior to the date of issuance has not been, an “affiliate” (as such term is used in Rule 144 under the Securities Act) of the Borrower (which the Borrower shall assume (and the
applicable Lender shall be deemed to represent) unless such Lender has otherwise advised the Borrower in writing) and in reliance on such Lender’s representations contained in Section 3.01(e) hereof, the Notes and the Conversion Shares,
other than those issued to DSCM, will be freely tradeable by such Lender without restriction or limitation (including volume limitation), pursuant to Rule 144 under the 

  
 9 

 
Securities Act, and will not contain or be subject to any legend or stop transfer instructions restricting the sale or transferability thereof. The Borrower has not paid or given (and will not
pay or give), directly or indirectly, any commission or other remuneration for soliciting the exchange to be effected pursuant to this Agreement or otherwise in connection with the issuance and sale of any December 2019 Notes or any Conversion
Shares pursuant to this Agreement or the December 2019 Notes. The Borrower is not, and never has been, a “shell company” (as defined in Rule 12b-2 under the Exchange Act) and is not an issuer of a
type identified in, or subject to, Rule 144(i)(1) under the Securities Act. 
 (j) No Integrated Offering. Neither the Borrower, nor
any of its affiliates, nor any person acting on its or their behalf has, directly or indirectly, made, or will make, any offers or sales of any security or solicited, or will solicit, any offers to buy any security, under circumstances that would
cause the offering and issuance of the December 2019 Notes or the offering and issuance of any of the Conversion Shares to be integrated with prior or contemporaneous offerings by the Borrower (i) for purposes of the Securities Act and which
would require the registration of any such securities under the Securities Act, or (ii) for purposes of any applicable stockholder approval provisions of the Nasdaq GM and which would require stockholder approval for the issuance of any
December 2019 Notes or Conversion Shares. 
 (k) No Bad Actor Disqualification. None of the Credit Parties, any of its predecessors,
any director, executive officer, other officer of any Credit Party participating in the offering of the Notes or the Conversion Shares, any beneficial owner (as that term is defined in Rule 13d-3 under the
Exchange Act) of 20% or more of any Credit Party’s outstanding voting equity securities, calculated on the basis of voting power, any “promoter” (as that term is defined in Rule 405 under the Securities Act) connected with any Credit
Party at the time this representation is made, any placement agent or dealer participating in the offering of the Notes or the Conversion Shares and any of such agents’ or dealer’s directors, executive officers, other officers
participating in the offering of the Notes or the Conversion Shares (each, a “Covered Person”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act
(a “Disqualification Event”). The Borrower has exercised reasonable care to determine (i) the identity of each person that is a Covered Person and (ii) whether any Covered Person is subject to a Disqualification Event.
Each Credit Party has complied in all material respects, to the extent applicable, with its disclosure obligations under Rule 506(e). No Credit Party is any other reason disqualified from reliance upon Rule 506 of Regulation D for purposes of the
offer, sale and issuance of the Notes or the Conversion Shares. 
 (l) No Unlawful Payments. Neither the Borrower, to the knowledge of
the Borrower, nor any of its directors or officers or any employee, agent, affiliate, representative of or other person associated with or acting on behalf of the Borrower, has (a) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expense relating to political activity, (b) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds, (c) violated or is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended, or (d) made any bribe, unlawful rebate, payoff, influence payment, kickback or other unlawful payment. 

  
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 (m) Compliance with Money Laundering Laws. The operations of the Borrower are and
have been conducted at all times in compliance with all financial recordkeeping and reporting requirements applicable to the Borrower, including those of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, and the money laundering and any related or similar laws of all jurisdictions in which the Borrower conducts business (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any governmental authority involving the Borrower with respect to the Money Laundering Laws is pending or, to the knowledge of the Borrower, threatened. 

(n) OFAC. The Borrower is not (a) a country, the government of a country, or an agency of the government of a country, (b) an
organization directly or indirectly controlled by a country or its government, or (c) a person resident in or determined to be resident in a country, in each case, that is subject to a comprehensive country sanctions program administered and
enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”), and the Borrower is not a person named on the list of Specially Designated Nationals maintained by OFAC. 

(o) Application of Takeover Protections. The Borrower and its board of directors have taken all necessary action, if any, in order to
render inapplicable the Borrower’s issuance of the Notes and Conversion Shares and the Lenders’ ownership of such securities from the provisions of any control share acquisition, interested stockholder, business combination, poison pill
(including any distribution under a rights agreement) or other similar anti-takeover provision under the organizational documents of the Borrower or the laws of the state of its incorporation which is applicable to the Lenders as a result of the
transactions contemplated by this Agreement, including the Borrower’s issuance of the December 2019 Notes and Conversion Shares and the Lenders’ ownership of such securities and the A&R Senior Secured Convertible Note. 

(p) Cash on Hand. The Borrower believes as of the Effective Date, after giving effect to the transactions contemplated under this
Agreement, that its existing balances of cash and cash equivalents will be sufficient to finance its anticipated working capital and operating expense requirements for the period commencing on the date hereof and ending on March 31, 2021, which
the Borrower shall disclose in the Announcing 8-K Filing. 
 (q) Litigation. No proceeding is
pending before or, to the knowledge of Borrower, threatened by any Governmental Authority (a) to which any Credit Party is a party, (b) that purports to affect or pertain to the Transaction Documents or the transactions contemplated hereby
or thereby or (c) that has as the subject thereof any assets owned by any Credit Party or any of its Subsidiaries, in each case, that could reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. No
injunction, writ, temporary restraining order or any order of any nature has been issued by any court or other Governmental Authority purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any other Transaction
Document or directing that the transactions provided for herein or therein not be consummated as herein or therein provided. 
 (r)
Compliance with Laws. Except as could not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, each Credit Party is in compliance with all Applicable Laws and authorizations. 

  
 11 

 ARTICLE IV. 

COVENANTS 

Section 4.01. Reservation of Shares. On and after the date hereof, the Borrower shall at all times reserve and keep available,
free of preemptive or similar rights, a sufficient number of shares of Common Stock for the purpose of enabling the Borrower to issue all of the Conversion Shares pursuant to the Notes (without regard to the 4.985% Cap or the 19.985% Cap (each as
defined in the form of December 2019 Notes or the A&R Senior Secured Convertible Note, as applicable)). 
 Section 4.02. Blue
Sky Filings. The Borrower shall take such action as is necessary in order to obtain an exemption for, or to qualify the December 2019 Notes and the Conversion Shares for, issuance and sale to the Lenders under applicable securities or “Blue
Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any of the Lenders. 

Section 4.03. Listing. The Borrower has submitted an application for the listing of the Conversion Shares on the Nasdaq GM and
will use its commercially reasonable efforts to secure such listing. For so long as any Notes remain outstanding, the Borrower shall use commercially reasonable efforts to maintain the Common Stock’s listing on the Nasdaq GM. The Borrower shall
not take any action which would be reasonably expected to result in the delisting or suspension of trading the Common Stock on the Nasdaq GM. If the Common Stock is, or is reasonably expected to be, delisted from the Nasdaq GM, the Borrower shall
use its best efforts to cause the Common Stock to be listed on the Nasdaq Capital Market contemporaneously with such delisting and, thereafter, (i) shall use commercially reasonable efforts to maintain the Common Stock’s listing on the
Nasdaq Capital Market and (ii) shall not take any action which would be reasonably expected to result in the delisting or suspension of trading the Common Stock on the Nasdaq Capital Market. The Borrower shall pay all fees and expenses in
connection with satisfying its obligations under this Section 4.03. Each Lender hereby (x) acknowledges and agrees that such Lender has been made aware of the Potential Delisting, and (y) agrees that any delisting or suspension of
trading the Common Stock on the Nasdaq GM in connection with the Potential Delisting will not be deemed a breach of this Section 4.03. 

Section 4.04. Disclosure; Confidentiality. On or before 8:00 a.m., New York time, on the first Business Day following the date of
this Agreement, the Borrower shall file with the Commission a Current Report on Form 8-K describing all the material terms of the transactions contemplated by this Agreement, disclosing the effectiveness of
this Agreement and the other Transaction Documents entered into pursuant to, or in connection with, this Agreement, providing the disclosure contemplated by Section 3.02(p), attaching this Agreement and the other Transaction Documents entered
into pursuant to, or in connection with, this Agreement (in each case, without any redaction therefrom, other than redactions of the schedules to the Guaranty and Security Agreement as permitted under Item 601(a)(5) of Regulation S-K) and disclosing any other presently material non-public information (if any) provided or made available to any Lender (or any Lender’s agents or representatives) on
or prior to the date hereof (the “Announcing 8-K Filing”). The Borrower represents and warrants that, from and after the filing of the Announcing 8-K
Filing, it shall have publicly disclosed all material, non-public information (if any) provided or made available to any Lender (or any Lender’s agents or representatives) by the Borrower or

  
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any of its officers, directors, employees, Affiliates or agents in connection with the transactions contemplated by this Agreement or otherwise on or prior to the date hereof. Notwithstanding
anything contained in this Agreement to the contrary, and without implication that the contrary would otherwise be true, the Borrower expressly acknowledges and agrees that, from and after the Announcing 8-K
Filing, no Lender nor any affiliate of any Lender shall have (unless expressly agreed to by such particular Lender after the date hereof in a written definitive and binding agreement executed by the Borrower and such particular Lender or customary
oral (confirmed by e-mail) “wall cross” agreement (it being understood and agreed that no Lender may bind any other Lender with respect thereto)), any duty of trust or confidence with respect to, or
a duty not to trade in any securities while aware of, any information regarding the Borrower. 
 Section 4.05. Taxes. The
Borrower shall be responsible for paying all present or future stamp, court or documentary, intangible, recording, filing or similar taxes that arise from any payment or issuance made under, from the execution, delivery, performance or enforcement
of, or otherwise with respect to, this Agreement. 
 Section 4.06. Fees and Expenses. The Borrower shall promptly reimburse the
Deerfield Lenders for all of their reasonable out-of-pocket, costs, fees and expenses, including legal fees and expenses, incurred in connection with the negotiation and
drafting of this Agreement and any other agreement entered into in connection herewith and the consummation of the transactions contemplated hereby and thereby, up to a maximum of $150,000 for all such expenses. 

Section 4.07. DF-Identified Compounds. Following the date hereof, the Deerfield Lenders or
their Affiliates may from time to time, identify up to two compounds (“DF-Identified Compounds”) that may have applications for new disease indications and with respect to which the Borrower
may have the ability to discover new products utilizing its proprietary technology. If a Deerfield Lender and/or an Affiliate of a Deerfield Lender advises the Borrower of a DF-Identified Compound and so
requests, the Borrower will use commercially reasonable efforts to employ its technology to discover a product in a manner that is reasonably acceptable to the applicable Deerfield Lender (or Affiliate thereof); provided, that the applicable
Deerfield Lender (or Affiliate thereof) shall (i) make payments to the Borrower upon its execution of a statement of work pursuant to such discovery plan and upon delivery by the Borrower of the applicable technology as contemplated by the
parties, in each case, as and to the extent as may be mutually agreed upon between the applicable Deerfield Lender (or Affiliate thereof) and the Borrower, or (ii) provide such other compensation to the Borrower as may be mutually agreed
between the applicable Deerfield Lender (or Affiliate thereof) and the Borrower. The Borrower does not represent or warrant that its discovery efforts will be successful in discovering any such new products. 

Section 4.08. License Acknowledgement. Each Lender hereby acknowledges that the Borrower is a party to the GPC License Agreement,
and that such Lender has had an opportunity to review the GPC License Agreement, including the provisions thereunder relating to portions of the Collateral. 

  
 13 

 ARTICLE V. 

ACKNOWLEDGMENT OF THE BORROWER 

Section 5.01. The Borrower irrevocably and unconditionally acknowledges, affirms and covenants to each Lender that: 

(a) such Lender is not in default under the Indenture or the Facility Agreement and has not otherwise breached any obligations to the Borrower;
and 
 (b) there are no offsets, counterclaims or defenses to the obligations under the Indenture as of the date hereof, including the
liabilities and obligations of the Borrower under the Existing FA Note or the Indenture Note or the rights, remedies or powers of such Lender in respect of any of the obligations under the Indenture, and the Borrower agrees not to interpose (and
each does hereby waive and release) any such defense, set off or counterclaim in any action brought by such Lender with respect thereto. 

ARTICLE VI. 

CONDITIONS PRECEDENT. 

Section 6.01. Conditions. The effectiveness of the amendments contemplated by Article II and the consummation of the Exchange are
subject to the following conditions on or prior to the Effective Time: 
 (a) Delivery of Documents. The Borrower and the Lenders
shall each have executed and delivered this Agreement, the Borrower shall have executed and delivered to each Lender its December 2019 Note in accordance with Section 1.02 and the Borrower and DPDF, as collateral agent, shall have executed and
delivered the Guaranty and Security Agreement in substantially the form attached hereto as Exhibit D. 
 (b) Performance; No
Default. The representations and warranties of the Borrower and Lenders contained herein and in each other document, agreement or instrument being executed and delivered pursuant to, or in connection with the execution and delivery of, this
Agreement shall be true and correct, and the Borrower and Lenders shall have performed and complied with all agreements and conditions contained in this Agreement and in each such other document, agreement or instrument, in each case, to be
performed by or complied with by the Borrower or Lenders, as applicable, prior to the Effective Time in all respects, and the Lenders shall have received a certification from the chief executive officer or chief financial officer of the Borrower to
the foregoing effect. 
 (c) Authorization. The Borrower shall have delivered to the Lenders evidence of authority, officer’s
certificates and good standing certificates in the jurisdiction of organization of the Borrower, in form and substance satisfactory to the Lenders. 

(d) Financing Statements. All Uniform Commercial Code financing statements required to be filed, registered or recorded in connection
with the Guaranty and Security Agreement shall have been delivered to the Collateral Agent, and shall be in proper form, for filing, registration or recording. 

  
 14 

 (e) Security Interest. The Collateral Agent shall have, for the benefit of the
Lenders, a first priority security interest (subject to Permitted Liens) in all Collateral in which a lien can be perfected by (i) the filing of a Uniform Commercial Code financing statement, and (ii) the filing of the Intellectual
Property Security Agreements.  
 (f) Legal Opinion. The Lenders (or their counsel) shall have received customary legal
opinions from Cooley LLP, as counsel to the Borrower, in form and substance reasonably satisfactory to the Lenders. 
 ARTICLE VII.

 MISCELLANEOUS 

Section 7.01. Entire Agreement. This Agreement together with the December 2019 Notes, the A&R Senior Secured Convertible Note
and the other Transaction Document constitute the entire agreement, and supersede all other prior and contemporaneous agreements and understandings, both oral and written, among the Lenders and the Borrower with respect to the subject matter hereof.

 Section 7.02. Amendments and Waivers. No provision of this Agreement may be waived or amended except in a written instrument
signed by the Borrower and (i) prior to the Effective Time, each of the Lenders and (ii) following the Effective Time, the Required Lenders (as defined in the Facility Agreement). Any amendment that is approved by the Required Lenders
following the Effective Time as aforesaid shall bind all Lenders, provided that any such amendment applies to the rights and obligations of the Lenders hereunder on substantially the same basis. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission
of either party to exercise any right hereunder in any manner impair the exercise of any such right. 
 Section 7.03. Successors and
Assigns. All of the covenants and provisions of this Agreement by or for the benefit of the Lenders or the Borrower shall bind and inure to the benefit of their respective successors and permitted assigns. No party hereunder may assign its
rights or obligations hereunder without the prior written consent of the other parties hereto, except that after the Effective Time a Lender may assign or otherwise transfer its rights hereunder to any transferee or assignee of the A&R Senior
Secured Convertible Note or December 2019 Notes (in whole or in part), provided that (a) such Lender agrees in writing with the transferee or assignee to assign such rights, and such assignee or transferee agrees in writing to accept such
rights subject to, and to be bound by, the terms of this Agreement, and a copy of such agreement is furnished to the Borrower after such transfer or assignment; and (b) in the case of an assignment or transfer of rights or obligations hereunder
to a transferee or assignee of December 2019 Notes or the A&R Senior Secured Convertible Note, such assignment or transfer is effected in compliance with the Facility Agreement. Notwithstanding anything herein to the contrary, the Deerfield
Lenders may not transfer or assign any rights of the Deerfield Lenders and their Affiliates under Section 4.07 of this Agreement without the Borrower’s prior written consent. 

  
 15 

 Section 7.04. Notices. Any notice, request or other communication to be given or
made under this Agreement shall be in writing. Such notice, request or other communication shall be deemed to have been duly given or made when it shall be delivered by hand, overnight mail, international courier (confirmed by facsimile), electronic
mail or facsimile to the party to which it is required or permitted to be given or made at such party’s address specified below or at such other address as such party shall have designated by notice to the other parties. 

If to the Borrower: KemPharm, Inc. 

1180 Celebration Blvd. 
 Suite 103

 Celebration, FL 34747 
 Fax:
(321) 250-3698 
 E-mail: lclifton@kempharm.com 

Attention: R. LaDuane Clifton, Chief Financial Officer 

With a copy to (which shall not constitute notice hereunder): 

Cooley LLP 
 1299 Pennsylvania
Avenue, NW 
 Suite 700 

Washington, DC 20004 
 Fax: (703) 456-8100 
 Email: bsiler@cooley.com 

Attention: Brent Siler 
 If to
DPDF or DSS: 
 Deerfield Management Company, L.P. 

780 Third Avenue, 37th Floor 
 New
York, NY 10017 Fax: (212) 599-3075 
 Email: dclark@deerfield.com 

Attn: David J. Clark 
 With a copy
to: 
 Katten Muchin Rosenman LLP 

525 W. Monroe Street 
 Chicago,
Illinois 60661-3693 
 Fax: (212) 940-8776 

Email: mark.wood@katten.com 

Attn: Mark Wood 
 If to DSCM: 

DSC Advisors, L.P. 
 900 N.
Michigan Avenue, Suite 1600 
 Chicago, Illinois 60611 

Email: bluhm@dscllc.com 
 Attn:
Andrew G. Bluhm, Manager of the General Partner 

  
 16 

 With a copy to: 

DSC Advisors, L.P. 
 900 N.
Michigan Avenue, Suite 1600 
 Chicago, Illinois 60611 

Fax: (312) 915-2487 

Email: kavitsky@dscllc.com 
 Attn:
Leo Kavitsky, Operations Manager 
 Section 7.05. Applicable Law; Consent to Jurisdiction. 

(a) As part of the consideration and mutual promises being exchanged and given in connection with this Agreement, the parties hereto agree that
all claims, controversies and disputes of any kind or nature arising under or relating in any way to the enforcement or interpretation of this Agreement or to the parties’ dealings, rights or obligations in connection herewith, including
disputes relating to the negotiations for, inducements to enter into, or execution of, this Agreement, and disputes concerning the interpretation, enforceability, performance, breach, termination or validity of all or any portion of this Agreement
shall be governed by the laws of the State of New York without giving effect to any laws, rules or provisions that would cause the application of the laws of any jurisdiction other than the State of New York. 

(b) The parties hereto agree that all claims, controversies and disputes of any kind or nature relating in any way to the enforcement or
interpretation of this Agreement or to the parties’ dealings, rights or obligations in connection herewith, shall be brought exclusively in the state and federal courts sitting in The City of New York, borough of Manhattan. With respect to any
such claims, controversies or disputes, each of the parties hereby irrevocably: 
 (i) submits itself and its property,
generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action in any court or tribunal other than the aforesaid courts; 

(ii) waives, and agrees not to assert, by way of motion, as a defense, counterclaim or otherwise, in any action or proceeding
(A) any claim that it is not personally subject to the jurisdiction of the above named courts for any reason other than the failure to serve process in accordance with this Section 7.05, (B) any claim that it or its property is exempt or
immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) and
(C) to the fullest extent permitted by the applicable law, any claim that (1) the suit, action or proceeding in such court is brought in an inconvenient forum, (2) the venue of such suit, action or proceeding is improper or
(3) this Agreement, or the subject matter hereof, may not be enforced in or by such courts; and 

  
 17 

 (iii) WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY AND (D) SUCH
PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.05. 
 Notwithstanding
the foregoing in this Section 7.05, a party may commence any action or proceeding in a court other than the above-named courts solely for the purpose of enforcing an order or judgment issued by one of the above-named courts. 

