Document:

Exhibit 10.1

        Execution Version

        
          
 

      

       

      

      CREDIT AGREEMENT

       

      Dated as of December 20, 2022

       

      among

       

      SOUTH JERSEY INDUSTRIES, INC.

      as the Borrower

       

      and

       

      KEYBANK NATIONAL ASSOCIATION,

      as a Lender and Administrative Agent

       

      Arranged by:

      KEYBANC CAPITAL MARKETS,

      as Lead Arranger and Book Runner

       

      

      
        
          

      

      
      	
              TABLE OF CONTENTS

            
	

            
	

            	
              Page

            
	 	 
	
              ARTICLE I DEFINITIONS

            	
              1

            
	

            	 
	

            	
              SECTION 1.01

            	
              Certain Defined Terms

            	
              1

            
	

            	
              SECTION 1.02

            	
              Computation of Time Periods

            	
              26

            
	

            	
              SECTION 1.03

            	
              Accounting Terms and Determinations

            	
              26

            
	

            	
              SECTION 1.04

            	
              Terminology

            	
              27

            
	

            	
              SECTION 1.05

            	
              Use of Defined Terms

            	
              28

            
	

            	
              SECTION 1.06

            	
              Divisions

            	
              28

            
	

            	
              SECTION 1.07

            	
              Rates

            	
              28

            
	

            	

            	 	 

      	
              ARTICLE II LOANS

            	
              28

            
	

            	 
	

            	
              SECTION 2.01

            	
              Loans

            	
              28

            
	

            	
              SECTION 2.02

            	
              [Reserved]

            	
              29

            
	

            	
              SECTION 2.03

            	
              Procedure for Advances of Loans

            	
              29

            
	

            	
              SECTION 2.04

            	
              [Reserved].

            	
              30

            
	

            	
              SECTION 2.05

            	
              Fees

            	
              30

            
	

            	
              SECTION 2.06

            	
              Reduction of Commitments

            	
              30

            
	

            	
              SECTION 2.07

            	
              Prepayment of Loans

            	
              31

            
	

            	
              SECTION 2.08

            	
              [Reserved]

            	
              31

            
	

            	
              SECTION 2.09

            	
              Evidence of Debt; Term Loan Notes

            	
              32

            
	

            	
              SECTION 2.10

            	
              Interest Rates

            	
              32

            
	

            	
              SECTION 2.11

            	
              [Reserved].

            	
              34

            
	

            	
              SECTION 2.12

            	
              Interest Rate Determination; Changed Circumstances

            	
              34

            
	

            	
              SECTION 2.13

            	
              Voluntary Conversion of Loans

            	
              37

            
	

            	
              SECTION 2.14

            	
              Increased Costs

            	
              37

            
	

            	
              SECTION 2.15

            	
              Illegality

            	
              39

            
	

            	
              SECTION 2.16

            	
              Nature of Obligations of Lenders Regarding Loans; Pro Rata Treatment; Assumption by the Administrative Agent

            	
              39

            
	

            	
              SECTION 2.17

            	
              Taxes; Foreign Lenders

            	
              40

            
	

            	
              SECTION 2.18

            	
              [Reserved]

            	
              44

            
	

            	
              SECTION 2.19

            	
              [Reserved]

            	
              44

            
	

            	
              SECTION 2.20

            	
              [Reserved]

            	
              44

            
	

            	
              SECTION 2.21

            	
              Mitigation Obligations; Replacement of Lenders

            	
              44

            
	

            

      	
              ARTICLE III [RESERVED]

            	
              45

            
	 	 
	
              ARTICLE IV CONDITIONS PRECEDENT

            	
              45

            
	

            	 
	

            	
              SECTION 4.01

            	
              Conditions Precedent to Execution and Delivery of this Agreement.

            	
              45

            
	

            	
              SECTION 4.02

            	
              Conditions Precedent to Additional Loans.

            	
              47

            
	

            	
              SECTION 4.03

            	
              Reliance on Certificates.

            	
              48

            

      

      

      
        i

        
          

      

      	
              ARTICLE V REPRESENTATIONS AND WARRANTIES

            	
              48

            
	 	 
	 	
              SECTION 5.01

            	
              Representations and Warranties

            	
              48

            
	 	 	 	 
	
              ARTICLE VI COVENANTS OF THE BORROWER

            	
              53

            
	 	 	 	 
	 	
              SECTION 6.01

            	
              Affirmative Covenants

            	
              53

            
	 	
              SECTION 6.02

            	
              Negative Covenants

            	
              57

            
	 	
              SECTION 6.03

            	
              Reporting Requirements

            	
              59

            
	 	
              SECTION 6.04

            	
              Financial Covenant

            	
              62

            
	 	 
	
              ARTICLE VII EVENTS OF DEFAULT

            	
              62

            
	 	 
	 	
              SECTION 7.01

            	
              Events of Default

            	
              62

            
	 	
              SECTION 7.02

            	
              Upon an Event of Default

            	
              64

            
	 	
              SECTION 7.03

            	
              Rights and Remedies Cumulative; Non-Waiver; Etc.

            	
              64

            
	 	 
	
              ARTICLE VIII THE ADMINISTRATIVE AGENT

            	
              65

            
	 	 
	 	
              SECTION 8.01

            	
              Appointment and Authority

            	
              65

            
	 	
              SECTION 8.02

            	
              Rights as a Lender

            	
              65

            
	 	
              SECTION 8.03

            	
              Exculpatory Provisions

            	
              65

            
	 	
              SECTION 8.04

            	
              Reliance by Administrative Agent

            	
              66

            
	 	
              SECTION 8.05

            	
              Delegation of Duties

            	
              67

            
	 	
              SECTION 8.06

            	
              Resignation of Administrative Agent

            	
              67

            
	 	
              SECTION 8.07

            	
              Non-Reliance on Administrative Agent and Other Lenders

            	
              68

            
	 	
              SECTION 8.08

            	
              No Other Duties, Etc.

            	
              68

            
	 	
              SECTION 8.09

            	
              Administrative Agent May File Proof of Claim

            	
              68

            
	 	
              SECTION 8.10

            	
              Certain ERISA Matters

            	
              69

            
	 	
              SECTION 8.11

            	
              Erroneous Payments

            	
              70

            
	 	 	 	 
	
              ARTICLE IX MISCELLANEOUS

            	
              72

            
	 	 	 	 
	 	
              SECTION 9.01

            	
              Amendments, Etc.

            	
              72

            
	 	
              SECTION 9.02

            	
              Notices, Etc.

            	
              73

            
	 	
              SECTION 9.03

            	
              No Waiver; Remedies

            	
              75

            
	 	
              SECTION 9.04

            	
              Set-off

            	
              76

            
	 	
              SECTION 9.05

            	
              Indemnification; Exculpation and Consequential Damages

            	
              77

            
	 	
              SECTION 9.06

            	
              [Reserved]

            	
              78

            
	 	
              SECTION 9.07

            	
              Costs, Expenses and Taxes

            	
              79

            
	 	
              SECTION 9.08

            	
              [Reserved]

            	
              79

            
	 	
              SECTION 9.09

            	
              Benefit of Agreement

            	
              79

            
	 	
              SECTION 9.10

            	
              Severability

            	
              84

            
	 	
              SECTION 9.11

            	
              Governing Law

            	
              84

            
	 	
              SECTION 9.12

            	
              Headings

            	
              84

            
	 	
              SECTION 9.13

            	
              Submission To Jurisdiction; Waivers

            	
              84

            
	 	
              SECTION 9.14

            	
              Acknowledgments

            	
              85

            
	 	
              SECTION 9.15

            	
              Waivers of Jury Trial

            	
              85

            

      

      

      
        ii

        
          

      

      	 	
              SECTION 9.16

            	
              Confidentiality

            	
              85

            
	 	
              SECTION 9.17

            	
              Counterparts; Integration; Effectiveness; Electronic Execution

            	
              86

            
	 	
              SECTION 9.18

            	
              Reversal of Payments

            	
              87

            
	 	
              SECTION 9.19

            	
              No Advisory or Fiduciary Responsibility

            	
              87

            
	 	
              SECTION 9.20

            	
              Acknowledgment and Consent to Bail-In of Affected Financial Institutions

            	
              88

            
	 	
              SECTION 9.21

            	
              Acknowledgement Regarding Any Supported QFCs

            	
              88

            

      

      

      
        iii

        
          

      

      EXHIBITS

       

      	
              Exhibit A-1

            	
              Form of Term Loan Note

            
	
              Exhibit A-2

            	
              [Reserved]

            
	
              Exhibit B

            	
              Form of Notice of Borrowing

            
	
              Exhibit C

            	
              [Reserved]

            
	
              Exhibit D

            	
              Form of Notice of Account Designation

            
	
              Exhibit E

            	
              Form of Notice of Conversion/Continuation

            
	
              Exhibit F

            	
              Form of Assignment and Assumption

            
	
              Exhibit G

            	
              Form of Compliance Certificate

            
	
              Exhibit H

            	
              [Reserved]

            
	
              Exhibit I

            	
              [Reserved]

            
	
              Exhibit J 1-4

            	
              Form of U.S. Tax Compliance Certificates

            
	
              Exhibit K

            	
              [Reserved]

            
	
              Exhibit L

            	
              Form of Solvency Certificate

            

      

      

      SCHEDULES

       

      	
              Schedule I

            	
              Commitment Schedule

            
	
              Schedule II

            	
              Ownership

            
	
              Schedule III

            	
              [Reserved]

            
	
              Schedule IV

            	
              First Mortgage Notes

            
	
              Schedule V

            	
              Liens

            

      

      

      
        iv

        
          

      

      
      CREDIT AGREEMENT

       

      This CREDIT AGREEMENT (as it may be amended, supplemented or otherwise
        modified in accordance with the terms hereof at any time and from time to time, this “Agreement”) dated as of December 20, 2022, among SOUTH JERSEY INDUSTRIES, INC., a New Jersey
        corporation (“SJI” or the “Borrower”), the several banks and other financial institutions from time to time parties to this
        Agreement as lenders (each a “Lender” and collectively, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION (“KeyBank”), as administrative agent for the Lenders hereunder (in such capacity, together with its successors and permitted assigns in such capacity, the “Administrative Agent”).

       

      PRELIMINARY STATEMENTS

       

      WHEREAS, the Borrower has requested that the Lenders make term loans to the Borrower in an aggregate principal amount of up to $150,000,000 from
        time to time on and after the Closing Date; and

       

      WHEREAS, the Lenders are willing, on the terms and subject to the conditions set forth in this Agreement, to extend credit under this Agreement as
        more particularly hereinafter set forth.

       

      NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:

       

      ARTICLE I

      DEFINITIONS

       

      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):

       

      “Adjusted Term SOFR” means, for purposes of any calculation, the rate per annum equal to
        (a) Term SOFR for such calculation plus (b) the Term SOFR Adjustment; provided that if Adjusted Term
        SOFR as so determined shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.

       

      “Administrative Agent” has the meaning assigned to that term in the preamble hereto.

       

      “Administrative Agent Fee Letter” means that certain fee letter dated December 20, 2022,
        among the Borrower and the Administrative Agent.

       

      “Administrative Agent’s Office” means the office of the Administrative Agent as set
        forth in Section 9.02.

       

      “Affected Financial Institution” means (a) any EEA Financial Institution or (b) any UK
        Financial Institution.

       

      
        1

        
          

      

      “Affiliate” means, with respect to any Person, any other Person directly or indirectly
        controlling (including but not limited to all directors and officers of such Person), controlled by, or under direct or indirect common control with such Person.  A Person shall be deemed to control another entity if such Person possesses, directly
        or indirectly, the power to direct or cause the direction of the management and policies of such entity, whether through the ownership of voting securities, by contract, or otherwise.

       

      “Agent Parties” has the meaning assigned to that term in Section 9.02(d).

       

      “Aggregate Commitments” means the total of the Lenders’ Commitments.  As of the date
        hereof, the Aggregate Commitments are in the amount of $150,000,000.

       

      “Agreement” has the meaning assigned to that term in the preamble hereto.

       

      “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 or corruption, including, without limitation, the United States Foreign Corrupt Practices Act of 1977, as amended, the UK Bribery Act 2010, as
        amended, and the rules and regulations thereunder.

       

      “Applicable Law” means all applicable laws, statutes, treaties, rules, codes,
        ordinances, regulations, permits, orders, interpretations, licenses, and permits of any Governmental Authority and judgments, decrees, injunctions, writs, orders or like action of any court, arbitrator or other judicial or quasi-judicial tribunal
        (including, without limitation, those pertaining to health, safety, the environment or otherwise).

       

      “Applicable Lending Office” means, with respect to any Lender, the office of such Lender
        specified in such Lender’s administrative questionnaire delivered to the Administrative Agent, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the Administrative Agent.

       

      “Applicable Margin” means, for the applicable interest rate on Loans made to the
        Borrower, (i) with respect to SOFR Loans, 1.50% per annum and (ii) with respect to Base Rate Loans, 0.50% per annum.

       

      “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
        Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.

       

      “Arranger” means KeyBanc Capital Markets in its capacity as lead arranger and book
        runner, and its successors and assigns.

       

      “Assignment and Assumption” means an Assignment and Assumption executed in accordance
        with Section 9.09 in the form attached hereto as Exhibit F or any other form approved by the Administrative Agent.

       

      “Authorized Individual” means, as to any Person, the chief executive officer, president,
        chief financial officer, controller, treasurer or assistant treasurer or any other authorized person of such Person; provided that, to the extent requested thereby, the
        Administrative Agent shall have received a certificate of such Person certifying as to the incumbency and genuineness of the signature of each such officer or other authorized person.  Any document delivered hereunder or under any other Loan
        Document that is signed by an Authorized Individual of the Borrower shall be conclusively presumed to have been authorized by all necessary corporate, limited liability company, partnership and/or other action on the part of such Borrower and such
        Authorized Individual shall be conclusively presumed to have acted on behalf of such Borrower.

       

      
        2

        
          

      

      “Available Tenor” means, as of any date of determination and with respect to the
        then-current Benchmark, as applicable, (x) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (y) otherwise,
        any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this
        Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of “Interest Period” pursuant to Section 2.12(e)(iv).

       

      “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the
        applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

       

      “Bail-In Legislation” means (a) 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, regulation, rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In
        Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of
        unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

       

      “Base Rate” means, for any period, a fluctuating interest rate per annum as shall be in
        effect from time to time, which rate per annum shall at all times be equal to the highest of (i) the Prime Rate; (ii) 1/2 of one percent per annum above the Federal Funds Rate in effect from time to time; (iii) except during any period of time
        during which a notice delivered to the Borrower under Section 2.12 shall remain in effect, Adjusted Term SOFR for a one month Interest Period on such day (or if such day is not a U.S.
        Government Securities Business Day, the immediately preceding U.S. Government Securities Business Day) plus one percent; and (iv) 1.00%.

       

      “Base Rate Loan” means all Loans, or portions thereof, bearing interest based on the
        Base Rate.

       

      “Base Rate SOFR Determination Day” has the meaning assigned to that term in the
        definition of “Term SOFR”.

       

      “Benchmark” means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then “Benchmark” means the applicable Benchmark Replacement to
        the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.12(e)(i).

       

      
        3

        
          

      

      “Benchmark Replacement” means, with respect to any Benchmark Transition Event, the first
        alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

       

      	 	(a)	
              Daily Simple SOFR; or

            

       

      	

            	(b)	
              the sum of: (i) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (A) any selection or recommendation of a replacement
                benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for
                Dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

            

       

      If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor
        for the purposes of this Agreement and the other Loan Documents.

       

      “Benchmark Replacement Adjustment” means, with respect to any replacement of the
        then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the
        Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable
        Unadjusted Benchmark Replacement by the Relevant Governmental Body on the applicable Benchmark Replacement Date and/or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or
        determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

       

      “Benchmark Replacement Date” means a date and time determined by the Administrative
        Agent, which date shall be no later than the earliest to occur of the following events with respect to the then-current Benchmark:

       

      	(a)	
              in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the
                date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof);

            

       

      	(b)	
              in the case of clause (c) of the definition of “Benchmark Transition Event,” the first date on which such Benchmark (or the published
                component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or
                such component thereof) continues to be provided on such date.

            

       

      
        4

        
          

      

      For the avoidance of doubt, the “Benchmark Replacement Date” will be deemed to have occurred in the case of clause (a) or (b) with respect to any
        Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

       

      “Benchmark Transition Event” means the occurrence of one or more of the following events
        with respect to the then-current Benchmark:

       

      	(a)	
              a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such
                administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely; provided that, at
                the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

            

       

      	(b)	
              a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the FRB, the
                Federal Reserve Bank of New York, the Term SOFR Administrator, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such
                Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component)
                has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely; provided that, at the time of such
                statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

            

       

      	(c)	
              a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that
                all Available Tenors of such Benchmark (or such component thereof), in each case, are no longer, or as of a specified future date will no longer be, representative.

            

       

      For the avoidance of doubt, a “Benchmark Transition Event” will be deemed to have occurred with respect to any Benchmark if a public statement or publication of
        information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

       

      “Benchmark Unavailability Period” means the period (if any) (a) beginning at the time
        that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.12(e) and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section 2.12(e).

       

      “Beneficial Ownership Certification” means a certification regarding beneficial
        ownership as required by the Beneficial Ownership Regulation.

       

      “Beneficial Ownership Regulation” means 31 CFR § 1010.230.

       

      
        5

        
          

      

      “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 the 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 assigned to that term in the preamble hereto.

       

      “Business Day” means any day other than a Saturday, Sunday or legal holiday on which
        banks in New York, New York, are open for the conduct of their commercial banking business.

       

      “Capital Stock” means, with respect to any Person, any and all shares, interests, rights
        to purchase, warrants, options, participations or other equivalents of or interests in (however designated) equity of such Person, including any preferred interest, any limited or general partnership interest and any limited liability company
        membership interest.

       

      “CERCLA” means the Comprehensive Environmental Response Compensation and Liability Act,
        42 U.S.C. § 9601, et seq., as amended from time to time, and any regulations promulgated thereunder.

       

      “Change in Control” shall be deemed to occur upon any of the following events on or
        after the Closing Date: (i) any entity, person (within the meaning of Section 14(d) of the Exchange Act) or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) which therefore was the beneficial owner (as defined in Rule
        13d 3 under the Exchange Act) of less than 20% of SJI’s then outstanding common stock either (x) acquires shares of common stock of SJI in a transaction or series of transactions that results in such entity, person or group directly or indirectly
        owning beneficially 20% or more of the outstanding common stock of SJI, or (y) acquires, by proxy or otherwise, the right to vote for the election of directors, for any merger, combination or consolidation of SJI or any of its direct or indirect
        Subsidiaries, or, for any other matter or question, more than 20% of the then outstanding voting securities of SJI; or (ii) during any period of twelve (12) consecutive months, a majority of the members of the board of directors or other equivalent
        governing body of SJI ceases to be composed of individuals (x) who were members of that board or equivalent governing body on the first day of such period, (y) whose election or nomination to that board or equivalent governing body was approved by
        individuals referred to in clause (x) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (z) whose election or nomination to that board or other equivalent governing body
        was approved by individuals referred to in clauses (x) and (y) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.

       

      “Change in Law” means the occurrence, after the date of this Agreement, of any of the
        following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority
        or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; 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.

       

      

      
        6

        
          

      

      “Closing Date” means December 20, 2022.

       

      “Code” means the Internal Revenue Code of 1986, and the regulations promulgated and
        rulings issued thereunder.

       

      “Commitment” means, with respect to each Lender, its obligation to make Loans to the
        Borrower pursuant to Section 2.01, as such amount may be adjusted from time to time in accordance with this Agreement.  The initial Commitment of each Lender is set out on Schedule I.

       

      “Commitment Fee” has the meaning assigned to that term in Section 2.05(a).

       

      “Commitment Fee Rate” means 0.25% per annum.

       

      “Commitment Percentage” means for each Lender, a fraction (expressed as a decimal) the
        numerator of which is the Commitment of such Lender at such time and the denominator of which are the Aggregate Commitments of all of the Lenders at such time.  The initial Commitment Percentage of each Lender is set out on Schedule I.

       

      “Compliance Certificate” means a certificate substantially in the form of Exhibit G.

       

      “Conforming Changes” means, with respect to the use, administration, adoption or
        implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “Base Rate,” the definition of “Business Day,” the definition of “U.S. Government Securities Business Day,”
        the definition of “Interest Period” or any similar or analogous definition (or the addition of a concept of “interest period”), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment,
        conversion or continuation notices, the applicability and length of lookback periods, the applicability of Section 2.19, and other technical, administrative or operational matters) that
        the Administrative Agent decides, after consultation with the Borrower, may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner
        substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the
        administration of any such rate exists, in such other manner of administration as the Administrative Agent decides, after consultation with the Borrower, is reasonably necessary in connection with the administration of this Agreement and the other
        Loan Documents).

       

      “Consolidated” means, when used with reference to any accounting term, the amount
        described by such accounting term, determined on a consolidated basis in accordance with GAAP, after elimination of intercompany items.

       

      
        7

        
          

      

      “Consolidated Total Capitalization” means the sum, without duplication, of (a)
        Indebtedness of SJI and its consolidated Subsidiaries plus (b) Mandatorily Convertible Securities of SJI plus
        (c) the sum of the Capital Stock (excluding treasury stock and capital stock subscribed for and unissued) and surplus (including earned surplus, capital surplus, translation adjustment and the balance of the current profit and loss account not
        transferred to surplus) accounts of SJI and its consolidated Subsidiaries appearing on a consolidated balance sheet of SJI and its consolidated Subsidiaries, in each case prepared as of the date of determination in accordance with GAAP consistent
        with those applied in the preparation of the financial statements referred to in Section 4.01(d), after eliminating all intercompany transactions and all amounts properly attributable to
        minority interests, if any, in the stock and surplus of Subsidiaries.

       

      “Convert”, “Conversion” and
        “Converted” each refers to a conversion of a Loan of one Type into a Loan of another Type pursuant to Section 2.13 or the
        selection of a new, or the renewal of the same, Interest Period for a SOFR Loan pursuant to Section 2.13.

       

      “Covered Party” has the meaning assigned to that term in Section 9.21(a).

       

      “Daily Simple SOFR” means, for any day, SOFR, with the conventions for this rate (which
        will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining “Daily

            Simple SOFR” for syndicated business loans; provided that if the Administrative Agent decides that any such convention is not administratively feasible for the
        Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

       

      “Debt Ratings” means the senior unsecured non-credit enhanced long-term debt ratings of
        SJI by the relevant Rating Agency.  Notwithstanding anything herein to the contrary, if the rating system of any Rating Agency shall change, or if any Rating Agency shall cease to be in the business of rating corporate debt obligations, the
        Borrower and the Administrative Agent (acting at the direction of the Required Lenders) shall negotiate in good faith to amend the definition of “Debt Ratings” to reflect such changed rating system or such unavailability of ratings, and, pending
        the effectiveness of any such amendment, the applicable tier shall be determined by reference to the Debt Ratings of SJI most recently in effect prior to such change or cessation.

       

      “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.

       

      “Default” means any event or condition that would constitute an Event of Default but for
        the requirement that notice be given or time elapse or both.

       

      
        8

        
          

      

      “Defaulting Lender” means, any Lender that (a) has failed to (i) fund all or any portion
        of its Loans within two (2) Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination
        that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any
        Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent in writing that it does not intend to comply with its funding obligations
        hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s good faith determination that a
        condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after
        written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or
        indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person
        charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-In Action;
        provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent
        company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of
        attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a
        Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the
        Borrower and each Lender.

       

      “Disclosure Documents” means SJI’s Annual Report on Form 10-K, SJI’s Quarterly Report on
        Form 10-Q, and any Current Report on Form 8-K filed by SJI, SJG or ETG with the Securities and Exchange Commission or another written report delivered to the Administrative Agent, in any case, prior to the Closing Date.

       

      “Dollar” or “$” means
        dollars in lawful currency of the United States of America.

       

      “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.

       

      
        9

        
          

      

      “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.

       

      “Employee Benefit Plan” means, with respect to the Borrower, any employee benefit plan
        within the meaning of Section 3(3) of ERISA that is maintained for employees of the Borrower or, in the case of a Pension Plan or a Multiemployer Plan, maintained or contributed to by the Borrower or any current or former ERISA Affiliate thereof.

       

      “Environmental Authority” means any Governmental Authority having jurisdiction over
        Environmental Requirements.

       

      “Environmental Claims” means any and all administrative, regulatory or judicial actions,
        suits, demands, demand letters, claims, liens, notices of noncompliance or violation, or proceedings relating in any way to any actual or alleged violation of or liability under any Environmental Law or relating to any permit issued, or any
        approval given, under any such Environmental Law, including, without limitation, any and all claims by Environmental Authorities for enforcement, cleanup, removal, response, remedial actions or damages, contribution, indemnification cost recovery,
        compensation or injunctive relief resulting from Hazardous Materials or arising from alleged injury or threat of injury to public health or the environment.

       

      “Environmental Judgments and Orders” means all judgments, decrees or orders arising from
        or in any way associated with any Environmental Requirements, whether or not entered upon consent or pursuant to a written agreement with an Environmental Authority, and whether or not incorporated in a judgment, decree or order.

       

      “Environmental Laws” means any and all Applicable Laws, relating to the protection of
        public health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or
        remediation of Hazardous Materials.

       

      “Environmental Liabilities” means any liabilities, whether accrued, contingent or
        otherwise, arising from and in any way associated with any Environmental Requirements.

       

      “Environmental Notices” means notice from any Environmental Authority or any other
        Governmental Authority, of possible or alleged noncompliance with or liability under any Environmental Requirement, including, without limitation, any complaints, citations, demands or requests from any Environmental Authority for correction of any
        violation of any Environmental Requirement or any investigations concerning any violation of any Environmental Requirement.

       

      “Environmental Proceedings” means any judicial or administrative proceedings arising
        from or in any way associated with any Environmental Requirement.

       

      “Environmental Releases” means releases as defined in CERCLA or under any applicable
        state or local environmental law or regulation.

       

      
        10

        
          

      

      “Environmental Requirement” means any legal requirement relating to the environment and
        applicable to the Borrower or its properties, including, but not limited to, any such requirement under CERCLA or similar state legislation and all federal, state and local laws, ordinances, regulations, orders, writs, decrees and common law.

       

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

       

      “ERISA Affiliate” means, with respect to the Borrower, any Person who together with the
        Borrower or any of its Subsidiaries is treated as a single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section 4001(b) of ERISA.

       

      “Erroneous Payment” has the meaning assigned to that term in Section 8.11(a).

       

      “Erroneous Payment Deficiency Assignment” has the meaning assigned to that term in Section 8.11(d).

       

      “Erroneous Payment Return Deficiency” has the meaning assigned to that term in Section 8.11(d).

       

      “ETG” means Elizabethtown Gas Company, a corporation organized under the laws of the
        State of New Jersey.

       

      “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.

       

      “Event of Default” has the meaning assigned to that term in Section 7.01.

       

      “Exchange Act” means the Securities Exchange Act of 1934.

       

      “Excluded Taxes” means, with respect to the Administrative Agent or any Lender, (a)
        Taxes imposed on or measured by its overall net income (however denominated) or franchise Taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the laws of which such recipient is organized or in which its principal
        office is located or, in the case of any Lender, in which its Applicable Lending Office is located, (b) any branch profits Taxes imposed by the United States or any similar Tax imposed by any other jurisdiction in which the Borrower is located, (c)
        in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section 2.21(b)), any U.S. federal withholding Tax that is imposed on amounts payable
        to such Foreign Lender at the time such Foreign Lender becomes a party hereto (or designates a new Applicable Lending Office) or is attributable to such Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply
        with Section 2.17(f), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new Applicable Lending Office (or assignment),
        to receive additional amounts from the Borrower with respect to such withholding Tax pursuant to Section 2.17(a), and (d) any U.S. federal withholding Taxes imposed under FATCA.

       

      “FASB ASC” means the Accounting Standards Codification of the Financial Accounting
        Standards Board.

       

      
        11

        
          

      

      “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), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1)
        of the Code, and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

       

      “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted
        average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day (or, if such day is not a Business Day, for the immediately preceding Business Day), as published
        by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that if such rate is not so published for any day which is a Business Day, the
        Federal Funds Rate for such day shall be the average of the quotation for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by the Administrative Agent. 
        Notwithstanding the foregoing, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

       

      “Final Fee Payment Date” means the date the Aggregate Commitments have been terminated
        and all Obligations have been paid in full.

       

      “First Mortgage Notes” means those First Mortgage Notes identified on Schedule IV
        attached hereto, and subsequent promissory notes, bonds or other evidences of indebtedness of either SJG or ETG, in each case, secured by first mortgages on property owned by the Borrower or its Subsidiaries.

       

      “Fiscal Year” means the fiscal year of the Borrower for financial reporting purposes
        ending on or about December 31 of each calendar year.

       

      “Fitch” means Fitch Ratings, Inc. and its successors.

       

      “Floor” means a rate of interest equal to 0.00%.

       

      “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
        other than that in which the Borrower is resident for tax purposes.  For purposes of this definition, the United States, each state thereof and the District of Columbia shall be deemed to constitute a single jurisdiction.

       

      “FRB” means the Board of Governors of the Federal Reserve System of the United States.

       

      “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 business.

       

      “GAAP” means generally accepted accounting principles in the United States 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 such other principles as may be approved
        by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

       

      
        12

        
          

      

      “Governmental Action” means, with respect to the Borrower, all authorizations, consents,
        approvals, waivers, exceptions, variances, orders, licenses, exemptions, publications, filings, notices to and declarations of or with any Governmental Authority, required to be made by the Borrower, other than routine reporting requirements the
        failure to comply with which will not affect the validity or enforceability of this Agreement or any other Loan Document or have a Material Adverse Effect on the transactions contemplated by this Agreement or any other Loan Document.

       

      “Governmental Authority” means any nation or government, any state or other political
        subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

       

      “Hazardous Materials” means any substances or materials (a) which are defined as
        hazardous wastes, hazardous substances, pollutants, contaminants or toxic substances under any Environmental Law, (b) which are toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to human
        health or the environment and are or become regulated by any Governmental Authority having authority over the Borrower or the Borrower’s operations, (c) the presence of which require investigation or remediation under any Environmental Law or
        common law, (d) the discharge or emission or release of which requires a permit or license under any Environmental Law or other Governmental Action, or (e) which contain, without limitation, asbestos, polychlorinated biphenyls, urea formaldehyde
        foam insulation, petroleum hydrocarbons, petroleum derived substances or waste, crude oil or nuclear fuel.

       

      “Hedge Agreement” means (a) any and all rate swap transactions, basis swaps, credit
        derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or
        forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot
        contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any
        and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any
        International Foreign Exchange Master Agreement, or any other master agreement.

       

      “Hedging Obligations” means, with respect to any Person, the obligations of such Person
        under any interest rate or currency swap agreement, interest rate or currency future agreement, interest rate collar agreement, swap agreement (as defined in 11 U.S.C. § 101), interest rate or currency hedge agreement, and any put, call or other
        agreement or arrangement designed to protect such Person against fluctuations in interest rates or currency exchange rates.

       

      
        13

        
          

      

      “IIF Acquisition” means the acquisition of all of the outstanding equity interests of
        the Borrower pursuant to that certain Agreement and Plan of Merger, dated as of February 23, 2022, among NJ Boardwalk Holdings, LLC, Boardwalk Merger Sub, Inc. and the Borrower.

       

      “Illegality Notice” has the meaning assigned to that term in Section 2.15.

       

      “Indebtedness” means, for any Person, all obligations of such Person which in accordance
        with GAAP should be classified on a balance sheet of such Person as liabilities of such Person, and in any event shall include, without duplication, all (a) indebtedness for borrowed money of such Person, (b) obligations of such Person evidenced by
        bonds, debentures, notes or other similar instruments, (c) obligations of such Person to pay the deferred purchase price of property or services (except trade accounts payable arising, and accrued expenses incurred, in the ordinary course of
        business), (d) obligations of such Person as lessee under leases which shall have been or should be, in accordance with GAAP, recorded as capital leases, (e) obligations of such Person under Hedge Agreements, (f) Reimbursement Obligations (as
        defined in the Revolving Credit Agreement as in effect on the date hereof) (contingent or otherwise) of such Person in respect of outstanding letters of credit issued under the Revolving Credit Agreement, (g) indebtedness of such Person of the type
        referred to in clauses (a) through (e) above secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any lien or encumbrance on, or security interest in, property (including,
        without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness; provided
        that the amount of such indebtedness will be the lesser of (i) the fair market value of such property as determined by such Person in good faith on the date of determination and (ii) the amount of such indebtedness of other Persons, and (h)
        obligations of such Person under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
        others of the kinds referred to in clauses (a) through (f) above.  For the avoidance of doubt and notwithstanding anything to the contrary set forth above: (x) Permitted Commodity Hedging Obligations, Capital Stock (including Capital Stock having a
        preferred interest) and, solely for the purpose of Section 6.04 and solely to the extent the aggregate principal amount thereof does not exceed 15.0% of Consolidated Total Capitalization,
        Mandatorily Convertible Securities shall not constitute Indebtedness for purposes of this Agreement and (y) the amount of the obligations of any Person in respect of any Hedge Agreement shall, at any time of determination and for all purposes under
        this Agreement, be the maximum aggregate amount (giving effect to any netting agreements) that such Person would be required to pay if such Hedge Agreement were terminated at such time giving effect to current market conditions notwithstanding any
        contrary treatment in accordance with GAAP.

       

      “Indemnified Taxes” means Taxes other than Excluded Taxes.

       

      “Indemnitee” has the meaning assigned to that term in Section 9.05(a).

       

      “Information” has the meaning assigned to that term in Section 9.16.

       

      “Informational Materials” has the meaning assigned to that term in Section 6.03.

       

      “Interest Period” has the meaning assigned to that term in Section 2.10(b).

       

      
        14

        
          

      

      “ISP 98” means the International Standby Practices (1998 Revision, effective January 1,
        1999), International Chamber of Commerce Publication No. 590.

       

      “KeyBank” has the meaning assigned to that term in the preamble hereto.

       

      “Lender Party” has the meaning assigned to that term in Section 9.05(c).

       

      “Lenders” has the meaning assigned to that term in the preamble hereto, and, in each
        case, includes their respective successors and permitted assigns.

       

      “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, the Term Loan Notes and any other document
        evidencing, relating to or securing any Loan and any other document or instrument delivered from time to time in connection with this Agreement or the Term Loan Notes which is identified therein, with the Borrower’s consent, as a Loan Document.

       

      “Loans” means those Base Rate Loans and SOFR Loans made pursuant to Section 2.01.

       

      “Mandatorily Convertible Securities” means any mandatorily convertible equity-linked
        securities issued by SJI, so long as the terms of such securities require no repayments or prepayments and no mandatory redemptions or repurchases (other than repayments, prepayments, redemptions or repurchases that are to be settled by the
        issuance of Capital Stock by SJI or the proceeds of which are concurrently applied to purchase Capital Stock from SJI), in each case prior to at least 91 days after the later of the latest maturity date of the notes under SJI’s Note Purchase
        Agreement, dated May 27, 2020, and the repayment in full of the such notes and all other amounts due under such agreement.

       

      “Material Adverse Effect” means, with respect to the Borrower, (a) a material adverse
        effect on the business, assets or financial condition of the Borrower and its Subsidiaries on a consolidated basis, taken as a whole, (b) a material impairment of the ability of the Borrower to perform its payment and other material obligations
        under this Agreement or any of the other Loan Documents to which the Borrower is a party or (c) a material adverse effect on the validity or enforceability against the Borrower of this Agreement, any of the other Loan Documents to which the
        Borrower is a party, or the rights and remedies of the Administrative Agent and the Lenders hereunder or thereunder.

       

       “MNPI” has the meaning assigned to that term in Section 6.03.

       

      “Moody’s” means Moody’s Investors Service, Inc., or any successor thereto.

       

      “Multiemployer Plan” means a “Multiemployer

            plan” as defined in Section 4001(a)(3) of ERISA that is subject to Title IV of ERISA to which the Borrower or any ERISA Affiliate thereof is making, or is accruing an obligation to make, or has accrued an obligation to make
        contributions within the preceding five (5) years.

       

      
        15

        
          

      

      “Non-Consenting Lender” means any Lender that does not approve any consent, waiver or
        amendment that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 9.02 and (b) has been approved by the Required Lenders.

       

       “Notice of Account Designation” has the meaning assigned to that term in Section 2.03(d)(i).

       

      “Notice of Borrowing” has the meaning assigned to that term in Section 2.03(a)(i)(A).

       

      “Notice of Conversion/Continuation” has the meaning assigned to that term in Section 2.13.

       

      “Obligations” means, with respect to the Borrower, in each case, whether now in
        existence or hereafter arising: (a) the principal of and interest on (including interest accruing after the filing of any bankruptcy or similar petition) the Loans, (b) [reserved], (c) all payment obligations owing by the Borrower to any Lender or
        the Administrative Agent under any Loan Document, and (d) all other fees and commissions, charges, indebtedness, loans, liabilities, financial accommodations, obligations, covenants and duties owing by the Borrower or any Subsidiary thereof to the
        Lenders or the Administrative Agent, in each case under or in respect of this Agreement, any Term Loan Note, or any of the other Loan Documents of every kind, nature and description, direct or indirect, absolute or contingent, due or to become due,
        contractual or tortious, liquidated or unliquidated, and whether or not evidenced by any note, and whether or not for the payment of money under or in respect of this Agreement, any Term Loan Note, or any of the other Loan Documents.

       

      “OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.

       

      “Other Taxes” means all present or future stamp, court, 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, other than any of the foregoing that constitute Excluded Taxes.

       

      “Participant” has the meaning assigned to that term in Section 9.09(d).