Section 7.06. Counterparts; Effectiveness. This Agreement and any amendment hereto may be executed and delivered in any number of
counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. In the event that any signature
to this Agreement or any amendment hereto is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof. No party hereto shall raise the use of a facsimile machine or e-mail delivery of a “.pdf” format data file to deliver a signature to this Agreement or any amendment hereto or the fact that such signature was transmitted or communicated through the use of a facsimile
machine or e-mail delivery of a “.pdf” format data file as a defense to the formation or enforceability of a contract, and each party hereto forever waives any such defense. 

Section 7.07. No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any
person (other than the parties to this Agreement) any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. 

Section 7.08. Remedies; Specific Performance. The rights and remedies provided in this Agreement shall be cumulative and in
addition to all other remedies available under the Facility Agreement, the A&R Senior Secured Convertible Note, the December 2019 Notes, the other Transaction Documents and/or otherwise at law or in equity. No remedy contained herein shall be
deemed a waiver of compliance with the provisions giving rise to such remedy, and nothing herein shall limit any Lender’s right to pursue actual damages for any failure by the Borrower to comply with the terms of this Agreement, the Facility
Agreement, the A&R Senior Secured Convertible Note, the December 2019 Notes and the other Transaction Documents. The parties to this Agreement agree that irreparable damage would occur and that the parties to this Agreement would not have any
adequate remedy at law in the event that any of the provisions of this Agreement, the Facility Agreement or any other Transaction Document were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that each of the parties to this Agreement shall be entitled to an injunction or injunctions to prevent breaches of this Agreement, the Facility Agreement or any other Transaction Document and to enforce specifically the terms and provisions
of this Agreement, the Facility Agreement, and the other Transaction Documents in each case without the necessity of posting bond or other security or showing actual damages, and this being in addition to any other remedy to which such party is
entitled at law or in equity. 

  
 18 

 Section 7.09. Effect of Headings. The section and subsection headings herein are
for convenience only and not part of this Agreement and shall not affect the interpretation thereof. 
 Section 7.10.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under
applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement so long as this Agreement as so modified continues to express, without material change,
the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of
the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid
provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s). 

Section 7.11. Reservation of Rights. None of the Lenders has hereby waived any of such Lender’s rights or remedies arising
from any breach or default or any right otherwise available under the Facility Agreement, any other Transaction Document or at law or in equity as to any of such Lender’s Notes. Each of the Lenders expressly reserves all such rights and
remedies. Notwithstanding anything else to the contrary herein, each Lender hereby agrees that the issuance of the December 2019 Notes to such Lender satisfies in full any and all obligations of the Borrower under the Indenture as to the Indenture
Notes held by such Lender and such Lender’s remedies with regard to such Indenture Notes shall be solely as described in this Agreement. 

Section 7.12. Further Assurances. The parties hereby agree, from time to time, as and when reasonably requested by any other party
hereto, to execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements, including secretary’s certificates, stock powers and irrevocable transfer agent instructions, and to take or cause to be taken
such further or other action, as any party may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Agreement. Without limiting the foregoing, the Borrower shall take such action, and deliver such notices,
documents, instruments and agreements as the Trustee may reasonably require to effectuate the exchange and surrender of Indenture Notes in accordance with this Agreement. 

Section 7.13. No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rule of strict construction will be applied against any party. 

  
 19 

 Section 7.14. Interpretative Matters. Unless otherwise indicated or the context
otherwise requires, (a) all references to Sections, Schedules, Appendices or Exhibits are to Sections, Schedules, Appendices or Exhibits contained in or attached to this Agreement, (b) words in the singular or plural include the singular
and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter, (c) the words “hereof,” “herein” and words of similar effect shall reference this
Agreement in its entirety, and (d) the use of the word “including” in this Agreement shall be by way of example rather than limitation. Unless otherwise indicated, references to “Transaction Documents” in this Agreement
refer to Transaction Documents (as defined in the Facility Agreement), each as amended as of the Effective Date, including as provided by this Agreement. For the avoidance of doubt, any difference in the provisions of the form of December 2019 Notes
from the form of note representing the Existing FA Note should not be interpreted in any manner adverse to the interests of the holder of the Existing FA Note. 

Section 7.15. Reaffirmation. Other than as expressly provided in this Agreement, the execution and delivery of this Agreement
shall not operate as a waiver of any right, power or remedy of the Lenders, constitute a waiver of any provision of the Facility Agreement, the Existing FA Note, any other Transaction Documents (as currently in effect) or any other document executed
in connection therewith or serve to effect a novation of the obligations thereunder. The Borrower, as issuer, debtor, grantor, pledger, mortgagor, guarantor or assignor, or in other any other similar capacity in which it grants liens or security
interests in its property hereby (i) acknowledges and agrees that it has reviewed this Agreement, (ii) ratifies and reaffirms all of its obligations, contingent or otherwise, under each of the Transaction Documents, and (iii) to the
extent the Borrower granted Liens on or security interests in any of its property pursuant to any such Transaction Document as security for the Obligations (as defined in the Facility Agreement) under or with respect to the Transaction Documents,
ratifies and reaffirms such grant of security interests and Liens as provided in the Transaction Documents and confirms and agrees that such security interests and Liens continue to secure all of the currently outstanding or future Obligations (as
amended hereby) on the terms and conditions of the Transactions Documents (for the avoidance of doubt as amended as of the date of this Agreement (including as provided in this Agreement)). The Borrower hereby consents to this Agreement and
acknowledges that this Agreement, each December 2019 Note, the A&R Senior Secured Convertible Note and each document or agreement executed and delivered pursuant to, or in connection with, the execution and delivery of this Agreement is a
Transaction Document and each of the other Transaction Documents, each as amended as of the Effective Date (including as provided in this Agreement), remains in full force and effect and is hereby ratified and reaffirmed; provided that, nothing in
this Section 7.15 shall obligate the Borrower to restate, or be considered to be a restatement of, the representations of the Borrower contained in Article 3 of the Facility Agreement as of the date hereof. Any reference in the Transaction
Documents to “hereunder,” “hereof,” “herein,” or words of like import referring to such agreement shall refer to such Transaction Document as amended as of the Effective Date (including as provided in this Agreement).
For the avoidance of doubt, the parties acknowledge and agree that, nothing contained herein or in Exhibit C shall be deemed or construed as an agreement by any Lender to make any Disbursement or additional Loan on or after the date hereof.

 Section 7.16. Payment Set Aside. Notwithstanding anything to the contrary contained herein, if any payment or transfer (or
any portion thereof) to either of the Lenders shall be subsequently invalidated, declared to be fraudulent or a fraudulent conveyance or preferential, avoided, rescinded, set aside or otherwise required to be return or repaid, whether in bankruptcy,
reorganization, insolvency or similar proceedings involving the Borrower or otherwise, then the Obligations (as defined in the Facility Agreement) purportedly satisfied with such payment or 

  
 20 

 
transfer, to the extent that such payment is or must be invalidated, declared to be fraudulent or a fraudulent conveyance or preferential, avoided, rescinded, set aside or otherwise required to
be return or repaid, shall immediately be reinstated, without need for any action by any Person, and shall be enforceable against the Borrower, any guarantor and their successors and permitted assigns as if such payment had never been made (in which
case this Agreement shall in no way impair the claims of Lenders with respect to such payment or transfer). The provisions of this Section 7.16 shall survive the satisfaction in full of the Obligations and the termination of the Facility
Agreement. 
 Section 7.17. Termination. Except to the extent otherwise agreed in writing by the Lenders prior to the Effective
Time, this Agreement shall terminate and be of no further force or effect if any of the conditions set forth in Article VI are not satisfied or waived by the Required Lenders on or prior to December 18, 2019; provided, however, that the
Borrower’s obligations under Section 4.06 hereof shall survive such termination until performed by the Borrower in full. 

Section 7.18. Independent Nature of Lenders. The obligations of each Lender under this Agreement and each of the other Transaction
Documents are several and not joint with the obligations of any other Lender, and no Lender shall be responsible in any way for the performance of the obligations of any other Lender under this Agreement or any other Transaction Document. Each
Lender shall be responsible only for its own representations, warranties, agreements and covenants hereunder and under the other Transaction Documents. The decision of each Lender to enter into this Agreement, consummate the Exchange and acquire the
December 2019 Notes pursuant to this Agreement has been made by such Lender independently of any other Lender and independently of any information, materials, statements or opinions as to the business, affairs, operations, assets, properties,
liabilities, results of operations, condition (financial or otherwise) or prospects of the Borrower that may have been made or given by any other Lender or by any agent, attorney, advisor, representative or employee of any other Lender, and no
Lender or any of its agents, attorneys, advisors, representatives or employees shall have any liability to any other Lender (or any other Person) relating to or arising from any such information, materials, statements or opinions. Nothing contained
in this Agreement, and no action taken by any Lender pursuant hereto or thereto (including a Lender’s acquisition of Obligations, Notes, Conversion Shares or any other securities at the same time as any other Lender), shall be deemed to
constitute the Lenders as, and the Borrower acknowledges and agrees that the Lenders do not thereby constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Lenders are in any way
acting in concert or as a group with respect to such Obligations or the transactions contemplated by this Agreement or any other Transaction Document, and the Borrower shall not assert any contrary position. 

Section 7.19. No Fiduciary Relationship. The Borrower acknowledges and agrees that (a) each Lender is acting at arm’s
length from the Borrower with respect to this Agreement and the Transaction Documents and the transactions contemplated hereby and thereby; (b) no Lender will, solely by virtue of this Agreement or any of the Transaction Documents or any
transaction contemplated hereby or thereby, become an Affiliate of, or have any agency, tenancy or joint venture relationship with, the Borrower (provided that this clause (b) shall not apply to any Lender that on the Effective Date receives a
December 2019 Note with a 19.985% Cap); (c) no Lender has acted, or is or will be acting, as a financial advisor to, or fiduciary (or in any similar capacity) of, or has any fiduciary or similar duty to, the Borrower with respect to, or in
connection with, this 

  
 21 

 
Agreement and the Transaction Documents and the transactions contemplated hereby and thereby, and the Borrower agrees not to assert, and hereby waives, any claim that any Lender has any fiduciary
duty to the Borrower; (d) any advice given by a Lender or any of its representatives or agents in connection with this Agreement and the Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to such
Lender’s performance of its obligations hereunder and thereunder (including, in the case of each of the Lenders, its acquisition of the December 2019 Notes and any Conversion Shares); and (e) the Borrower’s decision to enter into this
Agreement has been based solely on the independent evaluation by the Borrower and their representatives. 

  
 22 

 IN WITNESS WHEREOF, each party hereto has caused this Agreement to be duly executed
as of the date first written above. 
  

	
	THE BORROWER:
	
	KEMPHARM, INC.
	
	By: /s/ R. LaDuane
Clifton                                        

	Name: R. LaDuane Clifton
	Title: Chief Financial Officer

 [Signature Page to December 2019 Exchange Agreement and Amendment to Facility Agreement, Senior
Secured Convertible Notes and Warrants] 

 
	
	LENDERS:
	
	DEERFIELD PRIVATE DESIGN FUND III, L.P.
	
	By: Deerfield Mgmt III, L.P., its General Partner
	By: J.E. Flynn Capital III, LLC, its General Partner
	
	By: /s/ David J.
Clark                                        
            
	Name: David J. Clark
	Title:   Authorized Signatory
	
	DEERFIELD SPECIAL SITUATIONS FUND, L.P.
	
	By: Deerfield Mgmt, L.P., its General Partner
	By: J.E. Flynn Capital, LLC, its General Partner
	
	By: /s/ David J.
Clark                                        
            
	Name: David J. Clark
	Title:   Authorized Signatory

 [Signature Page to December 2019 Exchange Agreement and Amendment to Facility Agreement, Senior
Secured Convertible Notes and Warrants] 

 
	
	DELAWARE STREET CAPITAL MASTER FUND, L.P.
	
	By: /s/ Andrew G.
Bluhm                                        

	Name: Andrew G. Bluhm
	Title: Manager of the General Partner

 [Signature Page to December 2019 Exchange Agreement and Amendment to Facility Agreement, Senior
Secured Convertible Notes and Warrants] 

 Schedule 1 
  

																					
	 LENDER
	  	Indenture Notes
(principal
amount)	 	  	Accrued and
Unpaid Interest
on Indenture
Notes as of the
Effective Date	 	  	Accrued and
Unpaid
Interest on
Indenture
Notes Paid in
Cash	 	  	Accrued and
Unpaid
Interest on
Indenture
Notes Paid in
Kind	 	  	December 2019
Notes (principal
amount)*	 
	 Deerfield Private Design Fund III, L.P.
	  	$	52,019,000	 	  	$	1,096,733.92	 	  	$	548,366.96	 	  	$	548,366.96	 	  	$	52,567,366.96	 
	 Deerfield Special Situations Fund, L.P.
	  	$	10,404,000	 	  	$	219,351.00	 	  	$	109,675.50	 	  	$	109,675.50	 	  	$	10,513,675.50	 
	 Delaware Street Capital Master Fund, L.P.
	  	$	8,250,000	 	  	$	173,937.50	 	  	$	86,968.75	 	  	$	86,968.75	 	  	$	8,336,968.75	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total:
	  	$	70,673,000	 	  	$	1,490,022.42	 	  	$	745,011.21	 	  	$	745,011.21	 	  	$	71,418,011.21	 
		  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 	  	  
	  
	 

  

	*	 Includes 50% of the accrued and unpaid interest on the Indenture Notes as of the Effective Date.

 Exhibit A 

Form of December 2019 Note 

[Included as Exhibit 10.3 to the Company’s Current Report on Form 8-K as filed on December 18, 2019] 

 Exhibit B 

Amended and Restated Senior Secured Convertible Note 

[Included as Exhibit 10.4 to the Company’s Current Report on Form 8-K as filed on December 18, 2019] 

 Exhibit C 

Amendments to Facility Agreement 

 FACILITY AGREEMENT 

FACILITY AGREEMENT (this “Agreement”), dated as of June 2, 2014, between KemPharm, Inc., a Delaware corporation (the
“Borrower” or a “Credit Party”), and Deerfield Private Design Fund III, L.P., a Delaware limited partnership (the “DPDF Lender”), Deerfield Special Situations Fund, L.P., a Delaware limited
partnership (“DSS”), Delaware Street Capital Master Fund, L.P., a Cayman Islands limited partnership (“DSCM”), and the other lenders from time to time party to this Agreement (the “Other Lenders”;
the Other Lenders together with the DPDF Lender, DSS and DSCM, collectively, the “Lenders”, individually each a “Lender” and, together with the Borrower, the “Parties”). 

W I T N E S S E T H: 

WHEREAS, the Borrower wishes to borrow from the DPDF Lender $60,000,000 for the purposes described in Article 2; and 

WHEREAS, the Lenders desire to make a loan to the Borrower for such purpose, 

NOW, THEREFORE, in consideration of the mutual agreements set forth herein, the Parties agree as follows: 

ARTICLE 1 
 DEFINITIONS

 Section 1.1 General Definitions. Wherever used in this Agreement, the Exhibits or the Schedules attached
hereto, unless the context otherwise requires, the following terms have the following meanings: 
 “Additional Amounts” has
the meaning set forth in Section 2.5(a). 
 “Affiliate” means, with respect to any Person, any other Person that
directly or indirectly: 
 (a) controls, or is controlled by, or is under common control with, such Person; or 

(b) is a general partner, controlling shareholder, or managing member of such Person. 

A Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or indirectly, power to vote 15%
or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managers or power to direct or cause the direction of the management and policies of such Person whether by contract or otherwise.

 “Aggregate Accrual” has the meaning set forth in Section 2.11. 

  
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 “Agreement and Plan of Merger” means the Agreement and Plan of Merger dated
May 30, 2014 between the Borrower and KemPharm, Inc., an Iowa corporation. 
 “Agreement Date” means June 2,
2014. 
 “Allocations” has the meaning set forth in Section 2.2(a). 

“Applicable Laws” means all statutes, rules and regulations of any Governmental Authorities in the United States or elsewhere
applicable to the Borrower or its Subsidiaries. 
 “Assigned Royalty Payments” has the meaning set forth in the definition
of “Permitted Royalty Financing.” 
 “Authorizations” has the meaning set forth in Section 3.1(j). 

“Business Day” means a day other than a day on which commercial banks are authorized or required by law to close in the City
of New York. 
 “Closing Date” means June 2, 2014. 

“Code” means the Internal Revenue Code of 1986, as amended, and any Treasury Regulations promulgated thereunder. 

“Collateral Agent” means DPDF Lender, in its capacity as collateral agent for the Lenders hereunder and under the other
Transaction Documents, and any successor collateral agent. 
 “Common Stock” has the meaning set forth in the Warrants.

 “Competitor” means a Person whose principal business is the development and/or commercialization of drug therapies for
the treatment of pain, attention deficit/hyperactivity disorder and central nervous order diseases; but shall not include any financial investment firm or collective investment vehicle that, together with Affiliates, holds less than a majority of
the outstanding equity of any Competitor. 
 “Conversion Shares” has the meaning set forth in Section 3.1(w). 

“Customary Subordination Terms” means, with respect to any subordinated Indebtedness: 

(A) that no payment in cash (directly or indirectly) in respect of such subordinated Indebtedness, including without limitation, in respect of
any principal or interest thereon, may be made prior to the date that is 91 days after the date the Notes are paid in full; 
 (B) that in
the event of any voluntary or involuntary insolvency or bankruptcy proceedings, or any receivership, liquidation, reorganization or other similar proceedings in connection therewith relative to Borrower or to its property, then (a) the Lenders
shall be paid in full in cash in respect of all of the Obligations, including without limitation, any interest due and payable under the Notes whether or not 

  
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such interest is an allowed claim in such proceeding, before any holder of such subordinated Indebtedness (“Holder”) is entitled to receive (whether directly or indirectly), or
make any demands for, any payment on account of such subordinated Indebtedness and (b) until the Obligations are paid in full in cash, any payment or distribution to which such Holder would otherwise be entitled shall be made to the Lenders;

 (C) If any payment or distribution of any character by or on behalf of Borrower, whether in cash, securities or other property, in respect
of such subordinated Indebtedness shall (despite these subordination provisions) be received by any Holder in violation of any provision of this definition before the Obligations shall have been paid in full in cash, such payment or distribution
shall be held in trust for the benefit of, and shall be paid over to the Lenders, to the extent necessary to pay the Obligations in full in cash; 

(D) Holders will not request relief from the stay except and to the extent the Lenders request and obtain relief from the stay; 

(E) Such subordinated Indebtedness bears interest at a market rate; and 

(F) Such additional terms as are reasonably acceptable to Required Lenders for such subordinated Indebtedness, including lien subordination,
standstill on remedies and with respect to waiver of any claims under Sections 506(c), 552 and 1111(b) of the Bankruptcy Code. 

“Credit Party” means the Borrower and each Grantor and Guarantor. 

“December 2019 Exchange Agreement” means the December 2019 Exchange Agreement and Amendment to Facility Agreement, Senior
Secured Convertible Notes and Warrants dated as of December 17, 2019, among the Borrower, Deerfield Private Design Fund III, L.P., Deerfield Special Situations Fund, L.P. and Delaware Street Capital Master Fund, L.P. 

“December 2019 Notes” means the Senior Secured Convertible Notes issued to the Lenders pursuant to Section 2.2(c) in
substantially the form annexed to the December 2019 Exchange Agreement as Exhibit A (including all Senior Secured Convertible Notes issued in exchange, transfer or replacement thereof). 

“Default” means any event which, at the giving of notice or lapse of time or the failure to fulfill any conditions (or any
combination of the foregoing), would constitute an Event of Default. 
 “Deerfield Lenders” means the DPDF Lender and
Deerfield Special Situations Fund, L.P. 
 “Disbursements” has the meaning set forth in Section 2.2(b). 

“Disbursement Condition” means the Borrower shall have authorized and reserved for issuance a number of shares of Common
Stock sufficient to cover the Warrant Shares, the Note Shares and the Conversion Shares (computed without regard to any limitations on the number of shares that may be issued on exercise). 

  
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 “Disbursement Request” has the meaning set forth in Section 2.2(b).

 “Disbursement Shares” has the meaning set forth in Section 2.10(f). 

“Dollars” and the “$” sign mean the lawful currency of the United States of America. 

“Effective Date” has the meaning set forth in the December 2019 Exchange Agreement. 

“Equity Documents” means the collective reference to the Right of First Refusal and
Co-Sale Agreement, Voting Agreement and Investors’ Rights Agreement and all shareholder consents to the foregoing documents. 

“Event of Default” has the meaning set forth in Section 5.4. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated
thereunder. 
 “Existing Convertible Notes” means the Borrower’s unsecured convertible notes in an original aggregate
principal amount of $3,846,000 issued pursuant to that certain Subscription Agreement dated as of April 15, 2013. 
 “Existing
Warrants” means the warrants to purchase equity securities of the Borrower issued in connection with the Existing Convertible Notes pursuant to that certain Subscription Agreement dated as of April 15, 2013. 

“Excluded Taxes” mean with respect to any Lender: (a) Taxes imposed on (or measured by) such Lender’s net income or
net capital (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed by the United States or by the jurisdiction (or any political subdivision thereof) under the laws of which such Lender is organized or
incorporated or in which its principal office is located, or in which the applicable lending office is located, or (ii) that are Other Connection Taxes; (b) any withholding Tax imposed by the United States on amounts payable to or for the
account of such Lender under the laws in effect at the time such Lender (i) acquires an interest in the Loan or any other Transaction Document (other than the Warrants) or (ii) changes its lending office, except in the case of the
foregoing clause (i), to the extent that such Lender acquired its interest in the Loan from a transferor that was entitled, immediately before such transfer, to receive Additional Amounts with respect to such withholding Tax, or, in the case of
the foregoing clause (ii), to the extent such Lender was entitled to receive Additional Amounts with respect to such withholding Tax immediately before it changed its lending office; (c) any Taxes attributable to such Lender’s failure to
comply with Section 2.5(d), except to the extent that such Lender is legally unable to comply with Section 2.5(d) as a result of any change in law occurring subsequent to the date such Lender acquired its interest in the Loan, and
(d) any withholding Taxes imposed by the United States on payments to such Lender under FATCA. 
 “FATCA” means
Section 1471 through 1474 of the Code as of the Effective Date (or any amended or successor version that is substantially comparable and not materially more onerous to comply with) and any current or future regulations or official
interpretations thereof, any intergovernmental agreement between the United States and another jurisdiction facilitating the implementation thereof (or any law implementing such an intergovernmental agreement), and any fiscal or regulatory
legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code. 

  
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 “FDA” means the U.S. Food and Drug Administration. 

“FDA Acceptance” means the FDA’s acceptance for review of the Borrower’s NDA for KP201 for the treatment of acute
pain in humans, provided that such NDA conforms, in the reasonable determination of the DPDF Lender, to FDA’s requirements for approval as informed by the advice and guidance provided to the Borrower by the FDA. 

“FDA Approval” means the issuances of the FDA’s approval letter enabling the Borrower to commercially promote, market,
distribute and use KP201 in the United States for the treatment of acute pain in humans. 
 “Final Payment” means such
amount as may be necessary to repay the outstanding principal amount of the Notes and any other amounts owing by the Borrower to the Lenders pursuant to the Transaction Documents. 

“First Disbursement” has the meaning set forth in Section 2.1 (a). 

“GAAP” means United States generally accepted accounting principles consistently applied as set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and
authority within the accounting profession). 
 “Governmental Authority” means any government, quasi-governmental agency,
governmental department, ministry, cabinet, commission, board, bureau, agency, tribunal, regulatory authority, instrumentality, judicial, legislative, fiscal, or administrative or public body or entity, whether domestic or foreign, federal, state or
local, having jurisdiction over the matter or matters and Person or Persons in question. 
 “Grantor” has the meaning set
forth in the Guaranty and Security Agreement. 
 “Guarantor” has the meaning set forth in the Guaranty and Security
Agreement. 
 “Guaranty and Security Agreement” means the Amended and Restated Guaranty and Security Agreement dated as of
the Effective Date made by the Borrower, the Grantors and Guarantors, party thereto, in favor of the Collateral Agent for the benefit of the Lenders pursuant to which the Borrower and any future Credit Parties will grant the Collateral Agent for the
ratable benefit of itself and each of the Lenders a security interest in the assets specified therein to secure the Obligations, as the same may be amended from time to time in form and substance satisfactory to the Collateral Agent. 

“Indebtedness” means the following: 

(i) all indebtedness for borrowed money; 

  
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 (ii) all the deferred purchase price of assets or services (other than
payables) which, in accordance with GAAP, would be shown to be a liability (or on the liability side of a balance sheet); 

(iii) all guarantees of indebtedness; 

(iv) all letters of credit issued or acceptance facilities established for the account of the Borrower, including, without
duplication, all drafts drawn thereunder; 
 (v) all capitalized or finance lease obligations of such Person; 

(vi) all indebtedness (except pursuant to this clause (vi)) of another Person secured by any Lien on any property of the
Borrower, whether or not such indebtedness has been assumed or is recourse (with the amount thereof, in the case of any such indebtedness that has not been assumed by the Borrower, being measured as the lower of (x) the fair market value of
such property and (y) the amount of the indebtedness secured); 
 (vii) indebtedness created or arising under any
conditional sale or title retention agreement. 
 “Indemnified Person” has the meaning set forth in Section 6.11. 

“Indemnified Taxes” means, with respect to any Person, all Taxes (including Other Taxes), other than Excluded Taxes, imposed
on or with respect to any payment made by Borrower to, or to the account of, such Person under any Transaction Document (other than the Warrants and the Agreement and Plan of Merger).  

“Indemnity” has the meaning set forth in Section 6.11. 

“Indenture Notes” has the meaning set forth in the December 2019 Exchange Agreement. 

“Interest Payment Date” has the meaning set forth in Section 2.7. 

“Interest Rate” means 6.75% interest per annum. 

“Investors’ Rights Agreement” means the Investors’ Rights Agreement dated as of June 2, 2014, by and among the
Borrower and the stockholders party thereto. 
 “IP” and “Intellectual Property” have the meaning set
forth in Section 3.1(l). 
 “IPO” means an initial public offering. 

“IRS” means the United States Internal Revenue Service. 

“Lender” shall have the meaning set forth in the preamble to this Agreement, in addition to any transferee of a Lender’s
interest under this Agreement. 

  
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 “Lien” means any lien, pledge, preferential arrangement, mortgage, security
interest, deed of trust, charge, assignment, hypothecation, title retention, or other encumbrance on or with respect to property or interest in property having in each case the practical effect of constituting a security interest, in each case with
respect to the payment of any obligation in, or from the proceeds of, any asset or revenue of any kind. 
 “Loan” means any
loan or other credit extension made available or provided from time to time by any of the Lenders to the Borrower pursuant to this Agreement or any other Transaction Document or, as the context may require, the principal amount thereof from time to
time outstanding and shall include any funded Disbursement, including, for the avoidance of doubt, the loans made available by the DPDF Lender to the Borrower pursuant to Section 2.2 and the loans evidenced by the December 2019 Notes, or, in
each case as the context may require, the principal amount thereof from time to time outstanding. 
 “Loss” has the meaning
set forth in Section 6.11. 
 “Major Transaction” has the meaning set forth in the Warrants. 

“Major Transaction Notice” has the meaning set forth in Section 5.3. 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, condition (financial or
otherwise) or assets of the Borrower and its Subsidiaries, (b) the validity or enforceability of any material provision of any Transaction Document, (c) ability of the Borrower to timely perform the Obligations or (d) the rights and
remedies of the Lenders under any Transaction Document. 
 “Maximum Accrual” has the meaning set forth in
Section 2.11. 
 “MT Date” has the meaning set forth in Section 5.3. 

“New Senior Lender” means each of DSS and DSCM. 

“NDA” means a “new drug application”, as defined in the United States Food, Drug, and Cosmetic Act, as amended, and
applicable FDA rules and regulations, including an application of the type described in section 505(b)(2) of the Act. 

“Notes” means the Term Notes, the Senior Secured Convertible Notes and the December 2019 Notes. 

“Note Shares” has the meaning set forth in Section 3.1(w). 

“Obligations” means all Loans and Disbursements, interest, fees, expenses, costs, liabilities, indebtedness and other
obligations (monetary (including post-petition interest, costs, fees, expenses and other amounts, whether allowed or not) or otherwise) of (or owed by) the Borrower and the other Grantors to Collateral Agent, any Lender or any other Person that
arises under this Agreement or the other Transaction Documents, in each case howsoever created, arising or evidenced, whether direct or indirect (including those acquired by assignment), absolute or contingent, now or hereafter existing, or due or
to become due. 

  
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 “Organizational Documents” means the Certificate of Incorporation and By-laws each as amended to date, of the Borrower. 
 “Other Connection Taxes” means, with
respect to any Lender, Taxes (excluding withholding Taxes imposed by the United States) imposed as a result of a present or former connection between such Lender and the jurisdiction (or any political subdivision thereof) imposing such Tax (other
than a connection arising from such Lender having a security interest under, having been a party to, having enforced or having engaged in any other transaction pursuant to this Agreement or any other Transaction Document). 

“Other Taxes” means any and all present or future stamp or documentary Taxes, intangible, recording, filing or similar Taxes
arising from any payment made hereunder or from the execution, delivery, registration or enforcement of, or otherwise with respect to, any Transaction Document, except any such Taxes that are Other Connection Taxes imposed with respect to an
assignment (other than an assignment made in connection with the exercise of remedies following an Event of Default). 
 “Paid in
Full” has the meaning set forth in the Guaranty and Security Agreement. 
 “Permitted Indebtedness” means the
following Indebtedness: 
 (i) the Obligations; 

(ii) Indebtedness to trade creditors in the ordinary course of business; 

(iii) Indebtedness existing as of the Agreement Date and set forth on Schedule 1.1-A
and paid only pursuant to the provisions of the agreements evidencing such Indebtedness set forth on such Schedule; 
 (iv)
Indebtedness in respect of performance bonds, surety bonds, bank guaranties and similar instruments incurred in the ordinary course of business and with respect to any letter of credit issued to Kirkwood Community College in exchange for the release
of the Liens held by Kirkwood Community College on the assets of Borrower; 
 (v) Indebtedness owed to any Person providing
workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in the ordinary course of
business; 
 (vi) Indebtedness in respect of netting services, overdraft protections and other similar and customary services
in connection with deposit accounts; 
 (vii) Indebtedness in respect of purchase money financing, capital lease obligations
and equipment financing facilities covering existing and newly-acquired equipment, including for the acquisition, installation, qualification and validation of such equipment up to an aggregate amount not to exceed $250,000 at any time outstanding;

  
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 (viii) Indebtedness to employees in respect of benefit plans and employment
and severance arrangements; 
 (ix) Indebtedness on Customary Subordination Terms in an aggregate principal amount not to
exceed $20,000,000 and with a maturity not earlier than 91 days after the final maturity of the Notes; 
 (x) Indebtedness in
respect of documentary letters of credit or bankers acceptances issued or created for the account of the Borrower or any Subsidiary to facilitate the purchase, shipment or storage of such inventory or goods; 

(xi) Indebtedness arising from judgments or decrees not constituting an Event of Default under Section 5.4(e); 

(xii) Indebtedness on Customary Subordination Terms not otherwise permitted hereunder in an aggregate principal amount of
$500,000 at any time outstanding with a maturity not earlier than 91 days after the final maturity of the Notes; 
 (xiii)
Prior to the Effective Date, Indebtedness in an aggregate principal amount not to exceed $86,250,000 in the form of convertible senior unsecured notes, provided that the issuance of any such convertible senior unsecured notes shall be on or before
March 18, 2016 (such debt, the “Permitted Convertible Notes”); 
 (xiv) secured Indebtedness (including
Indebtedness consisting of Permitted Royalty Financings) in an aggregate principal amount not to exceed $35,000,000; provided that (a) such Indebtedness is secured by Liens on the Collateral that are pari passu with the Liens on the
Collateral securing any then-outstanding Notes held by the Deerfield Lenders; provided such Indebtedness consisting of Permitted Royalty Financings shall be secured solely by such pari passu Liens on Permitted Royalty Financing Assets,
(b) the lender and any secured party in respect of such Indebtedness and the Collateral Agent shall have entered into an intercreditor agreement in form and substance satisfactory to the Collateral Agent in its sole and absolute discretion, and
(c) contemporaneously with the incurrence of such Indebtedness, proceeds from the incurrence of such Indebtedness in an amount equal to at least one-third (1/3) of the principal amount thereof shall be
used to repay the Obligations under the Senior Secured Convertible Notes and, to the extent the Senior Secured Convertible Notes are satisfied in full, the December 2019 Notes. 

“Permitted Liens” means: 

(i) Liens existing on the Agreement Date and set forth on Schedule 1.1-B; 

(ii) Liens in favor of Collateral Agent and each of the Lenders pursuant to the Guaranty and Security Agreement; 

  
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 (iii) Liens in favor of the Deerfield Lenders; 

(iv) Statutory and common law Liens created by operation of Applicable Law; 

(v) Liens arising in the ordinary course of business and securing obligations that are not more than 30 days overdue or are
being contested in good faith by appropriate proceedings; 
 (vi) Liens for taxes, assessments or governmental charges or
levies not past due and payable or that are being contested in good faith by appropriate proceedings; 
 (vii) Liens arising
from judgments, decrees or attachments for sums not exceeding $500,000 in circumstances not constituting an Event of Default; 

(viii) Liens in favor of financial institutions arising in connection with the Borrower’s and its Subsidiaries’
accounts maintained in the ordinary course of business held at such institutions to secure standard fees for services charged by, but not financing made available by, such institutions; 

(ix) Pledges or deposits in connection with workers’ compensation, unemployment insurance and other social security
legislation; 
 (x) Easements, rights of way, restrictions and other similar encumbrances affecting real property which, in
the aggregate, are not substantial in amount, and which do not in any case materially interfere with the conduct of the business of the applicable Person; 

(xi) Leases, licenses or subleases granted to others not interfering in any material respect with the business of the Borrower
and its Subsidiaries; 
 (xii) Liens of a collection bank arising under
Section 4-210 of the Uniform Commercial Code (or equivalent in foreign jurisdictions) on items in the course of collection; 

(xiii) Liens securing Indebtedness permitted under clause (vii) of the definition of “Permitted Indebtedness,”
provided that (i) such Liens exist prior to the acquisition of, or attach substantially simultaneous with, or within ninety (90) days after the, acquisition, lease, repair, improvement or construction of, such property financed or leased
by such Indebtedness and (ii) such Liens do not extend to any property of Borrower other than the property (and proceeds thereof) acquired, leased or built, or the improvements or repairs, financed by such Indebtedness; 

(xiv) the filing of precautionary Uniform Commercial Code financing statements (or equivalent in foreign jurisdictions) solely
as a precautionary measure in connection with operating leases and consignment arrangements; 

  
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 (xv) Liens existing on property of the Borrower or any Subsidiary at the
time such property is so acquired (whether or not the Indebtedness secured thereby shall have been assumed); 
 (xvi) Liens
solely on any cash earnest money deposits made by the Borrower or any Subsidiary in connection with any letter of intent or purchase agreement permitted hereunder or on any cash collateralizing the letter of credit referenced in clause (iv) of
the definition of Permitted Indebtedness; 
 (xvii) Liens in favor of customs and revenue authorities arising as a matter of
law to secure payment of customs duties in connection with the importation of goods; 
 (xviii) Liens arising out of
conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into by the Borrower or any Subsidiary in the ordinary course of business; 

(xix) Liens on specific items of inventory or other goods and the proceeds thereof securing the obligations of the Borrower or
any Subsidiary in respect of documentary letters of credit or bankers acceptances issued or created for the account of the Borrower or any Subsidiary to facilitate the purchase, shipment or storage of such inventory or goods; 

(xx) Liens relating to Indebtedness on Customary Subordination Terms in accordance with clause (ix) of the definition of
Permitted Indebtedness; 
 (xxi) Liens securing Indebtedness permitted pursuant to clause (xiv) of the definition of
Permitted Indebtedness; provided that such Liens are pari passu with the Liens on the Collateral securing any then-outstanding Notes held by the Deerfield Lenders (and provided further that Permitted Royalty Financings shall be secured solely
by such pari passu Liens on Permitted Royalty Financing Assets), all as provided in the intercreditor agreement in form and substance satisfactory to the Collateral Agent in its sole and absolute discretion; and 

(xxii) The license under the GPC License Agreement (as such agreement may be amended in accordance with the terms hereof). 

“Permitted Royalty Financing” means one or more financing transactions in respect of royalties, milestones, other payments
and other rights of Borrower (collectively, the “Assigned Royalty Payments”) under Specified License Agreements. 

“Permitted Royalty Financing Assets” means collectively, the Specified License Agreements, the Assigned Royalty Payments
(including accounts receivables and payment intangibles in respect thereof), Intellectual Property licensed thereunder, other present and future property and assets that support the Assigned Royalty Payments, and the proceeds thereof. 

“Permitted Royalty Financing Lender” means any lender providing Permitted Royalty Financings. 

  
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 “Person” means and includes any natural person, individual, partnership,
joint venture, corporation, trust, limited liability company, limited company, joint stock company, unincorporated organization, government entity or any political subdivision or agency thereof, or any other entity. 

“Pro Forma Closing Date Balance Sheet” means a balance sheet of the Borrower as of the Agreement Date to give effect to the
transactions contemplated by the Transaction Documents and the Equity Documents. 
 “Pro Rata Share” means, with respect to
any Lender, the amount expressed as a percentage obtained by dividing (a) such Lender’s outstanding Loans, by (b) the total outstanding amount of Loans held by all Lenders 

“Put Notice” has the meaning set forth in Section 5.3. 

“Put Price” has the meaning set forth in Section 5.3. 

“Qualified IPO” shall have the meaning provided therefor in the Warrant. 

“Register” has the meaning set forth in Section 1.4(b). 

“Required Lenders” means, at any time, Lenders, holding Loans representing more than 50% of the sum of the Loans outstanding.

 “Restricted Lender” means (i) the initial Lenders party to this Agreement and their Affiliates and (ii) any
assignee of any interest in a Note that notifies the Borrower in writing that it wishes to be deemed a Restricted Lender. 
 “Right
of First Refusal and Co-Sale Agreement” means the Right of First Refusal and Co-Sale Agreement dated as of June 2, 2014, by and among Borrower and the
stockholders party thereto. 
 “Second Disbursement, Third Disbursement and Fourth Disbursement” have the meanings set
forth in Section 2.1 (b). 
 “Securities Act” means the United States Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder. 
 “Security Agreements” means, collectively, the Guaranty and Security
Agreement and each guaranty, security agreement, pledge agreement, patent and trademark security agreement and all other agreements, instruments and document executed and/or delivered by the Borrower on the Agreement Date pledging or granting a lien
on all of the assets of the Borrower. 
 “Senior Secured Convertible Notes” means the Senior Secured Convertible Notes
issued to the Lenders pursuant to Section 2.1, each of which will be substantially in the form attached hereto as Exhibit A. 