       

      “Participant Register” has the meaning assigned to that term in Section 9.09(d).

       

      “Patriot Act” means the USA PATRIOT Act (Title III of Pub.  L. 107-56 (signed into law
        October 26, 2001)).

       

      “Payment Recipient” has the meaning assigned to that term in Section 8.11(a).

       

      “PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

       

      
        16

        
          

      

      “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which
        is subject to the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is maintained for the employees of the Borrower or any ERISA Affiliate thereof or (b) has at any time within the preceding six (6) years been maintained for
        the employees of the Borrower or any current or former ERISA Affiliates thereof.

       

      “Periodic Term SOFR Determination Day” has the meaning assigned to that term in the
        definition of “Term SOFR”.

       

      “Permitted Commodity Hedging Obligations” means obligations of the Borrower with respect
        to commodity agreements or other similar agreements or arrangements entered into in the ordinary course of business designed to protect against, or mitigate risks with respect to, fluctuations of commodity prices to which the Borrower or any
        Subsidiary thereof is exposed to in the conduct of its business so long as (a) the management of the Borrower has determined that entering into such agreements or arrangements are bona fide hedging activities which comply with the Borrower’s risk
        management policies and (b) such agreements or arrangements are not entered into for speculative purposes and are not of a speculative nature.

       

      “Permitted Liens” means, with respect to any Person, any of the following:

       

      (a)         Liens (i) created pursuant to the
            Loan Documents and (ii) in favor of the Swingline Lender (as defined in the Revolving Credit Agreement as in effect on the date hereof) and/or the Issuing Lenders (as defined in the Revolving Credit Agreement as in effect on the date hereof),
            as applicable, on Cash Collateral (as defined in the Revolving Credit Agreement as in effect on the date hereof) granted pursuant to the Loan Documents (as defined in the Revolving Credit Agreement as in effect on the date hereof);

       

      (b)         Liens in existence on the Closing
            Date and described on Schedule V hereto, and the replacement, renewal or extension thereof; provided that the scope of any such Lien shall not be increased, or otherwise
            expanded, to cover any additional property or type of asset, as applicable, beyond that in existence on the Closing Date, except for products and proceeds of the foregoing;

       

      (c)    Liens for taxes, assessments or governmental charges not delinquent or being contested in good faith and by appropriate proceedings and for which adequate reserves in accordance with
            GAAP are maintained on such Person’s books;

       

      (d)          Liens arising out of deposits in
            connection with workers’ compensation, unemployment insurance, old age pensions or other social security or retirement benefits legislation;

       

      (e)         deposits or pledges to secure bids,
            tenders, contracts (other than contracts for the payment of money), leases, statutory obligations, surety and appeal bonds, and other obligations of like nature arising in the ordinary course of such Person’s business, including, without
            limitation, deposits and pledges of funds securing Permitted Commodity Hedging Obligations;

       

      (f)          Liens imposed by law, such as
            mechanics’, workers’, materialmen’s, carriers’ or other like liens arising in the ordinary course of such Person’s business which secure the payment of obligations which are not past due for a period of more than sixty (60) days, or if more
            than sixty (60) days overdue, such Liens are being contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP are maintained on such Person’s books;

       

      
        17

        
          

      

      (g)     
           rights of way, zoning restrictions, easements and similar encumbrances affecting such Person’s real property which do not materially interfere with the use of such property;

       

      (h)         Liens securing Indebtedness of SJG
            under the First Mortgage Notes issued pursuant to the SJG First Mortgage Indenture, as may be amended, modified, restated, amended and restated, or renewed from time to time, and subsequent First Mortgage Notes of SJG, so long as before and
            immediately after the incurrence of such Indebtedness or any amendment, modification, restatement, amendment and restatement or renewal, SJG is in compliance with Section 6.04;

       

      (i)         Liens securing Indebtedness of ETG
            under or secured by the First Mortgage Notes issued pursuant to the First Mortgage Indenture, dated July 2, 2018, as may be amended, modified, restated, amended and restated, or renewed from time to time, and subsequent First Mortgage Notes of
            ETG, so long as before and immediately after the incurrence of such Indebtedness or any amendment, modification, restatement, amendment and restatement or renewal, ETG is in compliance with Section

                6.04;

       

      (j)          purchase money security interests
            for the purchase of equipment to be used in such Person’s business, encumbering only the equipment so purchased and the proceeds thereof, and which secures only the purchase-money Indebtedness incurred to acquire the equipment so purchased;

       

      (k)         Liens (i) consisting of judgment or
            judicial attachment Liens; provided that the claims giving rise to such Liens are being diligently contested in good faith by appropriate proceedings, adequate reserves
            for the obligations secured by such Liens have been established and enforcement of such Liens have been stayed and (ii) securing judgments for the payment of money not constituting an Event of Default or securing appeal or other surety bonds
            relating to such judgments;

       

      (l)          Liens of (i) a collecting bank
            arising in the ordinary course of business under Section 4-210 of the Uniform Commercial Code in effect in the relevant jurisdiction and (ii) any depositary bank or other financial institution in connection with statutory, common law and
            contractual rights of setoff and recoupment with respect to any deposit account of such Person or any Subsidiary thereof or arising under customary general terms and conditions encumbering deposits or other funds maintained with a financial
            institution (including the right of set-off) and that are within the parameters customary in the banking industry or arising pursuant to such banking institution’s general terms and conditions;

       

      (m)        (i) contractual or statutory Liens of
            landlords to the extent relating to the property and assets relating to any lease agreements with such landlord, and (ii) contractual Liens of suppliers (including sellers of goods) or customers granted in the ordinary course of business to the
            extent limited to the property or assets relating to such contract;

       

      (n)        any interest or title of a licensor,
            sublicensor, lessor or sublessor with respect to any assets under any license or lease agreement entered into in the ordinary course of business which do not (i) interfere in any material respect with the business of such Person or its
            Subsidiaries or materially detract from the value of the relevant assets of such Person or its Subsidiaries or (ii) secure any Indebtedness;

       

      
        18

        
          

      

      (o)          Liens on the stock or assets of any
            Subsidiary of such Person created pursuant to “rate reduction” bonds, for the payment of which legislatively authorized charges are imposed on customers;

       

      (p)         Liens required by any contract or
            statute in order to permit such Person or any Subsidiary thereof to perform any contract or subcontract made by it with or pursuant to the requirements of a Governmental Authority, in each case which are not incurred in connection with the
            borrowing of money, the obtaining of advances of credit or the payment of the deferred purchase price of property and which do not in the aggregate impair the use of property in the operation of the business of such Person and its Subsidiaries
            taken as a whole;

       

      (q)          rights reserved to or vested in any
            Governmental Authority by the terms of any right, power, franchise, grant, license or permit, or by any Applicable Laws, to terminate such right, power, franchise, license or permit or to purchase, condemn, expropriate or recapture or to
            designate a purchaser of any of the property of such Person or any of its Subsidiaries;

       

      (r)          Liens on property acquired by such
            Person or a Subsidiary thereof after the Closing Date existing on such property at the time of acquisition thereof (and not created in anticipation thereof); provided
            that in any such case no such Lien shall extend to or cover any other property of such Person or any of its Subsidiaries;

       

      (s)        Liens on the property, revenues and/or
            assets of any Person that exist at the time such Person becomes a Subsidiary (and not created in anticipation of such Person becoming a Subsidiary) and the continuation of such Liens in connection with any refinancing or restructuring of the
            obligations secured by such Liens; provided that in any such case no such Lien shall extend to or cover any other property of such Person or any of its Subsidiaries;

       

      (t)          Liens in favor of any Governmental
            Authority granted to secure pollution control or industrial revenue or similar bond financings, which Liens in each financing transaction cover only property the acquisition or construction of which was financed by such financings and property
            related thereto;

       

      (u)         Liens on or over gas, oil, coal,
            fissionable material, or other fuel or fuel products as security for any obligations incurred by such Person or any of its Subsidiaries (or any special purpose entity formed by such Person) for the sole purpose of financing the acquisition or
            storage of such fuel or fuel products or, with respect to nuclear fuel, the processing, reprocessing, sorting, storage and disposal thereof;

       

      (v)          Liens on (including Liens arising
            out of the sale of) accounts receivable and/or contracts which will give rise to accounts receivable of such Person or any Subsidiary thereof;

       

      (w)         Liens on property or assets of a
            Subsidiary securing obligations owing to such Person or any Subsidiary;

       

      (x)          Liens securing Hedge Agreements
            permitted to be incurred under this Agreement;

       

      
        19

        
          

      

      (y)         Liens incidental to the normal
            conduct of the business of the Borrower or any Subsidiary or ownership of its property that are not incurred in connection with the incurrence of Indebtedness and that do not in the aggregate materially impair the use of such property in the
            operation of the business of such Person and its Subsidiaries taken as a whole or the value of such property for the purposes of such business;

       

      (z)          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 in the ordinary course of business;

       

      (aa)        Liens on insurance policies and the
            proceeds thereof securing the financing of the insurance premiums with respect thereto;

       

      (bb)        Liens (i) on cash advances in favor
            of the seller of any property to be acquired in an acquisition or investment and (ii) consisting of an agreement to dispose of any property in a disposition permitted under this Agreement; and

       

      (cc)        Liens which would otherwise not be
            permitted by clauses (a) through (bb) above securing additional Indebtedness of such Person or any Subsidiary thereof; provided that after giving effect thereto the
            aggregate unpaid principal amount of Indebtedness of such Person and its Subsidiaries secured by Liens permitted by this clause (cc) shall not exceed $50,000,000.

       

      “Permitted Tax Distributions” means, to the extent the Borrower is a pass-thru entity
        for U.S. federal income tax purposes or a member of a consolidated, combined or unitary tax group for tax purposes, cash dividends or other distributions declared and paid for the sole purpose of funding the payments by the direct or indirect
        owners of the Borrower of the U.S. federal, state or local Taxes owed with respect to the taxable income for such period of the Borrower and any of its Subsidiaries; reduced in each case by any Taxes directly paid or withheld at the level of the
        Borrower or any of its Subsidiaries.

       

      “Person” means an individual, partnership, corporation (including, without limitation, a
        business trust), joint stock company, limited liability company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

       

      “Platform” means Debt Domain, Intralinks, SyndTrak or a substantially similar electronic
        transmission system.

       

      “Prime Rate” means, at any time, the rate of interest per annum publicly announced from
        time to time by the Administrative Agent as its prime rate.  Each change in the Prime Rate shall be effective as of the opening of business on the day such change in such Prime Rate occurs.  The parties hereto acknowledge that the rate announced
        publicly by the Administrative Agent as its Prime Rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.

       

      
        20

        
          

      

      “Principal Credit Facilities” means any credit or facility agreement or note purchase
        agreement of SJI, whether now existing or existing in the future, that provides for senior Indebtedness for borrowed money in an aggregate principal amount outstanding or available for borrowing under such agreement in excess of $50,000,000 or, in
        the case of any credit or facility agreement, that constitutes the primary bank credit facility or facilities of SJI, in each case, as amended, restated, joined, supplemented or otherwise modified from time to time, and any renewals, extensions or
        replacements thereof, including, but not limited to, and notwithstanding the minimum dollar threshold above, the SJI Note Purchase Agreements and the Revolving Credit Agreement.

       

      “Private Lenders” means any Lenders that are not Public Lenders.

       

      “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.

       

      “Public Lenders” has the meaning assigned to that term in Section 6.03.

       

      “QFC Credit Support” has the meaning assigned to that term in Section 9.21.

       

      “Rating Agency” means S&P, Fitch and/or Moody’s.

       

      “Register” has the meaning assigned to that term in Section 9.09(c).

       

      “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
        partners, directors, officers, employees, agents and advisors of such Person and of such Person’s Affiliates.

       

      “Relevant Governmental Body” means the Federal Reserve Board or the Federal Reserve Bank
        of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

       

      “Required Lenders” means Lenders whose unused Commitments and outstanding Loans in the
        aggregate total more than 50% of the unused Aggregate Commitments and outstanding Loans; provided that the unused Commitment and the outstanding Loans held or deemed held by,
        any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

       

      “Resignation Effective Date” has the meaning assigned to that term in Section 8.06(a).

       

      “Resolution Authority” means an EEA Resolution Authority or, with respect to any UK
        Financial Institution, a UK Resolution Authority.

       

      “Revolving Credit Agreement” means the Five-Year Revolving Credit Agreement, dated as of
        September 1, 2021 (as amended, amended and restated, supplemented or otherwise modified from time to time, and any renewals, refinancings, exchanges, refundings or extension thereof), by and among SJI, the lenders party thereto and Wells Fargo
        Bank, National Association as administrative agent.

       

      “S&P” means Standard & Poor’s Rating Service, a division of S&P Global Inc.
        and any successor thereto.

       

      
        21

        
          

      

      “Sanctioned Country” means a country, territory or region which is the subject or target
        of comprehensive Sanctions (as of the Closing Date, Cuba, Iran, North Korea, Syria and the so-called Luhansk People’s Republic, the so-called Donetsk People’s Republic, and the Crimea regions of Ukraine).

       

      “Sanctioned Person” means (a) a Person listed in any Sanctions-related list of
        designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union or the United Kingdom, (b) any Person operating, organized or resident in a Sanctioned Country, (c) the government of a
        Sanctioned Country or the Government of Venezuela, or (d) any Person owned 50% or more, individually or in the aggregate, directly or indirectly, or controlled by any such Person or Persons described in clauses (a) through (c).

       

      “Sanctions” means all economic or financial sanctions or trade embargoes imposed,
        administered or enforced from time to time by the United States Government (including without limitation, OFAC), the United Nations Security Council, the European Union or the United Kingdom.

       

      “Significant Subsidiary” means, with respect to any Person, a Subsidiary which meets any
        of the following conditions:

       

      	(a)	
              such Person’s and its other Subsidiaries’ investments in and advances to the Subsidiary exceed 10% of the total assets of such Person and its Subsidiaries as of the end of the most recently
                completed fiscal quarter;

            

       

      	(b)	
              such Person’s and its other Subsidiaries’ proportionate share (as determined by ownership interests) of the total assets (after intercompany eliminations) of the Subsidiary exceeds 10% of the total
                assets of such Person and its Subsidiaries as of the end of the most recently completed fiscal quarter; or

            

       

      	(c)	
              such Person’s and its other Subsidiaries’ proportionate share (as determined by ownership interests) in the income from continuing operations before income taxes, extraordinary items and cumulative
                effect of changes in accounting principles of the Subsidiary exceeds 10% of such income of such Person and its Subsidiaries for the most recently completed fiscal quarter.

            

       

      “SJG” means South Jersey Gas Company, a corporation organized under the laws of the
        State of New Jersey.

       

      “SJG First Mortgage Indenture” means that certain Supplemental Indenture Amending and
        Restating the First Mortgage Indenture, dated January 23, 2017, as may be amended, modified, restated, amended and restated, renewed or supplemented from time to time.

       

      “SJI” has the meaning assigned to that term in the preamble hereto.

       

      “SJI Note Purchase Agreements” means, (a) SJI’s Note Purchase Agreement dated June 28,
        2012, (b) SJI’s Note Purchase Agreement dated August 16, 2017, (c) SJI’s Note Purchase Agreement dated April 25, 2018 and (d) SJI’s Note Purchase Agreement, dated May 27, 2020, in each case, as amended, amended and restated, supplemented or
        otherwise modified from time to time, and any renewals, refinancings, exchanges, refundings or extension thereof.

       

      
        22

        
          

      

      “SOFR” means, with respect to any U.S. Government Securities Business Day, a rate per
        annum equal to the secured overnight financing rate for such U.S. Government Securities Business Day as administered by the Term SOFR Administrator.

       

      “SOFR Loan” means all Loans, or portions thereof, bearing interest based on Adjusted
        Term SOFR (other than a Base Rate Loan for which interest is determined by reference to Adjusted Term SOFR).

       

      “Solvency Certificate” means a certificate substantially in the form of Exhibit L.

       

      “Solvent” means, with respect to any Person, that such Person (a) has capital sufficient
        to carry on its business and transactions and all business and transactions in which it is about to engage and is able to pay its debts as they mature, (b) owns property having a value, both at fair valuation and at present fair saleable value,
        greater than the amount required to pay its probable liabilities (including contingencies), and (c) does not believe that it will incur debts or liabilities beyond its ability to pay such debts or liabilities as they mature.

       

      “Specified Representations” means, the representations set forth in Section 5.01(a), Section 5.01(b), Section 5.01(d), Section 5.01(i), Section 5.01(k), Section 5.01(o) and Section 5.01(v).

       

      “Stated Termination Date” means March 20, 2023.

       

      “Subsidiary” means, with respect to any Person, any corporation or unincorporated entity
        of which more than 50% of the outstanding capital stock (or comparable interest) having ordinary voting power (irrespective of whether at the time capital stock (or comparable interest) of any other class or classes of such corporation or entity
        shall or might have voting power upon the occurrence of any contingency) is at the time directly or indirectly owned by said Person (whether directly or through one of more other Subsidiaries).  In the case of an unincorporated entity, a Person
        shall be deemed to have more than 50% of interests having ordinary voting power only if such Person’s vote in respect of such interests comprises more than 50% of the total voting power of all such interests in the unincorporated entity.

       

      “Subsidiary Guaranty” has the meaning assigned to that term in Section 6.01(s).

       

      “Supported QFC” has the meaning assigned to that term in Section 9.21.

       

      “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
        withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

       

      “Term Loan Notes” means the promissory notes of the Borrower in favor of each Lender
        evidencing the Loans made to the Borrower and substantially in the form of Exhibit A-1.

       

      “Term SOFR” means,

       

      

      
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      	(a)	
              for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Period on the day (such day, the “Periodic Term SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not
                been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR
                Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities
                Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

            

       

      	(b)	
              for any calculation with respect to Base Rate Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the “Base
                    Rate SOFR Determination Day”) that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Base Rate SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a
                Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government
                Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government
                Securities Business Days prior to such Base Rate SOFR Determination Day.

            

       

      “Term SOFR Adjustment” means a percentage per annum as set forth below for the
        applicable Type of Loan and (if applicable) Interest Period therefor:

       

      Base Rate Loans: 0.10%

       

      SOFR Loans:

       

      	 	
              Interest Period

            	 	
              Percentage

            
	 	
              One month

            	 	
              0.10%

            
	 	
              Three months

            	 	
              0.15%

            
	 	
              Six months

            	 	
              0.25%

            

      

      

      “Term SOFR Administrator” means CME Group Benchmark Administration Limited (CBA) (or a
        successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion) as administrator of the forward-looking Term SOFR.

       

      
        24

        
          

      

      “Term SOFR Reference Rate” means the forward-looking term rate based on SOFR.

       

      “Termination Date” means the earliest of (a) the Stated Termination Date, (b) the date
        on which the IIF Acquisition is consummated and (c) the date on which the Loans become due and payable pursuant to Section 7.02(a).

       

      “Termination Event” means, with respect to the Borrower, except for any such event or
        condition that would not reasonably be expected to have a Material Adverse Effect: (a) a “Reportable Event” described in Section 4043 of ERISA for which the notice requirement has not been
        waived by the PBGC, or (b) the withdrawal of the Borrower or any ERISA Affiliate thereof from a Pension Plan during a plan year in which it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination of a Pension
        Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA, if the plan assets are not sufficient to pay all plan liabilities, or (d) the institution
        of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC, or (e) any other event or condition which would constitute grounds under Section 4042(a) of ERISA for the termination of, or the appointment
        of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien pursuant to Section 430 of the Code or Section 303 of ERISA, or (g) the partial or complete withdrawal of the Borrower or any ERISA Affiliate thereof from a Multiemployer
        Plan if withdrawal liability is asserted by such plan, or (h) any event or condition which results in the insolvency of a Multiemployer Plan under Section 4245 of ERISA, or (i) any event or condition which results in the termination of a
        Multiemployer Plan under Section 4041A of ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under Section 4042 of ERISA.

       

      “Type” means a type of Loan, being either a SOFR Loan or a Base Rate Loan, as
        applicable.

       

      “UCC” means the Uniform Commercial Code as in effect in the State of New York, as
        amended or modified from time to time.

       

      “UK Financial Institution” means any BRRD Undertaking (as such term is defined under the
        PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial
        Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

       

      “UK Resolution Authority” means the Bank of England or any other public administrative
        authority having responsibility for the resolution of any UK Financial Institution.

       

      “Unadjusted Benchmark Replacement” means the applicable Benchmark Replacement excluding
        the related Benchmark Replacement Adjustment.

       

      “Uniform Customs” means the Uniform Customs and Practice for Documentary Credits (1993
        Revision), effective January, 1994 International Chamber of Commerce Publication No. 600.

       

      
        25

        
          

      

      “U.S. Government Securities Business Day” means any day except for (a) a Saturday, (b) a
        Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

       

      “U.S. Special Resolution Regimes” has the meaning assigned to that term in Section 9.21.

       

      “U.S. Tax Compliance Certificate” has the meaning assigned to that term in Section 2.17(f)(ii)(B)(3).

       

      “Write-Down and Conversion Powers” means, (a) 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, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any
        contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a
        right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

       

      SECTION 1.02          Computation of Time Periods.  In this Agreement, in the computation of a period 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” and the word “through” means “to and including”.

       

      SECTION 1.03           Accounting Terms and Determinations.

       

      (a)         All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this
            Agreement shall be prepared in conformity with GAAP, applied on a consistent basis, as in effect from time to time and in a manner consistent with that used in preparing the audited financial statements required by Section 6.03, except as otherwise specifically prescribed herein.  Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant)
            contained herein: (i) Indebtedness of the Borrower and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be
            disregarded and (ii) all obligations of any Person that are or would have been treated as operating leases (including for avoidance of doubt, any network lease or any operating indefeasible right of use) for purposes of GAAP prior to the
            issuance by FASB on February 25, 2016 of an Accounting Standards Update shall continue to be accounted for as operating leases for purposes of all financial definitions and calculations for purpose of the Loan Documents (whether or not such
            operating lease obligations were in effect on such date) notwithstanding the fact that such obligations are required in accordance with such Accounting Standards Update (on a prospective or retroactive basis or otherwise) to be treated as
            capital leases in the financial statements to be delivered pursuant to the Loan Documents.  If at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the
            Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP
            (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP
            prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a
            reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP.

      

      

      
        26

        
          

      

      (b)        Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by
            which such ratio or percentage is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).

       

      (c)         Unless otherwise expressly provided herein, (i) references to formation documents, governing documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments,
            restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (ii) references to
            any Applicable Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Applicable Law.

       

      SECTION 1.04           Terminology.  With reference to this Agreement and each other Loan Document, unless
        otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any pronoun shall include the
        corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to have the same meaning and effect as
        the word “shall”, (e) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
        Agreement in its entirety and not to any particular provision hereof, (g) all references herein to “Articles,” “Sections,” “Exhibits” and “Schedules” shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this
        Agreement, (h) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (i) the term
        “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form, and (j) Section headings herein and in the
        other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any other Loan Document.

      

      

      
        27

        
          

      

      SECTION 1.05           Use of Defined Terms.  All terms defined in this Agreement shall have the same
        meanings when used in any of the other Loan Documents, unless otherwise defined therein or unless the context shall otherwise require.

       

      SECTION 1.06         Divisions.  For all purposes under the Loan Documents, in connection with any division
        or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it
        shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of
        its equity interest at such time.

       

      SECTION 1.07          Rates.  The Administrative Agent does not warrant or accept responsibility for, and
        shall not have any liability with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component
        definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative,
        successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term
        SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes.  The Administrative Agent and its Affiliates or other related entities may engage in transactions
        that affect the calculation of Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a
        manner adverse to the Borrower.  The Administrative Agent may select information sources or services in its reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark, in each
        case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages,
        costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

       

      ARTICLE II

      LOANS

       

      SECTION 2.01           Loans.

       

      (a)       Subject to the terms and conditions of this Agreement, and in reliance upon the representations and warranties set forth herein, each Lender severally agrees to make its Commitment Percentage of Loans in Dollars to the Borrower from time
            to time, but not including, the Termination Date, as requested by the Borrower in accordance with the terms of Sections 2.03(a)(i); provided that (x) the initial borrowing shall be
            made on the Closing Date and shall be in an aggregate amount not less than $100,000,000 and (y) there shall be no more than two borrowings during the term of this Agreement; provided further that after giving effect to any amount requested and
            the application of the proceeds thereof (i) the Loans made by any Lender shall not exceed such Lender’s Commitment at the time of such Loan and (ii) the Loans made to the Borrower on the occasion of any borrowing shall not exceed the Aggregate
            Commitments.  Each Loan by a Lender shall be in a principal amount equal to such Lender’s Commitment Percentage multiplied by the aggregate principal amount of Loans requested on such occasion.  Amounts repaid in respect of Loans may not be
            reborrowed.

       

      
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      (b)        [reserved.]

       

      (c)        Loans shall be disbursed in accordance with Section 2.03(d)(i).

       

      SECTION 2.02           [Reserved].

       

      SECTION 2.03           Procedure for Advances of Loans.

       

      (a)          Requests for Borrowing.

       

      (i)           Loans.

       

      (A)          Base Rate Loans.  By no later than 11:00 a.m. (New York City time) on the Business Day of the Borrower’s request for a borrowing of a Base Rate Loan, the
            Borrower shall submit to the Administrative Agent a written notice in the form attached hereto as Exhibit B (a “Notice of Borrowing”), which such Notice of Borrowing shall set forth
            (I) the amount requested and (II) the desire to have such Loans accrue interest at the Base Rate.  A Notice of Borrowing received after 11:00 a.m. (New York City time) shall be deemed received on the next Business Day.  The Administrative Agent
            shall promptly notify the Lenders of each Notice of Borrowing.

       

      (B)           SOFR Loans.  By no later than 2:00 p.m. (New York City time) on the third (3rd) U.S. Government Securities Business Day prior to the date of the
            Borrower’s request for a borrowing of a SOFR Loan, the Borrower shall submit a Notice of Borrowing of a SOFR Loan to the Administrative Agent, which such Notice of Borrowing shall set forth (I) the amount requested, (II) the desire to have such
            Loans accrue interest at Adjusted Term SOFR and (III) the Interest Period applicable thereto.  A Notice of Borrowing received after 2:00 p.m. (New York City time) shall be deemed received on the next Business Day.  The Administrative Agent
            shall promptly notify the Lenders of each Notice of Borrowing.

       

      (ii)          [Reserved.]

       

      (b)            Each Notice of Borrowing shall be irrevocable and binding on the Borrower.  In the case of any borrowing that the related Notice of Borrowing specifies is to comprise SOFR Loans, the Borrower shall indemnify the applicable Lender
            against any loss, cost or expense incurred by such Lender as a result of any failure of the Borrower to fulfill on or before the date specified in such Notice of Borrowing for such Loans, the applicable conditions set forth in Article IV, including, without limitation, any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or redeployment of deposits or other
            funds acquired by such Lender as part of such borrowing.

       

      
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      (c)          Each Loan shall be in an aggregate principal amount of $5,000,000 or any multiple of $1,000,000 in excess thereof (except that any such Loan may be in the aggregate amount of the unborrowed Commitments on such date).

       

      (d)          Disbursement of Loans.

       

      (i)          Loans.  Not later than 2:00 p.m. (New York City time) on the proposed borrowing date, each Lender will make available to the Administrative Agent, for the
            account of the Borrower, at the office of the Administrative Agent in funds immediately available to the Administrative Agent, such Lender’s Commitment Percentage multiplied by
            the Loans to be made on such borrowing date.  Upon satisfaction of the applicable conditions set forth in Section 4.02 (and, if such borrowing is the initial Loan, Section 4.01), the Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent by crediting or wiring such
            proceeds to the deposit account of the Borrower identified in the most recent notice substantially in the form of Exhibit D hereto (a “Notice of Account Designation”) delivered by the
            Borrower to the Administrative Agent or such other account as may be designated in writing by the Borrower to the Administrative Agent from time to time.

       

      (ii)         [Reserved.]

       

      SECTION 2.04           [Reserved].

       

      SECTION 2.05           Fees.

       

      (a)         The Borrower agrees to pay to the Administrative Agent, for the account of each Lender, a commitment fee (the “Commitment Fee”) for the period from and including the Closing Date
            to the Final Fee Payment Date, computed at the Commitment Fee Rate on the average daily unused amount of the Commitment of such Lender during the period for which payment is made.  The Commitment Fee shall be payable quarterly in arrears on the
            last Business Day of each March, June, September and December and on the Final Fee Payment Date, commencing on the first of such dates to occur after the Closing Date.

       

      (b)          The Borrower hereby agrees to pay such other fees as are specified in the Administrative Agent Fee Letter to be paid by it.

       

      SECTION 2.06          Reduction of Commitments.

       

      (a)          Voluntary.

       

      (i)         Subject to Section 2.07(b) and (ii) upon at least three (3) Business Days’ notice, the Borrower shall have the right to permanently terminate or reduce
            the aggregate unused amount of the Aggregate Commitments at any time or from time to time; provided that each partial reduction shall be in an aggregate amount at least
            equal to $10,000,000 and in integral multiples of $1,000,000 in excess thereof; provided, further, that any such notice may state that it is conditioned upon the
            effectiveness of any other event (such notice to specify the proposed effective date), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to such specified effective date) if such
            condition is not satisfied.  Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Commitment Percentage.

       

      
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      (ii)         [reserved.]

       

      (b)          Mandatory.

       

      (i)          On the Termination Date, the Aggregate Commitments shall automatically and permanently be reduced to zero.

       

      (ii)         Upon the making of any Loan, the Aggregate Commitments shall automatically and permanently be reduced by an amount equal to the principal amount of such Loan.

       

      (c)          [Reserved.]

       

      SECTION 2.07           Prepayment of Loans.

       

      (a)          Voluntary Prepayments.  The Borrower shall have the right to prepay Loans made to it in whole or in part from time to time without premium or penalty upon one (1) Business Days’
            prior written notice to the Administrative Agent; provided that (i) SOFR Loans may only be prepaid on three (3) U.S. Government Securities Business Days’ prior written
            notice to the Administrative Agent and any prepayment of SOFR Loans will be subject to Section 2.12(e), and (ii) each such partial prepayment of Loans shall be in the minimum
            principal amount of $10,000,000; provided, further, that any such notice may state that it is conditioned upon the effectiveness of any other event (such notice to
            specify the proposed effective date), in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to such specified effective date) if such condition is not satisfied.  Amounts prepaid hereunder
            shall be applied first to Base Rate Loans until paid in full and second to SOFR Loans, in direct order of Interest Period maturities until paid in full, pro rata among all Lenders based on their Commitment Percentages.

       

      (b)         Repayment of Loans.  On the Termination Date, the Borrower shall pay to the Administrative Agent for the ratable accounts of the Lenders, the outstanding principal amount of all
            Loans made to it, together with (A) accrued interest to the date of such payment on the principal amount repaid and (B) in the case of prepayments of SOFR Loans, any amount payable to the Lenders pursuant to Section 2.12(e).

       

      SECTION 2.08           [Reserved].

       

      
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      SECTION 2.09           Evidence of Debt; Term Loan Notes.

       

      (a)          Evidence of Debt.  The date, amount, type, interest rate and duration of Interest Period (if applicable) of each Loan made by each Lender to the Borrower, and each payment made on
            account of the principal (and stated interest) thereof, shall be recorded by such Lender and by the Administrative Agent on its books; provided that the failure of such
            Lender or the Administrative Agent to make any such recordation or endorsement shall not affect the obligations of the Borrower to make a payment when due of any amount owing hereunder or under any Term Loan Note with respect of the Loans to be
            evidenced by such Term Loan Note, and each such recordation or endorsement shall be conclusive and binding, absent manifest error.  In any legal action or proceeding in respect of this Agreement, the entries made in such account or accounts
            shall, in the absence of manifest error, be conclusive evidence of the existence and amounts of the Obligations of the Borrower therein recorded.  In the event of any conflict between the accounts and records maintained by any Lender and the
            accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.

       

      (b)          Term Loan Notes.  The Loans made by the Lenders to the Borrower shall be evidenced, upon request by any Lender, by Term Loan Notes in a principal amount equal to the amount of
            such Lender’s Commitment Percentage multiplied by the Aggregate Commitments.

       

      SECTION 2.10           Interest Rates.

       

      (a)          Interest Rates.  Subject to the provisions of this Section, at the election of the Borrower, Loans made to the Borrower shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) Adjusted Term SOFR plus the Applicable Margin.  The Borrower shall
            select the Type and Interest Period, if applicable, for any Loan made to it at the time the applicable Notice of Borrowing is given or at the time the applicable Notice of Conversion/Continuation is given pursuant to Section 2.13.  Any Loan or any portion thereof as to which the Borrower has not duly specified a Type as provided herein shall be deemed a Base Rate Loan.

       

      (b)          Interest Periods.  In connection with each SOFR Loan, interest shall accrue on such Loan during the period commencing on the date of such SOFR Loan or the date of the Conversion
            of any Base Rate Loan into a SOFR Loan and ending on the last day of the period selected by the Borrower pursuant to the provisions below (“Interest Period”) and, thereafter, during
            each subsequent period commencing on the last day of the immediately preceding Interest Period (or such other day as may be selected by the Borrower in accordance with the provisions hereof) and ending on the last day of the period selected by
            the Borrower pursuant to the provisions below.  The duration of each such Interest Period shall be one, three or six months, as the Borrower may select by notice to the Administrative Agent pursuant to Section 2.03(a)(i)(B); provided, however, that:

       

      (i)          the Borrower may not select any Interest Period with respect to any Loan that ends after the Termination Date, and in no event shall an Interest Period of any Loan extend beyond the Termination Date;

       

      (ii)         whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day; provided that if such extension would cause the last day of such Interest Period to occur in the next following calendar month, the last day of such Interest Period shall
            occur on the next preceding Business Day;

       

      
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      (iii)       any Interest Period for a SOFR Loan which begins on the last U.S. Government Securities Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the appropriate subsequent
            calendar month) shall end on the last Business Day of the appropriate subsequent calendar month; and

       

      (iv)         no more than two (2) Interest Periods may be in effect for the Borrower at any time.

       

      (c)         Default Rate.  Subject to Section 7.02, immediately upon the occurrence and during the continuance of an Event of
            Default under Section 7.01(a) with respect to the Borrower, (i) any overdue principal of outstanding SOFR Loans made to the Borrower shall bear interest at a rate per annum of two
            percent (2%) in excess of the rate then applicable to such SOFR Loans and (ii) any overdue principal of outstanding Base Rate Loans made to the Borrower and other overdue Obligations of the Borrower arising hereunder or under any other Loan
            Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate then applicable to Base Rate Loans or such other Obligations arising hereunder or under any other Loan Document.  Interest shall continue to accrue
            on the Obligations of the Borrower after the filing by or against the Borrower of any petition seeking any relief in bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether state, federal or foreign.

       

      (d)         Interest Payment and Computation.  (i) Interest on each Base Rate Loan shall be due and payable in arrears on the last Business Day of each calendar quarter commencing on the last
            Business Day of the first calendar quarter to occur after the Closing Date ; and (ii) interest on each SOFR Loan shall be due and payable on the last day of each Interest Period applicable thereto, and if such Interest Period extends
            over three (3) months, at the end of each three (3) month interval during such Interest Period; provided, however, that accrued interest on any SOFR Loan shall be payable
            in arrears on the date the outstanding principal of such SOFR Loan is repaid or any date such SOFR Loan is Converted to a Base Rate Loan.  All computations of interest for Base Rate Loans when the Base Rate is determined by the Prime Rate shall
            be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest provided hereunder shall be made on the basis of a 360-day year and actual days elapsed (which results
            in more fees or interest, as applicable, being paid than if computed on the basis of a 365/366-day year).

       

      (e)          Payments.  Each payment by the Borrower on account of the principal of or interest on the Loans or of any fee, commission or other amounts payable to the Lenders under
            this Agreement (or any of them) shall be made not later than 1:00 p.m. (New York City time) on the date specified for payment under this Agreement to the Administrative Agent at the Administrative Agent’s Office for the account of the Lenders
            entitled to such payment in Dollars, in immediately available funds and shall be made without any set off, counterclaim or deduction whatsoever.  Any payment received after such time but before 2:00 p.m. (New York City time) on such day shall
            be deemed a payment on such date for the purposes of Section 7.01, but for all other purposes shall be deemed to have been made on the next succeeding Business Day.  Any payment
            received after 2:00 p.m. (New York City time) shall be deemed to have been made on the next succeeding Business Day for all purposes.  Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to
            each such Lender at its address for notices set forth herein its pro rata share of such payment based on its Commitment Percentage (or other applicable share as provided
            herein), and shall wire advice of the amount of such credit to each Lender.  Each payment to the Administrative Agent of the Administrative Agent’s fees or expenses shall be made for the account of the Administrative Agent and any amount
            payable to any Lender under Sections 2.12(e), 2.14, 2.17, 9.05 or 9.07 shall be paid to the Administrative Agent for the account of the applicable Lender.  If any payment under this
            Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such extension of time shall in such case be included in computing any interest if payable
            along with such payment.

       

      
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      (f)          Maximum Rate.  In no contingency or event whatsoever shall the aggregate amount of all amounts deemed interest hereunder or under any of the Term Loan Notes charged or collected
            pursuant to the terms of this Agreement or pursuant to any of the Term Loan Notes exceed the highest rate permissible under any Applicable Law which a court of competent jurisdiction shall, in a final determination, deem applicable hereto.  In
            the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to the maximum rate permitted by
            Applicable Law and the Lenders shall at the Administrative Agent’s option promptly refund to the Borrower any interest received by the Lenders in excess of the maximum lawful rate or shall apply such excess to the principal balance of the
            Obligations.  It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of
            that which may be paid by the Borrower under Applicable Law.