  
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 “September 2019 Exchange Agreement” means the September 2019 Exchange
Agreement and Amendment to Facility Agreement, dated as of September 3, 2019, among the Borrower, DPDF and DSS, as amended by that certain Amendment to September 2019 Exchange Agreement and Amendment to Facility Agreement, dated as of the
Effective Date, by and among the Borrower, DPDF and DSS. 
 “Series B-2 Certificates of
Designation” means the Certificate of Designation of Preferences, Rights and Limitations of the Series B-2 Preferred Stock, as amended by that certain Amendment to September 2019 Exchange Agreement
and Amendment to Facility Agreement, dated as of the Effective Date, by and among the Borrower, DPDF and DSS. 
 “Series D Charter
Filing” means the filing with the office of the Secretary of State of the State of Delaware of the amendment and restatement of the Borrower’s certificate of incorporation, which filing shall be in the form attached hereto as Exhibit
B. 
 “Series D Preferred Stock” means the series of the preferred stock, par value $0.0001 per share, of the Borrower.

 “Specified License Agreement” means certain license agreements as may be agreed among the Borrower, the Required Lenders
and the Collateral Agent. 
 “Subsidiary or Subsidiaries” means, as to the Borrower, any entity of which securities or
other ownership interests having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Borrower. 

“Tax Affiliate” means (a) the Borrower and its Subsidiaries and (b) any Affiliate of the Borrower with which the
Borrower files or is required to file consolidated, combined or unitary Tax Returns with a Governmental Authority. 

“Taxes” means all present or future taxes, levies, imposts, stamp or other duties, fees, assessments, deductions,
withholdings, and other charges imposed by any Governmental Authority, and all liabilities to a Governmental Authority with respect thereto, including any interest, fees, additions to tax or penalties applicable thereto (including by reason of any
delay in payment). 
 “Tax Returns” has the meaning set forth in Section 3.1(o). 

“Term Notes” means the Term Notes issued to the DPDF Lender pursuant to Section 2.1, each of which will be in the form
attached hereto as Exhibit C. 
 “Transaction Documents” means this Agreement, the Notes, the Security Agreements and the
Warrants, the Series D Charter Filing, the Series B-2 Certificate of Designation, the Agreement and Plan of Merger, the September 2019 Exchange Agreement, the December 2019 Exchange Agreement and any other
document or instrument delivered in connection with any of the foregoing, whether or not specifically mentioned herein or therein, in each case, as amended from time to time in accordance with the terms hereof and thereof. 

  
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 “Warrants” has the meaning set forth in Section 2.10. 

“Warrant Shares” has the meaning set forth in Section 3.1(v). 

“Voting Agreement” means the Voting Agreement dated as of June 2, 2014, by and among the Borrower and the stockholders
party thereto. 
 Section 1.2 Interpretation. In this Agreement, wherever the context may require, the singular shall include
the plural and vice versa, and any pronoun shall include the corresponding masculine, feminine and neuter forms; the division of this Agreement into Articles and Sections and the use of headings and captions is for convenience of reference only and
shall not modify or affect the interpretation or construction of this Agreement or any of its provisions; the words “herein,” “hereof,” “hereunder,” “hereinafter” and “hereto” and words of similar
import refer to this Agreement as a whole and not to any particular Article or Section hereof; the words “include,” “including,” and derivations thereof shall be deemed to have the phrase “without limitation” attached
thereto unless otherwise expressly stated; references to a specified Article, Exhibit, Section or Schedule shall be construed as a reference to that specified Article, Exhibit, Section or Schedule of this Agreement; and any reference to any of the
Transaction Documents or Equity Documents means such document as the same shall be amended, supplemented or modified and from time to time in effect. 

Section 1.3 Business Day Adjustment. If the day by which any payment or other performance is due to be made is not a Business Day,
that payment or other performance shall be made by the next succeeding Business Day unless that next succeeding Business Day falls in a different calendar month, in which case that payment or other performance shall be made by the Business Day
immediately preceding the day by which such payment is due to be made. 
 Section 1.4 Register 

(a) The Borrower shall record on its books and records the amount of the Loan, the applicable interest rate, all payments of principal and
interest thereon and the principal balance thereof from time to time outstanding. Such record shall, absent manifest error, be conclusive evidence of the amount of the Loan made by the Lenders to the Borrower and the interest and payments thereon.

 (b) The Borrower shall establish and maintain, at its address referred to in Section 6.1, a record of ownership (the
“Register”) in which the Borrower agrees to register by book entry the interests (including any rights to receive payment of principal and interest hereunder) of each Lender in the Loan and each Note, and any assignment of any such
interest. Accounts in the Register shall record (1) the names and addresses of the Lenders (and any change thereto pursuant to this Agreement), (2) the amount of the Loan and each Note and each funding of any participation therein, (3) the
amount of any principal or interest due and payable or paid, and (4) any other payment received by the Lenders from the Borrower and its application to the Loan and each Note. 

  
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 (c) Notwithstanding anything to the contrary contained in this Agreement, the Loan
(including any Notes evidencing the Loan) is a registered obligation, the right, title and interest of the Lenders and their assignees in and to the Loan shall be transferable only upon notation of such transfer in the Register and no assignment
thereof or participation therein shall be effective until recorded therein. This Section 1.4 and Section 6.5 shall be construed so that the Loan is at all times maintained in “registered form” within the meaning of Sections
163(f), 871(h)(2) and 881(c)(2) of the Code and Section 5f.103-1(c) of the United States Treasury Regulations. 

(d) The Borrower and the Lenders shall treat each Person whose name is recorded in the Register as a Lender (and as the owner of the amounts
owing to it under the Loan and/or a Note as reflected in the Register) for all purposes of this Agreement. Information contained in the Register with respect to any Lender shall be available for access by the Borrower or such Lender at any
reasonable time and from time to time upon reasonable prior notice. 
 ARTICLE 2 

AGREEMENT FOR THE LOAN 

Section 2.1 Use of Proceeds. The proceeds of the Loan will be used for the purposes set forth on Exhibit D. 

Section 2.2 Disbursement. 

(a) Subject to the conditions set forth in Article 4, the DPDF Lender shall disburse to the Borrower on the Agreement Date (the “First
Disbursement”) (i) aggregate term loans of $15,000,000, evidenced by a Term Note, and (ii) aggregate term loans of $10,000,000, evidenced by a Senior Secured Convertible Note, in the case of each of the foregoing, in accordance
with their respective allocations set forth on Schedule 2.2 as such allocations may be revised by the DPDF Lender from time to time (the “Allocations”). The DPDF Lender shall reserve from the First Disbursement $161,000 which,
absent an Event of Default, shall be released to Borrower upon the filing of a Uniform Commercial Code termination statement with respect to the Uniform Commercial Code-1 financing statement number E120030277
filed with the Secretary of State of Iowa on April 26, 2012 naming Kirkwood Community College as the secured party. 
 (b) Subject to
the conditions set forth in Article 4, the DPDF Lender shall disburse to the Borrower in three additional Disbursements (the “Second Disbursement”, the “Third Disbursement” and the “Fourth
Disbursement” respectively and, collectively with the First Disbursement, the “Disbursements”) term loans in the aggregate amount of $10,000,000 in the case of the Second Disbursement and $12,500,000 in the case of each of
the Third and Fourth Disbursements each evidenced by a Term Note, upon receipt from the Borrower on a Business Day (other than the last Business Day of a month) of a written request (“Disbursement Request”) and stating that no
Default or Event of Default has occurred or will have occurred on the disbursement date. The disbursement date set forth in a Disbursement Request shall be a date not less than 15 Business Days after the date of receipt by the Lenders of such
Disbursement Request and no earlier than the second Business Day of the month following the month in which such Disbursement Request is received. The DPDF Lender shall fulfill each Disbursement Request in accordance with the Allocations. 

  
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 (c) Subject to the satisfaction of the conditions set forth in the December 2019 Exchange
Agreement, each Lender shall be deemed to make certain loans to the Borrower on the Effective Date by assigning and transferring all right, title and interest in and to its Indenture Notes to the Borrower in accordance with the terms of the December
2019 Exchange Agreement, in exchange for the December 2019 Notes, duly executed on behalf of the Borrower in the principal amount set forth across from such Lender’s name on Schedule 1 to the December 2019 Exchange Agreement in the column
captioned “December 2019 Notes (principal amount)”. All Obligations of the Borrower under each December 2019 Note shall constitute a “Loan” for all purposes of this Agreement and the Transaction Documents. The Borrower shall
record in the Register the interests of each Lender in the Loans and each December 2019 Note, including the amount of the Loan evidenced by each December 2019 Note. Each New Senior Lender shall be deemed a “Lender” for all purposes of this
Agreement and the Transaction Documents, except as otherwise provided herein or in the December 2019 Exchange Agreement. 
 Section 2.3
Payment. 
 (a) The Borrower shall pay in cash Dollars to each of the Lenders its Pro Rata Share of the outstanding principal amount
of the Loans, together with all accrued and unpaid interest thereon, on March 31, 2021. 
 (b) The DPDF Lender Term Notes shall be
deemed prepaid without premium, to the extent a Lender pays the Exercise Price (as such term is defined in the Warrants) through a reduction of the principal amount outstanding under such DPDF Lender’s Term Note in accordance with
Section 3(a)(i) of the Warrant. 
 (c) Each such payment, repayment, redemption and prepayment shall be applied as follows: 

(i) So long as no Event of Default has occurred or shall be continuing, first, to accrued and unpaid interest owed to
the Lenders under the Transaction Documents and second, to the principal amount of the Loans owed to the Lenders and shall be allocated among the Lenders in accordance with and in proportion to their respective Pro Rata Shares. 

(ii) Upon the occurrence of any Event of Default and thereafter for so long as such Event of Default is continuing,
(A) first, to all fees, costs and expenses (including any attorneys’ fees) owed any Lender under the Transaction Documents, (B) second, ratably to accrued and unpaid interest owed to the Lenders under the Transaction
Documents, (C) third, ratably to the principal amount of the Loans owed to the Lenders, and (D) fourth, to all other Obligations owing to any Lender, to such Lender, and, with respect to any such Obligations owed to the
Lenders, shall be allocated among such Lenders in accordance with and in proportion to their respective Pro Rata Shares of such Obligations. 

  
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 (d) Notwithstanding anything to the contrary contained in this Agreement, interest on each
Senior Secured Convertible Note (or any Senior Secured Convertible Note issued in substitution therefor) that accrues and is otherwise payable on an Interest Payment Date occurring after the Effective Date shall be paid in kind by adding the amount
of such interest to the then outstanding principal amount of the Loans (each such payment in kind being referred to as a “PIK Interest Payment”). Following an increase in the principal amount of each Senior Secured Convertible Note
(or any Senior Secured Convertible Note issued in substitution therefor) as a result of a PIK Interest Payment, such increased principal shall bear interest at the rate applicable to such Senior Secured Convertible Note, and such interest shall be
paid in kind (and such payment in kind shall also be deemed a “PIK Interest Payment” hereunder). Notwithstanding the foregoing, and for the avoidance of doubt, any accrued and unpaid interest that is payable upon maturity or upon any other
payment or prepayment (in connection with the acceleration of the Loans, an amortization payment or otherwise) of a Senior Secured Convertible Note shall be paid in cash Dollars, and all payments and prepayments (in connection with the acceleration
of the Loans, an amortization payment or otherwise) shall be applied to the Loans in accordance with Section 2.3(c) of this Agreement. 

(e) Upon the incurrence of the Permitted Indebtedness described in subsection (xiv) of the definition thereof, the Borrower shall repay in
cash Dollars the Obligations under the Senior Secured Convertible Notes and, to the extent the Senior Secured Convertible Notes are satisfied in full, the December 2019 Notes in an amount equal to no less than
one-third (1/3) of the principal amount of such Permitted Indebtedness. 
 Section 2.4
Payments. All payments by the Borrower under any of the Transaction Documents shall be made without setoff or counterclaim. Payments of any amounts due to the Lenders under this Agreement shall be made in cash Dollars in immediately available
funds prior to 11:00 a.m. New York City time on such date that any such payment is due, at such bank or places as the Lenders shall from time to time designate in writing at least 5 Business Days prior to the date such payment is due. The
Borrower shall pay all and any costs (administrative or otherwise) imposed by banks, clearing houses, or any other financial institution, in connection with making any payments under any of the Transaction Documents, except for any costs imposed by
the Lenders’ banking institutions. 
 Section 2.5 Taxes, Duties and Fees. 

(a) Any and all payments by Borrower to or for the account of a Lender under any Transaction Document shall be made, in accordance with this
Section 2.5, free and clear of and without deduction for any and all present or future Taxes, except as required by Applicable Law. If any Indemnified Taxes are required by law to be deducted from or in respect of any sum payable under a
Transaction Document (other than, for the avoidance of doubt, the Warrant and the Agreement and Plan of Merger), (i) the sum payable shall be increased by as much as shall be necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 2.5) the Lender shall receive an amount equal to the sum it would have received had no such deductions been made (any and all such additional amounts payable shall hereafter be
referred to as the “Additional Amounts”), (ii) the Borrower shall make such deductions, and (iii) the Borrower shall pay the full amount deducted to the relevant taxing or other authority in accordance with Applicable Law.
Within 30 days after the date of any payment of such Taxes, the Borrower shall furnish to the applicable Lender the original or a certified copy of a receipt evidencing payment thereof or other evidence of such payment reasonably satisfactory to
such Lender. 

  
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 (b) In addition, Borrower agrees to pay or cause to be paid all Other Taxes. Within 30 days
after the date of any payment of Other Taxes, Borrower shall furnish to the applicable Lender the original or a certified copy of a receipt evidencing payment thereof or other evidence of such payment reasonably satisfactory to such Lender. 

(c) Borrower shall reimburse and indemnify, within 10 days after receipt of demand therefor, the Lender for all Indemnified Taxes (including
Indemnified Taxes imposed on amounts payable under this Section 2.5(c)) paid by such Lender, whether or not such Indemnified Taxes were correctly or legally asserted by the relevant Governmental Authority. A certificate of the Lender delivered
to Borrower setting forth the amount and nature of the Indemnified Taxes paid by Lender shall be conclusive, absent manifest error. 
 (d)
Any Lender that is entitled to an exemption from, or reduction of, withholding Tax with respect to payments made under any Transaction Document shall timely deliver to Borrower such properly completed and executed documentation reasonably requested
by Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender shall deliver to Borrower such other documentation prescribed by Applicable Law or as reasonably requested by
Borrower as will enable Borrower to determine whether or not such Lender is subject to backup withholding or information reporting requirements and to enable Borrower to comply with such requirements. Notwithstanding anything to the contrary in the
preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 2.5(d)(i), (ii), (iii) and Section 2.5(f) below) shall not be required if in the Lender’s
reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. Without limiting the generality of the
foregoing, each Lender, on or prior to the date of becoming a Lender hereunder (and in each case, from time to time thereafter upon the reasonable request of Borrower) will deliver to Borrower either: 

(i) a duly completed IRS Form W-9 (or successor form) certifying that the Lender is a
U.S. person for U.S. tax purposes and is exempt from U.S. federal backup withholding tax (provided, however, that if the Lender is a disregarded entity for U.S. federal income tax purposes it shall provide a properly completed and executed IRS Form W-9 for its non-disregarded owner in the appropriate manner); or 

(ii) if it is not a U.S. person for U.S. federal income tax purposes and is legally entitled to do so, a properly completed and
executed IRS Form W-8ECI, W-8BEN, W-8BEN-E,
W-8IMY or other applicable form (together with any required supporting documentation), or any other applicable certificate or document reasonably requested by the Borrower, certifying in the case of an IRS
Form W-8BEN, W-8BEN-E or W-8ECI the extent to which such Lender is entitled to receive
payments under this Agreement at a reduced rate of, or exemption from, deduction or withholding of any U.S. withholding tax and, if such Lender is relying on the portfolio interest exception of Section 871(h) or Section 881(c) of the Code
(or any successor provision thereto), shall also provide the Borrower with a certificate (the “Portfolio Interest Certificate”) representing that such Lender is not 

  
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a “bank” for purposes of Section 881(c) of the Code (or any successor provision thereto), is not a 10% shareholder of the Borrower described in Section 871(h)(3)(B) of the
Code (or any successor provision thereto), and is not a controlled foreign corporation receiving interest from a related person (within the meaning of Sections 881(c)(3)(C) and 864(d)(4) of the Code, or any successor provisions thereto); and 

(iii) each Lender that delivers to Borrower an IRS Form W-9, W-8BEN, W-8BEN-E, W-8ECI, or W-8IMY or other document
pursuant to this Section 2.5(d) further undertakes to deliver to Borrower further copies of the said form or other document and IRS Form W-8BEN, W-8BEN-E, W-8ECI, W-8IMY or successor applicable forms, or other manner of certification, as the case may be within a reasonable
time after gaining knowledge of the occurrence of any event requiring a change in the most recent forms or other documents previously delivered by it to Borrower, and such extensions or renewals thereof as may reasonably be requested by Borrower.

 (e) If a Lender determines in good faith that it has received a refund from a Governmental Authority of Taxes in respect of which the
Borrower paid Additional Amounts or made a payment pursuant to this Section 2.5, such Lender shall promptly pay such refund (limited to the amount of indemnity payments including Additional Amounts made by Borrower under this Section 2.5
with respect to the Taxes refunded) to the Borrower, net of all out-of-pocket expense (including any Taxes imposed thereon) of such Lender incurred in obtaining such
refund, provided that the Borrower, upon the request of such Lender, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Lender if such Lender is
required to repay such refund to such Governmental Authority and provides written evidence thereof to the Borrower. Nothing in this Section shall require any Lender to disclose any information it deems confidential (including, without limitation,
its Tax returns) to any Person, including Borrower. 
 (f) If a payment made to a Lender under any Transaction Document would be subject to
withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), then such Lender shall deliver to
the Borrower at the time or times prescribed by law and at such time or times reasonably requested by the Borrower such documentation prescribed by Applicable Law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such
additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with its obligations under FATCA and to determine that such Lender has complied with such Lender’s obligations under FATCA or to
determine the amount to deduct and withhold from such payment. For purposes of determining withholding Taxes imposed under FATCA, from and after the Effective Date, the Borrower shall treat (and the Lenders hereby authorize the Borrower to treat)
the Loans as not qualifying as grandfathered obligations within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). Solely for purposes of this Section 2.5(f), “FACTA” shall
include any amendments made to FATCA after the Agreement Date. 

  
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 (g) If the Borrower is required to pay any Indemnified Taxes or additional amounts to any
Lender or Governmental Authority for the account of any Lender pursuant to any of Section 2.5(a) through Section 2.5(c), then such Lender shall at the request of the Borrower use commercially reasonable efforts to mitigate the effect of
any such event by completing and delivering or filing any Tax-related forms or other documents that the Lender is lawfully able to deliver and that would establish the Lender’s eligibility for a reduction
or elimination of any amount of Taxes required to be deducted or withheld or paid by the Borrower hereunder, unless the Lender determines that such completion, delivery or filing of such forms or other documents (other than such documentation set
forth in paragraphs (d)(i), (d)(ii), (d)(iii) and (f) of this Section 2.5) would subject such Lender to any significant unreimbursed cost or loss or would prejudice the legal, commercial or tax position of such Lender. 

(h) For purposes of this Section 2.5, the term “Applicable Law” includes FATCA. 

Section 2.6 Costs, Expenses and Losses(a) . If, as a result of any failure by the Borrower to pay any sums due under this
Agreement on the due date therefor (after the expiration of any applicable grace periods), the Lenders shall incur costs, expenses and/or losses, by reason of the liquidation or redeployment of deposits from third parties or in connection with
obtaining funds to make a Disbursement, the Borrower shall pay to any Lender upon request by such Lender, the amount of such costs, expenses and/or losses within 15 Business Days after receipt by it of a certificate from such Lender setting forth in
reasonable detail such costs, expenses and/or losses, along with supporting documentation. For the purposes of the preceding sentence, “costs, expenses and/or losses” shall include, without limitation, any interest paid or payable to carry
any unpaid amount and any loss, premium, penalty or expense which may be incurred in obtaining, liquidating or employing deposits of or borrowings from third parties in order to make, maintain or fund the Loan or any portion thereof. 