       

      SECTION 2.11            [Reserved]. 

       

      SECTION 2.12            Interest Rate Determination; Changed Circumstances.

       

      (a)          Interest Rate Determination.  The Administrative Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Administrative
            Agent for purposes of Section 2.10.

       

      (b)         Automatic Conversion.  If the Borrower shall fail to (i) select the duration of any Interest Period for any SOFR Loans requested by the Borrower in accordance with the provisions
            of Section 2.10(b), (ii) provide a Notice of Conversion/Continuation with respect to any SOFR Loans made to the Borrower on or prior to 12:00 p.m., New York City time, on the third
            (3rd) U.S. Government Securities Business Day prior to the last day of the Interest Period applicable thereto, in the case of a Conversion to or in respect of SOFR Loans or (iii) satisfy the conditions set forth in Section 2.13 with respect to a Conversion, the Administrative Agent will forthwith so notify the Borrower and the Lenders and such SOFR Loans will automatically, on the last day of the then existing Interest
            Period therefor, Convert into Base Rate Loans.

       

      (c)          Inability to Determine Rates.  Subject to clause (e) below, if, on or prior to the first day of any Interest Period for any SOFR Loan:

       

      (i)          the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that “Adjusted Term SOFR” cannot be determined pursuant to the definition thereof, or,

       

      
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      (ii)         the Required Lenders determine that for any reason in connection with any request for a SOFR Loan or a conversion thereto or a continuation thereof that Adjusted Term SOFR for any requested Interest Period with
            respect to a proposed SOFR Loan does not adequately and fairly reflect the cost to such Lenders of making and maintaining such Loan, and the Required Lenders have provided notice of such determination to the Administrative Agent, the
            Administrative Agent will promptly so notify the Borrower and each Lender.

       

      Upon notice thereof by the Administrative Agent to the Borrower,
          any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to continue SOFR Loans or to convert Base Rate Loans to SOFR Loans, shall be suspended (to the extent of the affected SOFR
          Loans or affected Interest Periods) until the Administrative Agent (with respect to clause (b), at the instruction of the Required Lenders) revokes such notice.  Upon receipt of
            such notice, (i) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans or affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a borrowing of or conversion to Base Rate Loans in the amount specified therein and (ii) any outstanding affected SOFR Loans will be deemed to have been converted into Base Rate Loans at the end of the applicable Interest Period.  Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to Section

              2.19.  Subject to Section 2.12(e), if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that “Adjusted Term
          SOFR” cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Loans shall be determined by the Administrative Agent without reference to clause (iii) of the definition of “Base Rate” until the
          Administrative Agent revokes such determination.

       

      (d)          [Reserved]

       

      (e)          Benchmark Replacement Setting.

       

      (i)          Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document (and any Hedge Agreement shall be deemed not to be a
            “Loan Document” for purposes of this Section 2.12(e)), if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current
            Benchmark, then (x) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes
            hereunder and under any Loan Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Loan Document and (y) if a
            Benchmark Replacement is determined in accordance with clause (b) of the definition of “Benchmark Replacement” for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any
            Loan Document in respect of any Benchmark setting at or after 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or
            further action or consent of any other party to, this Agreement or any other Loan Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the
            Required Lenders.  If the Benchmark Replacement is Daily Simple SOFR, all interest payments will be payable on a quarterly basis.

       

      
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      (ii)       Benchmark Replacement Conforming Changes.  In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative
            Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any
            further action or consent of any other party to this Agreement or any other Loan Document.

       

      (iii)        Notices; Standards for Decisions and Determinations.  The Administrative Agent will promptly notify the Borrower and the Lenders of (A) the implementation
            of any Benchmark Replacement, (B) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement, (C) the removal or reinstatement of any tenor of a Benchmark
            pursuant to Section 2.12(e)(iv) below and (D) the commencement of any Benchmark Unavailability Period.  Any determination, decision or election that may be made by the Administrative
            Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.12(e), including any determination with respect to a tenor, rate or adjustment or of the
            occurrence or nonoccurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and
            without consent from any other party to this Agreement or any other Loan Document, except, in each case, as expressly required pursuant to this Section 2.12(e).

       

      (iv)        Unavailability of Tenor of Benchmark.  Notwithstanding anything to the contrary herein or in any other Loan Document, at any time (including in connection
            with the implementation of a Benchmark Replacement), (A) if the then-current Benchmark is a term rate (including Term SOFR Reference Rate) and either (1) any tenor for such Benchmark is not displayed on a screen or other information service
            that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (2) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of
            information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of “Interest Period” (or any
            similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (B) if a tenor that was removed pursuant to clause (A) above either (1) is subsequently displayed on a
            screen or information service for a Benchmark (including a Benchmark Replacement) or (2) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement),
            then the Administrative Agent may modify the definition of “Interest Period” for all Benchmark settings at or after such time to reinstate such previously removed tenor.

       

      
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      (v)         Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke
            any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request
            into a request for a borrowing of or conversion to Base Rate Loans.  During any Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of the Base Rate based upon the
            then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base Rate.

       

      (f)          Indemnity.  The Borrower hereby indemnifies each of the Lenders against any actual loss or expense which may arise or be attributable to each Lender’s obtaining, liquidating,
            redeploying or employing deposits or other funds acquired to effect, fund or maintain any Loan, or from any fees payable, (i) as a consequence of any failure by the Borrower to make any payment when due of any amount due hereunder in connection
            with a SOFR Loan made to the Borrower, (ii) due to any failure of the Borrower to borrow, continue or Convert on a date specified therefor in a Notice of Borrowing or Notice of Conversion/Continuation delivered by the Borrower or (iii) due to
            any payment, prepayment or conversion of any SOFR Loan made to the Borrower on a date other than the last day of the Interest Period therefor (including as a result of an Event of Default).  A certificate of any Lender setting forth any amount
            or amounts that such Lender is entitled to receive pursuant to this Section shall be forwarded to the Borrower through the Administrative Agent and shall be conclusively presumed to be correct absent manifest error.  Without prejudice to the
            survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower, the Administrative Agent and the Lenders contained in this Section shall survive the payment in full of the Obligations and the
            termination of the Commitments.

       

      SECTION 2.13          Voluntary Conversion of Loans.  The Borrower may on any Business Day, by delivering an
        irrevocable Notice of Conversion/Continuation (a “Notice of Conversion/Continuation”) in the form of Exhibit E hereto to the Administrative Agent not later than 12:00 p.m., New York City
        time, on the third (3rd) Business Day prior to the date of the proposed Conversion, and subject to the provisions of Sections 2.10, 2.15
        and 4.02 Convert all Loans of one Type made simultaneously to the Borrower into Loans of the other Type; provided
        that any Conversion of any SOFR Loans into Base Rate Loans shall be made on, and only on, the last day of an Interest Period for such SOFR Loans.

       

      SECTION 2.14           Increased Costs.

       

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

       

      (i)         impose, modify or deem applicable any reserve (including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency,
            special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D)), special deposit, compulsory loan, insurance charge or similar requirement
            against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender;

       

      
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      (ii)        subject any Lender to any tax of any kind whatsoever with respect to this Agreement or any SOFR Loan made by it, or change the basis of taxation of payments to such Lender in respect thereof (except for Indemnified
            Taxes or Other Taxes covered by Section 2.17 and the imposition of, or any change in the rate of, any Excluded Tax payable by such Lender); or

       

      (iii)        impose on any Lender or the London interbank market any other condition, cost or expense affecting this Agreement or SOFR Loans made by such Lender or participation therein; and the result of the foregoing shall be
            in the aggregate to increase the cost to such Lender of making, converting into or maintaining any SOFR Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender
            hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender, the Borrower shall promptly pay to any such Lender, as the case may be, such additional amount or amounts as will compensate such Lender,
            as the case may be, for such additional costs incurred or reduction suffered; provided that the Borrower shall not be liable for such compensation unless such Lender is
            generally charging such amounts to similarly situated borrowers under comparable syndicated credit facilities.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower,
            the Administrative Agent and the Lenders contained in this Section shall survive the payment in full of the Obligations and the termination of the Commitments.

       

      (b)          Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any 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 Loans 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 and liquidity), then from time to time upon written request of such Lender the Borrower shall promptly 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.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower, the Administrative
            Agent and the Lenders contained in this Section shall survive the payment in full of the Obligations and the termination of the Commitments.

       

      (c)          Certificates for Reimbursement.  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 paragraph (a) or (b) of this Section and delivered to the Borrower shall be conclusive absent manifest error.  The Borrower shall pay such Lender, as the case may be, the amount shown as due on any such certificate within ten (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 six (6) months prior to the date that such Lender, as the case may be, 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 six-month period referred to above shall be extended to include the period of retroactive effect thereof).

       

      
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      SECTION 2.15   Illegality. 

        If any Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender or its applicable lending
          office to make, maintain or fund Loans whose interest is determined by reference to SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or to determine or
          charge interest based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR,
          then, upon notice thereof by such Lender to the Borrower (through the Administrative Agent) (an “Illegality Notice”), (a) any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to continue SOFR Loans or to convert
        Base Rate Loans to SOFR Loans, shall be suspended, and (b) the interest rate on which Base Rate Loans

          shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (iii) of the definition of “Base Rate”, in each case
          until each affected Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist.  Upon receipt of an Illegality Notice, the Borrower shall, if necessary to avoid such
          illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all SOFR Loans to Base Rate Loans (the interest
        rate on which Base Rate Loans shall, if necessary to avoid such illegality, be determined by the Administrative Agent without reference to clause (iii) of the definition of “Base

        Rate”), on the last day of the Interest Period therefor, if all affected Lenders may lawfully continue to maintain such SOFR Loans to such day, or promptly (and in any event within
          one Business Day), if any Lender may not lawfully continue to maintain such SOFR Loans to such day, in each case until the Administrative Agent is advised in writing by each affected Lender that it is no longer illegal for such Lender to
          determine or charge interest rates based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR.  Upon any such prepayment or conversion, the Borrower
          shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to Section 2.19.

       

      SECTION 2.16           Nature of Obligations of Lenders Regarding Loans; Pro Rata Treatment; Assumption by the Administrative
        Agent.

       

      (a)          The obligations of the Lenders under this Agreement to make the Loans are several and are not joint or joint and several.  Except to the extent otherwise provided herein, (i) each Loan shall be made from the Lenders and each termination or
            reduction of the Aggregate Commitments shall be applied to the respective Commitments of the Lenders, pro rata according to the Commitment Percentage of each Lender, (ii)
            each payment or prepayment of principal of outstanding Loans by the Borrower shall be made for account of the Lenders pro rata in accordance with the respective unpaid
            principal amounts of such Loans held by them; and (iii) each payment of interest on outstanding Loans by the Borrower shall be made for the account of the Lenders pro rata according

            to the amounts of interest on such Loans then due and payable to the respective Lenders.

       

      
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      (b)         Unless the Administrative Agent shall have received notice from a Lender prior to a proposed borrowing date that such Lender will not make available to the Administrative Agent such Lender’s ratable portion of the amount to be borrowed on
            such date (which notice shall not release such Lender of its obligations hereunder), the Administrative Agent may assume that such Lender has made such portion available to the Administrative Agent on the proposed borrowing date in accordance
            with this Agreement and the Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount.  If such amount is made available to the Administrative Agent on a date after such
            borrowing date, such Lender shall pay to the Administrative Agent on demand an amount, until paid, equal to the product of (a) the amount not made available by such Lender in accordance with the terms hereof, times (b) the daily average Federal
            Funds Rate (or, if such amount is not made available for a period of three (3) Business Days after the borrowing date, the Base Rate) during such period as determined by the Administrative Agent, times (c) a fraction the numerator of which is
            the number of days that elapse from and including such borrowing date to the date on which such amount not made available by such Lender in accordance with the terms hereof shall have become immediately available to the Administrative Agent and
            the denominator of which is 360.  A certificate of the Administrative Agent with respect to any amounts owing under this Section 2.16 shall be conclusive, absent manifest error.  If
            such Lender’s Commitment Percentage of such borrowing is not made available to the Administrative Agent by such Lender within three (3) Business Days of such borrowing date, the Administrative Agent shall be entitled to recover such amount made
            available by the Administrative Agent with interest thereon at the rate per annum applicable to the Loan hereunder, on demand, from the Borrower.  The failure of any Lender to make available its Commitment Percentage of any Loan requested by
            the Borrower shall not relieve it or any other Lender of its obligation, if any, hereunder to make its Commitment Percentage of such Loan available on such borrowing date, but no Lender shall be responsible for the failure of any other Lender
            to make its Commitment Percentage of such Loan available on the borrowing date.

       

      SECTION 2.17           Taxes; Foreign Lenders.

       

      (a)         Payments Free of Taxes.  Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made free and clear of and
            without deduction or withholding for any Indemnified Taxes or Other Taxes; provided that if the Borrower or the Administrative Agent shall be required by Applicable Law
            (as determined in good faith by the Administrative Agent) to deduct or withhold any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions and
            withholdings (including deductions and withholdings applicable to additional sums payable under this Section) the Administrative Agent, the applicable Lender, as the case may be, receives an amount equal to the sum it would have received had no
            such deductions or withholdings been made, and (ii) the Borrower or the Administrative Agent, as the case may be, shall make such deductions or withholdings and shall timely pay the full amount deducted or withheld to the relevant Governmental
            Authority in accordance with Applicable Law.

       

      (b)          Payment of Other Taxes by the Borrower.  Without limiting the provisions of paragraph (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
            Authority in accordance with Applicable Law.

       

      
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      (c)          Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent and each Lender, within ten (10) days after demand therefor, for the full amount of any
            Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) paid or payable by, or required to be withheld or deducted from a payment to, the
            Administrative Agent and such Lender, as the case may be, and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or
            asserted by the relevant Governmental Authority.  A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or
            on behalf of a Lender, shall be conclusive absent manifest error.

       

      (d)         Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within 10 days after demand thereof, for (i) any Indemnified Taxes or Other Taxes
            attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes or Other 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 9.09 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 Authority.  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.

       

      (e)        Evidence of Payments.  As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
            Administrative Agent the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the
            Administrative Agent.

       

      (f)           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 Section 2.17(f)(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.

       

      
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      (ii)         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 United States 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
            IRS Form W-8BEN-E establishing an exemption from, or reduction of, United States 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 IRS Form W-8BEN-E establishing an exemption from, or reduction of, United States 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 J-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 871(h)(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 IRS Form 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-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit J-2
            or Exhibit J-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 J-4 on behalf of each such direct
            and indirect partner;

       

      
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      (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 United States 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 United States 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.

       

      (g)          Treatment of Certain Refunds.  If the Administrative Agent or a Lender determines, in its reasonable discretion, that it has received a refund of any Taxes or Other Taxes as to
            which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional amounts pursuant to this Section, it shall promptly after the receipt of such refund pay to the Borrower an amount equal to such refund (but
            only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent,
            such Lender, as the case may be, and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided that the
            Borrower, upon the request of the Administrative Agent or 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 the Administrative
            Agent or such Lender in the event the Administrative Agent or such Lender is finally required to repay such refund to such Governmental Authority.  Notwithstanding anything to the contrary in this paragraph, in no event will the Administrative
            Agent or any Lender be required to pay any amount to the Borrower pursuant to this paragraph the payment of which would place the Administrative Agent or any Lender in a less favorable net after-Tax position than such 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 paragraph shall
            not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its Taxes which it deems confidential) to the Borrower or any other Person.

       

      
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      (h)          Survival.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower, the Administrative Agent and the
            Lenders contained in this Section shall survive the payment in full of the Obligations and the termination of the Aggregate Commitments.

       

      (i)        Patriot Act Notice; Compliance.  In order for the Administrative Agent to comply with the Patriot Act, prior to any Lender or Participant that is organized under the laws of a
            jurisdiction outside of the United States of America becoming a party hereto, the Administrative Agent may request, and such Lender or Participant shall provide to the Administrative Agent, its name, address, tax identification number and/or
            such other identification information as shall be necessary for the Administrative Agent to comply with federal law.

       

      (j)           Defined Terms.  For purposes of this Section 2.17, the term “Applicable Law” includes FATCA.

       

      SECTION 2.18            [Reserved].

       

      SECTION 2.19            [Reserved].

       

      SECTION 2.20            [Reserved].

       

      SECTION 2.21            Mitigation Obligations; Replacement of Lenders.

       

      (a)          Designation of a Different Applicable Lending Office.  If any Lender requests compensation under Section 2.14, or
            requires the Borrower to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use
            reasonable efforts to designate a different lending office for funding or booking its Loans 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 2.14 or Section 2.17, 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.

       

      
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      (b)         Replacement of Lenders.  If any Lender requests compensation under Section 2.14, or if the Borrower is
            required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender is a Defaulting Lender or a
            Non-Consenting Lender hereunder, 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 9.09, all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that
            shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment provided that such Lender is not a Defaulting Lender at the time
            of such assignment)); provided that:

       

      (i)          the Borrower shall have paid to the Administrative Agent the assignment fee specified in Section 9.09;

       

      (ii)         such Lender shall have received payment of an amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan
            Documents (including any amounts under Section 2.12(e) as if such assignment was a payment) 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);

       

      (iii)        in the case of any such assignment resulting from a claim for compensation under Section 2.14 or payments required to be made pursuant to Section 2.17, such assignment will result in a reduction in such compensation or payments thereafter; and

       

      (iv)         such assignment does not conflict with Applicable Law.

       

      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.

       

      ARTICLE III

      [RESERVED] 

       

      ARTICLE IV

      CONDITIONS PRECEDENT

       

      SECTION 4.01           Conditions Precedent to Execution and Delivery of this Agreement. The
        obligations of the Lenders to execute and deliver this Agreement and to make Loans on the Closing Date is subject to the conditions precedent that the Administrative Agent shall have received on or before the Closing Date, the following, each dated
        such date, in form and substance reasonably satisfactory to the Administrative Agent:

       

      (a)          Agreement.  The Administrative Agent shall have received counterparts of this Agreement, duly executed by the Borrower, the Administrative Agent and the Lenders.

       

      
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      (b)         Secretary’s Certificate.  The Administrative Agent shall have received (i) a certificate of an Authorized Individual of the Borrower dated the Closing Date and certifying (A) that
            attached thereto is a true and complete copy of the certificate of incorporation and all amendments thereto of the Borrower, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of organization, (B) that
            attached thereto is a true and complete copy of the by-laws of the Borrower, in effect on the Closing Date and at all times since a date prior to the date of the resolutions described in clause (C) below, (C) that attached thereto is a true and
            complete copy of resolutions or consents (or similar corporate authorizations), as applicable, duly adopted by the board of directors of the Borrower authorizing the execution, delivery and performance of this Agreement and that such
            resolutions have not been modified, rescinded or amended and are in full force and effect, (D) that the organizational documents of the Borrower have not been amended since the date of the last amendment thereto shown on the certificate of good
            standing attached thereto, (E) as to the incumbency and specimen signature of each Authorized Individual of the Borrower authorized to execute this Agreement and any other document delivered in connection herewith on its behalf and (F) that
            attached thereto is a true and complete copy of all Governmental Actions, if any, required in connection with the execution, delivery and performance of this Agreement and the other Loan Documents; and (ii) a certificate of another Authorized
            Individual as to the incumbency and specimen signature of such Authorized Individual executing the certificate pursuant to (A) above.

       

      (c)         Officer’s Certificate.  The Administrative Agent shall have received a certificate from the Borrower, executed on its behalf by the chief executive officer, chief financial
            officer or another Authorized Individual of the Borrower in form reasonably satisfactory to the Administrative Agent, certifying that (i) as of the Closing Date, all representations and warranties of the Borrower contained in this Agreement and
            the other Loan Documents are true and correct in all material respects (except for representations and warranties qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), (ii) as of the Closing
            Date, immediately after giving effect to the transactions contemplated by this Agreement to be consummated on the Closing Date, no Default or Event of Default has occurred and is continuing and (iii) each of the conditions precedent set forth
            in this Section 4.01 (assuming satisfaction of Administrative Agent, the Arranger and the Lenders, where not advised otherwise prior to the delivery of such certificate) has been
            satisfied.

       

      (d)          Financial Statements.  Receipt by the Administrative Agent of the Disclosure Documents and the financial statement described in Section 5.01(f).

       

      (e)           Fees.  All fees and expenses required to be paid on the Closing Date, in the case of expenses, to the extent invoiced at least three (3) Business Days prior to the Closing Date
            shall have been paid.

       

      (f)         Legal Opinion.  The Administrative Agent shall have received an opinion of Cozen O’Connor, as counsel to the Borrower, dated the Closing Date, as to such customary matters as the
            Arranger may reasonably request, addressed to the Administrative Agent and the Lenders, in form and substance reasonably satisfactory to the Administrative Agent.

       

      (g)          Representations and Warranties.  The Specified Representations shall be true and correct in all material respects (or with respect to such representations qualified by materiality
            standards, in all respects).

       

      (h)          Patriot Act, etc.

       

      
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      (i)          The Administrative Agent and the Lenders shall have received, at least three (3) Business Days prior to the Closing Date (to the extent requested at least ten (10) Business Days prior to the Closing Date), all
            documentation and other information with respect to the Borrower required by regulatory authorities under applicable “know your customer”, “anti-money laundering” and “terrorist financing” policies, requirements, rules and regulations,
            including, without limitation, the Patriot Act.

       

      (ii)         If the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation, it shall have delivered to the Administrative Agent a Beneficial Ownership Certification in relation to it, at least
            three (3) Business Days prior to the Closing Date (to the extent requested at least ten (10) Business Days prior to the Closing Date).

       

      (i)           Solvency Certificate.  The Administrative Agent shall have received a Solvency Certificate by the Borrower substantially in the form of Exhibit L.

       

      (j)           Borrowing Notice.  To the extent a Loan is to be made on the Closing Date, the Administrative Agent shall have received a Notice of Borrowing signed by an Authorized Individual
            of the Borrower, dated as of the Closing Date.

       

      SECTION 4.02     
          Conditions Precedent to Additional Loans. 

       

      

      The obligation of the Lenders to make Loans after the Closing Date shall be subject to the further conditions precedent that on the date of such
        Loan:

       

      (a)          Notice of Borrowing.  The Administrative Agent shall have received a Notice of Borrowing signed by an Authorized Individual of the Borrower, dated such date, stating that:

       

      (i)         The representations and warranties of the Borrower contained in Section 5.01 (other than the representations and warranties set forth in clauses (e) and
            (f) thereof) of this Agreement, are true and correct in all material respects (except for representations and warranties qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) on and as of the date
            of the making of such Loan as though made, issued or extended, as applicable, on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall
            remain true and correct in all material respects (except for representations and warranties qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of such earlier date), both before and after
            giving effect to such Loan and to the application of the proceeds thereof; and

       

      (ii)         No event has occurred and is continuing, or would result from the making of such Loan or the application of the proceeds thereof, as the case may be, which constitutes a Default or an Event of Default.

       

      (b)         Notice of Account Designation.  The Administrative Agent shall have received a Notice of Account Designation from the Borrower specifying the account or accounts to which the
            proceeds of any Loans that are made to the Borrower under this Agreement are to be disbursed.

       

      Unless the Borrower shall have previously advised the Administrative Agent in writing that one or more of the statements contained in clauses (a)(i)
        and (a)(ii) above are not true and correct, the Borrower shall be deemed to have represented and warranted that, on the date of such Loan the above statements are true.

       

      
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      SECTION 4.03           Reliance on Certificates. 

       

      Each of the Lenders and the Administrative Agent shall be entitled to rely conclusively upon the certificates delivered from time to time by
        officers of the Borrower as to the names, incumbency, authority and signatures of the respective Persons named therein until such time as the Administrative Agent may receive a replacement certificate, in form reasonably acceptable to the
        Administrative Agent, from an officer of the Borrower identified to the Administrative Agent as having authority to deliver such certificate, setting forth the names and true signatures of the officers and other representatives of the Borrower
        thereafter authorized to act on its behalf.

       

      ARTICLE V

      REPRESENTATIONS AND WARRANTIES

       

      SECTION 5.01           Representations and Warranties.  As of the Closing Date, the Borrower hereby
        represents and warrants as follows:

       

      (a)          The Borrower and each of its Significant Subsidiaries is (i) an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, as applicable and (ii) duly qualified to
            do business in, and is in good standing in, all other jurisdictions where the nature of its business or the nature of property owned or used by it makes such qualification necessary, except in the case of this clause (ii) where such failure
            would not result in a Material Adverse Effect.  The Borrower and each of its Significant Subsidiaries has all requisite corporate (or other applicable) powers and authority to own or lease and operate its properties and to carry on its business
            as now conducted and as proposed to be conducted.

       

      (b)         The execution, delivery and performance by the Borrower of this Agreement and each other Loan Document to which it is a party are within the Borrower’s corporate powers, have been duly authorized by all necessary corporate action, do not
            (i) violate the Borrower’s certificate of incorporation, (ii) violate any law, rule or regulation applicable to the Borrower or (iii) violate or constitute a default under any contractual or legal restriction binding on or affecting the
            Borrower, and will not result in or require the imposition of any lien or encumbrance on, or security interest in, any property (including, without limitation, accounts or contract rights) of the Borrower, except Permitted Liens.

       

      (c)          No Governmental Action is required for the execution or delivery by the Borrower of this Agreement or any other Loan Document to which it is a party or for the performance by the Borrower of its obligations under this Agreement or any
            other Loan Document to which it is a party other than those which have previously been duly obtained, are in full force and effect, are not subject to any pending or, to the knowledge of the Borrower, threatened (in writing) appeal or other
            proceeding seeking reconsideration and as to which all applicable periods of time for review, rehearing or appeal with respect thereto have expired.

       

      (d)          This Agreement and each Loan Document to which the Borrower is a party is a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms subject to the effect of bankruptcy, insolvency,
            reorganization, fraudulent conveyance, moratorium and other similar laws of general application affecting rights and remedies of creditors generally.

       

      
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      (e)          Except as disclosed in the Disclosure Documents, there is no pending or, to the Borrower’s knowledge, threatened (in writing) action or proceeding (including, without limitation, any proceeding relating to or arising out of Environmental
            Laws) affecting the Borrower or any of its Subsidiaries before any court, governmental agency or arbitrator that would reasonably be expected to result in a Material Adverse Effect.

       

      (f)         The audited consolidated balance sheet of the Borrower and its Subsidiaries, as of December 31, 2021, and the related consolidated statements of income, retained earnings and cash flows of the Borrower and its Subsidiaries for the fiscal
            year then ended, and the unaudited consolidated balance sheet of the Borrower and its Subsidiaries, as of September 30, 2022, and the related consolidated statements of income, retained earnings and cash flows of the Borrower and its
            Subsidiaries for the fiscal quarter then ended, copies of each of which have been furnished to the Administrative Agent and each Lender fairly present (subject, in the case of such balance sheets and related statements of income and cash flows
            for the fiscal quarter ended September 30, 2022, to year-end adjustments) in all material respects the financial condition of the Borrower and its Subsidiaries as at such dates and the results of the operations of the Borrower and its
            Subsidiaries for the periods ended on such dates, all in accordance with GAAP consistently applied, subject to the absence of footnotes and to normal year-end audit adjustments.  Since December 31, 2021, there has been no event or circumstance,
            either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect.

       

      (g)          [Reserved].

       

      (h)          The making of Loans for the account of the Borrower and the use of the proceeds thereof will comply with all provisions of Applicable Law in all material respects.

       

      (i)           Neither the Borrower nor any Subsidiary of the Borrower is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended.

       

      (j)           [Reserved].

       

      (k)         Neither the Borrower nor its Subsidiaries is engaged in the business of extending credit for the purpose of buying or carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve
            System), and no proceeds of any drawing on any Loan will be used to buy or carry any margin stock or to extend credit to others for the purpose of buying or carrying any margin stock.

       

      (l)

       

      
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      (i)          The Borrower and each ERISA Affiliate thereof are in compliance with all applicable provisions of ERISA, the Code and the regulations and published interpretations thereunder with respect to all Employee Benefit
            Plans except where a failure to so comply would not reasonably be expected to have a Material Adverse Effect.  Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code is the subject of a favorable
            determination, opinion or advisory letter issued by the Internal Revenue Service, and each trust related to such plan has been determined to be exempt under Section 501(a) of the Code.  No liability has been incurred by the Borrower or any
            ERISA Affiliate thereof which remains unsatisfied for any taxes or penalties with respect to any Employee Benefit Plan or any Multiemployer Plan except for a liability that would not reasonably be expected to have a Material Adverse Effect;

       

      (ii)         Except where failure of any of the following representations to be correct would not reasonably be expected to have a Material Adverse Effect, no Pension Plan has been terminated, nor has any unpaid minimum
            required contributions (as defined in Section 430 of the Code) (without regard to any waiver granted under Section 430 of the Code), nor has any funding waiver from the Internal Revenue Service been received or requested with respect to any
            Pension Plan, nor has the Borrower or any ERISA Affiliate thereof failed to make any contributions or to pay any amounts due and owing as required by Section 430 of the Code, Section 303 of ERISA or the terms of any Pension Plan prior to the
            due dates of such contributions under Section 430 of the Code or Section 303 of ERISA, nor has there been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with respect to any Pension Plan;

       

      (iii)       Except where the failure of any of the following representations to be correct would not reasonably be expected to have a Material Adverse Effect, neither the Borrower nor any ERISA Affiliate thereof has: (A)
            engaged in a nonexempt prohibited transaction described in Section 406 of the ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC which remains outstanding other than the payment of premiums and there are no premium
            payments which are due and unpaid, or (C) failed to make a required contribution or payment to a Multiemployer Plan;

       

      (iv)        No Termination Event has occurred or is reasonably expected to occur;

       

      (v)         Except where the failure of any of the following representations to be correct would not reasonably be expected to have a Material Adverse Effect, no proceeding, claim (other than a benefits claim in the ordinary
            course of business), lawsuit and/or investigation is existing or, to the knowledge of the Borrower, threatened concerning or involving any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA) currently maintained or
            contributed to by the Borrower or any ERISA Affiliate thereof, (B) Pension Plan or (C) Multiemployer Plan;

       

      (vi)                The Borrower represents that it is not (1) an employee benefit plan subject to ERISA, (2) a plan or account subject to
            Section 4975 of the Code, (3) an entity deemed to hold “plan assets” of any such plans or accounts for purposes of ERISA or the Code, or (4) a “governmental plan” within the meaning of ERISA;

       

      (m)        The Borrower and its Subsidiaries have filed all tax returns (Federal, state and local) required to be filed and paid all Taxes shown thereon to be due, including interest and penalties, except (i) to the extent that the Borrower or any
            such Subsidiary is diligently contesting any such Taxes in good faith and by appropriate proceedings, and for which adequate reserves for payment thereof have been established or (ii) where the failure to pay such Taxes or file such return
            would not reasonably be expected to result in a Material Adverse Effect.

       

          

      
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      (n)         No event has occurred or is continuing which constitutes a Default or an Event of Default, or which constitutes, or which with the passage of time or giving of notice or both would constitute, a default or event of default by the Borrower
            or any Subsidiary thereof under any material agreement or contract, judgment, decree or order by which the Borrower or any of its respective properties may be bound or which would require the Borrower or any Subsidiary thereof to make any
            payment thereunder prior to the scheduled maturity date therefor, where such default would reasonably be expected to result in a Material Adverse Effect.

       

      (o)          As of the Closing Date, the Borrower and its Subsidiaries, taken as a whole, are Solvent.

       

      (p)         As of the Closing Date, the capitalization of the Borrower and each Significant Subsidiary of the Borrower consists of the Capital Stock, authorized, issued and outstanding, of such classes and series, with or without par value, described
            on Schedule II hereto.  All such outstanding Capital Stock has been duly authorized and validly issued and are fully paid and nonassessable.  Except as publicly disclosed prior to the Closing Date or as disclosed in the Acquisition Agreement,
            there are no outstanding warrants, subscriptions, options, securities, instruments or other rights of any type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or permit the issuance of, Capital Stock
            of the Borrower or any Subsidiary of the Borrower or are otherwise exercisable by any Person.

       

      (q)         The Borrower and each of its Subsidiaries has good and marketable title to all material assets and other property purported to be owned by it.

       

      (r)           None of the properties or assets of the Borrower or any of its Subsidiaries is subject to any Lien, except Permitted Liens.

       

      (s)          No financial statement, material report, or other material written information furnished by or on behalf of the Borrower to the Administrative Agent or any Lender in connection with the transactions contemplated hereby and the negotiation
            of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished), taken together as a whole, contains any untrue statement of a material fact or omits to state any material fact necessary to make the
            statements therein, in the light of the circumstances under which they were made, not materially misleading; provided that, with respect to projected financial
            information, pro forma financial information, information of a general economic or industry specific nature, estimated financial information and other projected, forward looking or estimated information, such information was prepared in good
            faith based upon assumptions believed to be reasonable at the time (it being recognized that projections are not to be viewed as facts and that the actual results during the period or periods covered by such projections may vary from such
            projections, and such variation may be material).

       

      (t)          [Reserved].

       

      (u)          [Reserved].

       

      
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      (v)         None of the Borrower, any Subsidiary, or any other Affiliate thereof: (i) is a Sanctioned Person or (ii) has, to the knowledge of the Borrower or any Subsidiary, in the previous five years, taken any action, directly or knowingly
            indirectly, that has resulted in a violation by such Persons of any Anti-Corruption Laws or Sanctions.

       

      (w)        Except as disclosed in the Disclosure Documents, to the extent that the resulting violation or liability would not reasonably be expected to result individually or in the aggregate, in a Material Adverse Effect:

       

      (i)          all properties now or in the past owned, leased or operated by the Borrower and each Subsidiary thereof now or in the past do not contain, and to their knowledge have not previously contained, any Hazardous
            Materials in amounts or concentrations which (A) constitute or constituted a violation of applicable Environmental Laws or (B) could give rise to liability under applicable Environmental Laws;

       

      (ii)         to the knowledge of the Borrower and its Subsidiaries, the Borrower and each Subsidiary thereof and such properties and all operations conducted in connection therewith are in compliance, and have been in
            compliance, with all applicable Environmental Laws, and there is no contamination at, under or about such properties or such operations which could interfere with the continued operation of such properties or impair the fair saleable value
            thereof;

       

      (iii)       neither the Borrower nor any Subsidiary thereof has received any written or verbal notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters, Hazardous
            Materials, or compliance with Environmental Laws, nor does the Borrower or any Subsidiary thereof have knowledge or reason to believe that any such notice will be received or is being threatened;

       

      (iv)        to the knowledge of the Borrower and its Subsidiaries, Hazardous Materials have not been disposed of, on or transported to or from the properties now or in the past owned, leased or operated by the Borrower or any
            Subsidiary thereof in violation of, or in a manner or to a location that could give rise to liability under, Environmental Laws, nor have any Hazardous Materials been generated, treated, stored or disposed of at, on or under any of such
            properties in violation of, or in a manner that could give rise to liability under, any applicable Environmental Laws;

       

      (v)                no judicial proceedings or governmental or administrative action is pending, or, to the knowledge of the Borrower,
            threatened, under any Environmental Law to which the Borrower or any Subsidiary thereof is or will be named as a potentially responsible party with respect to such properties or operations conducted in connection therewith, nor are there any
            consent decrees or other decrees, consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Borrower, any Subsidiary thereof or such
            properties or such operations; and

       

      
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      (vi)        there has been no Environmental Release of Hazardous Materials, or to the Borrower’s knowledge, any threatened Environmental Release of Hazardous Materials, at or from properties owned, leased or operated by the
            Borrower or any Subsidiary thereof, now or in the past, in violation of, or in amounts or in a manner that could give rise to liability under, Environmental Laws.

       

      (x)          The Borrower is not an Affected Financial Institution.

       

      ARTICLE VI

      COVENANTS OF THE BORROWER

       

      SECTION 6.01           Affirmative Covenants.

       

      Until the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid in full and the
        Aggregate Commitments terminated, the Borrower covenants and agrees that the Borrower will, and will cause each of its Subsidiaries to:

       

      (a)         Preservation of Existence, Etc.  Preserve and maintain its corporate or company, as applicable, existence, material rights (statutory and otherwise) and franchises, and take such
            other action as may be necessary or advisable to preserve and maintain its right to conduct its business in the states where it shall be conducting its business, except as permitted by Section 6.02 or where failure to do so does not result in,
            or would not reasonably be expected to have, a Material Adverse Effect.

       

      (b)          Maintenance of Properties, Etc.  Maintain good and marketable title to all of its properties which are used or useful in the conduct of its business, and preserve, maintain,
            develop and operate all such properties in good working order and condition (ordinary wear and tear and casualty excepted), except where such failure would not result in a Material Adverse Effect.

       

      (c)         Ownership.  (i) With respect to SJI, continue to own, directly or indirectly, at all times 100% of the Capital Stock having voting rights of SJG and ETG and (ii) with respect to
            each of SJG and ETG, cause SJI to continue to own, directly or indirectly, at all times 100% of the Capital Stock having voting rights of SJG and ETG.

       

      (d)          Compliance with Material Contractual Obligations, Laws, Etc.  Comply with the requirements of all material contractual obligations and all Applicable Laws, such compliance to
            include paying before the same become delinquent all Taxes, assessments and governmental charges imposed upon it or upon its property except to the extent diligently contested in good faith and by appropriate proceedings and for which adequate
            reserves for the payment thereof have been established, in each case, except to the extent the failure to comply with which would not reasonably be expected to result in a Material Adverse Effect.

       

      (e)          Insurance.  Maintain insurance with financially sound and reputable insurance companies or associations in such amounts and covering such risks as are customarily
            carried by companies engaged in the same or similar businesses and similarly situated.

       

      (f)          Visitation Rights; Keeping of Books.