Section 2.7 Interest. 

The outstanding principal amount of the Notes shall bear interest at the Interest Rate (calculated on the basis of the actual number of days
elapsed in each month). Except as set forth in Section 2.3(d), accrued interest shall first be paid in arrears on July 1, 2014 and thereafter quarterly in arrears on the first Business Day of each, October, January, April and July
thereafter (each, an “Interest Payment Date”). From and after the Effective Date, interest shall be paid in accordance with Section 2.3(d). 

Section 2.8 Interest on Late Payments. Without limiting the remedies available to the Lenders under the Transaction Documents or
otherwise, to the maximum extent permitted by Applicable Laws, if the Borrower fails to make a required payment of principal or interest with respect to the Notes when due, the Borrower shall pay on demand by the Required Lenders, in respect of such
unpaid principal and interest, interest at the rate per annum equal to the Interest Rate plus 10% for so long as such payment remains outstanding. 

Section 2.9 Intentionally Deleted. 

Section 2.10 Delivery of Warrants and Stock. 

  
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 (a) On the Closing Date, the Borrower shall issue to the DPDF Lender warrants to purchase an
aggregate of 14,423,076 shares of Series D Preferred Stock in substantially the form set forth on Exhibit E hereto (together with any Warrants issuable pursuant to subsections (b) and (c) below, the “Warrants”) at an initial
Exercise Price of $0.78 and an expiration date of June 2, 2024. 
 (b) Upon the DPDF Lender effecting the Second Disbursement the
Borrower shall issue to the DPDF Lender warrants to purchase an aggregate of 9,615,385 “Warrant Shares” (as defined in the Warrants) in substantially the form set forth on Exhibit E hereto at an initial Exercise Price of $0.78 and an
expiration date that is on the ten (10) year anniversary of the date of the Second Disbursement. 
 (c) Upon the DPDF Lender effecting
each of the Third Disbursement and the Fourth Disbursement, the Borrower shall issue to the DPDF Lender warrants to purchase a number of Warrant Shares equal to (i) 60% of the amount of the Third Disbursement or the Fourth Disbursement, as the case
may be, divided by (ii) the Subsequent Warrant Exercise Price, in substantially the form set forth on Exhibit E hereto at an initial exercise price of the Subsequent Warrant Exercise Price and an expiration date of the ten (10) year
anniversary of the date of the Third Disbursement. 
 (d) Notwithstanding anything herein to the contrary, the number of Warrant Shares into
which the Warrants to be issued pursuant to Section 2.10(b) and (c) are exercisable and the Subsequent Warrant Exercise Price thereof on the issue date shall be adjusted to reflect any adjustments in the number of Warrant Shares into which
such Warrant is exercisable that would have taken effect pursuant to the terms of such Warrant had such Warrant been issued on the Closing Date and remained outstanding through the date of such issuance. 

(e) “Subsequent Warrant Exercise Price” means an amount equal to (i) prior to an IPO, (x) $75,000,000, divided by
(y) the number of shares of Common Stock then outstanding (on a fully-diluted basis assuming the exercise of all outstanding options and warrants, the conversion of all convertible securities and the conversion of all shares of capital stock of
the Borrower into shares of Common Stock) and (ii) from an after the consummation of an IPO, 115% of the Volume Weighted Average Prices for the Borrower’s Common Stock for the twenty (20) consecutive Trading Day period prior to the
date of the Third Disbursement or the Fourth Disbursement, as the case may be. 
 “Volume Weighted Average Price” means the volume weighted
average sale price between 9:30 am and 4:00 New York City Time of such security on the principal securities exchange, trading market or quotation system where such security is listed or traded as reported by Bloomberg Financial Markets or an
equivalent, reliable reporting service (“Bloomberg”) mutually acceptable to and hereafter designated by the Required Lenders and the Borrower or, if no volume weighted average sale price is reported for such security, then the last closing
trade price of such security as reported by Bloomberg, or, if no last closing trade price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such security that are listed in the over the counter market
by the Financial Industry Regulatory Authority, Inc. or on the “over the counter” Bulletin Board (or any successor) or in the “pink sheets” (or any successor) by the OTC Markets Group, Inc. (collectively, the “OTC
Market”). If the Volume Weighted Average Price cannot be calculated for such security on such date in the manner provided above, the volume weighted average price shall be the fair market value as mutually determined by the Borrower and the
Required Lenders. 

  
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 “Trading Day” means any day on which the Common Stock is traded for at least two hours on
the principal securities exchange, trading market or quotation system on which the shares of Common Stock are then traded, quoted or listed. 

(f) On the date of the First Disbursement, the Borrower shall issue to the DPDF Lender 1,923,077 shares of Series D Preferred Stock (the
“Disbursement Shares”) valued at $0.78 per share in consideration for making the Loans contemplated under this Agreement. 

ARTICLE 3 

REPRESENTATIONS AND WARRANTIES 

Section 3.1 Representations and Warranties of the Borrower. The Borrower represents and warrants to the Lenders
that, except as set forth on the Schedules attached to this Agreement: 
 (a) The Borrower is conducting its business in compliance in all
material respects with its Organizational Documents, which are in full force and effect. 
 (b) No Default or Event of Default has occurred
under any of the Transaction Documents. 
 (c) The Borrower (i) after the Disbursements and the consummation of the transactions
contemplated by the Equity Documents will be capable of paying its debts as they fall due, and neither will be unable nor will have admitted its inability to pay its debts as they fall due, (ii) is not bankrupt and will not be insolvent and
(iii) has not taken action, and no such action has been taken by a third party, for the winding up, dissolution, or liquidation of its business or similar executory or judicial proceeding or for the appointment of a liquidator, custodian,
receiver, trustee, administrator or other similar officer for the Borrower or any or all of its assets or revenues. 
 (d) The obligation of
the Borrower to make any payment under the Transaction Documents (together with all charges in connection therewith) is absolute and unconditional, and there exists no right of setoff or recoupment, counterclaim, cross-claim or defense of any nature
whatsoever to any such payment. 
 (e) No Indebtedness of the Borrower exists other than Permitted Indebtedness. 

(f) The Borrower is validly existing and in good standing under the laws of the state of Delaware. The Borrower has full power and authority to
own its properties and conduct its business as now conducted and currently contemplated, and is duly qualified to do business as a foreign entity and is in good standing (or equivalent concept) in each jurisdiction in which the conduct of its
business makes such qualification necessary and in which the failure to so qualify could reasonably be expected to have a Material Adverse Effect. 

  
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 (g) There is not pending or, to the knowledge of the Borrower, threatened, any action, suit
or other proceeding before any Governmental Authority (a) to which the Borrower is a party or (b) which has as the subject thereof any assets owned by the Borrower, and, except as set forth on Schedule 3.1(g) Borrower is not a party to any
litigation or arbitration proceedings, and there are no current or, to the knowledge of the Borrower, pending, legal, governmental or regulatory enforcement actions, suits or other proceedings to which the Borrower or any of its assets is subject
that, in each case, could reasonably be expected to have a Material Adverse Effect. 
 (h) The Transaction Documents and the Equity Documents
have been duly authorized, executed and delivered by the Borrower, and constitute the valid, legal and binding obligation of the Borrower enforceable in accordance with their terms and, in the case of the Equity Documents, to the best of
Borrower’s knowledge the other parties thereto other than the DPDF Lender, except as such enforceability may be limited (i) by applicable insolvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’
rights generally, and (ii) by applicable equitable principles (whether considered in a proceeding at law or in equity). The execution, delivery and performance of the Transaction Documents and the Equity Documents by the Borrower and the
consummation of the transactions therein contemplated (including, without limitation, the issuance of Series D Preferred Stock and the exercise of conversion of the foregoing securities) will not (A) conflict with or result in a breach or
violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any Lien (other than Permitted Liens) upon any assets of the Borrower pursuant to any agreement to which the Borrower is a
party or by which the Borrower is bound or to which any of the assets of the Borrower are subject, (B) result in any violation of or conflict with the provisions of its Organizational Documents or (C) result in the violation of any
Applicable Law or any judgment, order, rule, regulation or decree of any Governmental Authority. Except for the Series D Charter Filing and filings pursuant to Regulation D of the Securities Act and applicable state securities laws, which have been
made or will be made in a timely manner, no consent, approval, authorization or order of, or registration or filing with, any Governmental Authority is required for the execution, delivery and performance of any of the Transaction Documents or for
the consummation by the Borrower of the transactions contemplated thereby except for such registrations and filings in connection with the issuance of the Warrants and Warrant Shares pursuant to the Transaction Documents that are necessary to comply
with federal and state securities laws, rules and regulations, and filings contemplated by the Guaranty and Security Agreement and the Borrower has the entity power and authority to enter into the Transaction Documents and to consummate the
transactions contemplated under the Transaction Documents. 
 (i) Other than Authorizations, approvals and consents that have been obtained,
no authorization, approval or consent is required for (i) the execution and delivery of this Agreement, the other Transaction Documents, and the Warrants, or (ii) the consummation of the transactions contemplated hereby and thereby,
including but not limited to the Series D Charter filing, the Agreement and Plan of Merger, the issuance and exercise of the Warrants and the issuance and conversion of the Convertible Notes and Series D Preferred Stock issuable hereunder and of the
Disbursement Shares. 

  
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 (j) The Borrower holds, and is operating in good standing and in compliance in all material
respects with, all franchises, grants, authorizations, licenses, permits, easements, consents, certificates and orders of any Governmental Authority (collectively, “Authorizations”) required for the conduct of its business as now
conducted and currently contemplated and all Authorizations are valid and in full force and effect; and the Borrower has not received written notice of any revocation or modification of any Authorization, and no condition exists or event has
occurred which, in itself or with the giving of notice of lapse of time or both, would result in any such Authorization not being renewed in the ordinary course; and the Borrower is in compliance in all material respects with Applicable Law. 

(k) The Borrower has good and marketable title to all of its assets necessary for or used in its business, free and clear of all Liens except
Permitted Liens. The property held under lease by the Borrower is held under valid, subsisting and enforceable leases with only such exceptions with respect to any particular lease as do not interfere in any material respect with the conduct of the
business of the Borrower. 
 (l) The Borrower owns or has the right to use pursuant to a valid and enforceable written license, implied
license or other legally enforceable right all of the Intellectual Property (as defined below) that is necessary for the conduct of its business as currently now conducted (the “IP”). The IP that is registered with or issued by a
Governmental Authority is valid and enforceable; there is no outstanding pending or threatened action, suit, other proceeding or claim by any third person challenging or contesting (i) the Borrower’s ownership or use of or other rights in
any IP, and (ii) the validity, scope, or enforceability of any IP owned by the Borrower, and the Borrower has not received any written notice regarding any such action, suit, or other proceeding. To its knowledge, the Borrower’s business
as conducted by it does not and has not infringed, and Borrower has not misappropriated, any valid Intellectual Property rights of others. There is no pending or, to the knowledge of the Borrower, threatened action, suit, other proceeding or claim
by others that Borrower’s business as conducted by it infringes upon, violates or misuses the Intellectual Property rights of others without authorization, and Borrower has not received any written notice regarding any such action, suit, other
proceeding or claim. Except as set forth on Schedule 3.1(l), Borrower is not a party to or bound by any option, license or agreement with respect to IP. The term “Intellectual Property” as used herein means (i) all patents,
patent applications, patent disclosures and inventions (whether patentable or unpatentable and whether or not reduced to practice), (ii) all trademarks, service marks, trade dress, trade names, slogans, logos, and corporate names and Internet domain
names, together with all of the goodwill associated with each of the foregoing, (iii) copyrights, copyrightable works, and licenses, (iv) registrations and applications for registration for any of the foregoing, (v) computer software
(including but not limited to source code and object code), data, databases, and documentation thereof, (vi) trade secrets and other confidential information, (vii) other intellectual property, and (viii) copies and tangible
embodiments of the foregoing (in whatever form and medium). 
 (m) The Borrower is not in breach of or otherwise in default under, and no
event has occurred which, with notice or lapse of time or both, would constitute such breach or other default in the performance of any agreement or condition contained in any agreement under which the Borrower is bound, or to which any of its
assets is subject. 

  
 24 

 (n) The Borrower has made available to Lenders all material correspondence with Government
Authorities for the past three years, and all adverse event reports with respect to KP201, KP303, KP415 and KP511 (collectively, the “Products”) and all requested documents related to the Products, in each case in the possession and
control of the Borrower. To its knowledge, the Borrower has not withheld any document or information with respect the Products that would reasonably be considered to be material to Lender’s decision to make the disbursements contemplated
hereunder. The Borrower has not received any notice citing action or inaction by the Borrower that, to its knowledge, would constitute any non-compliance with any Applicable Laws or standards, which would
reasonably be expected to result in a Material Adverse Effect. To the knowledge of the Borrower, the studies, tests and preclinical and clinical trials conducted relating to the Products have been conducted in all material respects in accordance
with experimental protocols, procedures and controls pursuant to, where applicable, accepted professional and scientific standards at the time when conducted; the descriptions of the results of such studies, tests and trials provided to the Borrower
are accurate in all material respects; and the Borrower has not received any notices or correspondence from any Governmental Authority requiring the termination, suspension, material modification or clinical hold of any such studies, tests or
preclinical or clinical trials conducted by or on behalf of the Borrower. 
 (o) All federal, and all material state, local and foreign tax
returns, including informational returns and including amendments to any of the foregoing, filed or required to be filed with a Governmental Authority with respect to Taxes (collectively, the “Tax Returns”) required to be filed by
any Tax Affiliates have been filed with the appropriate Government Authorities, or timely extensions have been obtained, and all such Tax Returns are true and correct in all material respects, and all Taxes reflected therein and all other material
Taxes otherwise due and payable have, in each case, been paid prior to the date on which any liability may be added thereto for non-payment thereof, except for those contested in good faith by appropriate
proceedings for which adequate reserves are maintained on the books of the appropriate Tax Affiliate in accordance with GAAP. As of the Agreement Date, no material Tax Return of the Borrower is under audit or examination by any Governmental
Authority, and no notice of any audit or examination or any assertion of any material claim for Taxes has been given or made in writing to the Borrower by any Governmental Authority, which claim has not been resolved. Each Tax Affiliate has properly
withheld all material amounts required to be withheld by such Tax Affiliate from its respective employees for all periods in full and complete compliance with the Tax, social security and unemployment withholding provisions of applicable law and
such withholdings have been paid to the respective Government Authorities. No Tax Affiliate has participated in a “reportable transaction” within the meaning of Treasury Regulation
Section 1.6011-4(b) or has been a member of an affiliated, combined or unitary group other than the group of which a Tax Affiliate is the common parent. No written claim has been made by a Governmental
Authority in a jurisdiction where the Tax Affiliates do not file Tax Returns that they (or any of them) may be subject to taxation by, or required to file any Tax Return in, that jurisdiction. 

(p) Except as set forth on Schedule 3.1(p), the Borrower has not granted rights to develop, market license or sell its products, services or
Intellectual Property to any other Person and the Borrower is not bound by any agreement that affects the exclusive right of the Borrower to develop, manufacture, produce, assemble, distribute, license, market or sell its products, services or
Intellectual Property. 

  
 25 

 (q) The Borrower: (A) has at all times complied in all material respects with
Applicable Law; (B) has not received any warning letter or other correspondence or notice from the FDA or from any other Governmental Authority alleging or asserting noncompliance with Applicable Laws to the extent that such noncompliance could
reasonably be expected to result in a Material Adverse Effect; (C) has no knowledge of any act, omission, event or circumstance that would reasonably be expected to give rise to or lead to any civil, criminal or administrative action, suit,
demand, claim, complaint, hearing, investigation, demand letter, warning letter, proceeding or request for information by the FDA or any other Governmental Authority against the Borrower and the Borrower has no liability (whether actual or
contingent) for failure to comply with any Applicable Laws; (D) has, to its knowledge, filed, obtained, maintained or submitted all reports, documents, forms, notices, applications, records, claims, submissions and supplements or amendments as
required to be filed, obtained, maintained or submitted with, from or to the FDA pursuant to Applicable Laws; and (E) there is no false or misleading information or material omission in any of its submissions to the FDA or any other
Governmental Authority that could reasonably be expected to result in a Material Adverse Effect. 
 (r) The unaudited financial statements of
the Borrower for the fiscal year ended 2013 and the month ended March 31, 2014 attached hereto on Schedule 3.1(r), together with the Company’s audited income statement and statement of cash flows for the fiscal year ended 2012, together
with the related notes, fairly present in all material respects the financial condition of the Borrower as of the dates indicated and the results of operations and changes in cash flows for the periods therein specified in conformity with GAAP in
the United States, or the generally accepted accounting principles of any other applicable jurisdiction, consistently applied throughout the periods involved, except as otherwise set forth on Schedule 3.1(r). No Material Adverse Effect has occurred
since the date of such financial statements and except as disclosed in such financial statements, Borrower has no material liabilities. The Borrower has no Subsidiaries that are not consolidated on the Borrower’s financial statements. 

(s) Except as set forth on Schedule 3.1(s), no agent, broker, investment banker or other Person acting on behalf of Borrower, or under the
authority thereof, is or will be entitled to any brokers’ or finders’ fee or any other commission or similar fee directly or indirectly from any of the Parties hereto in connection with any of the transactions contemplated hereby. 

(t) (i) To the knowledge of the Borrower, no “prohibited transaction” as defined under Section 406 of ERISA or Section 4975
of the Code, or any individual or class exemption issued and not exempt under ERISA Section 408 and the regulations and published interpretations thereunder or under any applicable prohibited transaction, individual or class exemption issued by
the Department of Labor, has occurred with respect to any Employee Benefit Plan, except as for such transaction would not have a Material Adverse Effect, (ii) at no time within the last seven (7) years has the Borrower or any ERISA
Affiliate maintained, sponsored, participated in or contributed to, or has or had any liability or obligation in respect of, any Employee Benefit Plan subject to Section 302 of ERISA, Title IV of ERISA, or Section 412 of the Code or any
“multiemployer plan” as defined in Section 3(37) of ERISA or any multiple employer plan for which the Borrower or any ERISA Affiliate has incurred or could incur liability under Section 4063 or 4064 of ERISA, (iii) no
Employee Benefit Plan represents any current or future liability for retiree health, life insurance, or other retiree welfare benefits except as may be required by the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, or similar
state 

  
 26 

 
law, (iv) each Employee Benefit Plan is and has been operated in compliance with its terms and all applicable laws, including but not limited to ERISA and the Code, except for such failures
to comply that would not have a Material Adverse Effect, (v) no event has occurred (including a “reportable event” as such term is defined in Section 4043 of ERISA) and no condition exists that would subject the Borrower or any
ERISA Affiliate to any Tax, fine, lien, penalty or liability imposed by ERISA, the Code or other applicable law, except for any such Tax, fine, lien, penalty or liability that would not, individually or in the aggregate, have a Material Adverse
Effect, (vi) the Borrower does not maintain any Foreign Benefit Plan, and (vii) the Borrower does not have any obligations under any collective bargaining agreement. As used in this Section 3.1(t), “Employee Benefit Plan”
means any material “employee benefit plan” within the meaning of Section 3(3) of ERISA, including, without limitation, all stock purchase, stock option, stock based severance, employment, change in control, medical, disability, fringe
benefit, bonus, incentive, deferred compensation, employee loan and all other employee benefit plans, agreements, programs, policies or other arrangements, whether or not subject to ERISA, under which (A) any current or former employee,
director or independent contractor of the Borrower or any of its Subsidiaries has any present or future right to benefits and which are contributed to, sponsored by or maintained by the Borrower or any of its respective Subsidiaries or (B) the
Borrower or any of its Subsidiaries has had or has any present or future obligation or liability; “ERISA” means the Employee Retirement Income Security Act of 1974, as amended; “ERISA Affiliate” means any member of the
Borrower’s controlled group as defined in Code Section 414 (b), (c), (m) or (o); and “Foreign Benefit Plan” means any Employee Benefit Plan established, maintained or contributed to outside of the United States of America or
which covers any employee working or residing outside of the United States. 
 (u) As of the Agreement Date, except as set forth on Schedule
3.1(u), the Borrower does not currently own or control, directly or indirectly, any interest in any other corporation, partnership, trust, joint venture, limited liability company, association, or other business entity. The Borrower does not
currently own or control, directly or indirectly, any outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal or similar rights) or agreements, orally or in writing, to purchase or acquire any
shares of capital stock, or any securities convertible into or exchangeable for shares of capital stock of any other corporation, partnership, trust, joint venture, limited liability company, association or other business entity. 