       

      
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      (i)         At any reasonable time and from time to time, upon reasonable advance notice, permit the Administrative Agent (and KeyBank National Association so long as such Person is a Lender with a Commitment Percentage no
            less than such Person’s Commitment Percentage as of the Closing Date) or any agents or representatives thereof to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower and
            any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its Subsidiaries with any of their respective officers or directors and with their respective independent certified public accountants; provided that (1) any such visits or inspections shall be subject to such conditions as the Borrower shall deem necessary based on reasonable considerations of safety,
            security and confidentiality, (2) only the Administrative Agent on behalf of the Lenders may exercise rights under this Section (except to the extent that KeyBank National Association may exercise rights under this Section in its capacity as a
            Lender) and (3) other than with respect to such visits and inspections during the continuation of a Default or an Event of Default, only one such visit and inspection shall be permitted during any calendar year; and provided, further, that neither the Borrower nor
            any Subsidiary shall be required to disclose to, or permit the inspection, examination or making copies or abstracts by, or discuss with, any Person any information, document or other matter with respect to which any of the foregoing actions is
            prohibited by applicable law or binding agreement or subject to attorney-client privilege or constitutes attorney-work product or constitutes non-financial trade secrets or non-financial proprietary information so long as (x) such
            confidentiality obligation was not entered into in contemplation hereof and (y) the Borrower provides the Administrative Agent with notice that information is being withheld due to the existence of a confidentiality obligation.

       

      (ii)         Keep proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and liabilities of the Borrower in accordance with GAAP, consistent with the
            procedures applied in the preparation of the financial statements referred to in Section 5.01(f) hereof.

       

      (g)          [Reserved].

       

      (h)          Use of Proceeds.  Use the proceeds of the facility created by this Agreement solely for (i) the repayment of certain existing Indebtedness of Borrower and (ii) working capital and
            other general corporate purposes.

       

      (i)           [Reserved].

       

      (j)           [Reserved].

       

      (k)          [Reserved].

       

      (l)           [Reserved].

       

      (m)        Compliance with Sanctions and Anti-Corruption Laws.  Comply with any applicable obligations under any Sanctions and Anti-Corruption Laws and 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.  In the event that the Borrower becomes
            aware that it is not in compliance in any material respect with any applicable Sanctions or Anti-Corruption Laws, the Borrower shall notify the Administrative Agent and diligently take all actions required thereunder to become compliant.

       

      
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      (n)         Further Assurances.  At the expense of the Borrower, promptly execute and deliver, or cause to be promptly executed and delivered, all further instruments and documents, and take
            and cause to be taken all further actions, that may be reasonably necessary or that the Required Lenders through the Administrative Agent may reasonably request, to enable the Lenders and the Administrative Agent to enforce the terms and
            provisions of this Agreement and the Loan Documents and to exercise their rights and remedies hereunder.  In addition, the Borrower will use all reasonable efforts to duly obtain Governmental Actions required from time to time on or prior to
            such date as the same may become legally required, and thereafter to maintain all such Governmental Actions in full force and effect, except where such failure would not result in a Material Adverse Effect.

       

      (o)         Compliance with ERISA. (i) Except where the failure to so comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (w) comply
            with applicable provisions of ERISA and the regulations and published interpretations thereunder with respect to all Employee Benefit Plans of the Borrower, (x) not take any action or fail to take action the result of which would reasonably be
            expected to result in a liability to the PBGC or to a Multiemployer Plan, (y) not participate in any prohibited transaction that would result in any civil penalty under ERISA or tax under the Code and (z) operate each Employee Benefit Plan of
            the Borrower in such a manner that will not incur any tax liability under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section 4980B of the Code and (ii) furnish to the Administrative Agent upon the
            Administrative Agent’s request such additional information about any Employee Benefit Plan of the Borrower as may be reasonably requested by the Administrative Agent.

       

      (p)        Environmental Notices.  The Borrower shall furnish to the Administrative Agent, on behalf of the Lenders prompt written notice of all Environmental Liabilities, pending or
            threatened (in writing) Environmental Proceedings, Environmental Notices, Environmental Judgments and Orders, and Environmental Releases at, on, in, under or in any way affecting its properties or, to the extent the Borrower has actual notice
            thereof, any adjacent property, and all facts, events or conditions that could lead to any of the foregoing; provided that the Borrower shall not be required to give such
            notice unless it reasonably believes that any of the foregoing, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect with respect to the Borrower.

       

      (q)         Environmental Matters.  Except where it would not reasonably be expected to have a Material Adverse Effect with respect to the Borrower, the Borrower will not use,
            produce, manufacture, process, generate, store, dispose of, manage at, or ship or transport to or from its properties any Hazardous Materials other than as disclosed to the Lenders in writing at or prior to the Closing Date except for (i)
            Hazardous Materials used, produced, manufactured, processed, generated, stored, disposed of or managed in the ordinary course of business in material compliance with all applicable Environmental Requirements or (ii) other Hazardous Materials
            the unlawful handling, discharge or disposal of which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect with respect to the Borrower.

       

      
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      (r)          Environmental Release.  Upon becoming aware of the occurrence of an Environmental Release that could reasonably be expected to have a Material Adverse Effect with respect to the
            Borrower, the Borrower will promptly investigate the extent of, and comply in all material respects with all applicable Federal, state and local statutes, rules, regulations, orders and other provisions of law relating to Hazardous Materials,
            air emissions, water discharge, noise emission and liquid disposal, and other environmental, health and safety matters, other than those the noncompliance with which would not have a Material Adverse Effect with respect to the Borrower.

       

      (s)         Subsidiary Guarantors.  With respect to the Borrower, cause any Subsidiary that (i) at any time is a party to any Principal Credit Facility or (ii) guarantees Indebtedness in
            respect of any Principal Credit Facility, to enter into a subsidiary guaranty agreement reasonably acceptable to the Required Lenders providing for a guaranty of the Obligations of the Borrower under this Agreement and the other Loan Documents
            (a “Subsidiary Guaranty”) and to deliver to the Administrative Agent (substantially concurrently with the incurrence of any such guaranty obligation pursuant to any Principal Credit
            Facility) the following items:

       

      (i)          a certificate signed by an Authorized Individual of the Borrower making representations and warranties substantially to the effect of those contained in Sections
                5.01(a), (b), (c) and (d), with respect to
            such Subsidiary and the Subsidiary Guaranty, as applicable; and

       

      (ii)         a customary opinion of counsel for the Borrower addressed to the Administrative Agent and the Lenders reasonably satisfactory to the Required Lenders, substantially to the effect that the Subsidiary Guaranty by
            such Person has been duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and binding obligation of such Person enforceable in accordance with its terms, except as such enforceability may be
            limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (regardless of whether such enforceability
            is considered in a proceeding in equity or at law) and subject to other usual and customary limitations and exceptions;

       

      provided, that notwithstanding anything
          contained in this Section 6.01(s) to the contrary, the Borrower shall be under no obligation to require any such Subsidiary that becomes a party to a Principal Credit Facility to become
          a Subsidiary Guarantor in respect of this Agreement and the other Loan Documents to the extent (x) such Subsidiary’s obligations under all Principal Credit Facilities consist solely of direct borrowings with recourse only to such Subsidiary and
          (y) such Subsidiary does not guarantee or otherwise become liable at any time, whether as a borrower or an additional or co-borrower or otherwise, for or in respect of Indebtedness of Borrower or any other Subsidiary under any Principal Credit
          Facility.  The Lenders hereby authorize the Administrative Agent to discharge and release any Subsidiary Guarantor from any Subsidiary Guaranty upon the written request of the Borrower; provided that (I) such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under the Subsidiary Guaranty) as an obligor and
          guarantor under and in respect of each Principal Credit Facility and the Borrower so certifies to the Lenders in a certificate of an Authorized Individual, (II) at the time of such release and discharge, the Borrower shall deliver a certificate
          of an Authorized Individual to the Administrative Agent and the Lenders stating that no Default or Event of Default exists, and (III) if any fee or other form of consideration is given to the holders of Indebtedness of the Borrower for the
          purpose of such release, the Lenders shall receive equivalent consideration.

       

      
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      (t)          Obligations to Rank Pari Passu.  With respect to the Borrower only, cause the Obligations of the Borrower under this Agreement and the other Loan Documents to remain direct
            obligations of the Borrower ranking pari passu with all Indebtedness outstanding under any Principal Credit Facility and all other present and future unsecured Indebtedness (actual or contingent) of the Borrower which is not expressed to be
            subordinate or junior in rank to any other unsecured Indebtedness of the Borrower.

       

      SECTION 6.02          Negative Covenants.  Until all of the Obligations (other than contingent
        indemnification obligations for which no claim has been asserted) have been paid in full and the Aggregate Commitments terminated, the Borrower covenants and agrees that the Borrower will not, and will not cause or permit any of its Subsidiaries,
        to:

       

      (a)          Liens, Etc.  Except as permitted in Section 6.02(c), create, incur, assume, or suffer to exist any Lien upon or with
            respect to any of its properties other than Permitted Liens.

       

      (b)          Transactions with Affiliates.  Enter into any transaction (including the purchase or sale of any property or service) with, or make any payment or transfer to, any Affiliate
            except:

       

      (i)          those existing on the Closing Date (and renewals thereof);

       

      (ii)         to the extent required by Applicable Law or regulation;

       

      (iii)        transactions expressly permitted under this Agreement;

       

      (iv)        transactions solely between or among the Borrower and/or any of its Subsidiaries, in each case, which do not involve any other Affiliate;

       

      (v)         employment and severance arrangements (including equity incentive plans and employee benefit plans and arrangements) with their respective officers, Authorized Individuals and employees in the ordinary course of
            business;

       

      (vi)        payment of customary fees and reasonable out of pocket costs to, and indemnities for the benefit of, directors, officers, Authorized Individuals and employees of the Borrower and its Subsidiaries in the ordinary
            course of business;

       

      (vii)       any transaction or series of related transactions with an aggregate value or payment of less than $1,000,000;

       

      (viii)     upon fair and reasonable terms that are no less favorable to the Borrower or such Subsidiary than could reasonably be obtained on an arm’s-length basis from unrelated third parties or if no comparable transaction with an
            unrelated third party exists or could reasonably be expected to exist, on a basis that is fair to the Borrower or such Subsidiary from a financial point of view;

       

      
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      (ix)         the issuance or sale of Capital Stock; and

       

      (x)   transactions otherwise permitted by a state regulatory agency with authority over the Borrower or Subsidiary of the Borrower.

       

      (c)         Obligation to Ratably Secure.  Create or suffer to exist any Lien other than a Permitted Lien, in each case to secure or provide for the payment of Indebtedness, unless, on or
            prior to the date thereof, the Borrower shall have (i) pursuant to documentation reasonably satisfactory to the Administrative Agent, equally and ratably secured the Obligations of the Borrower under this Agreement by a Lien acceptable to the
            Administrative Agent, and (ii) caused the creditor or creditors, as the case may be, in respect of such Indebtedness to have entered into a customary intercreditor agreement in form, scope and substance reasonably satisfactory to the
            Administrative Agent.

       

      (d)         Mergers, Etc.  Other than in connection with the IIF Acquisition, merge or consolidate with or into any Person, except that (i) any Subsidiary of the Borrower may merge or
            consolidate with or into, any other Subsidiary of the Borrower and (ii) any Subsidiary of the Borrower may merge or consolidate with and into the Borrower; provided that,
            in the case of this clause (ii), the Borrower is the surviving corporation; provided, further, that in each case, immediately after giving effect to such proposed
            transaction, no Event of Default would exist.

       

      (e)          Sale of Assets, Etc.  Sell, transfer, lease, assign or otherwise convey or dispose of assets (whether now owned or hereafter acquired), in any single transaction or series of
            related transactions, having an aggregate book value in excess of 15% of the assets of the Borrower and its Subsidiaries, except for dispositions of capital assets in the ordinary course of business.

       

      (f)       Restrictive Agreements.  Enter into any agreement prohibiting or restricting the ability
            of any of its Significant Subsidiaries to declare or pay dividends to the Borrower except for those existing on the Closing Date (including, for the avoidance of doubt, the SJG First Mortgage Indenture and any supplements from time to time
            thereto) and those required by Applicable Law; provided that the foregoing provisions shall not prohibit (a) the Borrower or any Subsidiary of the Borrower from entering
            into any debt instrument, (b) restrictions or conditions imposed by restrictions on cash and other deposits or net worth provisions in leases and other agreements entered into in the ordinary course of business or (c) any obligations that are
            binding on a Subsidiary of the Borrower at the time such Subsidiary first becomes a Subsidiary of the Borrower, so long as such obligations are not entered into in contemplation of such Person becoming a Subsidiary of the Borrower.

       

      (g)          New Business.  To the extent constituting an “Event of Default” (or term of similar import) under any SJI Note Purchase Agreement, enter into any business, in any material
            respect, which is not similar to the Borrower’s and its Subsidiaries’ business as of the Closing Date and businesses and activities reasonably related, incidental, complementary or ancillary thereto or a reasonable extension or expansion
            thereof.

       

      (h)         Distributions.  Pay any dividends on or make any other distributions in respect of any Capital Stock or redeem or otherwise acquire any such Capital Stock; provided:

       

      
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      (i)          any Subsidiary of the Borrower may pay dividends or make other distributions to the Borrower;

       

      (ii)         the Borrower may pay distributions or dividends solely in Capital Stock of the Borrower;

       

      (iii)        if no Event of Default exists or would result therefrom, the Borrower may pay distributions or dividends in either cash or Capital Stock of the Borrower or may redeem or otherwise acquire its Capital Stock;

       

      (iv)       with respect to ETG or SJG, the Borrower may cause (a) the redemption of its Capital Stock having a preferred interest or (b) the acquisition of Capital Stock having a preferred interest of any trust created by the
            Borrower solely for the purpose of issuing preferred equity interests, the proceeds of which will be used by such trust to fund loans to the Borrower, only if, in each case, such redemption or acquisition is effected by the proceeds of Capital
            Stock issued by SJI; provided that before and after such redemption or acquisition as described above, no Default or Event of Default has occurred and is continuing;

       

      (v)         the Borrower may pay any dividend or distribution permitted under this Section 6.02(h) within sixty (60) days after the date of declaration thereof, if
            at the date of declaration such payment was then permitted under this Section 6.02(h); and

       

      (vi)        the Borrower may pay Permitted Tax Distributions.

       

      (i)           [Reserved].

       

      (j)           Fiscal Year.  Cause its Fiscal Year to end on a date other than on or about December 31 of each calendar year, without the prior written consent of the Administrative Agent.

       

      (k)        Use of Proceeds.  Request any Loan, or use the proceeds of any Loan, directly or indirectly, (i) 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, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person,
            or in any Sanctioned Country, in violation of Sanctions or (iii) in any manner that would result in the violation of Sanctions by any individual or entity participating in the transaction, whether as Lender, Arranger, Administrative Agent, or
            otherwise.

       

      SECTION 6.03           Reporting Requirements.

       

      Until all of the Obligations (other than contingent indemnification obligations for which no claim has been asserted) have been paid in full and the
        Aggregate Commitments terminated, the Borrower covenants and agrees that the Borrower will provide to the Administrative Agent:

       

      
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      (a)         as soon as available and in any event within sixty (60) days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its consolidated Subsidiaries as at
            the end of such fiscal quarter and consolidated statements of income, retained earnings and cash flows of the Borrower and its consolidated Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of
            such fiscal quarter, all in reasonable detail and duly certified by the chief financial officer, the treasurer or another Authorized Individual (with similar responsibility) of the Borrower as fairly presenting in all material respects the
            financial condition of the Borrower and its consolidated Subsidiaries as at such date and the results of operations of the Borrower and its consolidated Subsidiaries for the periods ended on such date, except for the absence of footnotes and
            normal year-end adjustments, all in accordance with GAAP consistently applied, together with a Compliance Certificate, in substantially the form of Exhibit G, of the chief financial officer, the treasurer or another Authorized Individual (with
            similar responsibility) of the Borrower (A) demonstrating and certifying compliance by the Borrower with the covenants set forth in Section 6.04 and (B) stating that no Event of
            Default or Default has occurred and is continuing or, if an Event of Default or Default has occurred and is continuing, a statement as to the nature thereof and the action which the Borrower has taken and proposes to take with respect thereto;

       

      (b)         as soon as available and in any event within one hundred twenty (120) days after the end of each fiscal year of the Borrower, a copy of the annual report for such fiscal year for the Borrower and its consolidated Subsidiaries, containing
            an audited consolidated balance sheet of the Borrower and its consolidated Subsidiaries for such fiscal year and audited consolidated statements of income, retained earnings and cash flows of the Borrower and its consolidated Subsidiaries for
            such fiscal year, certified by, and accompanied by an opinion (which shall not be qualified in any material respect, except for any such qualification pertaining to the maturity of the loans made hereunder or occurring within twelve (12) months
            of the relevant audit or any breach or anticipated breach of any financial covenant) of, Deloitte & Touche LLP or such other independent public accountants of recognized national standing, together with a Compliance Certificate, in
            substantially the form of Exhibit G, of the chief financial officer, the treasurer or another Authorized Individual (with similar responsibility) of the Borrower (A) demonstrating and certifying compliance by the Borrower with the covenants set
            forth in Section 6.04 and (B) stating that no Event of Default or Default has occurred and is continuing or, if an Event of Default or Default has occurred and is continuing, a
            statement as to the nature thereof and the action which the Borrower has taken and proposes to take with respect thereto;

       

      (c)         promptly after the Borrower becomes aware of the occurrence of each Event of Default and each Default, a statement of the chief financial officer or other Authorized Individual of the Borrower setting forth details of such Event of Default
            or Default and the action which the Borrower has taken and proposes to take with respect thereto;

       

      (d)    promptly upon the Borrower obtaining knowledge of the following, the Borrower will give written notice to the Administrative Agent of any of the
            following: (i) any unfavorable determination letter from the Internal Revenue Service regarding the qualification of an Employee Benefit Plan of the Borrower under Section 401(a) of the Code (along with a copy thereof), (ii) all notices
            received by the Borrower or any of its ERISA Affiliates of the PBGC’s intent to terminate any Pension Plan of the Borrower or to have a trustee appointed to administer any Pension Plan of the Borrower, (iii) all notices received by the Borrower
            or any of its ERISA Affiliates from a Multiemployer Plan sponsor concerning the imposition or amount of withdrawal liability in the amount of at least $1,000,000 pursuant to Section 4202 of ERISA and (iv) the Borrower or any of its ERISA
            Affiliates has filed or intends to file a notice of intent to terminate any Pension Plan of the Borrower under a distress termination within the meaning of Section 4041(c) of ERISA;

       

      
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      (e)          promptly after the Borrower becomes aware of the occurrence thereof, notice of all actions, suits, proceedings or other events (A) of the type described in Section 5.01(e) or (B)
            for which the Administrative Agent or the Lenders will be entitled to indemnity under Section 9.05;

       

      (f)          [Reserved].

       

      (g)          promptly upon request, such other information respecting the business, properties, assets, liabilities (actual or contingent), results of operations, condition or operations, financial or otherwise, of the Borrower or any Subsidiary
            thereof as any Lender through the Administrative Agent may from time to time reasonably request; provided that neither the Borrower nor any of its Subsidiaries will be
            required to disclose, deliver or provide any document, information or other matter that (i) constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect of which disclosure to the Administrative Agent or any
            Lender (or their respective representatives or contractors) is prohibited by law or any binding agreement or (iii) is subject to attorney-client or similar privilege or constitutes attorney work product;

       

      (h)          from time to time and promptly upon each request, information with respect to the Borrower as a Lender may reasonably request in order to comply with the applicable “know your customer” and anti-money laundering rules and regulations,
            including, without limitation, the Patriot Act and the Beneficial Ownership Regulation;

       

      (i)   promptly, upon knowledge of any change in the Debt Rating of the Borrower, a certificate stating that the Debt Rating of the Borrower has changed with
            evidence of the new Debt Rating; and

       

      (j)           promptly after an Authorized Individual of the Borrower becomes aware of any change in the information provided in any Beneficial Ownership Certification in relation to the Borrower that would result in a change to the list of
            beneficial owners identified in parts (c) or (d) of such certification, a written notice specifying any such change.

       

      Documents and information required to be delivered pursuant to this Section 6.03 shall
        be deemed to have been delivered if and when such information shall have been posted by the Borrower on an Intralinks or similar site to which the Administrative Agent has been granted access or shall be available on the website of the Securities
        and Exchange Commission at http://www.sec.gov or another Internet website to which each Lender and the Administrative Agent have access.  Information required to be delivered pursuant to this Section

            6.03 may also be delivered by electronic communications pursuant to procedures reasonably approved by the Administrative Agent.

       

      
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      The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arranger will make available to the Lenders materials and/or
        information provided by or on behalf of the Borrower hereunder that have been approved by the Borrower in writing including via electronic transmission (collectively, “Informational Materials”)

        by posting the Informational Materials on SyndTrak Online or another similar electronic means and (b) certain prospective Lenders (“Public Lenders”) may not wish to receive material
        non-public information (within the meaning of the United States federal securities laws, “MNPI”) with respect to the Borrower or its Affiliates or any of their respective securities, and
        who may be engaged in investment and other market-related activities with respect to such entities’ securities.  Lenders will assume that all Informational Materials, other than publicly available Informational Materials filed pursuant to the
        Exchange Act or posted on the Borrower’s website, include MNPI.  The Borrower hereby agrees that in the event any Informational Materials will not contain MNPI, the Borrower will notify Administrative Agent in writing (except with respect to
        Informational Materials filed pursuant to the Exchange Act, or posted on the Borrower’s website, which shall be deemed public) and the Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat such Informational
        Materials as not containing any MNPI (although it may be sensitive and proprietary) with respect to the Borrower or its securities for purposes of United States Federal and state securities laws (provided, however, that to the extent such Informational Materials
        constitute Information, such Information shall be treated as set forth in Section 9.16 hereof).  Before distribution of any Informational Materials (a) to prospective Private Lenders, the
        Borrower shall provide the Administrative Agent with written authorization (including e-mail) authorizing the dissemination of the Informational Materials and (b) to prospective Public Lenders, the Borrower shall provide the Administrative Agent
        with written authorization (including e-mail) authorizing the dissemination of the Informational Materials and confirming, to the Borrower’s knowledge, the absence of MNPI therefrom.

       

      SECTION 6.04           Financial Covenant.  Until all of the Obligations (other than contingent
        indemnification obligations for which no claim has been asserted) have been paid in full and the Aggregate Commitments terminated, SJI covenants and agrees that SJI will maintain at the end of each fiscal quarter a ratio of Indebtedness of SJI and
        its Subsidiaries on a consolidated basis to Consolidated Total Capitalization of not more than 0.70 to 1.0.

       

      ARTICLE VII

      EVENTS OF DEFAULT

       

      SECTION 7.01           Events of Default.  Each of the following events should they occur and be continuing
        with respect to the Borrower shall constitute an “Event of Default”:

       

      (a)         The Borrower shall fail to pay (i) any amount of principal of any Loan made to the Borrower when the same becomes due and payable or (ii) any interest, fees or any other amount payable by the Borrower hereunder within five (5) Business
            Days of when the same becomes due and payable; or

       

      (b)         Any representation or warranty made by or on behalf of the Borrower or any Subsidiary thereof in this Agreement, any Loan Document or by or on behalf of the Borrower or any Subsidiary thereof (or any of their officers) in connection with
            this Agreement, any Loan Document shall prove to have been incorrect in any material respect when made or deemed made; or

       

      (c)         The Borrower shall fail (i) to perform or observe any term, covenant or agreement contained in Section 6.01(a), (c)
            or (h), Section 6.02, Section 6.03(c) or Section 6.04, or (ii) to perform or observe any other term, covenant or agreement contained in this Agreement (other than obligations specifically set forth elsewhere in this Section 7.01) 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 thirty (30) days after
            written notice thereof shall have been given to the Borrower by the Administrative Agent or any Lender; or

       

      
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      (d)        The Borrower or any Significant Subsidiary thereof shall fail to pay any principal of or premium or interest on any Indebtedness (other than Indebtedness incurred by the Borrower under this Agreement) thereof in the aggregate (for all such
            Persons) in excess of $50,000,000 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 Indebtedness; or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Indebtedness and shall continue after the applicable grace
            period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate, or to permit (with or without the giving of notice, but without any further lapse of time) the holder or holders of such
            Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause the acceleration of, the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid (other than by
            a regularly scheduled required prepayment), prior to the stated maturity thereof; or

       

      (e)         The Borrower or any Significant Subsidiary thereof shall (i) generally not pay its debts as such debts become due, or (ii) admit in writing its inability to pay its debts generally, or (iii) make a general assignment for the benefit of
            creditors, or (iv) any case or proceeding shall be commenced by or against the Borrower or any Significant Subsidiary thereof seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
            adjustment, protection, relief, or composition of it or its debts under any Debtor Relief Laws, 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 commenced against it (but not commenced by it), such proceeding shall remain undismissed or unstayed for a period of forty-five (45) 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 thereof shall consent to or acquiesce in any such proceeding; or the Borrower or any Significant Subsidiary thereof shall take any corporate action to authorize any of the actions set forth above in this
            subsection (e); or

       

      (f)          Any final judgments or orders for the payment of money in excess of $50,000,000 (in the aggregate) shall be rendered against the Borrower or any Significant Subsidiary thereof and either (i) enforcement proceedings shall have been
            commenced by any creditor upon any such judgment or order or (ii) there shall be any period of forty-five (45) consecutive days during which execution shall not be effectively stayed, bonded or discharged pending appeal, or such judgment or
            order is not paid or otherwise discharged within forty-five (45) days after expiration of such stay; or

       

      (g)         The obligations of the Borrower or any Subsidiary thereof under this Agreement or any other Loan Document shall become unenforceable, or the Borrower or any Subsidiary thereof, or any court or governmental or regulatory body having
            jurisdiction over the Borrower or any Subsidiary thereof, shall so assert in writing or the Borrower or any Subsidiary thereof shall contest in any manner the validity or enforceability thereof; or

       

      
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      (h)          The occurrence of a Termination Event with respect to the Borrower; or

       

      (i)           A Change in Control shall occur.

       

      SECTION 7.02          Upon an Event of Default.  Upon the occurrence of an Event of Default, with the
        consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, by notice to the Borrower: (i) Declare the principal of and interest on the Loans made to the Borrower, the
        Term Loan Notes issued by the Borrower and the other Obligations of the Borrower (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling such obligations) at the time outstanding, and all
        other amounts owed to the Lenders and to the Administrative Agent by the Borrower under this Agreement, to be forthwith due and payable, whereupon the same shall immediately become due and payable without presentment, demand, protest or other
        notice of any kind, all of which are expressly waived, anything in this Agreement to the contrary notwithstanding, and (ii) terminate the obligation of each Lender to make any Loans to the Borrower and any right of the Borrower to request Loans
        hereunder; provided that upon the occurrence of an Event of Default specified in Section 7.01(e), the obligation
        of each Lender to make Loans to the Borrower shall be automatically terminated and all Obligations of the Borrower (except for Hedging Obligations, which shall be governed by the terms and conditions of the documents controlling such obligations)
        shall automatically become due and payable without presentment, demand, protest or other notice of any kind, all of which are expressly waived, anything in this Agreement or in any other Loan Document to the contrary notwithstanding.

       

      SECTION 7.03           Rights and Remedies Cumulative; Non-Waiver; Etc.

       

      The enumeration of the rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not intended to be exhaustive,
        and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given
        hereunder or that may now or hereafter exist in law or in equity or by suit or otherwise.  No delay or failure to take action on the part of the Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a
        waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of
        Default.  No course of dealing between the Borrower, the Administrative Agent and the Lenders or their respective agents or employees shall be effective to change, modify or discharge any provision of this Agreement or any of the other Loan
        Documents or to constitute a waiver of any Event of Default.

       

      
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      Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and
        under the other Loan Documents against the Borrower shall be vested exclusively in, and all actions and proceedings at law in connection with such enforcement shall be instituted and maintained exclusively by, the Administrative Agent in accordance
        with Section 7.02 for the benefit of all the Lenders; provided that the foregoing shall not prohibit (a) the
        Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) any Lender from exercising setoff rights in
        accordance with Section 9.04 (subject to the terms of Section 2.16), (c) [reserved] or (d) any Lender from filing proofs of
        claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to the Borrower under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the
        other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 7.02 and (ii) in addition to the matters set
        forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 2.16, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available
        to it and as authorized by the Required Lenders.

       

      ARTICLE VIII

      THE ADMINISTRATIVE AGENT

       

      SECTION 8.01         Appointment and Authority.  Each of the Lenders hereby irrevocably designates and
        appoints KeyBank National Association to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are
        delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  The provisions of this Article are solely for the benefit of the Administrative Agent and the
        Lenders, and neither Borrower nor any Subsidiary thereof shall have rights as a third party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other
        similar term) with reference to the Administrative 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 as a matter of market
        custom, and is intended to create or reflect only an administrative relationship between contracting parties.

       

      SECTION 8.02           Rights as a Lender.  The Person serving as the Administrative Agent hereunder shall
        have the same rights and powers in its capacity as a Lender 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 or unless the
        context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, lend money to, own securities of, act as the financial advisor or in
        any other advisory capacity for and generally engage in any kind of business with the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to
        the Lenders.

       

      SECTION 8.03         Exculpatory Provisions.  The Administrative Agent or the Arranger, as applicable, shall
        not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder and thereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the
        Administrative Agent or the Arranger, as applicable:

       

      (a)          shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing;

       

      
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      (b)         shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Loan Documents that the Administrative Agent is required to
            exercise as directed in writing by the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Loan Documents); provided 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 or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in
            violation of any Debtor Relief Law.

       

      (c)          shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is
            communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.

       

      The Administrative Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required Lenders
        (or such other number or percentage of the Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section

            9.01 or Section 7.02) or (ii) in the absence of its own gross negligence or willful misconduct as determined by a court of competent jurisdiction by final nonappealable
        judgment.  The Administrative Agent shall be deemed not to have knowledge of any Default or Event of Default unless and until notice describing such Default or Event of Default is given to the Administrative Agent by the Borrower or a Lender.

       

      The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation
        made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of
        any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other
        agreement, instrument or document or (v) the satisfaction of any condition set forth in Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be
        delivered to the Administrative Agent.

       

      SECTION 8.04         Reliance by Administrative Agent.  The Administrative Agent shall be entitled to rely
        upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message, Internet or intranet website posting or other distribution)
        believed by it to be genuine and to have been signed, sent or otherwise authenticated by the proper Person.  The Administrative Agent also may rely upon any statement made to it orally or by telephone and believed by it to have been made by the
        proper Person, and shall not incur any liability for relying thereon.  In determining compliance with any condition hereunder to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may
        presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Loan.  The Administrative Agent may consult with legal counsel (who
        may be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

       

      
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      SECTION 8.05          Delegation of Duties.  The Administrative Agent may perform any and all of its duties and exercise its rights and powers hereunder or under any other Loan
          Document by or through any one or more sub-agents appointed by the Administrative Agent.  The Administrative Agent and any such sub-agent may perform any and all of its duties and exercise its rights and powers by or through their respective
          Related Parties.  The exculpatory provisions of this Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the
          syndication of the facilities created under this Agreement as well as activities as Administrative Agent.

       

      SECTION 8.06          Resignation of Administrative Agent.  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 Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office
        in the United States, or an Affiliate of any such bank with an office in the United States.  If no such successor shall have been so appointed by the Required 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 Required 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 provided that if the
        Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has accepted such appointment, then such resignation shall nonetheless become effective on the Resignation Effective Date and (1) the retiring Administrative
        Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by the Administrative Agent on behalf of the Lenders under any of the Loan Documents,
        the retiring Administrative Agent shall continue to hold such collateral security until such time as a successor Administrative Agent is appointed) and (2) except for any indemnity payments owed to the retiring 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 as the Required Lenders appoint a successor Administrative Agent as provided for
        above in this paragraph.  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 retired)
        Administrative Agent, and the retiring Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents (if not already discharged therefrom as provided above in this paragraph).  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 Administrative Agent’s resignation hereunder and
        under the other Loan Documents, the provisions of this Article and Section 9.05 shall continue in effect for the benefit of such retiring 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 Administrative Agent was acting as Administrative Agent or continues to hold collateral security.

       

      
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      SECTION 8.07           Non-Reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges
        that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their Related Parties and based on such 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 or any of their Related Parties and based on such documents and information as it shall
        from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

       

      SECTION 8.08       
          No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, joint book runners, lead manager, arrangers, lead arrangers or co-arrangers listed on the cover page
        or signature pages hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender hereunder.

       

      SECTION 8.09           Administrative Agent May File Proof of Claim.  In case of the pendency of any
        proceeding under any Debtor Relief Law or any other judicial proceeding relative to the Borrower, the Administrative Agent (irrespective of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or
        otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

       

      (a)          to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in
            order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel
            and all other amounts due the Lenders and the Administrative Agent) allowed in such judicial proceeding; and

       

      (b)         to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such
            judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the
            Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent hereunder.

       

      Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender
        any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

       

      
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      SECTION 8.10           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 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 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 Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and
            performance of the 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 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 Loans, the Aggregate 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).

       

      
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      SECTION 8.11            Erroneous Payments.

       

      (a)          Each Lender and any other party hereto hereby severally agrees that if (i) the Administrative Agent notifies (which such notice shall be conclusive absent manifest error) such Lender or any other Person that has received funds from the
            Administrative Agent or any of its Affiliates, either for its own account or on behalf of a Lender (each such recipient, a “Payment Recipient”) that the Administrative Agent has
            determined in its sole discretion that any funds received by such Payment Recipient were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Payment Recipient) or
            (ii) any Payment Recipient receives any payment from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by
            the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent
            (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, or (z) that such Payment Recipient otherwise becomes aware was transmitted or received in error or by mistake (in whole or in part) then, in each
            case, an error in payment shall be presumed to have been made (any such amounts specified in clauses (i) or (ii) of this Section 8.11(a), whether received as a payment, prepayment or
            repayment of principal, interest, fees, distribution or otherwise; individually and collectively, an “Erroneous Payment”), then, in each case, such Payment Recipient is deemed to have
            knowledge of such error at the time of its receipt of such Erroneous Payment; provided that nothing in this Section shall require the Administrative Agent to provide any
            of the notices specified in clauses (i) or (ii) above.  Each Payment Recipient agrees that it shall not assert any right or claim to any Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment
            with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payments, including, without limitation, waiver of any defense based on “discharge for value” or any similar doctrine.

       

      (b)         Without limiting the immediately preceding clause (a), each Payment Recipient agrees that, in the case of clause (a)(ii) above, it shall promptly notify the Administrative Agent in writing of such occurrence.

       

      (c)          In the case of either clause (a)(i) or (a)(ii) above, such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the
            Administrative Agent, and upon demand from the Administrative Agent such Payment Recipient shall (or, shall cause any Person who received any portion of an Erroneous Payment on its behalf to), promptly, but in all events no later than one (1)
            Business Day thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds and in the currency so received, together with interest thereon in
            respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent at the Federal Funds Rate.

       

      
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      (d)         In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding clause (c), from any Lender
            that is a Payment Recipient or an Affiliate of a Payment Recipient (such unrecovered amount as to such Lender, an “Erroneous Payment Return Deficiency”), then at the sole discretion of
            the Administrative Agent and upon the Administrative Agent’s written notice to such Lender, such Lender shall be deemed to have made a cashless assignment of the full face amount of the portion of its Loans (but not its Commitments) to the
            Administrative Agent or, at the option of the Administrative Agent, the Administrative Agent’s applicable lending affiliate in an amount that is equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent
            may specify) (such assignment of the Loans (but not Commitments), the “Erroneous Payment Deficiency Assignment”) plus
            any accrued and unpaid interest on such assigned amount, without further consent or approval of any party hereto and without any payment by the Administrative Agent or its applicable lending affiliate as the assignee of such Erroneous Payment
            Deficiency Assignment.  Without limitation of its rights hereunder, the Administrative Agent may cancel any Erroneous Payment Deficiency Assignment at any time by written notice to the applicable assigning Lender and upon such revocation all of
            the Loans assigned pursuant to such Erroneous Payment Deficiency Assignment shall be reassigned to such Lender without any requirement for payment or other consideration.  The parties hereto acknowledge and agree that (1) any assignment
            contemplated in this clause (d) shall be made without any requirement for any payment or other consideration paid by the applicable assignee or received by the assignor, (2) the provisions of this clause (d) shall govern in the event of any
            conflict with the terms and conditions of Section 9.09 and (3) the Administrative Agent may reflect such assignments in the Register without further consent or action by any other
            Person.

       

      (e)          Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative
            Agent (1) shall be subrogated to all the rights of such Payment Recipient with respect to such amount and (2) is authorized to set off, net and apply any and all amounts at any time owing to such Payment Recipient under any Loan Document, or
            otherwise payable or distributable by the Administrative Agent to such Payment Recipient from any source, against any amount due to the Administrative Agent under this Section 8.11 or
            under the indemnification provisions of this Agreement, (y) the receipt of an Erroneous Payment by a Payment Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment, repayment, discharge or other satisfaction
            of any Obligations owed by the Borrower, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from or at
            the direction of the Borrower for the purpose of making for a payment on the Obligations and (z) to the extent that an Erroneous Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the
            Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had never been received.

       

      (f)         Each party’s obligations under this Section 8.11 shall survive the resignation or replacement of the Administrative Agent or any transfer of right or obligations by, or the
            replacement of, a Lender, the termination of the Aggregate Commitments or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

       

      
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      (g)          Nothing in this Section 8.11 will constitute a waiver or release of any claim of any party hereunder arising from any Payment Recipient’s receipt of an Erroneous Payment.