(v) As of the Agreement Date, except as disclosed to the Lenders, the Borrower has not declared or paid any dividends or made any distribution
of any kind with respect to its capital stock, and there has not been any change in the capitalization of Borrower (other than a change in the number of outstanding shares of Common Stock due to the issuance of shares upon the exercise of
outstanding options or warrants), or any issuance of options, warrants, convertible securities or other rights to purchase their capital stock. 

(w) As of the Agreement Date, all of the issued and outstanding shares of capital stock of the Borrower are duly authorized and validly issued,
fully paid and nonassessable, have been issued in compliance with all federal and state and foreign securities laws, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities that
have not been waived in writing. Subject to the Series D Charter Filing, the conversion of the Existing Convertible Notes into shares of Series D Preferred Stock and the 

  
 27 

 
conversion of the Existing Warrants into warrants to purchase shares of Series D Preferred Stock, the Warrants, the Disbursement Shares and the shares of Series D Preferred Stock issuable upon
exercise of the Warrants (the “Warrant Shares”), the Senior Secured Convertible Notes, the shares of Series D Preferred Stock issuable upon conversion of the Senior Secured Convertible Notes (the “Note Shares”) and
the shares of Common Stock issuable upon conversion of the Disbursement Shares, the Warrant Shares and the Note Shares (the “Conversion Shares”) have been duly authorized, and the Warrant Shares, Note Shares and Conversion Shares,
when issued, delivered and paid for in accordance with the terms of the Warrants and the Senior Secured Convertible Notes or the Series D Preferred Stock, as applicable, will have been validly issued and will be fully paid and non-assessable. Subject to the Series D Charter Filing, the conversion of the Existing Convertible Notes into shares of Series D Preferred Stock and the conversion of the Existing Warrants into warrants to purchase
shares of Series D Preferred Stock and except as set forth on Schedule 3.1(w), there are no preemptive rights or other rights to subscribe for or to purchase, or any restriction upon the voting or transfer of any shares of Common Stock pursuant to
the Borrower’s Organizational Documents or any agreement to which the Borrower is a party or by which the Borrower is bound that have not been fully waived in respect of the issuance of the Disbursement Shares, the Warrants, the Senior Secured
Convertible Notes and the shares of Series D Preferred Stock and Common Stock issuable thereunder (and shares of Common Stock issuable upon any conversion of such shares of Series D Preferred Stock). The Borrower’s disclosure of its outstanding
shares of capital stock, options and warrants as set forth on Schedule 3.1(w) is accurate and, except as set forth on Schedule 3.1(w), there are no additional options issuable or issued under the Borrower’s option plans or any other options,
warrants, agreements, contracts or other rights in existence to purchase or acquire from the Borrower or any shares of the capital stock of the Borrower. The issuance and delivery of the Disbursement Shares, the Warrants and the Senior Secured
Convertible Notes does not and, assuming full exercise of the Warrants and full conversion of the Senior Secured Convertible Notes, neither the exercise of the Warrants nor the conversion of the Senior Secured Convertible Notes will, require
approval from any Governmental Authority. The Disbursement Shares have been duly authorized, validly issued and are fully paid and non-assessable. 

(x) No Lien exists on the Borrower’s assets, except for Permitted Liens. 

(y) Subject to the Series D Charter Filing, the conversion of the Existing Convertible Notes into shares of Series D Preferred Stock and the
conversion of the Existing Warrants into warrants to purchase shares of Series D Preferred Stock, the issuance of the Disbursement Shares and the issuance of the Warrants and Warrant Shares and the Senior Secured Convertible Notes and the Note
Shares and Conversion Shares will not obligate the Borrower to issue shares of Common Stock or other securities to any Person (other than the DPDF Lender and the vesting of existing stock options granted to directors and officers of the Borrower and
other than, in the case of Common Stock, the holder of such instrument being converted) and will not result in a right of any holder of Borrower securities to adjust the exercise, conversion, exchange or reset price under and will not result in any
other adjustments (automatic or otherwise) under any of such securities. Subject to the Series D Charter Filing, the conversion of the Existing Convertible Notes into shares of Series D Preferred Stock and the conversion of the Existing Warrants
into warrants to purchase shares of Series D Preferred Stock, except for the Equity Documents, and as disclosed on Schedule 3.1(y), there are no stockholders’ agreements, voting agreements or other similar agreements with respect to the
Borrower’s capital stock to which the Borrower is a party or, to the Borrower’s knowledge, between or among any of the Borrower’s stockholders. 

  
 28 

 (z) The Persons holding Existing Convertible Notes issued by the Borrower have converted the
principal of, and accrued and unpaid interest thereon, to Series D Preferred Stock. 
 (aa) As of the Agreement Date, the Borrower has no
Subsidiaries. 
 (bb) Subject to the Series D Charter Filing, the Borrower has authorized and reserved for issuance a number of shares of
Series D Preferred Stock and Common Stock sufficient to cover all shares issuable on exercise of the Warrants or conversion of the Senior Secured Convertible Notes (computed without regard to any limitations on the number of shares that may be
issued on exercise or conversion) and shares of Common Stock issuable upon exercise of the Disbursement Shares and the shares of Series D Preferred Stock that are issuable upon exercise of the Warrants and conversion of the Senior Secured
Convertible Notes. 
 (cc) The Borrower is not required, and at no time during the previous five years has the Borrower been required to
register under the Securities Exchange Act of 1934, as amended. 
 (dd) Except as disclosed to Lender in writing, Borrower is not subject to
any pending or threatened written claims against Borrower by any employees relating to labor or employment matters that singly or in the aggregate could reasonably be expected to have a Material Adverse Effect. 

Section 3.2 Borrower Acknowledgment. The Borrower acknowledges that it has made the representations and warranties referred to in
Section 3.1 with the intention of persuading the Lenders to enter into the Transaction Documents and that the Lenders have entered into the Transaction Documents on the basis of, and in full reliance on, each of such representations and
warranties. 
 Section 3.3 Representations and Warranties of the Lenders. Each Lender represents and warrants to
the Borrower as of the Agreement Date that: 
 Section 3.4 

(a) Such Lender is duly organized and validly existing under the laws of the jurisdiction of its formation. 

(b) Each Transaction Document to which it is a party has been duly authorized, executed and delivered by such Lender and constitutes its valid
and legally binding obligation, enforceable in accordance with its terms, except as such enforceability may be limited by (i) applicable insolvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights
generally, and (ii) applicable equitable principles (whether considered in a proceeding at law or in equity). 
 (c) Such Lender has
full power and authority to make the Disbursements and to enter into and perform its other obligations under each Transaction Document and carry out the other transactions contemplated thereby. 

  
 29 

 ARTICLE 4 

CONDITIONS OF DISBURSEMENT 

Section 4.1 Conditions to Disbursement. 

(a) The obligation of the DPDF Lender to make the First Disbursement shall be subject to the following conditions being satisfied within thirty
days of the Agreement Date: 
 (i) The DPDF Lender shall have received from the Borrower executed counterparts of the
Transaction Documents and Equity Documents to which the Borrower is a party, a certificate as to the Borrower’s Organizational Documents, resolutions and incumbency, and an opinion of its counsel reasonably acceptable to the DPDF Lender, such
opinion to include an opinion as to an exemption available for the issuance of the Common Stock outstanding on the Agreement Date under the Securities Act. 

(ii) All actions required to be taken by the Borrower pursuant to Section 2.10 shall have been taken. 

(iii) At the time of and after giving effect to the Disbursement, all representations and warranties of Borrower shall be true
and correct in all material respects (unless qualified by materiality, in which event such representations and warranties shall be true and correct in all respects). 

(iv) No Default or Event of Default shall have occurred and be continuing or would result from the Disbursement. 

(v) The Borrower has issued to the DPDF Lender 1,923,077 shares of its Series D Preferred Stock valued at 0.78 per share in
consideration for making the Loans contemplated under this Agreement. 
 (vi) The Borrower has delivered the Pro-Forma Closing Date Balance Sheet to the DPDF Lender, together with a certification as to its accuracy and completeness. 

(vii) The outstanding Existing Convertible Notes of the Borrower, shall have been converted into an aggregate of 5,332,348
shares of Series D Preferred Stock. 
 (viii) The Disbursement Condition shall have been satisfied. 

(ix) The Series D Charter Filing shall have occurred and Borrower shall have taken all steps required to reincorporate in the
State of Delaware. 
 (x) No Material Adverse Effect shall have occurred since the Agreement Date. 

  
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 (xi) Borrower shall have obtained signatures from the holders of not less
than 55% of each class of equity interests in Borrower to each of the Equity Documents. 
 (b) The obligation of the DPDF Lender to make the
Second Disbursement shall be subject to the following conditions: 
 (i) No Default or Event of Default shall have occurred
and be continuing or would have resulted from the Disbursement. 
 (ii) The FDA Acceptance shall have occurred. 

(iii) At the time of and after giving effect to the Disbursement, all representations and warranties of Borrower shall be true
and correct in all material respects (unless qualified by materiality, in which event such representations and warranties shall be true and correct in all respects). 

(iv) The Disbursement Request shall have been received by the DPDF Lender prior to June 30, 2016, unless the written
consent of the DPDF Lender is obtained to extend such date, which consent may be granted or withheld in the DPDF Lender’s sole discretion. 

(c) The obligation of the DPDF Lender to make the Third Disbursement shall be subject to the following conditions: 

(i) No Default or Event of Default shall have occurred and be continuing or would have resulted from the Disbursement. 

(ii) The FDA Approval shall have occurred. 

(iii) At the time of and after giving effect to the Disbursement, all representations and warranties of Borrower shall be true
and correct in all material respects (unless qualified by materiality, in which event such representations and warranties shall be true and correct in all respects). 

(iv) The Disbursement Request shall have been received by the DPDF Lender prior to June 30, 2016, unless the written
consent of the DPDF Lender is obtained to extend such date, which consent may be granted or withheld in DPDF Lender’s sole discretion. 

(v) The Disbursement Request shall have been received by the DPDF Lender within 120 days of the issuance of the FDA Approval.

 (d) The obligation of the DPDF Lender to make the Fourth Disbursement shall be subject to the following conditions: 

(i) No Default or Event of Default shall have occurred and be continuing or would have resulted from the Disbursement. 

  
 31 

 (ii) The FDA Approval shall have occurred. 

(iii) At the time of and after giving effect to the Disbursement, all representations and warranties of Borrower shall be true
and correct in all material respects (unless qualified by materiality, in which event such representations and warranties shall be true and correct in all respects). 

(iv) The Disbursement Request shall have been received by the DPDF Lender prior to June 30, 2016, unless the written
consent of the DPDF Lender is obtained to extend such date, which consent may be granted or withheld in the DPDF Lender’s sole discretion. 

(v) The Disbursement Request for the Fourth Disbursement shall have been received by the DPDF Lender within 120 days of the
issuance of the FDA Approval. 
 (e) If the conditions to the First Disbursement have not been satisfied within thirty days of the Agreement
Date, then DPDF Lender shall not have any further obligations under this Agreement. 
 ARTICLE 5 

COVENANTS AND EVENTS OF DEFAULT 

Section 5.1 Affirmative Covenants. Unless the Required Lenders shall otherwise agree: 

(a) The Borrower shall maintain its existence and qualify and remain qualified to do its business as currently conducted, except for any merger
or dissolution of a Subsidiary in accordance with Section 5.2(a). 
 (b) The Borrower shall comply in all material respects with
Applicable Laws. 
 (c) The Borrower shall obtain and its Subsidiaries shall make and keep in full force and effect all Authorizations
required to conduct their businesses. 
 (d) The Borrower shall promptly notify the Lenders of the occurrence of (i) any Default or
Event of Default, (ii) any claim, litigation, arbitration, mediation or administrative or regulatory proceedings that are instituted or threatened against the Borrower or its Subsidiaries, except for such claims, litigations, arbitrations,
mediations or administrative or regulatory proceedings that could not reasonably be expected to result in a Material Adverse Effect, provided that, if Borrower or any of its Subsidiaries has outstanding any class of publicly traded securities, such
notice shall be given concurrently with public disclosure of any such event, (iii) any deaths in connection with any of the products of the Borrower or any of its Subsidiaries, (iv) any event that has had or could be reasonably expected to
have a Material Adverse Effect on the value of any Intellectual Property, and (v) each event which, at the giving of notice, lapse of time or determination of materiality or fulfillment of any other applicable condition (or any combination of
the foregoing), would constitute an event of default (however described) under any Transaction Document. 

  
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 (e) (i) If the Borrower is not required to file reports pursuant to Sections 13 or 15(d) of
the United States Securities Exchange Act of 1934, as it may be amended from time to time (the “Exchange Act”), the Borrower will provide quarterly unaudited consolidated financial statements within 60 days after the end of each of
the first three fiscal quarters of Borrower following the date of this Agreement and within 45 days after the end of each fiscal quarter of each fiscal year thereafter, and, commencing with the fiscal year ending December 31, 2015, audited
annual consolidated financial statements within 120 days after the end of each year prepared in accordance with GAAP in the United States or such other jurisdiction as may be applicable with a report thereon by the Borrower’s independent
certified public accountants (an “Accountant’s Report”); (ii) if the Borrower is required to file reports pursuant to Sections 13 or 15(d) of the Exchange Act, the Borrower will timely file with the SEC (subject to appropriate
extensions made under Rule 12b-25 of the Exchange Act) any annual reports, quarterly reports and other periodic reports required to be filed pursuant to Section 13 or 15(d) of the Exchange Act;
(iii) the Borrower will provide to the Lenders copies of all documents, reports, financial data and other information that the Lenders may reasonably request, including amendments to its Organizational Documents promptly after their
effectiveness; and (iv) during regular business hours and upon reasonable notice the Borrower will permit the Lenders to, (x) not more than once each calendar quarter at their own expense, visit and inspect any of the properties of the
Borrower or its Subsidiaries and (y) discuss the Borrower’s affairs and finances with its officers. 
 (f) The Borrower will
maintain general and liability insurance, and such other insurance coverage in such amounts and with respect to such risks as is customary by comparable companies as the Borrower. 

(g) By not later than the first anniversary of the Agreement Date, Borrower shall have obtained the signatures of holders of not less than 70%
of each class of equity interests in Borrower to each of the Equity Documents, whether as original signatories or by way of joinder, and provided evidence thereof to the DPDF Lender. 

(h) Borrower shall for a period of 24 months following the date of the First Disbursement, continue to use its best efforts to obtain
signatures to the Equity Documents from any holders of each class of equity interests in Borrower that have not executed such documents as of the date of the First Disbursement. 

(i) As soon as reasonably practicable, but in any event no later than forty-five (45) day after the Effective Date (or such later date as
the Required Lenders may determine in their sole discretion), Borrower shall deliver or cause to be delivered to Collateral Agent, with respect to each Deposit Account of the Borrower set forth on Schedule 6 to the Amended and Restated Guaranty and
Security Agreement as in effect on the Effective Date, a fully executed tri-party deposit account control agreement in form and substance reasonably satisfactory to Collateral Agent. Concurrently with or prior
to opening any depositary or other deposit account, the Borrower shall deliver or cause to be delivered to Collateral Agent, with respect to such account, a fully executed tri-party deposit account control
agreement in form and substance reasonably satisfactory to Collateral Agent. 

  
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 The Borrower shall cause each of its Subsidiaries to comply in all material respects with each of the
agreements set forth in Section 5.1. In the event of Borrower’s breach of Section 5.1(g) of this Agreement, the Interest Rate shall increase by 5% per annum (exclusive of any increased interest payable under Section 2.8 of this
Agreement). 
 Notwithstanding anything set forth in this Agreement to the contrary, if any notice or information required to be furnished contains material
non-public information (any such notice or information, a “Public Notice”), the Borrower, instead of delivering such Public Notice to all the Lenders shall promptly deliver such Public Notice
to each Lender that is not a Restricted Lender and promptly notify each Restricted Lender in writing or orally that Borrower desires to deliver to such Restricted Lender a Public Notice. Within five Business Days of receipt of such notification the
Restricted Lender may either (i) refuse the delivery of such Public Notice, in which case Borrower’s obligations with respect to such Public Notice and such Restricted Lender shall be deemed satisfied, or (ii) enter into good faith
negotiations with the Parent to agree to the time period within which the Borrower will make the material non-public information contained in such Public Notice publicly available by including such information
in a filing with the SEC. If Borrower and such Restricted Lender agree on such time period, the Borrower shall promptly deliver to such Restricted Lender such Public Notice and shall cause Parent to include the applicable material non-public information in a public filing with the SEC within such agreed to time period. The failure to agree on such time period will be deemed to satisfy Borrower’s obligations with respect to such Public
Notice and such Restricted Lender. 
 Section 5.2 Negative Covenants. Unless the Required Lenders shall otherwise agree: 

(a) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit Party to (i) liquidate or dissolve,
or (ii) enter into any merger, consolidation or reorganization, unless the Borrower or a Subsidiary of the Borrower organized in the United States is the surviving corporation. The Borrower shall not establish any Subsidiary unless such
Subsidiary executes and delivers to the Collateral Agent a joinder to the Guaranty and Security Agreement providing for all of its assets to be collateral thereunder, in which case such Subsidiary shall be deemed to be a Credit Party. 

(b) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit Party to (i) enter into any
partnership, joint venture, syndicate, pool, profit-sharing or royalty agreement or other combination, or engage in any transaction, whereby its income or profits are, or might be, shared with another Person other than a wholly owned Subsidiary
(provided that the foregoing shall not prohibit the Borrower or any other Credit Party from entering into a Permitted Royalty Financing in accordance with, and solely as permitted by, the terms of this Agreement), (ii) enter into any management
contract or similar arrangement whereby a substantial part of its business is managed by another Person, or (iii) distribute, or permit the distribution of, any of its assets, including its intangibles, to any shareholder of a Credit Party or
any Subsidiary of a Credit Party or any Affiliate of a Credit Party or equity holder of such Affiliate including by way of loans or advances to, or purchase or redemption of, equity interests in a Person. 

(c) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit Party to create, incur or suffer any Lien
upon any of its assets, other than Permitted Liens or assign, sell, transfer or otherwise dispose of, any Transaction Document or its rights and obligations thereunder. 

  
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 (d) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of
a Credit Party to create, incur, assume, guarantee or be liable with respect to any Indebtedness, other than Permitted Indebtedness. 
 (e)
The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit Party to engage in any business other than the business engaged in by such Person as of the Agreement Date and businesses reasonably related,
incidental, ancillary or complimentary thereto. 
 (f) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary
of a Credit Party to, directly or indirectly, enter into any transaction with any of its Affiliates, except in the ordinary course of business and upon terms that are no less favorable than would be obtained in a comparable arm’s length
transaction with a Person not an Affiliate. 
 (g) Intentionally Deleted. 