       

      ARTICLE IX

      MISCELLANEOUS

       

      SECTION 9.01          Amendments, Etc. Except as set forth below or as specifically provided in any Loan
        Document (including Section 2.12(e)), 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 Required Lenders and the Borrower, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided except as otherwise provided in Section 2.18, no such waiver and no such amendment, supplement or modification shall:

       

      (a)          postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent
            of each Lender directly affected thereby;

       

      (b)          reduce the principal of, or the rate of interest specified herein on, any Loan or (subject to the second proviso to this Section 9.01) any fees or other amounts payable hereunder
            or under any other Loan Document without the written consent of each Lender directly affected thereby (except that only the consent of the Required Lenders shall be necessary to any obligation of the Borrower to pay interest at the rate set
            forth in Section 2.10(c) during the continuance of an Event of Default);

       

      (c)          extend or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 7.02) without the written consent of such Lender;

       

      (d)         amend, modify or waive any provision of this Section 9.01 or reduce the percentage specified in the definition of Required Lenders or any other provision hereof specifying the
            number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, or consent to the assignment or transfer by the Borrower of any of its rights and
            obligations under this Agreement, in each case, without the written consent of each Lender;

       

      (e)          change Section 2.06, 2.07, 2.10(e), 2.16(a) or 9.04 in a manner that would alter the pro rata sharing of payments required thereby without the written consent of
            each Lender;

       

      (f)           waive any condition set forth in Section 4.01 without the written consent of each Lender;

       

      (g)          except as otherwise provided in Section 6.01(s), discharge or release a Subsidiary Guarantor from a Subsidiary Guaranty without the written consent of each Lender;

       

      
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      provided, further, that (i) [reserved]; (ii)
          [reserved]; (iii) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other
          Loan Document or modify Section 9.02(d), Section 9.20 or Article VIII
          hereof; (iv) the Administrative Agent Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (v) the Administrative Agent and the Borrower shall be permitted to amend any provision
          of the Loan Documents (and such amendment shall become effective without any further action or consent of any other party to any Loan Document) if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any
          error, ambiguity, defect or inconsistency or omission of a technical or immaterial nature in any such provision and (vi) the Administrative Agent (and, if applicable, the Borrower) may, without the consent of any Lender, enter into amendments or
          modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents in order to implement any Benchmark Replacement or any Conforming Changes or otherwise effectuate the terms of Section 2.12(e) in accordance with Section 2.12(e).  Notwithstanding anything to the contrary herein, no Defaulting Lender shall
          have any right to approve or disapprove any amendment, waiver or consent hereunder, except that (A) the Commitment of such Lender may not be increased or extended without the consent of such Lender, and (B) any amendment, waiver, or consent
          hereunder which requires the consent of all Lenders or each affected Lender that by its terms disproportionately and adversely affects any such Defaulting Lender relative to other affected Lenders shall require the consent of such Defaulting
          Lender.

       

      Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and
        without further consent of any Lender (but with the consent of the Borrower and the Administrative Agent), to amend and restate this Agreement and the other Loan Documents if, upon giving effect to such amendment and restatement, such Lender shall
        no longer be a party to this Agreement (as so amended and restated), the Commitment of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all principal,
        interest and other amounts owing to it or accrued for its account under this Agreement and the other Loan Documents.

       

      SECTION 9.02           Notices, Etc.

       

      (a)         Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided for hereunder shall be in writing (including
            telegraphic communication) and delivered by hand or overnight courier service, mailed by certified or registered mail or sent by electronic mail as follows:

       

      The Borrower:

       

      South Jersey Industries, Inc.

      1 South Jersey Plaza

      Folsom, NJ 08037

      Attention: Steven R. Cocchi

      E-mail: scocchi@sjindustries.com

       

      
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      With a copy to:

       

      Cozen O’Connor

      One Liberty Place

      1650 Market Street, Suite 2800

      Philadelphia, PA 19103

      Attention: David Kirchblum, Esq.

      E-mail: dkirchblum@cozen.com

       

      The Administrative Agent:

       

      KeyBank National Association

      127 Public Square

      Cleveland, OH 44114-1306

      Attention: Renee Bonnell, Senior Vice President

      Telephone: 216-689-7729

      E-mail: renee.bonnell@key.com and

      Renewables.ProjectFinance@KeyBank.com

       

      With a copy to:

       

      KeyBank National Association

      4900 Tiedeman Road

      Cleveland, OH 44114

      Mail Code: OH-01-49-0362

      Attention: Dona Zimmerman, Lead Service Officer

      Telephone: 208-364-8280

      E-mail: dona_zimmerman@key.com

       

      If to any Lender, to it at the address of such Lender set forth on the Register with respect to deliveries of notices and other documentation that
        may contain material non-public information; 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 sent by hand or overnight courier service, or mailed by
        certified or registered mail, shall be deemed to have been given when received; notices sent by electronic mail shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed
        to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).

       

      
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      (b)          Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices to any Lender pursuant to Article II if such Lender has
            notified the Administrative Agent that is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it
            hereunder by electronic communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices or
            communications.  Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as
            by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the
            intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail or other communication is not sent during the normal business hours of the recipient, such notice, e-mail or other communication shall be
            deemed to have been sent at the opening of business on the next business day for the recipient.

       

      (c)          Any party hereto may change its address or electronic mail address for notices and other communications hereunder by notice to the other parties hereto.

       

      (d)          The Borrower agrees that the Administrative Agent may, but shall not be obligated to, make the Informational Materials available to the other Lenders by posting the Informational Materials on the Platform.  The Platform is provided “as is”
            and “as available.”  The Agent Parties (as defined below) do not warrant the accuracy or completeness of the Informational Materials or the adequacy of the Platform, and expressly disclaim liability for errors or omissions in the Informational
            Materials.  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 any Agent Party in connection with the Informational Materials or the Platform.  In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent

                Parties”) have any liability to the Borrower, any Lender or any other Person or entity for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the
            Administrative Agent’s transmission of communications through the Internet (including, without limitation, the Platform), except to the extent that such losses, claims, damages, liabilities or expenses are determined by a court of competent
            jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Agent Party; provided that in no event shall any
            Agent Party have any liability to the Borrower, any Lender or any other Person for indirect, special, incidental, consequential or punitive damages, losses or expenses (as opposed to actual damages, losses or expenses).

       

      SECTION 9.03           No Waiver; Remedies.  No failure on the part of the Administrative Agent or any
        Lender to exercise, and no delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
        preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.  The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any remedies provided by law.

       

      
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      SECTION 9.04            Set-off.

       

      (a)         If an Event of Default shall have occurred and be continuing, the Administrative Agent, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by
            Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by the Administrative
            Agent, such Lender or any such Affiliate 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 or any other Loan Document to such Lender,
            irrespective of whether or not such Lender shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch or office of such Lender
            different from the branch or office holding such deposit or obligated on such indebtedness.  The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of
            setoff) that the Administrative Agent, such Lender or their respective Affiliates may have; provided that in the event that any Defaulting Lender shall exercise any such
            right of setoff, the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  The rights of
            each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates may have.  Each Lender agrees to notify the Borrower
            and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff
            and application.

       

      If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on
        any of its Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Loans and accrued interest thereon or other such obligations greater than its pro rata share thereof as
        provided herein, then the Lender receiving such greater proportion shall (i) notify the Administrative Agent of such fact, and (ii) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or
        make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Loans and other
        amounts owing them; provided that:

       

      (i)          if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such
            recovery, without interest; and

       

      (ii)        the provisions of this paragraph 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 (including the application of funds
            arising from the existence of a Defaulting Lender), or (B) any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans to any assignee or participant, other than to the Borrower or any
            Subsidiary thereof (as to which the provisions of this paragraph shall apply).

       

      (b)        The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of
            setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation.

       

      
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      SECTION 9.05            Indemnification; Exculpation and Consequential Damages.

       

      (a)         The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof), the Arranger, each Lender and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, and shall pay or reimburse any such Indemnitee for, any and all losses, claims (including, without limitation, any Environmental Claims or civil penalties or
            fines assessed by OFAC), damages, liabilities and related reasonable out-of-pocket expenses (and shall pay or reimburse any such Indemnitee for including the fees, charges and disbursements of any counsel for any Indemnitee but limited to one
            counsel to all Indemnitees (taken as a whole) and, if reasonably necessary, a single local counsel for all Indemnitees (taken as a whole) in each relevant jurisdiction, and solely in the case of an actual or perceived conflict of interest, one
            additional counsel in each relevant jurisdiction to all affected Indemnitees similarly situated and taken as a whole), incurred by any Indemnitee or asserted against any Indemnitee by any third party or by the Borrower arising out of, in
            connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby by the Borrower, the performance by the Borrower and the other parties
            hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Loan to the Borrower as provided in Article III
            or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or Environmental Release of Hazardous Materials on or from any property owned or operated by the Borrower or any Subsidiary thereof, or any Environmental
            Claim related in any way to the Borrower or any Subsidiary thereof, (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether
            brought by a third party or by the Borrower or any Subsidiary thereof, and regardless of whether any Indemnitee is a party thereto, or (v) any claim (including, without limitation, any Environmental Claims or civil penalties or fines assessed
            by the U.S. Department of the Treasury’s Office of Foreign Assets Control), investigation, litigation or other proceeding (whether or not the Administrative Agent or any Lender is a party thereto) and the prosecution and defense thereof,
            arising out of or in any way connected with the Loans to the Borrower, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby, including,
            without limitation, reasonable attorneys and consultant’s fees; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses,
            claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from (x) the gross negligence or willful misconduct of such Indemnitee or any of its
            Related Parties that is directly involved in the transactions contemplated by this Agreement, (y) a material breach of the obligations of such Indemnitee under this Agreement or (z) any dispute solely among Indemnitees (other than any claims
            against an Indemnitee in its capacity or in fulfilling its role as an arranger or agent or any similar role under this Agreement or otherwise in connection with the credit facility provided hereunder) that does not arise out of any act or
            omission of the Borrower or any Related Party thereof.  Notwithstanding the foregoing, each Indemnitee shall be obligated to refund and return any and all amounts paid by the Borrower to such Indemnitee for fees, expenses or damages to the
            extent it is ultimately determined by a court of competent jurisdiction by final and nonappealable judgment that such Indemnitee is not entitled to payment of such amounts in accordance with the terms hereof.

       

      
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      (b)          To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each
            Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or indemnity payment
            is sought based on each Lender’s Commitment Percentage at such time, or if the Aggregate Commitments have been reduced to zero, then based on such Lender’s Commitment Percentage immediately prior to such reduction) of such unpaid amount
            (including any such unpaid amount in respect of a claim asserted by such Lender); provided that the unreimbursed expense or indemnified loss, claim, damage, liability or
            related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) in
            connection with such capacity.  The obligations of the Lenders under this paragraph are subject to the provisions of Section 2.16.

       

      (c)          To the fullest extent permitted by applicable law, the Borrower shall not assert, and the Borrower hereby waives, any claim against the Administrative Agent (and any sub-agent thereof), any Lender or any Related Party of any of the
            foregoing Persons (each such Person being called a “Lender Party”) on any theory of liability for special, indirect, consequential or punitive damages (as opposed to direct or actual
            damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or the use of the proceeds
            thereof.  No Lender Party 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.  In addition, and without limitation of the indemnity provided in this Section, the Administrative Agent and each Lender agree not to
            assert any claim against the Borrower on any theory of liability for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other
            Loan Document or any agreement or instrument contemplated hereby, or the transactions contemplated hereby or thereby.

       

      (d)          All amounts due under this Section 9.05 shall be payable promptly after demand therefor.  Nothing in this Section 9.05
            is intended to limit the Borrower’s obligations contained in Article II.  Without prejudice to the survival of any other obligation of the Borrower hereunder, the indemnities and
            obligations of the Borrower contained in this Section 9.05 shall survive the payment in full of amounts payable pursuant to Article
                II and Article III and the termination of the Commitments.

       

      SECTION 9.06           [Reserved].

       

      
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      SECTION 9.07           Costs, Expenses and Taxes.  The Borrower agrees to pay on demand (i) all reasonable
        and documented out of pocket expenses incurred by the Administrative Agent and the Lenders (including, without limitation, reasonable and documented out of pocket fees and expenses of counsel thereto but limited to one counsel to the Administrative
        Agent and the Lenders (taken as a whole) and, if reasonably necessary, a single local counsel for the Administrative Agent and Lenders (taken as a whole) in each relevant jurisdiction), in connection with the syndication of the credit facility
        provided hereunder, the preparation, negotiation, execution, delivery and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions
        contemplated hereby or thereby shall be consummated), (ii) [reserved] and (iii) all reasonable and documented out of pocket expenses incurred by the Administrative Agent or any Lender (including, without limitation, reasonable and documented out of
        pocket fees and expenses of counsel thereto but limited to one counsel to the Administrative Agent and the Lenders (taken as a whole) and, if reasonably necessary, a single local counsel for the Administrative Agent and the Lenders (taken as a
        whole) in each relevant jurisdiction), in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the other Loan Documents, including its rights under this Section

            9.07, or (B) in connection with the Loans made hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Loans.  In addition, the Borrower shall pay any and all
        stamp and other Taxes and fees payable or determined to be payable in connection with the execution, delivery, filing and recording of this Agreement, the Loans or any of such other documents, and agree to save the Administrative Agent and the
        Lenders harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees.  Without prejudice to the survival of any other agreement of the Borrower hereunder, the
        agreements and obligations of the Borrower, the Administrative Agent and the Lenders contained in this Section shall survive the payment in full of the Obligations and the termination of the Commitments.

       

      To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under this Section to be paid by it to the
        Administrative Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s pro rata
        share (determined as of the time that the applicable unreimbursed expense payment is sought based on each Lender’s Commitment Percentage at such time, or if the Aggregate Commitments have been reduced to zero, then based on such Lender’s Commitment
        Percentage immediately prior to such reduction) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided that the
        unreimbursed expense was incurred by or asserted against the Administrative Agent (or any such sub-agent) or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) in connection with such
        capacity.  The obligations of the Lenders under this paragraph are subject to the provisions of Section 2.16.

       

      SECTION 9.08           [Reserved].

       

      SECTION 9.09           Benefit of Agreement.

       

      
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      (a)         Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
            assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender and 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 paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this
            Section or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (f) 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 paragraph (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.  Notwithstanding anything to the contrary in the Loan Documents, on or prior to the Closing Date, no Lender may assign any of its rights or obligations
            under this Agreement without the prior written consent of the Borrower (which may be withheld in in its sole discretion). Subject to the foregoing sentence, 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 the Loans 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 the Loans 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 paragraph (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 paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or, if the applicable Commitment is not then
            in effect, the principal outstanding balance of the Loans 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 and in integral multiples of $500,000, 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); provided that the Borrower shall be deemed to
            have given its consent ten (10) Business Days after the date written notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such tenth
            (10th) Business Day;

       

      
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      (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 Loan or the Commitment assigned;

       

      (iii)         Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:

       

      (A)            the consent of the Borrower (such consent not to be unreasonably withheld) 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 given its consent ten (10) Business Days after the date written
            notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such tenth (10th) Business Day; provided, further, that, notwithstanding the foregoing, the consent of the Borrower shall be required in all cases where the assignee is JPMorgan or any of its affiliates; 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 for each assignment (provided, that (A) only one
            such fee will be payable in connection with simultaneous assignments to two or more Approved Funds by a Lender and (B) the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any
            assignment), and the assignee, if it is not a Lender, shall deliver to the Administrative Agent an administrative questionnaire.

       

      (v)         No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of its Affiliates or Subsidiaries or (B) to any Defaulting
            Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute any of the foregoing Persons described in this clause (B).

       

      (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).

       

      
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      (vii)       In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein,
            the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of
            participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Loans previously requested but not funded by the Defaulting
            Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each other Lender hereunder
            (and interest accrued thereon), and (y) acquire (and fund as appropriate) its full pro rata share of all Loans in accordance with its Commitment Percentage.  Notwithstanding the foregoing, in the event that any assignment of rights and
            obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes
            of this Agreement until such compliance occurs.

       

      Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (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 2.12, 2.14, 2.17, 2.21, 9.05 and 9.07 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided that
        except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any
        assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph 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 paragraph (d) of this Section (other than a purported assignment to a Person specified in paragraph (b)(vi) of this Section or the Borrower or any of its Subsidiaries or Affiliates, which shall be null and void).

       

      (c)          Register.  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in Cleveland, Ohio, a copy of
            each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amounts (and stated interest) of the Loans owing to, each Lender pursuant to the
            terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive, absent manifest error, and the Borrower, the Administrative Agent and the Lenders may
            treat each Person whose name is recorded in the Register pursuant to the terms hereof 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 and any Lender (but only to the extent of entries in the Register that are applicable to such Lender), at any reasonable time and from time to time upon reasonable prior notice.

       

      
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      (d)         Participations.  Any Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a
            natural Person, 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 Affiliates or Subsidiaries of the Borrower) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such
            obligations and (iii) 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 Sections 9.05 and 9.07 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 or modification described in Section 9.01 that directly affects such
        Participant and could not be effected by a vote of the Required Lenders.  Subject to paragraph (e) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections

            2.12, 2.17 and 2.21 to the same extent as if it were a Lender and had acquired its interest by assignment
        pursuant to paragraph (b) of this Section.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.04 as though it were a Lender; provided that such Participant agrees to be subject to Section 2.16 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 of (and stated interest on) each Participant’s interest in the 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, letters of credit 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, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) and proposed Section 1.163-5(b) 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)          Limitations upon Participant Rights.  A Participant shall not be entitled to receive any greater payment under Sections 2.17
            and 2.21 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.  No Participant shall be entitled to the benefits of Section 2.17 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 2.17 as though it were a Lender.

       

      
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      (f)        Certain Pledges.  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, without limitation, any pledge or assignment to secure obligations to a Federal Reserve 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.

       

      SECTION 9.10     Severability. 
        Any provision of this Agreement which 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 9.11           Governing Law.  This agreement shall be governed by, and construed in accordance
        with, the laws of the state of New York.

       

      SECTION 9.12           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 9.13            Submission To Jurisdiction; Waivers.  The Borrower hereby irrevocably and
        unconditionally:

       

      (a)          agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender or any Related Party of
            the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than Courts of the State of New York, the courts of the United States of America for the Southern
            District of New York, and appellate courts from any thereof, and submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such State court or,
            to the fullest extent permitted by Applicable Law, in such federal court;

       

      (b)         consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was
            brought in an inconvenient court and agrees not to plead or claim the same;

       

      (c)          agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower at its address set
            forth in Section 9.02 or at such other address of which the Administrative Agent shall have been notified pursuant thereto; and

       

      (d)         agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction.

       

      This Section 9.13 shall not be construed to confer a benefit upon, or grant a right or privilege to, any
        Person other than the parties hereto.

       

      
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      SECTION 9.14            Acknowledgments.  The Borrower hereby acknowledges:

       

      (a)          it has been advised by counsel in the negotiation, execution and delivery of this Agreement and other Loan Documents;

       

      (b)          neither the Administrative Agent nor any Lender has a fiduciary relationship to the Borrower, and the relationship between the Administrative Agent and any Lender, on the one hand, and the Borrower on the other hand, is solely that of
            debtor and creditor;

       

      (c)          no joint venture exists between the Borrower and the Administrative Agent or any Lender; and

       

      (d)        that the Lenders hereby notify the Borrower that pursuant to the requirements of the Patriot Act, they are 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 the Lenders to identify the Borrower in accordance with the Patriot Act.

       

      SECTION 9.15          Waivers of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE
        BORROWER, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.  THIS SECTION 9.15 SHALL NOT BE CONSTRUED TO CONFER A BENEFIT UPON, OR GRANT A RIGHT OR PRIVILEGE TO, ANY PERSON OTHER THAN THE PARTIES HERETO.

       

      
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      SECTION 9.16           Confidentiality.  Each of the Administrative Agent and the Lenders agree to maintain
        the confidentiality of (and to use its best efforts to cause its respective agents and representatives to keep confidential) the Information (as defined below) with respect to the Borrower, its Subsidiaries and the transactions related thereto, and
        all copies thereof, extracts therefrom and analyses or other materials based thereon, and to use such Information only for purposes of this Agreement, the Loan Documents and the transactions contemplated hereby and thereby, or for any other reason
        relating to this Agreement, except that Information with respect to the Borrower may be disclosed (a) to its Related Parties who need to know such information for the purpose of evaluating, negotiating or entering into transactions contemplated
        hereby (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by, or required to be
        disclosed to, any rating agency, or regulatory or similar authority purporting to have jurisdiction over it (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (c) to the extent required by
        Applicable Laws or regulations or by any subpoena or any legal, judicial, administrative or other compulsory process based on the advice of counsel (including internal counsel) (in which case the disclosing Person agrees, except with respect to any
        audit or examination conducted by bank accountants or any regulatory authority exercising examination or regulatory authority over such Person), to the extent practicable and not prohibited by Applicable Law, to inform the Borrower promptly thereof
        prior to disclosure, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this Agreement or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document or the
        enforcement of rights hereunder or thereunder, (f) subject to an agreement containing obligations binding on the receiving Person substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee
        of or Participant in, any of its rights or obligations under this Agreement, or (ii) any actual or prospective counterparty (or its Related Parties) to any swap derivative or other transaction under which payments are to be made by reference to the
        Borrower and its obligations, this Agreement or payments hereunder (including credit insurance providers and brokers), (g) with the consent of the Borrower, (h) to bank market data collectors (including Thomson Reuters) and other similar bank trade
        publications, deal terms and other information customarily found in such publications, (i) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section (or a breach by any Person to whom
        Information may be disclosed pursuant to clause (a) above, as if this Section were binding on such Person) 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 and such source is not known by the Person receiving such Information to be in violation of this Section or subject to other contractual or fiduciary confidentiality obligations owing to the Borrower or any of its
        Related Parties, (j) to governmental regulatory authorities in connection with any regulatory examination of the Administrative Agent or any Lender or in accordance with the Administrative Agent’s or any Lender’s regulatory compliance policy if the
        Administrative Agent or such Lender deems necessary for the mitigation of claims by those authorities against the Administrative Agent or such Lender or any of its subsidiaries or affiliate or (k) on a confidential basis to the CUSIP Service Bureau
        or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to this Agreement.  For purposes of this Section, “Information” means all non-public
        information received from or on behalf of the Borrower or any Subsidiary thereof relating to the Borrower or any Subsidiary thereof or any of their respective businesses.  Any Person required to maintain the confidentiality of Information as
        provided in this Section 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.  Each of the Administrative Agent, the Lenders and Participants shall promptly notify the Borrower of its receipt of any subpoena or similar process or authority, unless prohibited therefrom by the issuing Person.

       

      SECTION 9.17           Counterparts; Integration; Effectiveness; Electronic Execution.  This Agreement may
        be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan
        Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent and/or any Arranger, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
        agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.01, this Agreement shall become effective when it shall have been
        executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature
        page of this Agreement in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.

       

      
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      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 9.18          Reversal of Payments.  To the extent the Borrower makes a payment or payments to the Administrative Agent for the ratable benefit of the
          Lenders or the Administrative Agent receives any payment or proceeds of any collateral which payments or proceeds or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid
          to a trustee, receiver or any other party under any Debtor Relief Law, other Applicable Law or equitable cause, then, to the extent of such payment or proceeds repaid, the Obligations of the Borrower or part thereof intended to be satisfied shall
          be revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative Agent.

       

      SECTION 9.19           No Advisory or Fiduciary Responsibility.

       

      (a)          In connection with all aspects of each transaction contemplated hereby, the Borrower acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (i) the credit facility provided for hereunder and any related arranging or
            other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower, on the one hand, and the
            Administrative Agent, the Arranger and the Lenders on the other hand, and the Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the
            other Loan Documents (including any amendment, waiver or other modification hereof or thereof), (ii) in connection with the process leading to such transaction, each of the Administrative Agent, the Arranger and the Lenders is and has been
            acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person, (iii) none of the Administrative Agent, the Arranger or the
            Lenders has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment,
            waiver or other modification hereof or of any other Loan Document (irrespective of whether any Arranger or Lender has advised or is currently advising the Borrower or any of its Affiliates on other matters) and none of the Administrative Agent,
            the Arranger or the Lenders has any obligation to the Borrower or any of its Affiliates with respect to the financing transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents, (iv) the
            Administrative Agent, the Arranger, and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from, and may conflict with, those of the Borrower and its Affiliates, and
            none of the Administrative Agent, the Arranger or the Lenders has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship and (v) the Administrative Agent, the Arranger and the Lenders have
            not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the
            Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate.

       

      
        87

        
          

      

      (b)          The Borrower acknowledges and agrees that each Lender, the Arranger and any Affiliate thereof may lend money to, invest in, and generally engage in any kind of business with, the Borrower or any of its Affiliates or any other person or
            entity that may do business with or own securities of any of the foregoing, all as if such Lender, Arranger or Affiliate thereof were not a Lender or Arranger or an Affiliate thereof (or an agent or any other person with any similar role under
            this Agreement) and without any duty to account therefor to any other Lender, the Arranger, the Borrower or any Affiliate of the foregoing.  Each Lender, the Arranger and any Affiliate thereof may accept fees and other consideration from the
            Borrower or any Affiliate thereof for services in connection with this Agreement or otherwise without having to account for the same to any other Lender, the Arranger, the Borrower or any Affiliate of the foregoing.

       

      SECTION 9.20         Acknowledgment and Consent to Bail-In of Affected 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 Affected 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 the applicable 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 the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an Affected 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 Affected 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 the applicable Resolution Authority.

       

      SECTION 9.21         Acknowledgement Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise,
          for Hedge Agreements or any other 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 FDIC 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):

       

      
        88

        
          

      

      (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.  Without limitation of the foregoing, it is understood and agreed that rights and
            remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

       

      (b)          As used in this Section 9.21, 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 9.22            Acknowledgement and Consent to IIF Acquisition.  

       

      
        89

        
          

      

      Notwithstanding anything to the contrary in this Agreement (including, without limitation, any provision in Article VI), the
        Administrative Agent and each of the Lenders (i) acknowledge that the Borrower has entered into that certain Agreement and Plan of Merger, dated as of February 23, 2022, among NJ Boardwalk Holdings, LLC, and Boardwalk Merger Sub, Inc., (ii)
        expressly consent to the consummation of the transactions contemplated thereunder by the Borrower and its Subsidiaries, and (iii) agree that all such transactions shall not be prohibited, and the Administrative Agent and each Lender hereby waive
        any provision which would otherwise restrict such transactions under this Agreement.

       

      [SIGNATURE PAGES FOLLOW]

       

      
        90

        
          

      

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

       

      	

            	
              SOUTH JERSEY INDUSTRIES, INC.,

            
	

            	
              as the Borrower

            
	

            	

            
	

            	
              By:

            	
              /s/ Steven Cocchi

            	

            
	

            	

            	
              Name: Steven Cocchi

            
	

            	

            	
              Title: Chief Financial Officer

            

      

      

      
        
          Signature Page to Credit Agreement

        

        
          

      

      	

            	
              KEYBANK NATIONAL ASSOCIATION,

            
	

            	
              as Administrative Agent and as a Lender

            
	

            	

            
	

            	
              By:

            	
              /s/ Renee M. Bonnell

            
	

            	

            	
              Name: Renee M. Bonnell

            
	

            	

            	
              Title: Senior Vice President

            

      

      

      

      

      Signature Page to Credit AgreementExhibit 10.1

 

CERTAIN
CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND REPLACED WITH “[***]”. SUCH IDENTIFIED INFORMATION HAS BEEN
EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF
DISCLOSED.

 

AMENDED AND RESTATED RESEARCH AND COLLABORATION
AGREEMENT

 

by and among

 

Eli Lilly
and Company

 

and

 

ProQR
Therapeutics N.V.

 

and

 

ProQR
Therapeutics VIII B.V.

 

     

     

    

 

AMENDED AND RESTATED RESEARCH AND COLLABORATION
AGREEMENT

 

This
Amended and Restated Research and Collaboration Agreement (“Agreement”)
entered into as of December 21st, 2022 (the “A&R Effective Date”), by and among ProQR
Therapeutics N.V., a company organized and existing under the laws of the Netherlands, having its principal place of business
at Zernikedreef 9, 2333 CK Leiden, The Netherlands, and ProQR Therapeutics VIII B.V.,
a company organized and existing under the laws of the Netherlands, having its principal place of business at Zernikedreef 9,
2333 CK Leiden, the Netherlands, (such entities, collectively, “ProQR”), and Eli
Lilly and Company, a corporation organized and existing under the laws of Indiana, with its principal business office located
at Lilly Corporate Center, Indianapolis, Indiana 46285, U.S.A. (“Lilly”), amends, restates and supersedes
in its entirety (except as expressly set forth herein), that certain Research and Collaboration Agreement, entered into as of September 3rd,
2021 (the “Effective Date”), by and among the Parties (the “Original Agreement”).
Lilly and ProQR are each hereafter referred to individually as a “Party” and together as the “Parties.”

 

Whereas,
ProQR is a biotechnology company that has developed a proprietary platform named AXIOMER® relating to the design of antisense oligonucleotides
to edit RNA in cells, and controls certain intellectual property rights with respect to using such platform to discover, generate, optimize,
identify and select antisense oligonucleotide sequences;

 

Whereas,
Lilly is a pharmaceutical company engaged in the research, development, manufacturing, marketing and distribution of pharmaceutical products,
including therapeutic products;

 

Whereas,
the Parties entered into the Original Agreement, pursuant to which (i) ProQR and Lilly agreed to collaborate to use the ProQR Platform
(as defined below) to discover, generate, optimize, identify and select antisense oligonucleotide sequences which are Directed To (as
defined below) Project Targets (as defined below) and (ii) ProQR granted to Lilly, certain exclusive and non-exclusive license rights
to develop, manufacture, and commercialize Compounds or Products containing such antisense oligonucleotide sequence(s) Directed To
Project Targets;

 

Whereas,
effective as of the A&R Effective Date (except as otherwise set forth herein), the Parties desire to expand and amend the terms of
their existing collaboration under the Original Agreement, including by (i) increasing the number of Project Targets, (ii) Lilly
granting ProQR access to certain [***] technology, and (iii) ProQR granting Lilly certain additional exclusive rights.

 

Now,
Therefore, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, the Parties hereby agree as follows, with effect from and after the A&R Effective Date
(except as otherwise set forth herein):

 

     

     

    

 

CONFIDENTIAL

 

Article 1

 

DEFINITIONS

 

Capitalized terms used in
this Agreement and the Exhibits hereto shall have the following meanings (or as defined elsewhere in this Agreement):

 

1.1           “A&R
Effective Date” has the meaning set forth in the preamble to this Agreement.

 

1.2           “Acquirer”
has the meaning set forth in the definition of “Change of Control.”

 

1.3           “Additional
Project” has the meaning set forth in Section 3.4.

 

1.4           “Additional
Target” has the meaning set forth in Section 3.4.

 

1.5           “Additional
Workplan” has the meaning set forth in Section 4.4.2.

 

1.6           “Affiliate”
means, with respect to any Person, any entity that, at the relevant time (whether as of the Effective Date or thereafter), directly or
indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such Person, for so long as
such control exists. As used in this Section 1.6, “control” means: (a) to possess, directly or indirectly, the power
to direct or cause the direction of the management or policies of an entity, whether through ownership of voting securities or by contract
relating to voting rights or corporate governance; or (b) direct or indirect ownership of fifty percent (50%) (or such lesser percentage
that is the maximum allowed to be owned by a foreign entity in a particular jurisdiction) or more of the voting share capital or other
equity interest in such entity.

 

1.7           “Agreement”
has the meaning set forth in the Preamble.

 

1.8           “Alliance
Manager” has the meaning set forth in Section 2.1.

 

1.9           “Applicable
Laws” means the applicable provisions of any and all federal, national, supranational, regional, state and local laws, treaties,
statutes, rules, regulations, guidelines or requirements, administrative codes, guidance, ordinances, judgments, decrees, directives,
injunctions, orders, or permits of or from any court, arbitrator, Regulatory Authority, Governmental Authority, taxing authority, national
securities exchange or exchange listing organization having jurisdiction over or related to the relevant subject item that may be in effect
from time to time during the Term, including data protection and privacy laws.

 

1.10         “Background
IP” means Lilly Background IP or ProQR Background IP, as applicable.

 

1.11         “BLA/NDA”
means a Biologic License Application or New Drug Application (as more fully described in the FD&C Act and any applicable regulations
promulgated thereunder by the FDA), or any analogous application or submission with any Regulatory Authority outside of the United States.

 

    2

     

    

 

1.12         “Business
Day” means any day, other than any Saturday, Sunday, or any day that banks are authorized or required to be closed in Indianapolis, Indiana
or Amsterdam, the Netherlands.

 

1.13         “Calendar
Quarter” means each respective period of three (3) consecutive months ending on March 31, June 30, September 30,
and December 31 of any Calendar Year.

 

1.14         “Calendar
Year” means each respective period of twelve (12) consecutive months commencing on January 1 and ending on December 31.

 

1.15         “Candidate
Success CSFs” means with respect to a Project Target, the Critical Success Factors for such Project Target established by
the JSC necessary for a Hit Directed To such Project Target to be considered a Successful Candidate.

 

1.16         “Change
of Control” means:

 

(a)       with
respect to either Party: (i) the acquisition by a Third Party, in one transaction or a series of related transactions, of
direct or indirect beneficial ownership of more than [***] of the outstanding voting equity securities of such Party;
(ii) a merger or consolidation involving such Party, as a result of which a Third Party acquires direct or indirect beneficial
ownership of more than [***] of the voting power of the surviving entity immediately after such merger, reorganization or
consolidation; or (iii) a sale of all or substantially all of the assets of such Party in one transaction or a series of
related transactions to a Third Party. The acquiring or combining Third Party in any of (i), (ii) or (iii), and any of such
Third Party’s Affiliates (whether in existence as of or at any time following the applicable transaction, but other than the
acquired Party and its Affiliates as in existence prior to the applicable transaction) are referred to collectively herein as the
 “Acquirer”; or

 

(b)      [***].

 

1.17         “Claim”
has the meaning set forth in Section 11.1.1.

 

1.18         “Clinical
Trial” means a human clinical trial, including a Phase I Clinical Trial, Phase II Clinical Trial or Phase III Clinical Trial,
or any post-Regulatory Approval human clinical trial, as applicable.

 

1.19         “Combination
Product” has the meaning set forth in the definition of “Net Sales.”

 

1.20         “Commercial
Milestone Event” has the meaning set forth in Section 8.2.

 

1.21         “Commercialization”
means any and all activities directed to the offering for sale of a Compound, Product or other compound, product or therapy including:
(a) activities directed to storing, marketing, promoting, detailing, distributing, importing, exporting, selling and offering to
sell that Compound, Product, or other compound, product or therapy; (b) conducting Clinical Trials after Marketing Approval of a
Compound, Product, or other compound, product or therapy with respect to such Compound, Product, or other compound, product or therapy;
(c) interacting with Regulatory Authorities regarding the foregoing; and (d) seeking Regulatory Approvals (as applicable) for
and registration of that Compound, Product, or other compound, product or therapy beyond Marketing Approval (which is addressed within
 “Development”). When used as a verb, “to Commercialize” and “Commercializing”
means to engage in Commercialization and “Commercialized” has a corresponding meaning. For clarity, “Commercialization”
shall not include any Development activities prior to Marketing Approval.

 

    3

     

    

 

1.22         “Commercially
Reasonable Efforts” of a Party means [***]

 

1.23         “Competing
Program” has the meaning set forth in Section 7.2.1.

 

1.24         “Compound”
means any antisense oligonucleotide sequence designed to target, or which does target, a specific adenosine in an RNA expressed from a
Target for deamination by an endogenous ADAR, which sequence is selected, discovered, generated, optimized or identified under the Research
Program and Directed To a Project Target.

 

1.25         “Confidential
Proprietary Information” has the meaning set forth in Section 12.1.1.

 

1.26         “Confidentiality
Agreement” means that certain Non-Disclosure Agreement entered into between ProQR and Lilly as of [***], and as it may be
amended.

 

1.27         “Control”
or “Controlled” means, with respect to any Know-How, Patents, or other Technology or Intellectual Property Rights,
that a Party has the legal authority or right (whether by ownership, license, or otherwise) to grant to the other Party a license, covenant
not to sue, sublicense, access, or right to use (as applicable) under such Know-How, Patents, or other Technology or Intellectual Property
Rights, on the terms and conditions set forth herein, in each case without violating any obligations of the granting Party owed to a Third
Party, breaching the terms of any agreement with a Third Party or subjecting the granting Party to any additional fee or charge; provided
that: [***]

 

1.28         “Cover”
means, with respect to a claim of a Patent and a relevant Product or ProQR Product, that such claim would be infringed, absent a license,
by the Exploitation of such Product or ProQR Product (considering claims of patent applications to be issued as then pending).

 

1.29         “Critical
Success Factors” or “CSFs” means, with respect to a Project Target, (a) the Hit CSFs,
or (b) the criteria that must be met in order for a Hit to be designated as a Successful Candidate.

 

1.30         “Data
Package” means a complete package of data and information sufficient or for Lilly to evaluate (in its sole discretion) the
compound, product or Target and whether to exercise its ROFN with respect to such compound, product or Target.

 

1.31         “Development”
or “Develop” means any and all activities directed to the non-clinical and clinical drug development activities
that are necessary or useful to obtain Marketing Approval for a Compound, Product, or other compound, product or therapy, including design
and conduct of Clinical Trials and the preparation and filing of Regulatory Filings and all regulatory affairs related to the foregoing.
When used as a verb, “Developing” means to engage in Development and “Developed” has
a corresponding meaning. For clarity, “Development” shall not include any Commercialization activities.

 

    4

     

    

 

1.32         “Development
Milestone Event” has the meaning set forth in Section 8.2.

 

1.33         “Development
Milestone Payment” has the meaning set forth in Section 8.2.

 

1.34         “Directed
To” means, with respect to (a) a compound, product or therapy, and (b) a Target, that the molecule contained in
such compound, product or therapy is directed to, binds to, modulates or otherwise utilizes such Target.

 

1.35         “Disclosing
Party” has the meaning set forth in Section 12.1.2.

 

1.36         “Discontinued
Target” means: (a) a Target that was previously a Lilly Target or Project Target but has been replaced by a Replacement
Project pursuant to Section 3.5; (b) a Project Target for which Lilly discontinues Research pursuant to Section 3.6 or
(c) a Project Target for which Lilly’s rights and licenses hereunder are terminated in accordance with this Agreement, including
Article 13.

 

1.37         “Dispute”
has the meaning set forth in Section 14.2.

 

1.38         “Divestiture”
has the meaning set forth in Section 7.2.1.

 

1.39         “Dollar”
means a U.S. dollar, and “$” is to be interpreted accordingly.

 

1.40         “Effective
Date” has the meaning set forth in the preamble to this Agreement.

 

1.41         “Eli
Lilly and Company Animal Care and Use Requirement for Animal Researchers and Suppliers” has the meaning set forth in Section 4.7.

 

1.42         “Eli
Lilly and Company Good Research Practices” has the meaning set forth in Section 4.7.

 

1.43         “Enabling
Technology” has the meaning set forth in Section 9.5.

 

1.44         “Excluded
Technology” means (a) all Lilly [***] Technology, and (b) any Patents Covering or Know-How directed to Manufacturing
processes, drug delivery technology, or devices.

 

1.45         “Executive
Officers” means (a) with respect to ProQR, [***], and (b) with respect to Lilly, [***]; or any other person that
the relevant party designates from time to time.

 

1.46         “Exploitation”
means, individually or collectively, the Research, Development, registration, Manufacture, making, having made, use, storage, keeping,
importation, exportation, transportation, promotion, marketing, distribution, offering for sale, sale or other exploitation or Commercialization
of a Compound or Product or other compound, product, Target or therapy. When used as a verb, “to Exploit” and
 “Exploiting” mean to engage in Exploitation, and “Exploited” has a corresponding meaning.

 

    5

     

    

 

1.47         “FD&C
Act” means the United States Federal Food, Drug and Cosmetic Act, as amended.

 

1.48         “FDA”
means the United States Food and Drug Administration or any successor agency thereto.

 

1.49         “Field”
means any and all purposes and uses, including diagnostic, prophylactic, and therapeutic treatment of any disease or medical condition
in humans and animals.

 

1.50         “Field
Exclusivity Period” means [***].

 

1.51         “Firewall
Event” has the meaning set forth in Section 15.8.5.

 

1.52         “Firewall
Period” means, [***].

 

1.53         “Firewalls”
means effective walls and screens established between ProQR, on the one hand, and on the other hand, an Acquirer of ProQR which has a
Competing Program, to ensure that no non-public information, materials (such as lab notebooks, document management systems or other documented
or memorialized Know-How) or non-personnel resources directly relating to any Project Targets, Lilly Targets, Compounds, Products, or
the Research Program, or any non-public information, materials or non-personnel resources relating to Patents provided, or made accessible,
to ProQR by Lilly are accessible by personnel of the Acquirer working on the Competing Program during the Firewall Period. For purposes
of this definition, “Firewalls” shall include, during the Firewall Period, as necessary to satisfy this definition: (a) walls
and screens (whether technical or physical) between (i) on the one hand, personnel of ProQR performing Research or Development activities
under, or otherwise working on or involved with, the Research Program or having access to any ProQR Technology, non-public materials (such
as lab notebooks, document management systems or other forms in which such Know-How may be memorialized) or non-personnel resources, in
each case, directly relating to the Research Program (all of the foregoing, collectively, “Collaboration Personnel”)
and (ii) on the other hand, personnel of an Acquirer working on the Competing Program, or having access to any non-public materials
(such as lab notebooks, document management systems or other forms in which such Know-How may be memorialized) or non-personnel resources,
in each case, directly relating to the Competing Program (all of the foregoing, collectively, “Competing Program Personnel”);
and (b) processes ensuring that (i) Collaboration Personnel do not perform any Research or Development activities under the
Competing Program or have access to any non-public materials (such as lab notebooks, document management systems or other forms in which
such Know-How may be memorialized) or non-personnel resources, in each case, directly relating to the Competing Program and (ii) Competing
Program Personnel do not perform Research or Development activities or any other work under the Research Program or have access to any
ProQR Technology, non-public materials (such as lab notebooks, document management systems or other forms in which such Know-How may be
memorialized) or non-personnel resources, in each case, directly relating to the Research Program. Notwithstanding the foregoing, “Firewalls”
shall not (i) require activities specific to the Research Program to be performed in a separate facility than activities that are
specific to the Competing Program, provided that the activities specific to the Research Program are performed in a different location
within such facility than the activities specific to the Competing Program, (ii) restrict Collaboration Personnel from working together
with Competing Program Personnel on Exploitation of any compound or product that is neither the subject of the Research Program nor the
subject of the Competing Program, or (iii) restrict executive officers or members of the board of directors of ProQR or its Affiliates,
including the Acquirer, from accessing or receiving disclosure of information solely as necessary to enable executive officers and the
board of directors to comply with (x) their fiduciary obligations to ProQR or its Affiliates or (y) Applicable Laws; provided,
however, that such executive officers or members of the board of directors are prohibited from using any information pertaining to the
Research Program or any other activities covered under this Agreement to inform or make decisions regarding or relating to any Competing
Programs.

 

    6

     

    

 

1.54         “First
Commercial Sale” means [***].

 

1.55         “First
ProQR Commercial Sale” means [***].

 

1.56         “[***]
Royalty Term” has the meaning set forth in Section 8.4.

 

1.57         “Generic
Equivalent” means, with reference to a Product, any biologic or pharmaceutical product (including any competing equivalent
product using endogenous ADAR recruitment which effects the same Target as a Compound) that is sold by a Third Party (other than a licensee
of Lilly or any of its Affiliates) and that is approved for marketing and/or sale by a Regulatory Authority in reliance on or using data
from the Regulatory Filings for the Product that were submitted by Lilly, its Affiliates, or their licensees, and that meets the equivalency
determination by the applicable Regulatory Authority in such country as is necessary to permit substitution
of such product for the Product under applicable law in such country.

 

1.58         “GLP
Toxicology Study” means, with respect to a Compound or Product, an in vivo toxicology study that is conducted in
compliance with then-current Good Laboratory Practices.

 

1.59         “Good
Clinical Practices” or “cGCP” means all applicable current Good Clinical Practice standards for
the design, conduct, performance, monitoring, auditing, recording, analysis and reporting of Clinical Trials, including, as applicable:
(a) as set forth in the International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for
Human Use (“ICH”) E6 and any other guidelines for good clinical practice for trials on medicinal products in
the Territory; (b) the Declaration of Helsinki (2004) as last amended at the 52nd World Medical Association in October 2000
and any further amendments or clarifications thereto; (c) U.S. Code of Federal Regulations Title 21, Parts 50, 54, 56, 312 and 314,
as may be amended from time to time; and (d) the equivalent Applicable Laws in any relevant country, each as may be amended and applicable
from time to time, and in each case (of (a)-(d)), that provide for, among other things, assurance that the clinical data and reported
results are credible and accurate and protect the rights, integrity, and confidentiality of trial subjects.

 

    7

     

    

 

1.60         “Good
Laboratory Practices” or “GLPs” means the then-current standards for laboratory activities for
pharmaceuticals, as set forth in the FDA’s Good Laboratory Practice regulations as defined in 21 C.F.R. Part 58, the Council
Directive 87/18/EEC, as amended, the principles for Good Laboratory Practice and/or the Good Laboratory Practice principles of the Organization
for Economic Co-Operation and Development (“OECD”), and such standards of good laboratory practice as are required
by the European Union and other organizations and governmental agencies in countries in which a Product is intended to be sold, to the
extent such standards are not less stringent than United States Good Laboratory Practice.

 

1.61         “Good
Research Practices” or “GRP” means research practices consistent with: (a) the research quality
standards defining how Lilly’s research laboratories conduct good science for non-regulated work as set forth in Exhibit 4.7
Part A of this Agreement; and (b) the Research Quality Association (RQA), 2014 Quality in Research Guidelines for Working
in Non-Regulated Research; (c) the WHO Quality Practices in Basic Biomedical Research Guidelines; and (d) the equivalent Applicable
Laws if any, in any relevant country, each as may be amended and applicable from time to time.

 

1.62         “Government
Official” has the meaning set forth in Section 10.6.7.

 

1.63         “Governmental
Authority” means any national, international, federal, state, provincial or local government, or political subdivision thereof,
or any multinational organization or any authority, agency or commission entitled to exercise any administrative, executive, judicial,
legislative, police, regulatory or taxing authority or power, and any court or tribunal (or any department, bureau or division thereof,
or any governmental arbitrator or arbitral body).

 

1.64         “Hit”
means a Compound(s) that: (a) is discovered or identified by ProQR; and (b) meets the applicable Hit CSFs for such Project
Target.

 

1.65         “Hit
CSFs” means, with respect to a Project Target, the CSFs for such Project Target established by the JSC necessary for a Compound(s) Directed
To such Project Target to achieve a “Hit.”

 

1.66         “Improvement”
means any: (a) modification, enhancement or change to the applicable Patents and/or Know-How of a Party created, conceived of or
reduced to practice or acquired in the course of performing a Project; or (b) Patent right claiming any Know-How described in the
foregoing subclause (a).

 

1.67         “IND”
means an investigational new drug application filed with the FDA or any similar application filed with a Regulatory Authority in a country
outside the U.S. required to commence Clinical Trials of a pharmaceutical product.

 

1.68         “Indemnitee”
has the meaning set forth in Section 11.1.3.

 

    8

     

    

 

1.69         “Indemnitor”
has the meaning set forth in Section 11.1.3.

 

1.70         “Initial
Research Term” has the meaning set forth in Section 4.3.

 

1.71         “Infringement”
has the meaning set forth in Section 8.3.7.

 

1.72         “Initial
Project” has the meaning set forth in Section 3.2.

 

1.73         “Initial
Target” means the Target referred to as IDUA (UniProt identification number P35475).

 

1.74         “Initial
Workplan” has the meaning set forth in Section 4.4.2.

 

1.75         “Initiation”
means, with respect to a Clinical Trial, the first dosing in the first human subject in such Clinical Trial.

 

1.76         “Intellectual
Property Rights” means any and all proprietary rights provided under: (a) patent law, including any Patents; (b) copyright
law; (c) trademark law, or (d) any other applicable statutory provision or common law principle, including trade secret law,
that may provide a right in ideas, formulae, algorithms, concepts, inventions (whether or not patentable), or Know-How, or the expression
or use thereof.

 

1.77         “Inventions”
means all Know-How and inventions, whether or not patentable, including all rights, title and interest in and to the Intellectual Property
Rights in all of the foregoing.

 

1.78         “[***]
Target” means [***] Target in the central or peripheral nervous system, but excluding any Targets selected for the purpose
of developing Compounds to treat ocular diseases or conditions. For clarity, [***] Targets may be Additional Targets, Replacement Projects,
or Reserved Targets.

 

1.79         “Joint
Patents” has the meaning set forth in Section 9.7.5.

 

1.80         “Joint
Program IP” has the meaning set forth in Section 9.2.2(d).

 

1.81         “JPC”
has the meaning set forth in Section 2.4.

 

1.82         “JSC”
has the meaning set forth in Section 2.3.

 

1.83         “JSC
Co-Chairpersons” has the meaning set forth in Section 2.3.

 

1.84         “Know-How”
means any proprietary scientific or technical information, inventions, discoveries, results and data of any type whatsoever, in any tangible
or intangible form, including inventions, discoveries, databases, safety information, practices, methods, instructions, techniques, processes,
drawings, documentation, specifications, formulations, formulae, knowledge, know-how, trade secrets, materials, skill, experience, test
data and other information and technology applicable to formulations, compositions or products or to their manufacture, development, registration,
use, marketing or sale or to methods of assaying or testing them, including pharmacological, pharmaceutical, medicinal chemistry, biological,
chemical, biochemical, toxicological and clinical test data, physical and analytical, safety, quality control data, manufacturing, and
stability data, studies and procedures, and manufacturing process and development information, results and data.

 

    9

     

    

 

1.85         “Lilly”
has the meaning set forth in the Preamble.

 

1.86         “Lilly
Background IP” means any and all Patents and Know-How that (a) Lilly or its Affiliates: owns or Controls as of the
Effective Date; or (b) arises outside the scope of the Research Program after the Effective Date and is Controlled by Lilly.

 

1.87         “Lilly
Competitor” means a company that: [***].

 

1.88         “Lilly
[***] Technology” means Lilly’s or its Affiliates’ Patents used or designed to [***], and all Intellectual Property
Rights owned or Controlled by Lilly or its Affiliates relating to or covering such Technology.

 

1.89         “Lilly
Indemnitee” has the meaning set forth in Section 11.1.1.

 

1.90         “Lilly
Patent” means any Patent constituting or claiming any Lilly Background IP or Lilly Program IP or Lilly [***] Technology.

 

1.91         “Lilly
Program IP” has the meaning set forth in Section 9.2.2(b).

 

1.92         “Lilly
Targets” means, individually or collectively, each Target that is a Project Target or of which a Project Target is a specific
adenosine, element or mutated form. For avoidance of doubt, (i) there may be multiple Project Targets associated with a Lilly Target
and a Lilly Target shall remain a Lilly Target so long (and only so long) as there is at least [***] Project Target associated with it
and (ii) when there is no Project Target associated with a Lilly Target (because, for example, the Project Target has become a Discontinued
Target), then such Lilly Target shall cease to be a Lilly Target.

 

1.93         “Lilly
Technology” means, individually or collectively, the Lilly Background IP, Lilly Program IP, and Lilly’s interest in
Joint Program IP.

 

1.94         “Loss
of Market Exclusivity” means, [***].

 

1.95         “Losses”
has the meaning set forth in Section 11.1.1.

 

1.96         “Manufacture”
and “Manufacturing” means any and all activities related to the production, manufacture, formulation, finishing,
packaging, labeling, shipping and holding of any Compound or Product, or other compound, product or therapy, or any component, intermediary
or precursor thereof (including, for clarity, expression vectors, cell lines, culture media and feeds), and including process development,
process qualification and validation, scale-up, pre-clinical, clinical and commercial manufacture, quality assurance and quality control
(including testing).

 

    10

     

    

 

1.97         “Marketing
Approval” means all approvals, licenses, permits, notifications, registrations, clearances, authorizations, or waivers of
any Regulatory Authority, that is or are necessary to initiate marketing and selling a Product in the Field in a particular jurisdiction,
including a BLA/NDA.

 

1.98         “Milestone
Events” has the meaning set forth in Section 8.2.

 

1.99         “Milestone
Payments” has the meaning set forth in Section 8.2.

 

1.100       “Net
Sales” means, with respect to a particular Product, the gross amount invoiced by Lilly or a Lilly Affiliate or any Sublicensee
thereof to unrelated Third Parties, excluding any sublicensee, for the Product in the Territory, less the following items consistent with
U.S. Generally Accepted Accounting Principles (U.S. GAAP), consistently applied:

 

[***]

 

Such amounts shall be determined
from the books and records of Lilly or its Affiliate or Sublicensee, maintained in accordance with U. S. GAAP or, in the case of Sublicensees,
such similar accounting principles, consistently applied. Lilly further agrees in determining such amounts, it will use Lilly’s
then current standard procedures and methodology, including Lilly’s then current standard exchange rate methodology for the translation
of foreign currency sales into U.S. Dollars or, in the case of Sublicensees, such similar methodology, consistently applied.

 

In
the event that the Product is sold as part of a Combination Product (where “Combination Product” means any pharmaceutical
product which comprises the Product and other active compound(s), ingredient(s) and/or device(s)), the Net Sales of the Product,
for the purposes of determining royalty and commercial milestone payments, shall be determined [***].

 

In
the event that the weighted average sale price of the Product can be determined but the weighted average sale price of the other active
compound(s), ingredient(s) and/or device(s) cannot be determined, Net Sales for purposes of determining royalty payments shall
be calculated by [***].

 

In
the event that the weighted average sale price of the other active compound(s), ingredient(s) and/or device(s) can be determined
but the weighted average sale price of the Product cannot be determined, Net Sales for purposes of determining royalty payments shall
be calculated by [***].

 

In
the event that the weighted average sale price of both the Product and the other active compound(s), ingredient(s) and/or device(s) in
the Combination Product cannot be determined, the Net Sales of the Product shall be deemed to be equal to the mutually agreed (by the
Parties) percentage of the Net Sales of the Combination Product, based on the relative value and/or cost of the Product and other active
compound(s), ingredient(s) and/or device(s) in such Combination Product; provided, however, that in the event the Parties cannot,
in spite of good faith efforts, mutually agree to such a percentage, then such percentage shall be equal to [***] of the Net Sales
of the Combination Product.

 

    11

     

    

 

The
weighted average sale price for a Product, other active compound(s), ingredient(s) and/or device(s), or Combination Product shall
be calculated [***] and such price shall be used during all applicable royalty reporting periods for [***]. When determining the
weighted average sale price of a Product, other active compound(s), ingredient(s) and/or device(s), or Combination Product, the weighted
average sale price shall be calculated by [***]. In the initial Calendar Year, a forecasted weighted average sale price will be used for
the Product, other active compound(s), ingredient(s) and/or device(s), or Combination Product. Any over or under payment due to a
difference between forecasted and actual weighted average sale prices will be paid or credited in the first royalty payment of the following
[***].

 

The foregoing definition of
 “Net Sales” shall also apply mutatis mutandis with respect to ProQR Products, with all references to “Product”
and “Lilly” being interpreted to mean “ProQR Products” and “ProQR”, respectively, when referring to
 “Net Sales” of ProQR Products. Such mutatis mutandis application shall be referred to herein as “ProQR
Net Sales.”

 

1.101       “Option
Payment” has the meaning set forth in Section 8.1.4.

 

1.102       “Option
Target” has the meaning set forth in Section 3.4.3.

 

1.103       “Orphan
Indication” means an indication for use of a drug to treat a rare disease or condition where the number of people affected
by the disease or condition is less than 200,000 persons in the U.S. or where the indication for use otherwise meets the criteria for
orphan drug designation under section 526(a) of the FD&C Act and 21 C.F.R. 316.21.

 

1.104       “Party”
and “Parties” has the meaning set forth in the Preamble.

 

1.105       “Patents”
means: (a) patents and patent applications; (b) any and all divisionals, continuations, continuations-in-part, reissues, renewals,
substitutions, registrations, re-examinations, revalidations, extensions, supplementary protection certificates and the like of any such
patents and patent applications; and (c) any and all foreign equivalents of the foregoing.

 

1.106       “Person”
means any corporation, limited or general partnership, limited liability company, joint venture, trust, unincorporated association, governmental
body, authority, bureau or agency, any other entity or body, or an individual.

 

1.107       “Personal
Information” means, in addition to any definition for any similar term (e.g., “personal data” or “personally
identifiable information” or “PII”) provided by Applicable Laws, or by either Party in any of its own privacy policies,
notices or contracts, all information that identifies, could be used to identify or is otherwise associated with an individual person,
whether or not such information is directly associated with an identified individual person.

 

    12

     

    

 

1.108       “Phase
I Clinical Trial” means a clinical trial of a Product generally consistent with 21 C.F.R. § 312.21(a) (or
the non-United States equivalent thereof).

 

1.109       “Phase
II Clinical Trial” means a clinical trial of a Product generally consistent with 21 C.F.R. § 312.21(b) (or
the non-United States equivalent thereof).

 

1.110       “Phase
III Clinical Trial” means a clinical trial of a Product generally consistent with 21 C.F.R. § 312.21(c) (or
the non-United States equivalent thereof).

 

1.111       “Pricing
and Reimbursement Approval” means, with respect to a Product, the approval, agreement, determination or decision of any
Regulatory Authority establishing the price or level of reimbursement for such Product, as required in a given country or jurisdiction
prior to sale of such Product in such country or jurisdiction.

 

1.112       “Product”
means any pharmaceutical composition, preparation, formulation or product containing or comprising a Compound for which the applicable
Candidate Success CSFs were achieved during the Research Term.

 

1.113       “Product-Specific
Patent” means a Patent filed during or after the Research Term, that (a) claims (i) a Compound, Product or Project
Target or (ii) a method of making or using a Compound or Product, wherein in either case (clause (i) or (ii)), such claim of
such Patent includes Specific Identification of the relevant Compound, Product or Project Target or (b) contains a claim that includes
a genus that identifies a Compound, Product or Project Target, or a method of making or using a Compound, Product or Project Target.

 

1.114       “Program
IP” has the meaning set forth in Section 9.2.2.

 

1.115       “Project”
has the meaning set forth in Section 3.2.

 

1.116       “Project
Leader” has the meaning set forth in Section 2.2.

 

1.117        “Project
Target” means a specific adenosine in a Target, or in an element of a Target, or in a mutated form of a Target, where such
adenosine is designated as a “Project Target” by Lilly pursuant to Article 3. As used in this Agreement, “Project
Target” includes the Initial Target.

 

1.118        “ProQR”
has the meaning set forth in the Preamble.

 

1.119       “ProQR
Background IP” means any and all Patents and Know-How that ProQR or its Affiliates: (a) Controls as of the Effective
Date; or (b) arises outside the scope of the Research Program after the Effective Date and is Controlled by ProQR.

 

1.120       “ProQR
Net Sales” has the meaning set forth in the definition of “Net Sales.”

 

1.121       “ProQR
Patent” means any Patent included in the ProQR Technology.

 

    13

     

    

 

1.122       “ProQR
Platform” means AXIOMER® technology which relates to adenosine to inosine editing by adenosine deaminase acting on RNA
(ADAR) performed at the specific location targeted by the editing oligonucleotide which is covered by ProQR Patents or is proprietary
to ProQR. For the avoidance of doubt, the ProQR Platform does not include specific Compounds or Products.

 

1.123       “ProQR
Platform IP” means ProQR Background IP that relates to all or part of the ProQR Platform, and all Improvements thereto.

 

1.124       “ProQR
Platform Patent” means all Patents that claim the ProQR Platform IP. The ProQR Platform Patents are listed in Exhibit 1.124.

 

1.125       “ProQR
Product” means all pharmaceutical compositions, preparations, formulations and products containing or comprising compounds
[***] Lilly [***] Technology, by ProQR, its Affiliates or any ProQR Sublicensee, as permitted by this Agreement.

 

1.126       “ProQR
Program IP” has the meaning set forth in Section 9.2.2(c).

 

1.127       “ProQR
Royalty” has the meaning set forth in Section 8.4.

 

1.128       “ProQR
Sublicense Payments” has the meaning set forth in Section 8.4.2.

 

1.129       “ProQR
Sublicensee” has the meaning set forth in Section 6.5.

 

1.130       “ProQR
Supplemental IP” means any ProQR Background IP (other than ProQR Platform IP) that the JSC determines is useful (a) to
apply in the execution of a Project, or (b) to Exploit Compounds or Products in the Field in the Territory. For avoidance of doubt,
ProQR Supplemental IP shall not include (1) technological approaches to modulating Targets other than as included within the ProQR
Platform but may include complementary technologies such as formulation, delivery or targeting technologies, or (2) ProQR Platform
IP, which shall be included in the licenses granted to Lilly under this Agreement as of the Effective Date and shall not be subject to
JSC determination of usefulness.

 

1.131       “ProQR
Technology” means, individually or collectively, the ProQR Background IP, the ProQR Program IP, or ProQR’s interest
in any Joint Program IP, in each case, that is (i) related to the ProQR Platform, (ii) specific to the deamination of a Project
Target with a Compound or (iii) ProQR Supplemental IP that the JSC determines in accordance with Section 2.6(g) to be useful
to the Exploitation of Compounds or Products in the Field in the Territory. For avoidance of doubt, the ProQR Technology includes the
ProQR Platform IP.

 

1.132       “ProQR
Valid Claim” means a claim for a composition of matter, or approved labelled method of use (such that alone or with other
Valid Claims all such methods of use are covered) contained in: (a) an issued, unexpired and granted Patent owned or Controlled by
Lilly or its Affiliates, which claim has not been held unenforceable, unpatentable or invalid by a decision of a court or other Governmental
Authority of competent jurisdiction; or (b) a pending Patent owned or Controlled by Lilly or its Affiliates that, in each case of
(a) and (b), (i) has been asserted and continues to be prosecuted in good faith, (ii) has not been abandoned or finally
rejected without the possibility of appeal or refiling, (iii) has not been pending for more than [***] from the earliest priority
date and (iv) Covers the Lilly [***] Technology.

 

    14

     

    

 

1.133       “Prosecute
and Maintain” or “Prosecution and Maintenance” with respect to a particular Patent, means all
activities associated with the preparation, filing, prosecution and maintenance of such Patent, together with the conduct of interferences,
derivation proceedings, inter partes review and post-grant review, the defense of oppositions and other similar proceedings with
respect to that Patent, including any activities associated with claims, including as a counterclaim or declaratory judgment action, of
unpatentability, invalidity or unenforceability of such Patent that are brought by a Third Party in connection with an Infringement under
Section 9.8.

 

1.134       “Prosecuting
Party” has the meaning set forth in Section 9.7.5.

 

1.135       “Receiving
Party” has the meaning set forth in Section 12.1.2.

 

1.136      “Regulatory
Approvals” means, collectively, any and all approvals (including supplements, amendments, pre- and post-approvals, Pricing
and Reimbursement Approvals), licenses, registrations, permits, notifications, and authorizations (including marketing and labeling authorizations)
or waivers of any Regulatory Authority that are necessary for the testing or Exploitation of a pharmaceutical product (including any Product)
in any country or jurisdiction, including Pricing and Reimbursement Approval, as applicable.

 

1.137       “Regulatory
Authority” means any Governmental Authority that has responsibility in its applicable jurisdiction over the testing or Exploitation
of pharmaceutical products (including any Product) in any country or jurisdiction. For countries or jurisdictions where governmental approval
is required for pricing or reimbursement for a pharmaceutical product (including any Product) to be reimbursed by national health insurance
(or its local equivalent), Regulatory Authority includes any Governmental Authority whose review or approval of pricing or reimbursement
of such product is required.

 

1.138       “Regulatory
Filings” means, collectively, any and all applications, filings, submissions, approvals (including supplements, amendments,
pre- and post-approvals, Pricing and Reimbursement Approvals), licenses, registrations, permits, notifications, and authorizations (including
marketing and labeling authorizations), non-clinical and clinical study authorization applications or notifications (including all supporting
files, writings, data, studies and reports) or waivers with respect to the testing or Exploitation of a Compound or Product made to or
received from any Regulatory Authority in a given country or jurisdiction, including INDs and BLAs.

 

1.139       “Replacement
Project” has the meaning set forth in Section 3.5.

 

1.140       “Replacement
Target” has the meaning set forth in Section 3.5.

 

1.141        “Research”
means any and all activities directed to the discovery, identification, screening, testing, assessment and optimization of Project Targets,
or Compounds or Products, or other compound, product or therapy, including, with respect to ProQR, such activities directed to the generation
of Hits and Successful Candidates with respect to a Project Target. “Research” refers to those activities prior to Development.
When used as a verb, “Researching” means to engage in Research and “Researched” has
a corresponding meaning.

 

    15

     

    

 

1.142        “Research
Continuance Scenario” has the meaning set forth in Section 15.8.2(b).

 

1.143        “Research
Program” has the meaning set forth in Section 3.1.

 

1.144        “Research
Term” has the meaning set forth in Section 4.3.

 

1.145        “Research
Transfer Scenario” has the meaning set forth in Section 15.8.2(a).

 

1.146        “Reserved
Target” has the meaning set forth in Section 3.3.1.

 

1.147        “Residuals”
has the meaning set forth in Section 12.1.5.

 

1.148        “Royalty”
has the meaning set forth in Section 8.3.2.

 

1.149        “Royalty
Term” has the meaning set forth in Section 8.3.1.

 

1.150        “Specific
Identification” or “Specifically Identify” means, with respect to the identification of a Compound,
Project Target or Product in a Patent, that any claim of such Patent recites such Compound, Project Target or Product, as applicable.

 

1.151        “Sublicensee”
means a Third Party that is granted a license or sublicense to Exploit Compounds or Products in the Field in the Territory, beyond the
mere right to purchase Products from Lilly and its Affiliates or resell such Products, and excludes Lilly’s Affiliates or Third
Party subcontractors that act solely for the benefit of Lilly or its Affiliates in the supply chain or that perform discrete services
(as opposed to being granted broad rights or responsibilities) on behalf of Lilly or its Affiliates.

 

1.152        “Successful
Candidate” means a Hit which has met the Project-specific Candidate Success CSFs.

 

1.153        “Target”
means an RNA sequence expressed from a specific gene or gene sequence that can be identified by a UniProt identification number (https://www.uniprot.org/)
(including pre-mRNA and mRNA).

 

1.154        “Target
Exclusivity Period” has the meaning set forth in Section 7.1.3.

 

1.155        “Target
Option” has the meaning set forth in Section 3.4.3.

 

1.156        “Technology”
means all technology and information, including all Inventions, discoveries, data, assays, protocols, databases, results, information,
trade secrets, ideas, concepts, formulas, techniques, and methods.

 

    16

     

    

 

1.157        “Term”
has the meaning set forth in Section 13.1.

 

1.158        “Terminated
Product” has the meaning set forth in Section 13.5.

 

1.159        “Territory”
means worldwide.

 

1.160        “Third
Party” means any Person other than Lilly or ProQR or an Affiliate of ProQR or Lilly.

 

1.161        “U.S.”
means the United States of America and its territories and possessions.

 

1.162        “Unavailable
Target” means a Target that, at the time Lilly seeks to add such Target as a Reserved Target, or proposes such Target (or
specific portion or mutation thereof) for inclusion in the Research Program: (a) is a Target that is the subject of a final agreed
upon term sheet or letter of intent between ProQR and any Third Party; (b) on which ProQR is actively working either as an internal
ProQR program or with another collaborator, other than Targets subject to Internal Exclusive Field Programs which shall be governed by
Section 7.1.4; or (c) as to which ProQR has granted rights for such Target that would conflict with or prevent the grant of
rights to Lilly under this Agreement for such Target.

 

1.163        “Valid
Claim” means a claim for a composition of matter, or approved labelled method of use (such that alone or with other Valid
Claims all such methods of use are covered) contained in: (a) an issued, unexpired and granted Patent owned or Controlled by ProQR
or its Affiliates, which claim has not been held unenforceable, unpatentable or invalid by a decision of a court or other Governmental
Authority of competent jurisdiction; or (b) a pending Patent owned or Controlled by ProQR or its Affiliates that, in each case of
(a) and (b), (i) has been asserted and continues to be prosecuted in good faith, (ii) has not been abandoned or finally
rejected without the possibility of appeal or refiling, and (iii) has not been pending for more than [***] from the earliest priority
date. Further, a claim shall only be considered a Valid Claim if contained in an application (or a patent issuing from an application)
that is or claims priority to an application filed before or during the Research Term which contains support for such claim.

 

1.164        “Working
Group” has the meaning set forth in Section 2.5.

 

1.165        “Workplan”
has the meaning set forth in Section 4.4.1.

 

Article 2

 

GOVERNANCE AND JOINT STEERING COMMITTEE

 

2.1            Alliance
Managers. Within [***] following the Effective Date, each Party shall appoint [***] to act as the Alliance Manager for such Party
(each, an “Alliance Manager”). Without limiting the responsibilities and authorities of the Project Leaders
and the JSC (as expressly set forth herein), the Alliance Managers shall each be the primary point of contact for the Parties regarding
the collaboration and related activities contemplated by this Agreement and shall help facilitate all such activities hereunder. For avoidance
of doubt, the individual appointed by a Party to act as an Alliance Manager may, but need not, be the same individual appointed by such
Party as a Project Leader, but an Alliance Manager may not be appointed to serve simultaneously as a JSC member. Either Party may change
its Alliance Manager at any time upon prior written notice to the other Party.

 

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2.2            Project
Leaders. Lilly and ProQR shall each assign [***] to serve as the primary point of contact between the Parties with respect to each
Project under the Research Program (each, a “Project Leader”). The Project Leaders shall regularly communicate
with each other to address Project-related issues, needs and updates and facilitate communications and organization of Working Groups
(as needed and if established by the JSC) associated with the Workplan for such Project. Either Party may change its Project Leaders at
any time upon reasonable prior written notice to the other Party. For clarity, the same employee may, but need not, be the Project Leader
for multiple Projects.

 

2.3            Joint
Steering Committee. Within [***] after the Effective Date, the Parties shall establish a cross-functional, joint steering committee
(the “JSC”) composed of up to [***] senior representatives from each Party (provided each Party has an equal
number of representatives on the JSC at all times) that will oversee and coordinate the Parties’ activities related to the Research
Program. The JSC may, from time to time, establish subcommittees and Working Groups as it deems necessary to further the purposes of this
Agreement and the Research Program. Each Party shall appoint its respective representatives to the JSC from time to time, and may change
its representatives, in its sole discretion, effective upon reasonable prior written notice to the other Party designating such change.
The representatives from each Party shall have appropriate technical credentials, experience and knowledge pertaining to and ongoing familiarity
with the Research Program and the activities conducted thereunder. Each Party shall designate [***] of its representatives on the JSC
to serve as a JSC co-chairperson (collectively, “JSC Co-Chairpersons”), who will be jointly responsible for
calling meetings of the JSC, circulating agendas and performing administrative tasks required to assure efficient operation of the JSC
but shall not have any extra or additional votes or authority. The JSC Co-Chairpersons or their designees shall alternate responsibility
for circulating agendas at least [***] prior to each meeting and distributing minutes of the meetings pursuant to Section 2.7.

 

2.4            Formation
of JPC; JPC Functions and Powers. The JSC will establish a joint patent subcommittee (“JPC”), consisting
of [***] subject matter experts (at least one of which must be a patent attorney admitted to practice and in good standing with the USPTO
or the European Patent Office) from each Party or such other number as the JSC may agree upon (with an equal number of experts from each
of Lilly and ProQR), within [***] after the Effective Date. The JPC will be responsible for evaluating technology arising during the Research
Term under this Agreement, including (a) making initial determination of inventorship, (b) determining whether such technology
is Program IP, ProQR Platform IP, or Joint Program IP (including whether certain technologies can be separately categorized and separately
patentable and subject to separate assignment and license obligations hereunder), (c) coordination of the Parties with respect to
managing the preparation, filing, prosecution, maintenance, enforcement and defense of Joint Program IP (and determining whether any such
Joint Program IP should be maintained as trade secret in lieu of patenting), and (d) determine timing of submission of, and evaluating,
drafts for public disclosure by way of publication in a scientific journal, by presentation at scientific conferences, or by any other
means as provided in Section 12.3.

 

    18

     

    

 

2.5            Working
Groups. The Parties may establish working groups consisting of members from both ProQR and Lilly (each, a “Working Group”)
to oversee aspects of the activities of the Research Program or each individual Project. From time to time, the Parties may establish
additional Working Groups as needed to oversee particular activities and/or projects. Each Working Group shall undertake the activities
specified under this Agreement for such Working Group or otherwise delegated to it by the JSC. During the process of establishing each
Working Group, such Working Group and the JSC shall agree regarding which matters such Working Group may resolve on its own (with discretion
to refer any matter to the JSC for a final decision) and which matters such Working Group will advise the JSC and/or the Project Leaders
regarding (and with respect to which such advice-specific matters the JSC must resolve).

 

2.6            Function
and Powers of the JSC. The JSC will:

 

(a)            review,
discuss, and approve any amendments to the Workplans that may be necessary or desired, and prepare, discuss, and approve any Additional
Workplans, in accordance with Section 4.4; provided that, unless ProQR otherwise consents, each amendment to a Workplan and Additional
Workplan shall only include obligations for ProQR that are substantially similar in nature and extent to those included in the Initial
Workplan;

 

(b)            oversee
the implementation of the Workplans, including the activities, timing and deliverables thereunder, and coordination of such activities
and timing across Research Programs;

 

(c)            assess
new Targets of interest and approve (in the case of Additional Projects and Replacement Projects), and refine as necessary (for all Projects),
the Critical Success Factors for each Project, and determine whether the applicable Critical Success Factors have been satisfied;

 

(d)            determine
whether a Project with respect to a Project Target should be discontinued;

 

(e)            without
limiting Lilly’s rights pursuant to Section 3.5 to select a Replacement Target, and subject to Lilly’s decision-making
authority in Section 2.9, discuss Lilly’s selection of Replacement Targets;

 

(f)            discuss
the progress of the Research Program and Projects generally, and the validation and development of Compounds Directed To the Project Targets;

 

(g)            [***];

 

(h)            provide
a forum for the Parties to share and discuss information relating to the research and validation of Compounds Directed To the Project
Targets, including the results of the activities being carried out under the Workplans;

 

(i)            address
issues arising in the performance of the Workplans;

 

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(j)            establish
Working Groups, and direct and oversee any operating Working Groups on all significant issues, and resolve disputed matters that may arise
at the Working Groups;

 

(k)            facilitate
the exchange of Know-How or any materials as required hereunder (including pursuant to Section 4.9);

 

(l)            determine
[***], as further described in Section 7.1.4;

 

(m)            oversee
winding down of the Research Program or a Project with respect to discontinued Project Targets; and

 

(n)            perform
any and all tasks and responsibilities that are expressly attributed to the JSC under this Agreement or as otherwise agreed by the Parties
in writing.