(h) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit Party to acquire any assets (other than
assets acquired in the ordinary course of business consistent with past practices), directly or indirectly, in one or more related transaction, for a consideration, inclusive of assumed Indebtedness, in cash or other property (valued at its fair
market value) greater than $750,000. 
 (i) The Borrower shall not and shall not permit any other Credit Party or any Subsidiary of a Credit
Party to sell or otherwise transfer any of their respective assets other than: 
 (A) in the ordinary course of business, including sales of
inventory, and sales, transfers and other dispositions of used, surplus, obsolete or outmoded machinery or equipment; 
 (B) sales or
transfers to the Borrower; 
 (C) the sale or discount of accounts receivable arising in the ordinary course of business, but only in
connection with the compromise or collection thereof and not in connection with any financing transaction; 
 (D) dispositions of assets
subject to any casualty or condemnation proceeding (including in lieu thereof); 
 (E) leases or subleases of real property granted by the
Borrower or any Subsidiary to third Persons not interfering in any material respect with the business of the Borrower or any Subsidiary; 

(F) the licensing of patents, trademarks, copyrights and other intellectual property in the ordinary course of business; and 

(G) sales or other transfers not otherwise permitted hereunder in an aggregate amount not to exceed $250,000. 

  
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 (j) The Borrower shall not transfer, assign or otherwise dispose of that certain License and
Collaboration Agreement, by and between the Borrower and Boston Pharmaceutical Holdings SA, an affiliate of Gurnet Point Capital Limited, dated as of September 3, 2019 (as amended or restated, the “GPC License Agreement”), or
any of the Borrower’s material rights thereunder, in whole or in part. 
 (k) The Borrower shall not consent to, authorize or permit any
other party to the GPC License Agreement to transfer, assign or otherwise dispose of its rights or obligations under the GPC License Agreement, in whole or in part, except to the extent that the Borrower’s consent thereto is not required by the
terms of the GPC License Agreement; provided, that nothing in this Section 5.2(k) shall limit the Borrower’s right to terminate the GPC License Agreement in accordance with the terms Section 13.3, 13.4, 13.5 or 15.2 thereof. 

(l) The Borrower shall enforce, and shall not enter into, consent to, authorize or permit any material amendment or modification of, or waive
in any material respect the provisions of, the GPC License Agreement; provided, that nothing in this Section 5.2(l) shall limit Borrower’s right to amend, modify or waive any portion of the Product Development Plan (as defined in the GPC
License Agreement) or the Commercialization Plan (as defined in the GPC License Agreement). 
 Section 5.3 Major Transaction
Put/Call. The Borrower shall give the DPDF Lender notice (“Major Transaction Notice”) of a Major Transaction at least 15 Business Days prior to the anticipated effective date for such transaction (the “MT
Date”) or, if the Borrower has outstanding any class of publicly traded securities, not later than 2 Business Days following the first public announcement thereof. The DPDF Lender, in the exercise of its sole discretion, may deliver at any
time during the period beginning after such DPDF Lender’s receipt of a Major Transaction Notice and ending 5 Business Days prior to the consummation of such Major Transaction a notice to the Borrower (the “Put Notice”),
declaring that the sum of the entire outstanding principal amount of the Term Notes plus all interest accrued and unpaid thereon on the MT Date (the “Put Price”) shall become due and payable on the MT Date. If the DPDF Lender
delivers a Put Notice, then on the MT Date, the Borrower shall pay the Put Price to the DPDF Lender and the Obligations with respect to the Term Notes shall terminate. The Borrower shall not consummate any Major Transaction without complying with
the provisions of this Section 5.3. 
 Section 5.4 General Acceleration Provision upon Events of Default. If any event
specified in this Section 5.4 shall have occurred and be continuing beyond the applicable cure period (each, an “Event of Default”), the Required Lenders, by notice to the Borrower, may declare the principal of, and accrued and
unpaid interest on, the Notes or any part of any of them (together with any other Obligations accrued or payable) to be, and the same shall thereupon become, immediately due and payable, without any further notice or any presentment, demand, or
protest of any kind, all of which are hereby expressly waived by the Borrower, and take any further action available at law or in equity, including, without limitation, the sale of the Loan and all other rights acquired in connection with the Loan:

 (a) The Borrower shall have failed to make payment of principal and interest under the Notes when due and such failure shall not have been
cured by the Borrower within 5 Business Days after receiving written notice of such failure from the Required Lenders (with a copy to each other Lender). 

  
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 (b) The Borrower shall have failed to comply with the due observance or performance of any
covenant contained in any Transaction Document (other than as described in (a) or (i) of this Section 5.4 or Section 5.1(g)), and such failure shall not have been cured by the Borrower within 45 days after receiving written
notice of such failure from the Required Lenders. 
 (c) Any representation or warranty made by the Borrower in any Transaction Document
shall have been incorrect, false or misleading in any material respect (except to the extent that such representation or warranty is qualified by reference to materiality or Material Adverse Effect, to which extent it shall have been incorrect,
false or misleading in any respect) as of the date it was made. 
 (d) (i) The Borrower shall generally be unable to pay its debts as such
debts become due, or shall admit in writing its inability to pay its debts as they come due or shall make a general assignment for the benefit of creditors; (ii) the Borrower shall declare a moratorium on the payment of its debts;
(iii) the commencement by the Borrower of proceedings to be adjudicated bankrupt or insolvent, or the consent by it to the commencement of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent
seeking reorganization, intervention or other similar relief under any applicable law, or the consent by it to the filing of any such petition or to the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of all or substantially all of its assets; (iv) the commencement against the Borrower of a proceeding in any court of competent jurisdiction under any bankruptcy or other applicable law (as now or hereafter in effect) seeking
its liquidation, winding up, dissolution, reorganization, arrangement, adjustment, or the appointment of an intervenor, receiver, liquidator, assignee, trustee, sequestrator (or other similar official), and any such proceeding shall continue
undismissed, or any order, judgment or decree approving or ordering any of the foregoing shall continue unstayed or otherwise in effect, for a period of 45 days or any other event shall have occurred which under any applicable law would have an
effect analogous to any of those events listed above in this subsection. 
 (e) One or more judgments against the Borrower or attachments
against any of its property, in excess of $250,000, or remain(s) unpaid, unstayed on appeal, undischarged, unbonded or undismissed for a period of 45 days from the date of entry of such judgment. 

(f) Any authorization of a Governmental Authority necessary for the execution, delivery or performance of any Transaction Document or for the
validity or enforceability of any of the Obligations is not given or is withdrawn or ceases to remain in full force or effect. 
 (g) The
validity of any Transaction Document shall be contested by the Borrower, or any Applicable Law shall purport to render any material provision of any Transaction Document invalid or unenforceable or shall purport to prevent or materially delay the
performance or observance by the Borrower of the Obligations. 

  
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 (h) There is a failure to perform in any agreement to which the Borrower is a party with a
third party or parties resulting in a right by such third party or parties to accelerate the maturity of any Indebtedness for borrowed money in an amount in excess of $250,000. 

(i) An Event of Default shall have occurred and be continuing under the Warrants or the Borrower shall have failed to comply with any of its
obligations under the Senior Secured Convertible Notes other than as provided in (a) above and such failure is not cured within 15 days after receiving written notice of such failure from the Required Lenders. 

(j) If any Governmental Authority terminates, suspends, or imposes any material restrictions on the business or operations of Borrower or any
Subsidiary, and such event results in a Material Adverse Effect. 
 Section 5.5 Automatic Acceleration on Dissolution or
Bankruptcy. Notwithstanding any other provisions of this Agreement, if an Event of Default under Section 5.4(d) occurs, the principal amount of the Notes (together with any other accrued or payable Obligations) shall thereupon become
immediately due and payable without any presentment, demand, protest or notice of any kind, all of which are hereby expressly waived by the Borrower. 

Section 5.6 Recovery of Amounts Due. If any amount payable hereunder is not paid as and when due, the Borrower hereby authorizes
the Lenders to proceed, to the fullest extent permitted by applicable law, without prior notice, by right of set-off, banker’s lien or counterclaim, against any moneys or other assets of the Borrower to
the full extent of all amounts payable to the Lenders. 
 ARTICLE 6 

MISCELLANEOUS 

Section 6.1 Notices. Any notice to be given under this Agreement shall be sent by certified or registered mail (return receipt
requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile or by electronic mail and shall be effective on the earlier of 5 days after being placed in the mail or receipt, if mailed by
regular United States mail, or upon receipt, if delivered personally or by courier or by facsimile, or when read by electronic mail in each case addressed to the applicable Party. The addresses for such communications shall be as set forth below (or
any other address for the applicable Party as is given to the other Parties by the applicable Party pursuant to written notice effected with this Section): 

If to the Borrower: 
 KemPharm, Inc. 

1180 Celebration Blvd. 
 Suite 103

 Celebration, FL 34747 
 Fax:
(321) 250-3698 
 E-mail: lclifton@kempharm.com 

Attention: R. LaDuane Clifton, Chief Financial Officer 

  
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 With copy (which shall not constitute notice hereunder) to: 

Cooley LLP 
 1299 Pennsylvania
Avenue, NW 
 Suite 700 

Washington, DC 20004 
 Fax: (703) 456-8100 
 Email: bsiler@cooley.com 

Attention: Brent Siler 
 If to the Deerfield
Lenders: 
 Deerfield Management Company, L.P. 

780 Third Avenue, 37th Floor 

New York, NY 10017 
 Fax: 212-599-3075 
 Email: dclark@deerfield.com 

Attn: David J. Clark 
 With a copy (which shall
not constitute notice hereunder) to: 
 Katten Muchin Rosenman LLP 

525 W. Monroe Street 
 Chicago,
Illinois 60661-3693 
 Fax: (212) 940-8776 

Email: mark.wood@katten.com 

Attn: Mark Wood 
 And 

Katten Muchin Rosenman LLP 
 575
Madison Avenue 
 New York, New York 10022-2585 

Fax: (212) 940-8776 

Email: connie.fratianni@katten.com 

Attn: Constance A. Fratianni 

  
 39 

 If to Delaware Street Capital Master Fund, L.P.: 

DSC Advisors, L.P. 
 900 N.
Michigan Avenue, Suite 1600 
 Chicago, Illinois 60611 

Email: bluhm@dscllc.com 
 Attn:
Andrew G. Bluhm, Manager of the General Partner 
 With a copy to: 

DSC Advisors, L.P. 
 900 N.
Michigan Avenue, Suite 1600 
 Chicago, Illinois 60611 

Fax: (312) 915-2487 

Email: kavitsky@dscllc.com 
 Attn:
Leo Kavitsky, Operations Manager 
 Section 6.2 Waiver of Notice. Whenever any notice is required to be given to the Lenders or
the Borrower under any Transaction Document, a waiver thereof in writing signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. 

Section 6.3 Reimbursement of Legal and Other Expenses. If any amount owing to the Lenders under any Transaction Document shall be
collected through enforcement of this Agreement, any Transaction Document or restructuring of the Loan in the nature of a work-out, settlement, negotiation, or any process of law, or shall be placed in the
hands of third Persons for collection, the Borrower shall pay (in addition to all monies then due in respect of the Loan or otherwise payable under any Transaction Document) reasonable and documented out-of-pocket attorneys’ and other fees and expenses incurred in respect of such collection. 

Section 6.4 Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to contracts made and to be performed in such State. All legal proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a Party or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of
New York. Each Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action
or proceeding is improper or is an inconvenient venue for such proceeding. Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via
registered or certified mail or overnight delivery (with evidence of delivery) to such Party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and
notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The Parties hereby waive all rights to a trial by jury. 

  
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 Section 6.5 Successors and Assigns. This Agreement shall bind and inure to the
respective successors and permitted assigns of the Parties, except that the Borrower may not assign or otherwise transfer all or any part of its rights under the Transaction Documents without the prior written consent of the Lenders. No Lender may
sell or otherwise transfer its commitment to extend Loans hereunder without Borrower’s written consent. Each Lender may sell or otherwise transfer a Note in accordance with such Note’s terms, provided that, absent an Event of Default such
Lender may not sell or otherwise transfer such Note to a Competitor of the Borrower and, provided further, that such Lender shall have provided notice of the transfer to the Borrower for recordation in the Register pursuant to Section 1.4. Upon
the transfer of an interest in a Note in accordance with the terms hereof and of such Note, the Borrower shall record the identity of the transferee and other relevant information in the Register and the transferee shall (to the extent of the
interests transferred to such transferee) have all the rights and obligations of, and shall be deemed, a Lender hereunder. Before any Lender assigns all or any part of its rights under this Agreement or the Notes to a Party other than an investment
fund managed by Deerfield Management, L.P., the Parties shall negotiate in good faith to amend this Agreement to appoint an administrative agent and grant such agent with rights and duties customary among syndicated credit facilities. Any such
amendment shall be at Lenders’ sole expense. 
 Section 6.6 Entire Agreement; Amendment. The Transaction Documents and the
Equity Documents contain the entire understanding of the Parties with respect to the matters covered thereby and supersede any and all other written and oral communications, negotiations, commitments and writings with respect thereto. No amendment,
restatement, modification, supplement, change, termination or waiver of any provision of this Agreement or the other Transaction Documents (other than the Warrants, any Control Agreement or any similar agreement or any landlord agreement or bailee
or mortgagee waiver, each of which may be amended, restated, supplemented, changed, terminated or waived in accordance with the terms thereof), and no consent to any departure by the Borrower or any other Credit Party therefrom shall in any event be
effective without the written concurrence of the Borrower and the Required Lenders (and shall not require the consent of any other Lenders). Nothing contained in this Section 6.6 shall prohibit, restrict or limit or be deemed to prohibit,
restrict or limit, the entry by any Credit Party into separate agreements and/or transactions with any Lender or Affiliate thereof, in respect of the Notes held by such Lender or otherwise, to the extent not otherwise prohibited, restricted or
limited by this Agreement or any of the Transaction Documents. 
 Section 6.7 Severability. If any provision of this Agreement
shall be invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions 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 provision. 

Section 6.8 Execution; Counterparts. This Agreement may be executed in several Counterparts and by each Party by facsimile or
other electronic transmission (including by email with an attached digital representation of a signature page hereto) on separate counterparts, each of which and any facsimile or other electronic copies thereof shall be deemed an original, but all
of which together shall constitute one and the same agreement. 

  
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 Section 6.9 Survival. 

(a) This Agreement and all agreements, representations and warranties made in the Transaction Documents, and in any document, certificate or
statement delivered pursuant thereto or in connection therewith shall be considered to have been relied upon by the other Parties and shall survive the execution and delivery of this Agreement and the making of the Loan hereunder regardless of any
investigation made by any such other Party or on its behalf, and shall continue in force until all amounts payable under the Transaction Documents shall have been fully paid in accordance with the provisions thereof, and the Lenders shall not be
deemed to have waived, by reason of making the Loan, any Event of Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding that the Lenders may have had notice or knowledge of any
such Event of Default or may have had notice or knowledge that such representation or warranty was false or misleading at the time the Disbursement was made. 

(b) The obligations of the Borrower under Sections 1.4 and 2.5 and the obligations of the Borrower and the Lenders under this Article 6,
including, without limitation, Section 6.11 and 6.17, shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, or the termination of this Agreement or
any provision hereof. 
 Section 6.10 Waiver. Neither the failure of, nor any delay on the part of, any Party in exercising any
right, power or privilege hereunder, or under any agreement, document or instrument mentioned herein, shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder, or under any agreement,
document or instrument mentioned herein, preclude other or further exercise thereof or the exercise of any other right, power or privilege; nor shall any waiver of any right, power, privilege or default hereunder, or under any agreement, document or
instrument mentioned herein, constitute a waiver of any other right, power, privilege or default or constitute a waiver of any default of the same or of any other term or provision. No course of dealing and no delay in exercising, or omission to
exercise, any right, power or remedy accruing to the Lenders upon any default under this Agreement or any other agreement shall impair any such right, power or remedy or be construed to be a waiver thereof or an acquiescence therein; nor shall the
action of the Lenders in respect of any such default, or any acquiescence by it therein, affect or impair any right, power or remedy of the Lenders in respect of any other default. All rights and remedies herein provided are cumulative and not
exclusive of any rights or remedies otherwise provided by law. 
 Section 6.11 Indemnity. 

(a) The Borrower shall, at all times, indemnify and hold each Lender harmless (the “Indemnity”) and each of their respective
directors, partners, officers, employees, agents, counsel and advisors (each, an “Indemnified Person”) in connection with any losses, claims (including the reasonable and documented out-of-pocket attorneys’ fees incurred in defending against such claims), damages, liabilities, penalties, or other reasonable and documented out-of-

  
 42 

 
pocket expenses arising out of, or relating to, the Transaction Documents, the extension of credit hereunder, the Loan or the use or intended use of the Loan, or a breach of Section 3.1(h)
of this Agreement, regardless of Borrower’s lack of knowledge, which an Indemnified Person may incur or to which an Indemnified Person may become subject but (each, a “Loss”). The Indemnity shall not apply (i) to the
extent that a court or arbitral tribunal of competent jurisdiction issues a final judgment that such Loss resulted from the gross negligence or willful misconduct of the Indemnified Person or (ii) to Losses that do not involve an act or
omission by the Borrower or any of its Affiliates and that is brought by an Indemnified Person against any other Indemnified Person or (iii) in relation to any settlement effected by any Indemnified Person without the Borrower’s consent.
The Indemnity is independent of and in addition to any other agreement of the Borrower under any Transaction Document to pay any amount to the Lenders, and any exclusion of any obligation to pay any amount under this subsection shall not affect the
requirement to pay such amount under any other section hereof or under any other agreement. For the avoidance on doubt, this Section 6.11 shall not apply to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from
any non-Tax claim. 
 (b) Promptly after receipt by an Indemnified Person under this
Section 6.11 of notice of the commencement of any action (including any governmental action), such Indemnified Person shall, if a Loss in respect thereof is to be made against the indemnifying person under this Section 6.11, deliver to
Borrower a written notice of the commencement thereof, and Borrower shall have the right to participate in, and, to the extent Borrower so desires, to assume control of the defense thereof with counsel mutually satisfactory to Borrower and the
Indemnified Person, as the case may be. 
 (c) An Indemnified Person shall have the right to retain its own counsel with the reasonable and
documented out-of-pocket fees and expenses to be paid by the indemnifying person, if, in the reasonable opinion of counsel for the Indemnified Person, the representation
by such counsel of the Indemnified Person and Borrower would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party represented by such counsel in such proceeding. The Borrower shall pay
for only one separate legal counsel for the Indemnified Persons. The failure of an Indemnified Person to deliver written notice to the Borrower within a reasonable time of the commencement of any such action shall not relieve the Borrower of any
liability to the Indemnified person under this Section 6.11, except to the extent that Borrower is actually prejudiced in its ability to defend such action. The indemnification required by this Section 6.11 shall be made by periodic
payments of the amount thereof during the course of the investigation or defense, as such expense, loss, damage or liability is incurred and is due and payable. 

(d) The Borrower will not be liable under the Transaction Documents for any amount paid by an Indemnified Person to settle any claims or
actions if the settlement is entered into without the Borrower’s consent (which consent shall not be unreasonably withheld, delayed or conditioned), provided that this section 6.11(f) shall not apply to those settlements where the Borrower was
offered the ability to assume the defense of the action that directly and specifically related to the subject matter of such settlement and elected not to assume such defense. 