 

2.7            Meetings.
The JSC will meet at least [***] for so long as the JSC remains in effect. The JSC may conduct such meetings by telephone, videoconference,
or in person. Each Party may call special meetings of the JSC with at least [***] prior written notice, or a shorter time period in exigent
circumstances, to resolve particular matters requested by such Party that are within the purview of the JSC. Meetings of the JSC are effective
only if at least one (1) representative of the JSC for each Party participates in such meeting. Each Alliance Manager shall be permitted
to attend meetings of the JSC, and any Working Group, as a non-voting observer. Each Party may invite a reasonable number of other participants,
in addition to its representatives, to attend JSC meetings in a non-voting capacity; provided that if either Party intends to have any
Third Party (including any consultant) attend such a meeting, such Party shall provide prior written notice to the other Party. Such Party
shall ensure that such Third Party is bound by confidentiality and non-use obligations consistent with the terms of this Agreement. Each
Party is responsible for its own expenses incurred in connection with participating in and attending all such meetings. The JSC Co-Chairpersons
or their designees shall keep minutes of each JSC meeting that record in writing all decisions made, action items assigned or completed
and other appropriate matters. The JSC Co-Chairpersons or their designees shall send meeting minutes to all members of the JSC promptly
after a meeting for review. Each JSC member shall have [***] from receipt in which to comment on and to approve the minutes (such approval
not to be unreasonably withheld, conditioned or delayed). If a JSC member, within such time period, does not notify the JSC Co-Chairpersons
or their designees that s/he does not approve of the minutes, the minutes shall be deemed to have been approved by such member. The Parties
acknowledge and agree that, notwithstanding the requirements of this Section 2.7 for the JSC to meet [***], the Parties shall communicate
and meet (as appropriate, including via the Project Leaders) on a more informal basis as needed to discuss the progress of the Projects
or the Research Program.

 

2.8            Decisions.
The JSC will endeavor to make decisions by consensus, with the representatives of each Party having, collectively, [***] on behalf of
that Party. If the JSC cannot reach consensus or a dispute arises that cannot be resolved within the JSC, either Party may refer such
dispute to the Executive Officers or their delegates for resolution. If consensus cannot be reached with respect to a decision within
[***] after attempted resolution by the Executive Officers, then (a) [***] has the final decision-making authority with respect to
how [***], and (b) [***] has the final decision-making authority with respect to all other matters within the purview of the JSC;
provided, however, [***]: (a) excuses, reduces, or delays [***]; (b) negates any consent right or other rights specifically
granted or allocated to [***] under this Agreement; (c) amends, modifies, or waives compliance with the terms of this Agreement;
or (d) materially increases [***] as a result, except to the extent [***]. In addition, [***].

 

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2.9            Authority.
The Alliance Managers, Project Leaders, JSC (including the JSC Co-Chairpersons), the JPC, and each Working Group have only the powers
assigned expressly to them in this Article 2 and elsewhere in this Agreement (or in the case of Working Groups, as expressly assigned
to them by the JSC). Each Party retains the rights, powers, and discretion granted to it under this Agreement and neither Party may delegate
or vest such rights, powers, or discretion in the Alliance Manager, a Project Leader, the JSC, the JSC Co-Chairpersons, the JPC, or any
Working Group, unless expressly provided for in this Agreement or the Parties expressly so agree in writing. The Alliance Managers, Project
Leaders, the JSC, the JSC Co-Chairpersons, the JPC, and any Working Groups shall not have the power to amend, waive or modify any term
of this Agreement, and no decision of the JSC shall be in contravention of any terms and conditions of this Agreement. It is understood
and agreed that issues to be formally decided by the JSC are limited to those specific issues that are expressly provided in this Agreement
to be decided by the JSC.

 

2.10          Discontinuation
of JSC. The JSC will automatically disband with immediate effect at the end of the Research Term.

 

Article 3

 

TARGETS AND PROJECTS

 

3.1            Overview
and Purpose. During the Research Term, Lilly and ProQR will collaborate in a research and pre-clinical development program with the
intended purpose of: (a) selecting, discovering, generating, or identifying Compounds that are Directed To Project Targets; (b) performing
Research and other activities to optimize such Compounds as Hits; and (c) performing Research and other activities to optimize such
Hits as Successful Candidates (the “Research Program”). The Research Program will consist of Projects for each
Project Target selected as set forth in this Article 3 and will be conducted pursuant to Workplans, as further set forth below in
Article 4. For avoidance of doubt, the Parties intend that the Research Program under this Agreement will be a continuation of the
Research Program under the Original Agreement, and any activities conducted thereunder between the Effective Date and the A&R Effective
Date shall be deemed to have been conducted under the Research Program under this Agreement.

 

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3.2           Projects.

 

3.2.1            The
Research Program will consist of projects directed to Project Targets, with the goal of identifying and developing a Successful Candidate
for each such Project Target (each, a “Project”). As of the Effective Date, the Research Program consists of
the initial Project directed to the Initial Target (the “Initial Project”). The Research Program will consist
of the Initial Project and up to [***] Additional Projects
(as have been or may be added pursuant to Section 3.4), plus any Replacement Projects (as may replace Project Targets pursuant to
Section 3.5). For avoidance of doubt, there shall be up to but no more than [***] active Projects at any given time during the Research Term.

 

3.3           Reserved
Targets.

 

3.3.1            As
of the Effective Date, the Parties have identified the Targets set forth on Exhibit 3.3 as Targets to be reserved under this
Agreement (the “Reserved Targets”) for potential inclusion in the Research Program through the selection by
Lilly of one or more such Reserved Targets as either Additional Targets or Replacement Targets. Lilly may update the Reserved Target list
at any time by notifying the JSC of the identity of a Target to be added as a Reserved Target or to replace a different Reserved Target;
provided that: (a) such Target to be added as a Reserved Target is not, at such time, an Unavailable Target (unless Lilly has consented
to the non-exclusive restrictions on such Target pursuant to this Section 3.3.1); and (b) in no event shall the aggregate number
of Reserved Targets exceed [***] at any given time. Lilly may also notify the JSC at any time of any Reserved Target to be removed from
the Reserved Target list. To the extent a Target is an Unavailable Target solely because ProQR has granted non-exclusive rights for such
Target that would conflict with or prevent the grant of rights to Lilly under this Agreement for such Target, then upon Lilly’s
request to add such Target as a Reserved Target or Project Target, ProQR shall promptly provide Lilly with written notice providing a
reasonably detailed description of such non-exclusive rights, and, upon written notice by Lilly consenting to such non-exclusive restrictions,
such Target shall not be deemed an Unavailable Target and Lilly shall be permitted to request to add such Target as a Reserved Target
or Project Target (whether as an Additional Target or Replacement Target); provided however, that the Parties will, as a precondition
to the addition of such a non-exclusively licensed Target as a Reserved Target or Project Target, enter into an amendment to this Agreement
as [***] to permit ProQR to comply with its obligations to the relevant Third Party licensee without such continued compliance constituting
a breach of ProQR’s obligations under this Agreement, including by amending the rights and licenses granted hereunder to Lilly with
respect to such Target and Compounds and Products Directed To such Target so that such rights and licenses are subject to the prior license
grant, and limiting ProQR’s obligations under Article 7 as they pertain to such Target and Compounds and Products Directed
To such Target to permit compliance with the prior agreement.

 

3.3.2            During
the Research Term, only for so long as a Target is a Reserved Target in accordance with this Section 3.3, and for the entire
Research Term with respect to all Targets that are [***] Targets: (a) ProQR shall not grant rights to a Third Party for such Target
that would conflict with or prevent the grant of rights to Lilly under this Agreement in the event that such Target were to become a Project
Target; and (b) such Reserved Target or [***] Target shall be considered a Lilly Target solely for purposes of, and shall be subject
to, the exclusivity obligations set forth in Section 7.1 (subject to Section 7.2).

 

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3.3.3            During
the Research Term, for so long as a Target is a Reserved Target in accordance with this Section 3.3, if (a) ProQR or
its Affiliates intend to initiate an internal program with respect to such Reserved Target, or (b) ProQR or its Affiliates have been
notified by a Third Party that such Third Party has substantive intentions to collaborate with ProQR or its Affiliates on such Reserved
Target; then ProQR shall promptly notify Lilly of the identity of such Reserved Target. Lilly may, no later than [***] after receipt of
such notification, propose an Additional Project or Replacement Project (as applicable) directed to such Reserved Target (or any specific
adenosine, element or mutated form thereof) (in which case the Reserved Target, specific element thereof or mutated form thereof shall
become a Project Target). During such notification period, such Target shall not become an Unavailable Target. If, following such notification
period, Lilly elects not to propose an Additional Project or Replacement Project (as applicable) directed to such Reserved Target (or
any specific adenosine, element or mutated form thereof), ProQR may move forward with such internal program or collaboration, as applicable
and the Target shall no longer be considered a Reserved Target.

 

3.4           Additional
Projects.

 

3.4.1            Lilly
shall have the right, at any time during the [***], to designate up to [***] additional Targets (or specific adenosines, elements or
mutated forms thereof) (“Additional Targets”) as Project Targets under this Agreement, by notifying the
JSC in writing of the identity of the proposed Additional Target. If the proposed Additional Target (i) is (or is a specific
adenosine, element of or mutated form of) a Reserved Target or [***] Target, (ii) is not an Unavailable Target (unless Lilly
has consented to the non-exclusive restrictions on such Target pursuant to Section 3.3.1 and subject to the terms set forth in
Section 3.3.1), (iii) is covered by the Exclusive Field, or (iv) is otherwise consented to by ProQR, the proposed
Additional Target shall be deemed a Project Target immediately upon such designation by Lilly, and in which case a Project
associated with such Additional Target shall be added to the Research Program as an “Additional Project,”
and the Parties (through the JSC) shall prepare the mutually agreed upon Workplan for the Additional Project (in accordance with
Section 4.4.2). For the avoidance of doubt, Additional Targets may, but need not be (y) selected from the Reserved Target
list or (z) selected by Lilly pursuant to the ROFN or ROFR. As used in this Agreement, the “Additional Target
Selection Deadline” means [***].

 

3.4.2            The
Parties acknowledge and agree that the Target referred to as [***] has been designated as an Additional Target under this Agreement that
was elected during the Research Term.

 

3.4.3            Lilly
Option to Increase Additional Targets. Lilly shall have an option, exercisable at any time during the [***], to increase the maximum
number of Additional Targets and Additional Projects to [***], by notifying the JSC in writing and subject to making the Option
Payment in accordance with Section 8.1.4 (the “Target Option”, and such Additional Targets, “Option
Targets”).

 

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3.5           Replacement
Projects. If the JSC elects to discontinue a Project with respect to a Project Target, upon discontinuation of that Project: (a) ProQR
shall have no further obligations under the Workplan with respect to such Project Target; and (b) such Project Target shall thereafter
no longer be considered a Project Target and shall be deemed a Discontinued Target. In addition, Lilly shall have the right, no later
than [***] before the end of the Research Term, to select a Target (or specific adenosine, element or mutated form thereof) to replace
such Project Target in the Research Program as a Replacement Target by notifying the JSC of such election (each, a “Replacement
Target”). If the proposed Replacement Target (i) is (or is a specific adenosine, element of or mutated form of) a Reserved
Target or [***] Target, (ii) is not an Unavailable Target (unless Lilly has consented to the non-exclusive restrictions on such Target
pursuant to Section 3.3.1), (iii) is covered by the Exclusive Field or (iv) is otherwise consented to by ProQR, the proposed
Replacement Target shall be deemed a Project Target, and in which case a project associated with such Replacement Target shall replace
the discontinued Project as a “Replacement Project,” and the Parties (through the JSC) shall prepare the mutually
agreed upon Workplan for the Replacement Project (in accordance with Section 4.4.2). For avoidance of doubt, Replacement Targets
may, but need not be, Reserved Targets or [***] Targets, and Replacement Projects may replace either an Initial Project or an Additional
Project, and may itself be eligible to be replaced by a subsequent Replacement Project. In no event, however, shall there be more than
[***] replacements of Project Targets, in the aggregate, pursuant to this Section 3.5.

 

3.6           Research
Discontinuance. Without limiting Sections 13.3.1 and 13.3.2, Lilly may discontinue the Research with respect to a Project Target at
any time upon notice to ProQR. Upon receipt of such notice, such Target shall cease to be a Project Target, as applicable, and shall become
a Discontinued Target.

 

3.7           Discontinued
Targets. Once a Project Target becomes a Discontinued Target: (a) all rights and licenses granted under this Agreement will terminate
with respect to such Discontinued Target, and (b) neither Party will be restricted under this Agreement from developing and commercializing
compounds and products that are Directed To such Discontinued Target at its own cost and expense. For avoidance of doubt, the exclusivity
obligations set forth in Section 7.1 shall continue to apply for the duration of such obligations set forth therein with respect
to compounds and products Directed To a Target that remains a Lilly Target.

 

Article 4

 

RESEARCH PROGRAM

 

4.1           Responsibilities.
An outline of certain anticipated activities and responsibilities of the Parties during each of the phases (from Hit identification through
achievement of Candidate Success CSFs) of a typical Project under the Research Program is attached hereto as Exhibit 4.1 (the
 “Research Program Outline”). As may be further set forth in the Workplans, during the Research Term, [***].

 

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4.2           Diligence
Efforts. The Parties shall use Commercially Reasonable Efforts to execute and to perform, or cause to be performed, in a good scientific
manner and in compliance with Applicable Law, the Research activities assigned to them, respectively, in each Workplan.

 

4.3           Research
Term. The Research Program commenced as of the Effective Date under the Original Agreement and shall continue under this Agreement
from the A&R Effective Date until the date that is [***] after the A&R Effective Date (the “Initial Research Term,”
as may be extended by Lilly pursuant to this Section 4.3, the “Research Term”). To ensure the Parties have
sufficient time to perform Research activities, Lilly shall have a one-time option (exercisable by Lilly at its sole discretion) to extend
the Research Term for an additional period of up to [***] by notifying ProQR via the JSC of such election no later than [***] prior to
the end of the Research Term.

 

4.4           Workplans.

 

4.4.1            Content.
The Parties shall conduct the Research Program pursuant to mutually agreed upon, comprehensive written plans for each Project (each, a
 “Workplan”) which Workplan shall set forth, for such Project: (a) the objective of the applicable Workplan
and the Research activities to be conducted by each of the Parties; (b) the expected resources to be allocated to performing such
Research; (c) the anticipated timeline and milestones of achieving such activities; and (d) the Critical Success Factors.

 

4.4.2            Preparation
of Workplans. The Workplan for the Initial Project has been prepared and mutually agreed upon by the Parties and is attached hereto
as Exhibit 4.4.2 (the “Initial Workplan”). The Workplan for each Additional Project and each Replacement
Project (each an “Additional Workplan”), as applicable, shall be mutually prepared by the Parties within [***]
following the addition of the relevant Project Target to the Research Program (pursuant to Section 3.4 or Section 3.5, respectively),
which shall substantially follow, in form and substance, the form of the Initial Workplan, except to the extent the Parties agree to any
deviations from such form with respect to any particular Project Target. Each Additional Workplan shall only become effective once it
has been approved by the JSC and subject to the decision making in accordance with Section 2.8. The JSC shall use reasonable efforts
to approve each Additional Workplan within [***] following the submission of such Additional Workplan to the JSC.

 

4.4.3            Approval
and Amendments. The JSC shall regularly review the Workplans (including the coordination of the activities across the Research Program
and to account for the number of active Projects and Workplans at any given time) and the progress of activities being conducted under
the Workplans, in no event less frequently than [***] times per Calendar Year. Either Party may propose amendments to the Workplan for
a particular Project from time to time as appropriate, to take into account completion, commencement, or cessation of activities contemplated
in the then-current Workplan for such Project or any newly available information related to such Project. Such amendments shall be effective
upon JSC approval and subject to the decision making in accordance with Section 2.8.

 

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4.5           Records;
Reports.

 

4.5.1            Records.
ProQR shall maintain, or cause to be maintained, during the Research Term and for a reasonable period of time thereafter that is consistent
with industry standards and applicable regulations, complete and accurate records (paper and/or electronic) of its Research data and results
(including raw data) for each Project and each use of the Lilly [***] Technology in sufficient detail and in a good scientific manner
appropriate for scientific, patent, and regulatory purposes, which records will reasonably reflect all work performed by or on behalf
of ProQR under the Workplan for each Project or with respect to such Lilly [***] Technology. Lilly may request a copy of any such records
of ProQR; [***].

 

4.5.2            Reports
and Data Package. ProQR shall regularly report to Lilly through the JSC (or the designated Project Leader or Working Group) its results
in (a) conducting Research under the Workplan for each Project and (b) using the Lilly [***] Technology. For each Project, ProQR
shall provide the JSC with: (i) the deliverables set forth in the Workplan for such Project, including a written report summarizing
the data and information generated under each Project, within [***] after the completion of ProQR’s Research for such Project; and
(ii) on a [***] basis during the Research Term, all data and results (including raw data) generated by or on behalf of ProQR in performance
of the Research for such Project under this Agreement, including such data and results as are relevant to a determination of whether Hit
CSFs or Candidate Success CSFs for each Project have been achieved. For each use of the Lilly [***] Technology, ProQR shall provide the
JSC with all reports and deliverables reasonably requested by Lilly, including a written report summarizing the data and information generated
in connection with such use; provided, that, [***]

 

4.6           Research
Program Funding. Each Party shall bear any and all costs and expenses it incurs associated with its activities conducted under the
Research Program.

 

4.7           Certain
Standards Applicable to Work. All Research conducted by either Party for non-regulated work
under this Agreement will be conducted in accordance with the Workplans, Eli Lilly and Company Good Research Practices, Eli Lilly and
Company Animal Care and Use Requirement for Animal Researchers and Suppliers and all Applicable Laws, including those regarding data privacy
and data security laws and regulations. For purposes of this Agreement, “Eli Lilly and Company Good Research Practices”
means the compiled set of shared research quality standards defining how Lilly’s research laboratories conduct good science for
non-regulated work as set forth in Exhibit 4.7 Part A. For purposes of this Agreement, “Eli Lilly
and Company Animal Care and Use Requirement for Animal
Researchers and Suppliers” means the guidelines relating to animal care and
use for research done on behalf of Lilly as set forth in Exhibit 4.7 Part B. If Lilly reasonably requests, ProQR will
complete a self-assessment examination form based on such quality standards. A duly authorized representative of Lilly may make on-site
visits to ProQR, [***], for the purpose of conducting a quality assessment or quality audit
for non-regulated work, which shall be performed at Lilly’s cost and expense. Additionally, Lilly may conduct compliance audits
of ProQR and/or ProQR’s Affiliates and Third Party subcontractors engaged in work related to this Agreement (including with respect
to Lilly [***] Technology), during normal business hours, no more than once annually, except
in the case of audits for cause to ensure compliance with applicable cGCP, GLP and GRP requirements,
provided Lilly has requested such audit with written notice of at least [***] and such audit
does not unreasonably interfere with the audited entity’s operations. All such audits shall be done at Lilly’s cost and expense.

 

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4.8           Subcontracting.
Each Party may engage its Affiliates or Third Party subcontractors (including contract research organizations and contract manufacturing
organizations) to perform such portions of its research obligations under the Research Program that it customarily engages for its other
similar research activities. The activities of any such Third Party subcontractors will be considered activities of such subcontracting
Party under this Agreement. The subcontracting Party shall ensure compliance by such Third Party subcontractors with the terms of this
Agreement, including any applicable Workplans. The subcontracting Party shall ensure, prior to engaging any Third Party subcontractor,
that such Third Party subcontractor is subject to written agreements containing terms and conditions that: (a) protect the rights
of the Parties under this Agreement, including by imposing obligations of confidentiality on each such Third Party subcontractor that
are no less than the obligations of confidentiality on each Party under this Agreement and obligations consistent with the intellectual
property provisions of Article 9; (b) do not under any circumstance impose any payment obligations or liability on the non-subcontracting
Party; and (c) are otherwise consistent with the terms of this Agreement. If ProQR or any of its Affiliates intends to engage a Third
Party subcontractor to perform any of its obligations under the Research Program, ProQR shall provide Lilly written notice no less than
[***] prior to engaging such Third Party subcontractor, which notice shall include the identity of such subcontractor and a high level
description of the services such subcontractor will perform related to the Research Program.

 

4.9           Lilly
Materials. In the event that it is necessary to enable execution of the Workplan, Lilly may need to transfer certain Lilly materials
to ProQR that are not otherwise delivered under a supply or other separate agreement between the Parties or their Affiliates. In each
such case, the Parties will mutually agree on the terms of such material transfer, which in any case shall be subject to the terms of
Article 9 of this Agreement. Any such materials provided to ProQR shall be accompanied by a materials transfer record substantially
in the form of Exhibit 4.9 (each a “Materials Transfer Record”). In the event of such transfer,
unless otherwise mutually agreed, Lilly shall be responsible for obtaining all necessary approvals and/or filings as required under Applicable
Laws for the exportation of any such materials to ProQR and ProQR shall be responsible for obtaining all necessary approvals and/or filings
as required under Applicable Laws for their importation and use by ProQR.

 

4.10         Technical
Transfer Assistance. Following the conclusion of each Project, ProQR shall reasonably cooperate with Lilly and provide Lilly with
such assistance as is reasonably requested by Lilly in connection with the preparation and submission by Lilly of the applicable IND or
BLA/NDA, including [***]. For avoidance of doubt, ProQR shall not be required to generate any new or additional data or information under
this Section 4.10.

 

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Article 5

 

DEVELOPMENT AND COMMERCIALIZATION

 

5.1           Lilly
Sole Right and Responsibility. Except with respect to the Research activities to be conducted by ProQR pursuant to a Workplan
for the Projects, Lilly shall be solely responsible for, and shall have the exclusive right to, Exploit Compounds and Products
(including with respect to the conduct of GLP Toxicology studies) in the Field in the Territory. Subject to the terms of this
Agreement, all decisions concerning the Exploitation of Compounds and Products following Research, including the clinical and
regulatory strategy of Compounds and Products, the Development, Manufacturing, marketing and sales of Products, and the design,
price, promotion, and other Commercialization of Products, is within the sole discretion of Lilly. Upon the achievement of Candidate
Success CSFs for a given Project, the applicable Project shall be deemed concluded and Lilly will have the sole and exclusive right
(but not obligation) to pursue further Exploitation of the Product resulting from such Project, subject to the terms and conditions
set forth herein, including this Section 5.1. Lilly shall use Commercially Reasonable Efforts to achieve a First Commercial
Sale in [***] for [***] Product with respect to each Successful Candidate; provided, that the foregoing Commercially Reasonable
Efforts obligation shall cease to apply for all Products and Successful Candidates once [***] Products have each achieved a First
Commercial Sale in [***].

 

5.2           Development
Reports. Lilly shall keep ProQR, and ProQR shall keep Lilly (with respect to Lilly [***] Technology and ProQR Products) reasonably
informed as to the progress and results of its and its Affiliates’ and Sublicensees’ or ProQR Sublicensees’ (as applicable)
Development activities under this Agreement, and shall provide the other Party with a high-level written report summarizing its Development
activities and the results thereof on at least [***] basis, indicating estimated timeframes with respect to Research and Development milestones
for the then-current Calendar Year and subsequent Calendar Year. Lilly’s obligations under this Section 5.2 shall cease with
respect to a Product at such time when Marketing Approval for such Product is obtained. Following the First Commercial Sale of a Product
with respect to a Project Target, Lilly shall provide ProQR with reports as provided in Section 8.3.7, but Lilly shall have no additional
reporting obligations with respect to its Commercialization activities, unless otherwise expressly specified in this Agreement.

 

5.3           Lilly
Regulatory Control. Except as provided under a Workplan, as between the Parties, Lilly shall have sole responsibility for and control
of the preparation, submission, and maintenance of all Regulatory Filings and obtaining Regulatory Approvals (including the preparation
and submission of the IND, BLA/NDA (and any other documents needed for clinical submissions in the European Union or otherwise), or marketing
authorization application (“MAA”) filing and for seeking IND, BLA/NDA, or MAA approval) with respect to Products,
and shall have sole control over all interactions with the applicable Regulatory Authority. ProQR shall reasonably cooperate with Lilly,
at Lilly’s reasonable request and expense, with respect to any regulatory matters related to Products. Lilly will own all right,
title and interest in and to any and all Regulatory Filings and Regulatory Approvals for Products and, as between the Parties, all such
Regulatory Filings and Regulatory Approvals will be held in the name of Lilly. ProQR shall execute all documents and take all actions
as are necessary or reasonably requested by Lilly to vest such title in Lilly.

 

5.4           Adverse
Event Reporting. Lilly shall establish, hold, and maintain the global safety database for Products with respect to information on
adverse events concerning the Products, as and to the extent required by Applicable Law. [***].

 

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Article 6

 

LICENSE RIGHTS

 

6.1            Exclusive
License Grant to Lilly. ProQR (on behalf of itself and its Affiliates) hereby grants to Lilly an exclusive (even as to ProQR and its
Affiliates, subject to the remainder of this Section 6.1), royalty-bearing (as set forth in Section 8.3), license, with the
right to grant sublicenses (through multiple tiers, as provided in Section 6.5), under the ProQR Platform IP and ProQR’s interest
in any Joint Program IP to Exploit Compounds and Products in the Field in the Territory, subject to a right retained by ProQR to perform
(i) activities to be conducted by ProQR as contemplated under this Agreement and (ii) any internal research and development
activities conducted by ProQR to improve the ProQR Platform. [***].

 

6.2            Non-Exclusive
License Grant to Lilly. ProQR (on behalf of itself and its Affiliates) hereby grants to Lilly a non-exclusive license, with the right
to grant sublicenses (through multiple tiers, as provided in Section 6.5), under any ProQR Supplemental IP to Exploit Compounds and
Products Directed To Project Targets in the Field in the Territory [***].

 

6.3            Non-Exclusive
License Grant to ProQR. Subject to the terms and conditions of this Agreement and any exclusivity granted to Lilly herein, Lilly hereby
grants to ProQR a worldwide, fully paid, royalty-free, non-sublicensable (except to Third Party subcontractors acting on its behalf, as
permitted by Section 4.8, and subject to Section 6.5), non-exclusive license under the Lilly Background IP (in each case, excluding
Lilly Program IP and any Excluded Technology), solely as and to the extent necessary (a) for ProQR or its Affiliates (or Third Party
subcontractors) to perform its obligations, including its Research activities with respect to the Project Targets, under the Workplans
during the Research Term and (b) to improve the ProQR Platform.

 

6.4            Non-Exclusive
License Grant to ProQR – Lilly [***] Technology. Subject to the terms and conditions of this Agreement and any exclusivity
granted to Lilly herein, Lilly hereby grants to ProQR a worldwide, royalty-bearing (as set forth in Section 8.4), non-exclusive license,
with the right to grant sublicenses (through multiple tiers, as provided in Section 6.5), under Lilly [***] Technology, solely [***].

 

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6.5           Third
Party Sublicenses. Lilly and ProQR may grant one or more sublicenses under the rights and licenses granted to it under Sections 6.1
and 6.2 (in the case of Lilly) or Section 6.3 and 6.4 (in the case of ProQR), in full or in part, to Third Parties (with the right
to sublicense through multiple tiers); provided, that: (a) any such permitted sublicense is consistent with and subject to the terms
and conditions of this Agreement, including the confidentiality provisions of Article 12 and the intellectual property provisions
of Article 9 and the audit provisions of Section 8.6; (b) the Party granting such sublicense shall remain responsible
for performance of such Party’s obligations under this Agreement and shall be responsible for all actions of each such sublicensee
as if such sublicensee were the Party hereunder; and (c) solely with respect to any sublicenses granted by ProQR under the Lilly
[***] Technology pursuant to Section 6.4 (such sublicense a “ProQR Sublicense,” and such sublicensee,
a “ProQR Sublicensee”), [***].

 

6.6           No
Implied Rights. Except as expressly set forth in this Agreement, neither Party shall be granted, by implication or otherwise, any
license or right to or under any other Intellectual Property Right, including any trademarks, Know-How, or Patents, of the other Party.

 

6.7           Safe
Harbor Research. Except to the extent ProQR has granted exclusive rights to Lilly under this Agreement, neither Party, by entering
into this Agreement, is forfeiting any rights that such Party may have to perform research activities in compliance with 35 U.S.C. § 271(e)(1) or
any experimental or research use exemption that may apply under Applicable Law or in any country.

 

Article 7

 

EXCLUSIVITY

 

7.1           ProQR
Exclusivity Obligations.

 

7.1.1            Activities
With Respect to Lilly Targets. Neither ProQR nor any of its Affiliates shall (by themselves, or through or with any Third
Party): (a) during the Research Term, conduct a program or efforts to discover or generate, or otherwise intentionally discover
or generate, any compounds Directed To (i) a Lilly Target or (ii) any other [***] Target (except as permitted in this
Section 7.1.1 below); (b) thereafter through the end of the Target Exclusivity Period for a Lilly Target, conduct a
program or efforts to discover or generate, or otherwise intentionally discover or generate, any compound or product Directed To
that Lilly Target (including any Lilly Target that is an [***] Target); or (c) during the relevant period identified in the
foregoing clause (b), provide any license or authorization to any Third Party to permit the Third Party, or otherwise permit or
enable any Third Party, to do any of the foregoing. Solely for purposes of this Section 7.1.1, and without otherwise modifying
the definition of “Lilly Target” for any other purpose, “Lilly Target” shall include the Target of which
such Lilly Target is a specific adenosine, the gene coding for such Target, and any protein product translated from such Target. If
ProQR or any of its Affiliates determines that it has unintentionally discovered or generated a compound Directed To a Lilly Target
as described above, during the relevant period of restriction indicated above, ProQR and its Affiliate shall (1) cease any and
all development activities with respect to such Compound, (2) not permit or enable any Third Party to conduct further
development or commercialization activities with respect to such Compound and (3) promptly notify Lilly in writing of the
identity of such Compound, and (if such unintentional discovery or generation occurs during the Research Term and the applicable
Intellectual Property Rights are Controlled by ProQR) Lilly shall have the option to include the Compound in the Research Program
(and to Exploit such Compound); provided, however, that such option right shall not include rights to any Compounds that are
intended to treat ocular diseases or conditions. Notwithstanding the foregoing, ProQR and its Affiliates may conduct Research and
Development on [***] Targets solely for internal Research and Development purposes; provided, that such Research and Development is
not conducted with or through (or to enable) any Third Party, and that Lilly has consented to the specific internal Research or
Development activities for such [***] Target in each case.

 

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7.1.2            ProQR
Exploitation Activities With Respect to Certain Compounds. Neither ProQR nor any of its Affiliates shall, themselves, nor shall any
of them, enable any Third Party to, during the Research Term or thereafter during the Target Exclusivity Period, directly or indirectly
Exploit any Compound that is the subject of an active Project, any Hit or any Successful Candidate. If ProQR or any of its Affiliates
determines that it has unintentionally Developed a compound Directed to a Lilly Target as described above, during the relevant period
of restriction indicated above, ProQR and its Affiliate shall cease any and all Development activities with respect to such Compound
and shall not permit or enable any Third Party to conduct further Development activities with respect to such Compound.

 

7.1.3            The
 “Target Exclusivity Period” with respect to a Lilly Target shall mean a period ending on the earlier of (i) the
end of the Term and (ii) the end of the period during which Lilly is using Commercially Reasonable Efforts to Research, Develop,
Manufacture or Commercialize Compounds or Products Directed To that Lilly Target (which includes at least the duration of the Research
Term) and a period of [***] thereafter. For avoidance of doubt, the “Target Exclusivity Period” [***].

 

7.1.4            ProQR
Field Exclusivity Obligations. In addition to, and without limiting the foregoing exclusivity obligations, neither ProQR nor any
of its Affiliates shall (by themselves, or through or with any Third Party), during the Field Exclusivity Period, (a) [***]
(the “Exclusive Field”); or (b) [***]. [***]. Lilly acknowledges and agrees that, as of the A&R
Effective Date, the following Targets are included in the Internal Exclusive Field Program and that ProQR may continue to conduct
internal Research and Development with respect to such Targets: [***].

 

7.1.5            Lilly
ROFN for ProQR Pipeline. During [***], ProQR shall notify Lilly as promptly as reasonably practicable in the event (a) any compound,
product, or Target discovered, generated, optimized, developed or Exploited by ProQR or any of its Affiliates, [***] or (b) solely
with respect to compounds, products, or Targets in the Exclusive Field, [***]; which notice, in each case of the foregoing (a) and
(b), identifies and provides a high-level description of such compound, product or Target. For a period of [***] following such notice
(the “ROFN Option Period”), Lilly can elect to exercise its option to engage in exclusive good faith negotiations
for [***] (the “ROFN Negotiation Period”) with ProQR to reach an agreement consisting of at least the material
terms of an agreement for [***] (the “ROFN”). Upon Lilly’s request during the ROFN Option Period or ROFN
Negotiation Period, ProQR shall promptly (and, in any event, within [***] after Lilly’s request) provide Lilly with a Data Package
with respect to the applicable compound, product or Target, and the ROFN Option Period or ROFN Negotiation Period shall be extended for
each day for which the Data Package is delayed beyond such [***] period. In the event the ROFN Option Period has expired and Lilly has
elected not to exercise the ROFN, or the Parties were unable to reach a good faith agreement in accordance with Section 7.1.5 prior
to the expiration of the ROFN Negotiation Period, ProQR shall be permitted to [***]. For avoidance of doubt, the foregoing shall in no
way limit or excuse ProQR’s obligations with respect to the Exclusive Field during the Field Exclusivity Period, regardless of
whether Lilly elects to exercise its ROFN with respect to any compound, product, or Target in the Exclusive Field. If discovery, generation,
development or optimization of a compound, product or Target pursuant to an Internal Exclusive Field Program occurs during the Research
Term, Lilly shall have the option to [***], by notifying the JSC in writing.

 

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7.1.6            Lilly
ROFR for Exclusive Field.

 

(a)            If,
at any time [***] (collectively, the “ROFR Period”), ProQR receives or is evaluating a previously received
bona fide written offer (whether in the form of communication, proposed term sheet, or otherwise) from a Third Party regarding [***]
(each, a “Third Party Offer”), ProQR shall, within [***] following receipt of such Third Party Offer,
notify Lilly in writing (the “Offer Notice”) of [***];
provided, that if the Third Party Offer subject to the Offer Notice does not contain [***], ProQR shall provide Lilly with an
updated Offer Notice detailing such [***] (the “Updated Offer Notice”). If Lilly desires to enter into an
agreement with ProQR on terms materially consistent with the Third Party Offer (whether in the Offer Notice or Updated Offer
Notice), Lilly shall notify ProQR of such election (a “ROFR Election Notice”) at any time during the
period that is [***] following the later to occur of Lilly’s receipt of an Offer Notice or an Updated Offer Notice (the
 “ROFR Exercise Period”). Following ProQR’s receipt of a ROFR Election Notice, ProQR shall engage in
exclusive good faith negotiations with Lilly for a period of [***] thereafter to reach
an agreement consisting of [***].

 

7.1.7            If
(a) Lilly has not provided a ROFR Election Notice prior to the expiration of the ROFR Exercise Period and (b) ProQR has complied
with all of the provisions of Section 7.1.6 and this Section 7.1.7, then ProQR may consummate the transaction contemplated
by the Third Party Offer, on [***]. If such transaction is not consummated within [***] following the expiration of the ROFR Exercise
Period, the terms and conditions of this Section 7.1.6 and this Section 7.1.7 will apply for [***], and ProQR shall not enter
into any Third Party Transaction during the ROFR Period without affording Lilly the right of first refusal on the terms and conditions
of Section 7.1.6 and this Section 7.1.7. For the avoidance of doubt, the right of first refusal in this Section 7.1.6
and this Section 7.1.7 applies to all Third Party Offers ProQR receives (or previously received Third Party Offers it is considering)
during the ROFR Period, and shall not be interpreted to be a one-time option. For avoidance of doubt, the foregoing shall in no way be
deemed to limit or excuse ProQR’s obligations with respect to the Exclusive Field [***], regardless of whether Lilly elects to
exercise its ROFR with respect to [***].

 

7.2           Transactions
Involving Competing Programs.

 

7.2.1            Acquisition
of Existing Competing Program. [***].

 

7.2.2            Existing
Competing Program of a ProQR Acquirer. [***]

 

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Article 8

 

FEES, ROYALTIES, & PAYMENTS

 

8.1           Upfront
and Option Payments and Equity Investment.

 

8.1.1            Payment
under Original Agreement. As consideration for the rights granted by ProQR to Lilly pursuant to the terms of the Original Agreement,
ProQR acknowledges and confirms that Lilly paid to ProQR a one-time, non-refundable, non-creditable payment equal to Twenty Million Dollars
($20,000,000) within  [***] following the Effective Date.

 

8.1.2            Upfront
Payment. As additional consideration for the rights granted by ProQR to Lilly pursuant to the terms of this Agreement, Lilly shall
pay to ProQR an additional one-time, non-refundable, non-creditable payment equal to Fifty Million Dollars ($50,000,000) within [***]
following the A&R Effective Date.

 

8.1.3            Equity
Investment. As consideration for the rights granted by ProQR to Lilly pursuant to the terms of this Agreement, as of the A&R
Effective Date the Parties have simultaneously entered into a Share Purchase Agreement pursuant to which Lilly is making an equity
investment in ProQR.

 

8.1.4            Option
Payment. As consideration for the Target Option rights granted by ProQR to Lilly pursuant to the terms of this Agreement, Lilly shall
pay to ProQR a one-time, non-refundable, non-creditable payment equal to Ten Million Dollars ($10,000,000) within [***] following the
A&R Effective Date. As additional consideration for the rights granted by ProQR to Lilly under the Target Option in this Agreement,
within [***] following Lilly’s election to exercise the Target Option in accordance with Section 3.4.3, Lilly shall pay to
ProQR a one-time, non-refundable, non-creditable payment equal to Fifty Million Dollars ($50,000,000) (the “Option Payment”).