  
 43 

 (e) TO THE EXTENT PERMITTED BY LAW, NO PARTY HERETO SHALL ASSERT, AND EACH PARTY HERETO
HEREBY WAIVES, ANY CLAIM AGAINST ANY INDEMNIFYING PARTY HEREUNDER, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGE (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF
THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 Section 6.12
No Usury. The Transaction Documents are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of acceleration or otherwise, shall the amount paid or agreed to be paid to the Lenders for the Loan exceed the
maximum amount permissible under applicable law. If from any circumstance whatsoever fulfillment of any provision hereof, at the time performance of such provision shall be due, shall involve transcending the limit of validity prescribed by law,
then, ipso facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance the Lenders shall ever receive anything which might be deemed interest under applicable law that would exceed the
highest lawful rate, such amount that would be deemed excessive interest shall be applied to the reduction of the principal amount owing on account of the Loan, or if such deemed excessive interest exceeds the unpaid balance of principal of the
Loan, such deemed excess shall be refunded to the Borrower. All sums paid or agreed to be paid to the Lenders for the Loan shall, to the extent permitted by applicable law, be deemed to be amortized, prorated, allocated and spread throughout the
full term of the Loan until payment in full so that the deemed rate of interest on account of the Loan is uniform throughout the term thereof. The terms and provisions of this Section shall control and supersede every other provision of this
Agreement and the Notes. 
 Section 6.13 Further Assurances. From time to time, the Parties shall perform any and all acts and
execute and deliver to the other parties hereto such additional documents as may be necessary or as requested by any Party to carry out the purposes of any Transaction Document or any or to preserve and protect rights of such Party as contemplated
therein. 
 Section 6.14 Confidentiality. 

(a) Lenders agree that they will hold any confidential information they may receive from Borrower in connection with The Transaction Documents
in confidence, unless such confidential information (a) is known or becomes known to the public in general (other than as a result of a breach of this Subsection 6.14(a) by Lenders), (b) is or has been independently developed or
conceived by Lenders without use of Borrower’s confidential information, or (c) is or has been made known or disclosed to Lender by a third party without a breach of any obligation of confidentiality such third party may have to Borrower;
provided, however, that Lenders may disclose confidential information (i) to their attorneys, accountants, consultants, and other professionals to the extent necessary to obtain their services in connection with this Agreement and
the other Transaction Documents; (ii) to any prospective purchaser of any Loan from Lenders, if a transfer to such prospective purchaser is permitted and such prospective purchaser agrees to be bound by the provisions of this Subsection
6.14(a); (iii) to any existing or prospective Affiliate, partner, member, shareholder, or wholly owned subsidiary of a Lender in the ordinary course of business, provided that Lenders inform such Person that such information is confidential and
direct such Person to maintain the confidentiality of such information; (iv) as may otherwise be required by law, regulation or legal process; or (v) to any Person in connection with any legal proceeding to which it is a party. 

  
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 (b) Notwithstanding anything to the contrary herein, in any Transaction Document or in any
other agreement entered into on or before the Effective Date, in the event that the Borrower or any other Credit Party believes that a notice or communication to any Lender or to any officer, partner, employee or Affiliate of any Lender
(collectively with the Lenders, the “Lender Parties”) or any other information that may be provided by or on behalf of the Borrower or any Credit Party to any of the Lender Parties contains material, nonpublic information relating
to the Borrower, any Credit Party or any of their respective subsidiaries or Affiliates or any of their respective property, assets, securities or businesses, the Borrower shall so indicate to the applicable Lender Party contemporaneously with
delivery of such notice, communication or information, and such indication shall provide such Lender Party the means to refuse to receive such notice or communication; and in the absence of any such indication, the Lender Party (and any other Lender
Parties related thereto) shall be allowed to presume that all matters relating to such notice, communication or information do not constitute material, nonpublic information relating to the Borrower, any Credit Party or any of their respective
subsidiaries or Affiliates or any of their respective property, assets, securities or businesses. No Lender Party shall have any duty of trust or confidence with respect to, or any obligation not to trade in any securities on the basis of, any
material nonpublic information regarding the Borrower, any Credit Party or any of their respective subsidiaries or Affiliates or any of their respective property, assets, securities or businesses provided by, or on behalf of, the Borrower, any
Credit Party, any of their respective subsidiaries, any of their respective Affiliates or any of their respective officers, directors, employees, attorneys, representatives or agents, in violation of any of the covenants set forth in this
Subsection 6.14(b) or that is otherwise possessed (or continued to be possessed) by any Lender Party as a result of a breach of any of the covenants set forth in this Subsection 6.14(b). 

Section 6.15 Credit Analysis. Each Lender shall be responsible for keeping itself informed of (a) the financial condition of
the Borrower and all other Credit Parties and (b) all other circumstances bearing upon the risk of nonpayment of the Obligations hereunder, and have made and shall continue to make, independently and without reliance upon each other, its own
credit analysis and decision in entering into the documents to which it is a party and taking or not taking any action thereunder. None of the Lenders shall have any duty to advise any other Lender of information known to it regarding such condition
or any such other circumstances, and no disclosure of any such information shall create any obligation to provide any further information to be deemed to constitute or require any representation or warranty from the disclosing Lender regarding that
or any other information. No Lender assumes any liability to any other Person with respect to: (i) the financial or other condition of the Borrower and all other Credit Parties, (ii) the enforceability, validity, value or collectability of
the Loans, any collateral therefor or any guarantee or security which may have been granted in connection with any of the Obligations hereunder or under any other Transaction Document, (iii) any Credit Party’s title or right to transfer
any collateral or security or (iv) any other circumstance that might bear on the risk of nonpayment of the Obligations. 

  
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 Section 6.16 Sharing of Payments. 

If any Lender, directly or through any of its Affiliates, obtains any payment of interest or principal on any of its Loans (whether voluntary,
involuntary or through the exercise of any right of setoff or the receipt of any Collateral or “proceeds” (as defined under the UCC (as defined in the Guaranty and Security Agreement)) of Collateral) (and other than pursuant to
Section 6.5) and such payment exceeds the amount such Lender would have been entitled to receive if all payments had gone to, and been distributed in accordance with the provisions of this Agreement and the other
Transaction Documents, such Lender shall purchase for cash from the other Lenders such participations in their Loans as necessary for such Lender to share such excess payment with such Lenders to ensure such payment is applied as though it had been
applied in accordance with this Agreement; provided, however, that (i) if such payment is rescinded or otherwise recovered from such Lender in whole or in part, such purchase shall be rescinded and the purchase price therefor
shall be returned to such Lender without interest and (ii) such Lender shall, to the fullest extent permitted by Applicable Law, be able to exercise all its rights of payment (including the right of setoff) with respect to such participation as
fully as if such Lender were the direct creditor of the applicable Credit Party in the amount of such participation. 
 Section 6.17
Collateral Agent. 
 (a) Each Lender hereby irrevocably appoints the DPDF Lender (together with any successor
collateral agent appointed by DPDF Lender or any successor collateral agent that was appointed by the Required Lenders), as Collateral Agent hereunder and under the other Transaction Documents and authorizes Collateral Agent to (i) act as the
agent of such Lender for purposes of acquiring, holding and enforcing any and all Liens on Collateral (as defined in the Guaranty and Security Agreement) granted by any of the Credit Parties to secure any of the Obligations, (ii) execute and
deliver the Transaction Documents to which it is a party and accept delivery thereof on its behalf from any Credit Party, (iii) take such other actions on its behalf and to exercise all rights, powers and remedies and perform the duties as are
expressly delegated to Collateral Agent under the Transaction Documents, including without limitation, file any financing statements in a representative capacity, and (iv) exercise such powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Transaction Document, Collateral Agent shall not have any duty or responsibility except those expressly set forth herein or therein; nor shall
Collateral Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Transaction Document or otherwise exist against Collateral Agent. Without limiting the generality of the foregoing sentence, the use of the term “collateral agent” or “agent” herein and in other Transaction Documents with
reference to Collateral Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to
create or reflect only an administrative relationship between independent contracting parties. The provisions of this Section 6.17 are solely for the benefit of the Collateral Agent and the Lenders and none of the Borrower
or the other Credit Parties shall have any rights as a third party beneficiary of any of the provisions of this Section 6.17, except with respect to the Borrower’s consultation rights in connection with the appointment
of a successor Collateral Agent as set forth in Section 6.17(h) hereof. In performing its functions and duties under this Agreement and the other Transaction 

  
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Documents, Collateral Agent shall act solely as collateral agent of Lenders and does not assume and shall not be deemed to have assumed any obligation toward or relationship of agency or trust
with or for any Borrower or any other Credit Party. Collateral Agent shall have the same rights and powers under the Transaction Documents as any other Lender and may exercise or refrain from exercising the same as though it were not Collateral
Agent, and Collateral Agent and its Affiliates may lend money to, invest in and generally engage in any kind of business with each Credit Party, Affiliate of any Credit Party as if it were not Collateral Agent hereunder. 

(b) Collateral Agent may execute any of its duties under this Agreement or any other Transaction Document by or through agents,
subagents, employees or attorneys in fact, and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties and any Person shall benefit from this Section 6.17.
Collateral Agent shall not be responsible for the negligence or misconduct of any agent, subagent or attorney in fact that it selects in the absence of gross negligence or willful misconduct as determined by a final,
non-appealable judgment of a court of competent jurisdiction. 
 (c) Neither
Collateral Agent nor any of its directors, officers, employees, attorneys, advisors, representatives or agents shall (i) be liable to any Lender for any action taken or omitted to be taken by any of them under or in connection with this
Agreement or any other Transaction Document or the transactions contemplated hereby or thereby (except to the extent resulting from its own gross negligence or willful misconduct in connection with its duties expressly set forth herein as determined
by a final, non-appealable judgment of a court of competent jurisdiction), or (ii) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by
any Credit Party or Affiliate of any Credit Party, or any officer thereof, contained in this Agreement or in any other Transaction Document, or in any certificate, report, statement or other document referred to or provided for in, or received by
Collateral Agent under or in connection with, this Agreement or any other Transaction Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Transaction Document (or the creation,
perfection or priority of any Lien or security interest therein), or for any failure of any Credit Party or any other party to any Transaction Document to perform its obligations (including the Obligations) hereunder or thereunder. Collateral Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Transaction Document, or to inspect the properties,
books or records of any Credit Party or any Credit Party’s Affiliates. 
 (d) Collateral Agent shall be entitled to
rely, and shall be fully protected in relying, upon any communication believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel
to any Credit Party), independent accountants and other experts selected by Collateral Agent. Collateral Agent shall be fully justified in failing or refusing to take any action under any Transaction Document unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders of their obligation to indemnify Collateral Agent 

  
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against any and all liabilities and expenses (including any fees and expenses of counsel to Collateral Agent) that may be incurred by it by reason of taking or continuing to take any such action.
Collateral Agent shall in all cases be fully protected in acting, or in refraining from acting, under any Transaction Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act
pursuant thereto shall be binding upon each Lender. 
 (e) Collateral Agent shall not be deemed to have knowledge or notice
of the occurrence of any Event of Default or Default, unless Collateral Agent shall have received written notice from a Lender or any Credit Party referring to this Agreement and the other Transaction Documents, describing such Event of Default or
Default and stating that such notice is a “notice of default.” Collateral Agent shall take such action with respect to such Event of Default or Default as the Required Lenders may direct; provided that, unless and until Collateral
Agent has received any such request, Collateral Agent shall not take any such action, or refrain from taking any such action, with respect to such Event of Default or Default. 

(f) Each Lender acknowledges that Collateral Agent has not made any representation or warranty to it, and that no act by
Collateral Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Credit Parties or any of their Subsidiaries, shall be deemed to constitute any representation or warranty by Collateral Agent to
any Lender as to any matter, including whether Collateral Agent has disclosed material information in its possession. Each Lender represents to Collateral Agent that it has, independently and without reliance upon Collateral Agent and based on such
documents and information as it has deemed appropriate, made its own appraisal of, and investigation into, the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower and the other Credit Parties,
and made its own decision to enter into this Agreement and the other Transaction Documents and to extend credit to Borrower hereunder and under the other Transaction Documents. Each Lender also represents that it will, independently and without
reliance upon Collateral Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other
Transaction Documents, and to make such investigations as it deems necessary or appropriate to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower and the other Credit
Parties. Except for notices, reports and other documents expressly herein or in the Guaranty and Security Agreement required to be furnished to the Lenders by Collateral Agent, Collateral Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of Borrower or any other Credit Party that may come into the possession of Collateral Agent.

 (g) Other than with respect to the matters described in clause (i) below, which shall be governed by such
clause, whether or not the transactions contemplated hereby are consummated, each Lender shall severally indemnify upon demand Collateral Agent and its directors, officers, partners, employees, attorneys, advisors, representatives and agents (to the
extent not reimbursed by or on behalf of any Credit Party and without limiting the 

  
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obligation of the Credit Parties to do so), according to its Pro Rata Share, from and against any and all losses, claims (including the reasonable attorneys’ fees incurred in defending
against such claims), damages, liabilities, penalties or other expenses arising out of, or relating to, any of Collateral Agent’s duties, responsibilities or actions set forth in or that taken pursuant to the Transaction Documents;
provided that no Lender shall be liable for any payment to any such Person of any portion of the foregoing to the extent determined by a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from the applicable Person’s gross negligence or willful misconduct. No action taken (or in refraining from having taken action) in accordance with the directions of the Required Lenders shall be deemed to
constitute gross negligence or willful misconduct for purposes of this Section 6.17(g). Without limitation of the foregoing, each Lender shall reimburse Collateral Agent upon demand for such Lender’s ratable share of
any costs or out of pocket expenses incurred by Collateral Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, any other Transaction Document or any document contemplated by or referred to herein or therein, to the extent that Collateral Agent is not reimbursed for such fees, costs
and expenses by or on behalf of the Credit Parties. The undertaking in this Section 6.17(g) shall survive repayment of the Loans and the other Obligations, any foreclosure under, or modification, release or discharge of,
any or all of the Transaction Documents, termination of this Agreement or the other Transaction Documents and the resignation or replacement of Collateral Agent. 

(h) Collateral Agent may resign as Collateral Agent upon thirty (30) days’ notice to the Lenders and Borrower, and
the Required Lenders have the right, at their sole election, to remove the Person serving as Collateral Agent upon ten (10) days’ notice to Collateral Agent (or immediately upon any material breach of Collateral Agent of its obligations
under the Transaction Documents). If Collateral Agent resigns under this Agreement or the Required Lenders remove the Person serving as Collateral Agent, the Required Lenders (in consultation with the Borrower) shall appoint from among the Lenders a
successor Collateral Agent for such successor Collateral Agent and the Lenders. If no successor Collateral Agent is appointed prior to the effective date of the resignation or removal of Collateral Agent, Collateral Agent may appoint, after
consulting with the Lenders and the Borrower, a successor Collateral Agent from among the Lenders. Upon the acceptance of its appointment as successor Collateral Agent hereunder, such successor Collateral Agent shall succeed to all the rights,
powers and duties of the retiring or removed Collateral Agent, and the term “Collateral Agent” shall mean such successor Collateral Agent, and the retiring or removed Collateral Agent’s appointment, powers and duties as Collateral
Agent shall be immediately and automatically terminated at such time. After any retiring Collateral Agent’s resignation or removal hereunder as Collateral Agent, the provisions of this Section 6.17 shall inure to its
benefit (in its capacity as Collateral Agent) as to any actions taken or omitted to be taken by it while it was Collateral Agent under this Agreement and the other Transaction Documents. If no successor Collateral Agent has accepted appointment as
Collateral Agent by the date that is thirty (30) days following a retiring Collateral Agent’s notice of resignation (or at the time of removal of a Person as Collateral Agent), the retiring Collateral Agent’s resignation or removal
shall nevertheless thereupon become effective, and the Required Lenders shall perform all of the duties of Collateral Agent hereunder until such time, if any, as the Required Lenders appoint a successor Collateral Agent as provided for above. 

  
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 (i) Each Lender further agrees to indemnify Collateral Agent, its Affiliates
and each of its and their employees, advisors, attorneys, representatives and agents (to the extent not reimbursed by any Credit Party), severally and ratably, from and against Liabilities (including Taxes, interests and penalties imposed for not
properly withholding or backup withholding on payments made to or for the account of any Lender) that may be imposed on, incurred by or asserted against Collateral Agent, its Affiliates or any of its or their employees, advisors, attorneys,
representatives or agents in any matter relating to or arising out of, in connection with or as a result of any Transaction Document or any other act, event or transaction related, contemplated in or attendant to any such document, or, in each case,
any action taken or omitted to be taken by Collateral Agent, its Affiliates or any of its or their employees, advisors, attorneys, representatives or agents under or with respect to any of the foregoing. 

(j) Notwithstanding any provision in any Transaction Document to the contrary, the Lenders hereby irrevocably authorize
Collateral Agent, based upon the written instruction of the Required Lenders, to (a) credit bid and in such manner purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof
conducted under the provisions of the Bankruptcy Code, including under Section 363 of the Bankruptcy Code or any similar laws in any other jurisdictions to which a Credit Party is subject, or (b) credit bid and in such manner purchase
(either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any other sale or foreclosure conducted by (or with the consent or at the direction of) Collateral Agent (whether by judicial action or otherwise)
in accordance with Applicable Law. In connection with any such credit bid and purchase, the Obligations owed to the Lenders shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or
unliquidated claims being estimated for such purpose if the fixing or liquidation thereof would not unduly delay the ability of Collateral Agent to credit bid and purchase at such sale or other disposition of the Collateral and, if such claims
cannot be estimated without unduly delaying the ability of Collateral Agent to credit bid, then such claims shall be disregarded, not credit bid, and not entitled to any interest in the asset or assets purchased by means of such credit bid) and the
Lenders whose Obligations are credit bid shall be entitled to receive interests (ratably based upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) in the asset or assets so purchased
(or in the stock of the acquisition vehicle or vehicles that are used to consummate such purchase). Except as provided above and otherwise expressly provided for herein or in the other Transaction Documents, Collateral Agent will not execute nor
deliver a release of any Lien on any Collateral. Upon request by Collateral Agent at any time, the Lenders will confirm in writing Collateral Agent’s authority to release any such Liens on particular types or items of Collateral pursuant to,
and in accordance with, this Section 6.17(j). Each Lender whose Obligations are credit bid under this Section 6.17(j) shall be entitled to receive interests in the Collateral or any other asset
acquired in connection with such credit bid (or in the stock of the acquisition vehicle or vehicles that are used to consummate such acquisition) on a ratable basis in accordance with the percentage obtained by dividing (y) the amount of
Obligations of such Lender that were credit bid in such credit bid by (z) the aggregate amount of all Obligations that were credit bid in such credit bid. 

  
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 Section 6.18 Cost and Expense Reimbursement. The Credit Parties agree to
pay within ten (10) Business Days after delivery of an invoice therefor, (a) all reasonable and documented fees, costs and expenses of the Lenders, including one counsel for the Required Lenders selected by the Required Lenders, in
connection with the administration of the Facility Agreement and the other Loan Documents and the negotiation, preparation, execution and administration of any consents, amendments, waivers or other modifications thereto and any other documents or
matters requested by the Borrower or any other Credit Party related thereto, (b) all reasonable and documented out-of-pocket expenses incurred by the Collateral
Agent or the Lenders, including, without limitation, the reasonable and documented fees, disbursements and other charges of one primary firm of counsel for the Collateral Agent and the Lenders, taken as a whole, (and if reasonably necessary (as
determined by the Collateral Agent in consultation with the Borrower)), of a single local counsel in each appropriate jurisdiction and, in the case of an actual or potential conflict of interest where the Collateral Agent or any Lender affected by
such conflict informs the Borrower of such conflict and thereafter retains its own counsel, of another primary firm of counsel for such affected person in connection with the enforcement or protection of its rights in connection with this Agreement
or any other Transaction Document, including its rights under this Section 6.18, or in connection with the Loans made hereunder, including all such reasonable and documented
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans and (c) the cost of purchasing insurance that the Credit Parties fail to obtain as required by
the Transaction Documents. The obligations and provisions contained in this Section 6.18 shall survive the termination of this Agreement and the repayment of the Obligations. 

  
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 SCHEDULE 2.2 

 

			
	 LENDER
	  	ALLOCATION OF
DISBURSEMENT,
PAYMENTS AND
WARRANTS
	 Deerfield Private Design Fund III, L.P.
	  	100%

 Exhibit D 

Guaranty and Security Agreement 

[Included as Exhibit 10.5 to the Company’s Current Report on Form 8-K as filed on December 18, 2019]

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