 

8.2           Milestone
Events and Payments.

 

8.2.1            Milestone
Events and Milestone Payments. On a Project Target-by-Project Target basis, Lilly shall pay to ProQR certain milestone payments,
as follows: (a) within [***] following any Compound Directed To a given Project Target achieving a discovery and development milestone
event set forth in Table 8.2 below (each, a “Development Milestone Event”), Lilly shall pay to ProQR the corresponding
Milestone Payment indicated in Table 8.2 (each such Milestone Payment, a “Development Milestone Payment”);
and (b) within [***] following the end of the Calendar Quarter in which any commercial milestone event set forth in Table 8.2 (each,
a “Commercial Milestone Event”) is achieved, Lilly shall pay to ProQR the corresponding Milestone Payment indicated
in Table 8.2 (each such Milestone Payment, a “Commercial Milestone Payment”). The Development Milestone Events
and Commercial Milestone Events may be referred to individually or collectively as “Milestone Events,” and
Development Milestone Payments and Commercial Milestone Payments may be referred to individually or collectively as “Milestone
Payments.” In the event that a given Development Milestone Event or Commercial Milestone Event is achieved in respect
of a Project Target before payment by Lilly of all earlier Development Milestone Payments or Commercial Milestone Payments (as applicable)
in respect of such Project Target, all such earlier payments shall also become due. In the event that First Commercial Sale is achieved
in respect of a Project Target before payment by Lilly of all Development Milestone Payments in respect of such Project Target, all Development
Milestone Payments shall also become due in respect of such Project Target.

 

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8.2.2            Limitations
per Project Target. Each Milestone Payment shall be payable only once per Project Target (with respect to the Development Milestone
Events, for the first Hit, Successful Candidate or Product Directed To such Project Target to achieve such Milestone Event), and no Milestone
Payment shall be payable for subsequent or repeated achievements of the same Milestone Event with respect to the same Project Target.

 

8.2.3            Step-Down
of Thresholds for Orphan Indications. If a Product is approved solely for an Orphan Indication (and no other indication) then the
Net Sales thresholds in the Commercial Milestone portion of Table 8.2 will be deemed reduced by [***] percent ([***]) for such Product
for so long as the Product is solely approved for an Orphan Indication. So, for example, if a Product is only approved for an Orphan
Indication and achieves Calendar Year Net Sales of  [***] (and no other Product Directed To the same Project Target has achieved Calendar
Year Net Sales of [***]) then the first Commercial Milestone Event will be deemed achieved by such Product. However, if, prior to achieving
the next Commercial Milestone Event, such Product is subsequently approved for an indication that is not an Orphan Indication then it
will not be deemed to have achieved the next Commercial Milestone Event until it has Calendar Year Net Sales of at least  [***].

 

Table 8.2– Milestone
Payments

 

	Development
    Milestone Event	Milestone
    Payment
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	Commercial
    Milestone Event	Milestone
    Payment
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]

 

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8.3           Royalties
on Products.

 

8.3.1            Royalty
Term. Lilly shall pay ProQR royalties as set forth in this Section 8.3 on a country-by-country and Product-by-Product basis
in the Territory during the period of time beginning on the date of the First Commercial Sale of such Product in such country and continuing
until the latest to occur of: (a) the expiration or abandonment of the last-to-expire Valid Claim in such country Covering such
Product; (b) the expiration of all data and regulatory exclusivity periods for such Product in such country; and (c) [***]
after the First Commercial Sale of such Product in such country (the “Royalty Term”). Upon the expiration
of the Royalty Term for a Product in a particular country, the license granted by ProQR to Lilly under Sections 6.1 and 6.2 with
respect to such Product and such country shall survive and become perpetual, fully-paid, and royalty-free, and shall (with respect to
the license under Section 6.1) remain exclusive (even as to ProQR and its Affiliates).

 

8.3.2            Royalty
Rates. On a Product-by-Product and country-by-country basis, during the Royalty Term, Lilly shall pay to ProQR a tiered royalty equal
to the percentages of annual Net Sales of such Product in such countries, as set forth in Table 8.3 below (the “Royalty”),
calculated by [***]. For clarity, the Royalty rates set forth below are intended to be tiered and incremental, and the higher incremental
rate will only apply to that portion of the Net Sales of royalty-bearing Products that fall within the indicated range of sales.

 

Notwithstanding the Royalty
rates set forth in Table 8.3 below, all Royalties payable pursuant to this Section 8.3 are subject to reduction as further
described in Sections 8.3.3 - 8.3.5 below or as expressly stated elsewhere in this Agreement.

 

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Table 8.3– Royalty
Rates

 

	Annual
    Net Sales of the Applicable Product	Royalty
    Rate
	[***]	[***]
	[***]	[***]
	[***]	[***]
	[***]	[***]

 

8.3.3            Third
Party Payments. On a Product-by-Product and country-by-country basis, Lilly may deduct from any Royalty payments to ProQR under this
Section 8.3 with respect to the sale of a given Product in a given country, an amount equal to [***] percent ([***]) of any payments
made by Lilly to a Third Party (including a Third Party collaborating with Lilly on complementary technology) in consideration for a
right or license under such Third Party’s Intellectual Property Rights which is necessary or Materially Useful to Exploit such
Product; provided, that in no event will the Royalty payments payable to ProQR under this Section 8.3 for each Product be
reduced, solely as a result of this Section 8.3.3, by more than [***] percent ([***]). For purposes of this Section 8.3.1,
 “Materially Useful” means that applying a Third Party Patent will result in a material advantage to the Product,
including an advantage to the safety or efficacy of the Product or reduction in the cost of Developing or Manufacturing the Product.

 

8.3.4            Valid
Claim. In any [***] during the Royalty Term for a Product for which there is no longer a Valid Claim that Covers such Product in
a country, the Royalty rates provided in Table 8.3 above for the Product will be reduced in such country by [***] percent ([***]) for
such [***] (in addition to any reductions in Section 8.3.3 and Section 8.3.5) and thereafter for the remainder of the Royalty
Term.

 

8.3.5            Generic
Equivalents. On a country-by-country and Product-by-Product basis, commencing on the first [***] in which there is Loss of Market
Exclusivity, the Royalty rates provided in Table 8.3 above for the Product will be permanently reduced in such country by [***] percent
([***]).

 

8.3.6            Cumulative
Royalty Reductions and Limitations. Each of the potential Royalty reductions in the foregoing Sections 8.3.3, 8.3.4 and 8.3.5 may
be taken in addition to, and not in lieu of, the potential reductions in the other such Section; provided, that in no circumstances will
the Royalties payable to ProQR under this Section 8.3 in any [***] for a Product in a given country be reduced, as a result of Sections
8.3.3, 8.3.4 and 8.3.5 in the aggregate, below [***] percent ([***]) of the royalties otherwise payable under this Section 8.3.

 

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8.3.7            Payment;
Reports. Royalty payments due by Lilly to ProQR under this Section 8.3 will be calculated and reported for each [***]. All Royalty
payments due under this Section 8.3 shall be paid within [***] after the end of each [***] and shall be accompanied by a report
setting forth, with respect to each [***], on a Product-by-Product and country-by-country basis: (a) Net Sales of the Product by
Lilly and its Affiliates and Sublicensees in such country, (b) a calculation of the Royalties due on such Net Sales, and (c) a
statement of the amount of Third Party payments deducted under Section 8.3.3.

 

8.4           ProQR
Royalties. ProQR shall pay Lilly royalties as set forth in this Section 8.4 on a country-by-country and ProQR
Product-by-ProQR Product basis in the Territory during the period of time beginning on the A&R Effective Date and continuing
until the latest to occur of: (a) [***], (b) [***]; and (c) [***] of such ProQR Product in such country (the “[***] Royalty
Term”). On a ProQR Product-by-ProQR Product and country-by-country basis, during the [***] Royalty Term, ProQR shall
pay Lilly a tiered royalty equal to the percentages of annual ProQR Net Sales of such Product in such countries, as set forth in Table
8.4 below (the “ProQR Royalty”), calculated by [***]. For clarity, the ProQR Royalty rates set forth
below are intended to be tiered and incremental, and the higher incremental rate will only apply to that portion of the ProQR Net
Sales of royalty-bearing ProQR Products that fall within the indicated range of sales.

 

Table 8.4 – ProQR Royalty Rates

 

	Annual
    Net Sales of the Applicable Product	Royalty
    Rate
	[***]	[***]
	[***]	[***]
	[***]	[***]

 

8.4.1            Sublicense
Royalties. On a country-by-country basis, ProQR shall pay Lilly a royalty equal to [***] of all payments [***] (such payments, “ProQR
Sublicense Payments”).

 

8.4.2            Payment;
Reports. Royalties and ProQR Sublicense Payments due by ProQR to Lilly under this Section 8.4 will be calculated and reported
for each [***]. All Royalty and ProQR Sublicense Payments due under this Section 8.4 shall be paid within [***] after the end of
[***] and shall be accompanied by a report setting forth, with respect to [***], on a ProQR Product-by-ProQR Product or ProQR Sublicensee-by-ProQR
Sublicensee basis, as applicable, and a country-by-country basis: (a) ProQR Net Sales of the ProQR Product by ProQR and its Affiliates
and ProQR Sublicensees in such country and (b) a calculation of the Royalties due on such net sales and ProQR Sublicense Payments.

 

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8.5            Method
of Payment; Currency Conversion. Unless otherwise agreed by the Parties, all payments due under this Agreement shall be paid in Dollars
by wire transfer or electronic funds transfer of immediately available funds to an account designated by the payee; provided, however,
that Lilly shall only be required to disburse funds to the payee’s jurisdiction of incorporation or to a jurisdiction in which
the payee has a significant business presence. When conversion of payments from any currency other than Dollars is required, Lilly’s
then-current standard exchange rate methodology will be employed for the translation of foreign currency sales into Dollars; provided,
that this methodology is used by Lilly in the translation of its foreign currency operating results, is consistent with U.S. GAAP, is
audited by Lilly’s independent certified public accountants in connection with the audit of the consolidated financial statements
of Lilly, and is used for external reporting of foreign currency operating results.

 

8.6            Right
to Offset. Lilly shall have the right to offset any amounts owed by ProQR to Lilly under this Agreement against the amount of any
Royalty payments or Milestone Payments owed by Lilly to ProQR.

 

8.7            Records
and Audits. Lilly (including its Affiliates and Sublicensees) and ProQR (including its Affiliates and Sublicensees) shall keep
complete and accurate books and records which may be necessary to ascertain properly and to verify the royalty and sublicense
payments due to the other Party hereunder. Such records shall be kept for such period of time required by Applicable Laws, but no
less than [***] following the end of the Calendar Year to which they pertain. Within the Term, each of ProQR and Lilly (the
 “Auditing Party”) shall, not more than [***] each Calendar Year per Party, have the right to have a Big 4
independent, certified public accountant (e.g., Deloitte, KPMG, PricewaterhouseCoopers, Ernst & Young) inspect the
other Party’s (the “Audited Party”) records for the purpose of determining the accuracy of royalty
payments. No period will be audited more than once by a Party. The independent, certified public accountant shall keep confidential
any information obtained during such inspection and shall report to the Auditing Party, as applicable, only the amounts of Net Sales
and royalties and sublicense payments due and payable. Such audits may be exercised during normal business hours upon reasonable
prior written notice to the Audited Party. The Auditing Party shall bear the full cost of such audit unless such audit discloses an
underpayment by the Audited Party of more than [***] percent ([***]) of the amount of royalties or other payments due under this
Agreement for the audited period, and which underpayment is also at least [***] ([***]), in which case, the Audited Party shall bear the
cost of such audit. The Auditing Party shall remit to the Audited Party the amount of any underpayment, plus interest (at the rate
of prime, consistent with Section 8.8), within [***] of the date the auditor’s written report is received. Any
overpayment by the Audited Party revealed by an audit shall be refunded by the Audited Party at the request of the Auditing Party
within [***] of the receipt of the request, with interest (at the rate of prime, consistent with Section 8.8).

 

8.8            Late
Payments. If any payment properly due under this Agreement and not subject to a good faith dispute is not paid when due in accordance
with the applicable provisions of this Agreement, the payment shall accrue interest from the date due at the rate equal to [***], plus
[***], or the maximum rate allowable by Applicable Law, whichever is less. The payment of such interest shall not limit the Party entitled
to receive payment from exercising any other rights it may have as a consequence of the lateness of any payment.

 

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8.9           Taxes.

 

8.9.1            Cooperation
and Coordination. The Parties acknowledge and agree that it is their mutual objective and intent to minimize, to the extent feasible
and in compliance with Applicable Laws, taxes payable with respect to their collaborative efforts under this Agreement and that they
shall use reasonable efforts to cooperate and coordinate with each other to achieve such objective, including by completing and filing
documents required or permitted under the provisions of any Applicable Laws in connection with a claim of exemption from, or entitlement
to a reduced rate of, withholding taxes or in connection with any claim to a refund of or credit for any payment of such taxes. Notwithstanding
the foregoing, for clarity, it is the sole responsibility of the Party receiving payment pursuant to this Agreement to prepare and file
required documents necessary to claim an exemption from withholding tax or to claim a reduced rate of withholding tax, at the receiving
party’s sole expense.

 

8.9.2            Payment
of Tax. The upfront, milestones, royalties and other amounts payable by Lilly to ProQR, or by ProQR to Lilly as the case may be,
pursuant to this Agreement (each, a “Payment”) shall be paid free and clear of any and all taxes, except for
any withholding taxes required by Applicable Law. Except as provided in this Section 8.9, the Party receiving payments under this
Agreement shall be solely responsible for paying any and all taxes (other than withholding taxes required by Applicable Law to be deducted
from Payments and remitted by the paying Party) levied on account of, or measured in whole or in part by reference to, any Payments it
receives. The paying Party shall deduct or withhold from the Payments any taxes that it is required by Applicable Law to deduct or withhold.
Notwithstanding the foregoing, if receiving Party is entitled under any applicable tax treaty to a reduction in the rate of, or the elimination
of, any applicable withholding tax, it may deliver to the paying Party or the appropriate Governmental Authority (with the assistance
of the paying Party to the extent that this is reasonably required and is expressly requested in writing) the prescribed forms necessary
to reduce the applicable rate of withholding or to relieve the paying Party of its obligation to withhold such tax and the paying Party
shall apply the reduced rate of withholding or dispense with withholding as the case may be; provided that the paying Party has received
from the receiving party the delivery of all applicable forms in a form satisfactory to the paying Party (and, if necessary, evidence,
in a form satisfactory to the paying Party, of the receiving party’s receipt of appropriate governmental authorization) at least
[***] prior to the time Payments are due. If in accordance with the foregoing, the paying Party withholds any amounts of tax, it shall
pay to the receiving party the net balance when due, make timely payment to the proper tax authority of the withheld amount and send
to the receiving party proof of such payment and applicable tax withholding certificates within [***] following such payments.

 

Article 9

 

INTELLECTUAL PROPERTY

 

9.1           Inventorship.
Inventorship as between the Parties will be determined in accordance with U.S. patent laws. All such determinations shall be documented
to ensure that the Patent claims in any divisional or continuation patent applications reflect appropriate inventorship.

 

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9.2           Ownership
of Intellectual Property Rights.

 

9.2.1            Background
IP. As between the Parties, and subject to the licenses granted under this Agreement (a) Lilly shall solely own (or retain ownership
of) all rights, title and interests in and to the Lilly Background IP and (b) ProQR shall solely own (or retain ownership of) all
rights, title and interests in and to the ProQR Background IP. If any Third Party becomes an Acquirer of ProQR after the Effective Date
pursuant to a Change of Control, any Intellectual Property Rights Controlled by the Acquirer before the relevant Change of Control transaction
or thereafter during the Term will not be considered part of the ProQR Background IP; provided, however, that any Intellectual Property
Rights that would otherwise constitute ProQR Background IP and are discovered, created or acquired by or on behalf of the Acquirer after
the relevant Change of Control transaction by using any ProQR Technology relating to the Research Program will be considered part of
the ProQR Background IP.

 

9.2.2            Program
IP. Ownership of Inventions arising, discovered, created, acquired, conceived or reduced to practice, by or on behalf of either Party
(or any of their Affiliates) in the course of the Research Program or otherwise in the course of performing activities under this Agreement
(“Program IP”) shall be as follows:

 

(a)            Except
as otherwise provided in Section 9.2.2(b)–(d), all Inventions arising, discovered, created, acquired, conceived or reduced
to practice, by or on behalf of either Party (or any of their Affiliates) in the course of the Research Program, or otherwise in the
course of performing activities under this Agreement, shall be owned by the inventors as determined in accordance with inventorship rules under
U.S. patent law.

 

(b)            Lilly
shall solely own (or retain ownership of) all Program IP that is (i) invented solely by Lilly (or any of its Affiliates), (ii) solely
constitutes an Improvement to the Lilly Background IP, in each case, except to the extent constituting Joint Program IP, or (iii) constitutes
an Improvement to Lilly [***] Technology (collectively, “Lilly Program IP”).

 

(c)            ProQR
shall solely own (or retain ownership of) all Program IP that is either (i) invented solely be ProQR (or any of its Affiliates),
or (ii) solely constituting an Improvement to the ProQR Background IP (which for purposes of this Agreement shall include any Inventions
related to targeted RNA editing the use of which is not confined to a particular Target), in each case, except to the extent constituting
Joint Program IP (collectively, “ProQR Program IP”).

 

(d)            Lilly
and ProQR shall jointly own all Program IP that (i) constitutes an Improvement to both the Lilly Background IP and the ProQR Background
IP, (ii) Covers a Compound, and (iii) is neither Lilly Program IP nor ProQR Program IP (collectively, “Joint Program
IP”). For the avoidance of doubt, all Program IP constituting of Improvements to Lilly [***] Technology shall be considered
Lilly Program IP.

 

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9.3           Assignments
of Intellectual Property Rights.

 

9.3.1            Inventor
Assignment Obligation. Each Party shall cause all of its Affiliates, employees, agents, independent contractors, consultants, and
others who perform activities for such Party under this Agreement to be under an obligation to assign (or, if such Party is unable to
cause such person or entity to agree to such assignment obligation despite such Party using reasonable efforts to negotiate such assignment
obligation, provide a license, preferably exclusive, under) to such Party their rights in and to any Inventions created, conceived of,
reduced to practice, or acquired in the course or scope of the Research Program or otherwise related to this Agreement and all Intellectual
Property Rights therein, except where Applicable Law requires otherwise and except in the case of governmental, not-for-profit and public
institutions that have standard policies against such an assignment (in which case a Party shall obtain a suitable license, preferably
exclusive, or right to obtain such a license). Each Party shall use reasonable efforts to promptly disclose to the other Party in writing
all Inventions arising in the course or scope of the Research Program or otherwise under this Agreement, including any invention disclosures,
or other similar documents, submitted to it by its employees, agents or independent contractors describing such Inventions, and all information
relating to such Inventions to the extent necessary or useful for the preparation, filing and maintenance of any Patent with respect
to such Invention.

 

9.3.2            Lilly
Assignment of ProQR Program IP. Lilly shall and hereby does assign to ProQR all of Lilly’s and its Affiliates’ right,
title, and interest in and to all ProQR Program IP made by or on behalf of Lilly; provided, that Lilly shall retain, and ProQR hereby
grants to Lilly, the right to use such ProQR Program IP solely for Lilly’s (or any of its Affiliates’) internal Research
and Development purposes. Lilly shall take (and cause its employees, agents, contractors and Sublicensees (if applicable) to take) such
further actions reasonably requested by ProQR to evidence such assignment and to support ProQR’s efforts to Patent or obtain other
Intellectual Property Rights protection for such ProQR Program IP.

 

9.3.3            ProQR
Assignment of Lilly Program IP. ProQR shall and hereby does assign to Lilly all of ProQR’s and its Affiliates’ right,
title, and interest in and to all Lilly Program IP made by or on behalf of ProQR. ProQR shall take (and cause its employees, agents,
contractors and Sublicensees (if applicable) to take) such further actions reasonably requested by Lilly to evidence such assignment
and to support Lilly’s efforts to Patent or obtain other Intellectual Property Rights protection for such Lilly Program IP.

 

9.3.4            Assignment
of Joint Program IP. (a) ProQR (on behalf of itself and its Affiliates) shall and does hereby assign to Lilly and (b) Lilly
(on behalf of itself and its Affiliates) shall and does hereby assign to ProQR, an equal, undivided interest in and to the Joint Program
IP. Subject to the licenses and obligations of exclusivity granted under this Agreement, each Party shall have full rights to Exploit
and license Joint Program IP (and any Patent rights therein), without any obligation or requirement of an accounting to the other Party;
provided that, in Exploiting or licensing such Joint Program IP, neither Party shall have any right or license to the underlying Background
IP of the other Party, in each case, not otherwise expressly granted elsewhere in this Agreement.

 

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9.4           Independent
Development. Subject to the licenses and obligations of exclusivity granted hereunder, nothing in this Agreement shall be construed
as limiting either Lilly’s or ProQR’s right to research, develop, improve and in-license technology related to the Lilly
Background IP (in the case of Lilly) or ProQR Background IP (in the case of ProQR) outside the scope of this Agreement in its ordinary
course of business.

 

9.5           Enabling
Technology. [***].

 

9.6           Contribution
of Licensed ProQR Technology. ProQR shall inform Lilly in writing, prior to contributing to any Research to be conducted under any
Workplan any portion of the ProQR Technology that is in-licensed from a Third Party, the contribution of which would prevent or conflict
with the ownership and use rights with respect to Patents and Know-How contemplated by this Agreement.

 

9.7           Patent
Prosecution and Maintenance.

 

9.7.1            Rights
to Prosecute and Maintain Generally. Subject to Sections 9.7.3, 9.7.4 and 9.7.5, each Party shall control the Prosecution and Maintenance
of Patents claiming Inventions that such Party Controls (other than Control obtained pursuant to a grant of rights under this Agreement).

 

9.7.2            Product-Specific
Patents. As between the Parties, Lilly shall have the first right, but not the obligation, to Prosecute and Maintain any Product-Specific
Patents at Lilly’s sole cost and expense. Lilly shall keep ProQR reasonably informed of the status of all Product-Specific Patents
and shall promptly provide ProQR with all material correspondence received from any patent authority in connection therewith. In addition,
Lilly shall promptly provide ProQR with drafts of all proposed material filings and correspondence to any patent authority with respect
to any Product-Specific Patents for ProQR’s review and comment prior to the submission of such proposed filings and correspondences,
and Lilly shall consider ProQR’s reasonable comments in good faith. Lilly shall notify ProQR of its intention to suspend or cease
any Prosecution and Maintenance of any Product-Specific Patent. Lilly shall provide such notice at least [***] prior to any filing or
payment due date, or any other due date that requires action, in connection with such Product-Specific Patent. In such event, Lilly shall
permit ProQR, at ProQR’s discretion and at its sole expense, to continue Prosecution and Maintenance of such Product-Specific Patent,
subject to the foregoing information sharing obligation and review and comment rights applied mutatis mutandis; provided that
ProQR shall not continue such Prosecution and Maintenance if Lilly objects to such Prosecution or Maintenance consistent with Lilly’s
strategic decision-making rights. The Parties shall in good faith cooperate through the JPC (or as otherwise agreed to by the Parties)
to communicate and determine (and, in any event, ProQR shall notify Lilly, including through the JPC) which future ProQR Patents may
reasonably become Product-Specific Patents, and any such ProQR Patents shall be subject to the foregoing information sharing obligation
and review and comment rights applied mutatis mutandis, as well as Section 9.7.6. Lilly shall have no obligation to defend
against any patent oppositions existing or filed as of the Effective Date, including those listed on Exhibit 10.2, regardless
of whether or not any of the patents involved in the oppositions could be considered Product-Specific Patents. Further, Lilly’s
election not to defend against patent oppositions existing as of the Effective Date shall not prevent Lilly from exercising any of the
remaining rights to Prosecute and Maintain any Product-Specific Patent that it wishes to control in accordance with this Agreement.

 

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9.7.3            ProQR
Platform Patents. As between the Parties, subject to Section 9.7.2, ProQR shall have the sole responsibility for and control
over the Prosecution and Maintenance of any ProQR Platform Patents and ProQR Improvements IP, at ProQR’s sole cost and expense.

 

9.7.4            Lilly
[***] Patents. As between the Parties, subject to Section 9.7.2, Lilly shall have the sole responsibility for and control
over the Prosecution and Maintenance of any Patents that claim the Lilly [***] Technology.

 

9.7.5            Joint
Program Patents. The JPC shall determine which Party has the first right, but not the obligation, to Prosecute and Maintain the
Patents (other than Product-Specific Patents) in the Joint Program IP (“Joint Patents”). The Party
handling the Prosecution and Maintenance of a given Joint Patent (the “Prosecuting Party”) shall keep the
other Party reasonably informed of the status of such Joint Patents and shall promptly provide such other Party with all material
correspondence received from any patent authority in connection therewith. In addition, the Prosecuting Party shall promptly provide
the other Party with drafts of all proposed material filings and correspondence to any patent authority for such other Party’s
review and comment prior to the submission of such proposed filings and correspondences, and the Prosecuting Party shall consider
the other Party’s reasonable comments in good faith. The Prosecuting Party shall notify the other Party of its intention to
suspend or cease any Prosecution and Maintenance of any Joint Patent at least [***] prior to any filing or payment due date, or any
other due date that requires action, in connection with such Joint Patent. In such event, the Prosecuting Party shall permit the
other Party, at its discretion and at its sole expense, to continue Prosecution and Maintenance of such Joint Patent.

 

9.7.6            Separation
of Patent Claims. If ProQR desires to file an application for a Patent or to maintain a Patent (including such Patents filed as continuations
or divisionals after the Effective Date from Patents listed in Exhibit 1.124), in accordance with the rights granted to ProQR
under this Article 9 and such Patent would include the Specific Identification of a Project Target, Compound or Product (i.e.,
for purposes of pursuing Product-Specific Patent protection), the Parties agree that, to the extent practicable, such application or
Patent shall be divided into two (2) or more Patent applications or Patents, so that only one such application or Patent Specifically
Identifies a Project Target, Compound or Product (i.e., a Product-Specific Patent) and the other such application or Patent falls
generally within the ProQR Patents, and does not Specifically Identify a Project Target, Compound or Product. If such division or continuation
is not practicable, such Patent application, or Patent, shall be deemed to be within the Product-Specific Patents. If such division or
continuation is practicable, then the Parties shall, in good faith, coordinate filings as appropriate on the same day.

 

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9.7.7            Cooperation
of the Parties. Each Party shall cooperate fully with the other Party, through the JPC, in the Prosecution and Maintenance of Patents
under this Section 9.7 at its own cost (except as expressly set forth otherwise in this Article 9), including by: (a) executing
all papers and instruments, or requiring its employees or contractors, to execute such papers and instruments, to enable the other Party
to apply for and to Prosecute and Maintain such Patents in any country as permitted by this Section 9.7; and (b) promptly informing
the other Party of any matters coming to such Party’s attention that may affect the Prosecution and Maintenance of any such Patents.
Each Party will use reasonable efforts via good faith consultation to avoid creating potential issues in Prosecution and Maintenance
of Patents under this Section 9.7.

 

9.8           Infringement
or Misappropriation by Third Parties.

 

9.8.1            Notice.
Each Party shall notify the other within [***] of becoming aware of any alleged or threatened infringement by a Third Party of any of
the ProQR Patents, Lilly Patents or Program IP, which infringing activity involves the using, making, importing, offering for sale or
selling a Compound or Product, in each case in the Field in the Territory, and any related declaratory judgment, opposition or similar
action alleging the invalidity, unenforceability or non-infringement of any of the ProQR Patents, Lilly Patents or Program IP (collectively
 “Infringement”).

 

9.8.2            Generally.
Subject to Sections 9.8.3, 9.8.4 and 9.8.5, each Party shall have the sole right to bring and control any legal action in connection
with any Infringement of Patents claiming Inventions that such Party Controls (other than Control obtained pursuant to a grant of rights
under this Agreement).

 

9.8.3            Product-Specific
Patents. As between the Parties, Lilly shall have the first right to bring and control any legal action in connection with any Infringement
of any Product-Specific Patents at its own expense. Lilly shall keep ProQR reasonably informed of the status of such enforcement efforts
for such Product-Specific Patents and shall consider in good faith ProQR’s comments thereon. ProQR may, at its own expense, be
represented in any such action by counsel of its own choice. If Lilly does not bring such legal action within [***] after the notice
provided pursuant to Section 9.8.1, ProQR may bring and control any legal action in connection with such Infringement of such Product-Specific
Patent at its own expense as it reasonably determines appropriate so long as Lilly does not reasonably object to such action consistent
with Lilly’s strategic decision-making rights.

 

9.8.4            ProQR
Platform Patents. As between the Parties, ProQR shall have the sole right to bring and control any legal action in connection with
any Infringement of the ProQR Platform Patents at its own expense. ProQR shall keep Lilly reasonably informed of the status of the applicable
ProQR Platform Patents.

 

9.8.5            Joint
Patents. Subject to Section 9.8.3 and Section 9.8.4, the JPC shall determine which Party has the first right to bring and
control any legal action in connection with any Infringement of any Joint Patents at its own expense as it reasonably determines appropriate.
The enforcing Party shall keep the other Party reasonably informed of the status of such enforcement efforts for the Joint Patents and
shall consider in good faith such other Party’s comments thereon. The enforcing Party shall provide the other Party with drafts
of all material papers to be filed with the court and shall in good faith incorporate all reasonable comments thereto by such other Party
before filing such papers. The other Party may, at its own expense, be represented in any such action by counsel of its own choice. If
the enforcing Party does not bring such legal action within [***] after the notice provided pursuant to Section 9.8.1, the other
Party may bring and control any legal action in connection with such Infringement of any Joint Patents at its own expense as it reasonably
determines appropriate so long as the enforcing Party does not reasonably object to such action.

 

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9.8.6            Allocation
of Recoveries. Any recoveries resulting from an enforcement action relating to a claim of Infringement shall be first applied against
payment of each Party’s costs and expenses in connection therewith. The enforcing Party will retain any such recoveries in excess
of such costs and expenses; provided, that if Lilly is the enforcing Party with respect to patents within the ProQR Technology that cover
a Compound or Product, then such excess recoveries shall be [***].

 

9.8.7            Cooperation.
At the request and expense of the Party bringing an action under this Section 9.8, the other Party shall provide reasonable assistance
in connection therewith, including by executing reasonably appropriate documents, cooperating in discovery and joining as a party to
the action if required by Applicable Law to pursue such action. In connection with any such enforcement action, the Party bringing the
action shall not enter into any settlement admitting the invalidity or non-infringement of, or otherwise impairing the other Party’s
rights in the applicable Patents without the prior written consent of the other Party.

 

9.9           Defense
and Settlement of Third Party Claims. Each Party shall promptly notify the other in writing of: (a) any allegation by a Third
Party that the activity of either of the Parties pursuant to this Agreement infringes or may infringe the Intellectual Property Rights
of such Third Party; or (b) any declaratory judgment action that is brought naming either Party as a defendant and alleging invalidity
of any of the Lilly Patents, Joint Patents or ProQR Patents. ProQR has the sole right to control any defense of any such claim described
in (a) involving alleged infringement of Third Party rights by ProQR’s activities at its own expense and by counsel of its
own choice, and Lilly may, at its own expense, be represented in any such action by counsel of its own choice. Lilly has the sole right
to control any defense of any such claim described in (a) involving alleged infringement of Third Party rights by Lilly’s
activities or related to the Joint Patents at its own expense and by counsel of its own choice, and ProQR may, at its own expense, be
represented in any such action by counsel of its own choice. Neither Party may settle any patent infringement litigation under this Section 9.9
in a manner that admits the invalidity or unenforceability of the other Party’s Patents or imposes on the other Party restrictions
or obligations or other liabilities, without the written consent of such other Party, which consent shall not be unreasonably withheld,
conditioned, or delayed. Nothing in this Section 9.9 will limit any indemnification rights or obligations of a Party under Article 11.

 

9.10         Patent
Extension. The Parties shall cooperate in determining which Patent claiming or Covering a Product should be extended, and thereafter
the Parties shall cooperate in obtaining patent term restorations, supplemental protection certificates or their equivalents, and other
forms of patent term extensions for a given Product with respect to any applicable ProQR Patent or Lilly Patent in any country or region
where applicable. [***] shall have final decision-making authority with respect to decisions regarding patent term extensions with respect
to any Product-Specific Patent and any Joint Patent during the Term.

 

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9.11         CREATE
Act. It is the Parties’ intention that this Agreement is a “joint research agreement” as that phrase is defined
in 35 U.S.C. § 102(c) as amended by the Cooperative Research and Technology Enhancement (CREATE) Act, including the provisions
of 35 U.S.C. § 102(b)(2)(c). The Parties agree to cooperate and to take reasonable actions to maximize the protections available
for the Compounds and Products under such safe harbor provisions.

 

9.12         Trademarks.
Lilly shall have the right to select, and will be free, in its sole discretion, to use and to register in any trademark office in the
Territory, any trademark for use with a Product (the “Product Trademarks”). As between the Parties, Lilly shall
own all right, title and interest in and to any such Product Trademarks adopted by Lilly for use with Product, and is responsible for
the registration, filing, maintenance and enforcement thereof.

 

Article 10

 

REPRESENTATIONS, WARRANTIES AND COVENANTS

 

10.1         Mutual
Representations and Warranties. Each of Lilly and ProQR represent and warrant, as of the Effective Date and the A&R Effective
Date, that:

 

10.1.1          it
is duly organized and validly existing under the Applicable Laws of the jurisdiction of its incorporation or formation, as applicable,
has full corporate, limited liability company or other power and authority, as applicable, to enter into this Agreement and to carry
out the provisions hereof, and has sufficient facilities, experienced personnel or other capabilities (including via Affiliates and/or
Third Parties) to enable it to perform its obligations under this Agreement;

 

10.1.2          it
is duly authorized to execute and deliver this Agreement and to perform its obligations hereunder, and the individual executing this
Agreement on its behalf has been duly authorized to do so by all requisite corporate, limited liability company or other action, as applicable;
and

 

10.1.3          this
Agreement is legally binding upon it and enforceable in accordance with its terms (except as the enforceability thereof may be limited
by bankruptcy, bank moratorium or similar laws affecting creditors’ rights generally and laws restricting the availability of equitable
remedies and may be subject to general principles of equity whether or not such enforceability is considered in a proceeding at law or
in equity) and the execution, delivery and performance of this Agreement by it have been duly authorized by all necessary corporate action
and do not and will not: (a) conflict with, or constitute a default or result in a breach under, any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound, or violate any Applicable Law; or (b) require any consent or
approval of its stockholders.

 

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10.2         ProQR
Representations and Warranties. ProQR represents, warrants and covenants to Lilly that, as of the Effective Date and as of the A&R
Effective Date:

 

10.2.1      No
Unavailable Targets. No Reserved Target is an Unavailable Target and there are no Unavailable Targets in the Exclusive Field, and
neither the Initial Target or [***] is subject to an executed agreement between ProQR and a Third Party (or ProQR’s commitment
to negotiate an agreement with a Third Party) that would prevent, or conflict with, the inclusion of the Target as a Project Target (and
the associated Target being a Lilly Target) under this Agreement on an exclusive basis as set forth in Section 6.1 and Section 7.1.
No product, compound or Target exists that would be deemed within the Exclusive Field or part of an Internal Exclusive Field Program
if discovered, generated, developed or optimized [***].

 

10.2.2      No
Grants that Conflict with this Agreement. ProQR and its Affiliates have not granted, and will not grant during the Term, any rights
(or other encumbrances) to any Third Party under ProQR Technology that prevent or conflict with the rights granted to Lilly hereunder.

 

10.2.3      Control
over Know-How and Patents. ProQR has Control over all Know-How and Patent rights owned by it or its Affiliates that are necessary
or reasonably useful for the Exploitation of Compounds or Products in the Field, as known to be contemplated by this Agreement.

 

10.2.4      Existing
ProQR Patents.

 

(a)            All
Patent rights contained in the ProQR Technology existing as of the Effective Date or A&R Effective Date that are issued or subject
to a pending application for issuance are listed on Exhibit 10.2.4 (the “Existing ProQR Patents”).

 

(b)            All
Existing ProQR Patents: (i) to the extent issued and subsisting are, to ProQR’s knowledge, not invalid or unenforceable, in
whole or in part, and confer a valid right to claim priority thereto; (ii) are solely and exclusively owned by, or exclusively licensed
to ProQR, free of any encumbrance, lien or claim of ownership by any Third Party; (iii) are, to the extent subject to a pending
application for issuance, being diligently prosecuted in good faith in the respective patent offices in which such applications have
been filed in accordance with Applicable Law and, to ProQR’s knowledge, all material references, documents and information have
been presented to the relevant patent office in respect of such Existing ProQR Patents to the extent required by such patent office;
and (iv) were filed and are being maintained in accordance with applicable Patent office rules, and all applicable fees applicable
thereto have been paid on or before any final due date for payment.

 

(c)            Neither
ProQR nor any of its Affiliates have taken any action that would render unpatentable (including by means of the “on-sale bar”
doctrine or prior publication) any invention claimed in the Existing ProQR Patents.

 

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(d)            The
Existing ProQR Patents represent all ProQR Patents that relate to the ProQR Platform or the exploitation thereof contemplated under this
Agreement.

 

(e)            To
ProQR’s knowledge, other than the rights granted under this Agreement, no rights or licenses are required under any Third Party
Patent rights not Controlled by ProQR to practice the ProQR Technology as contemplated in the Workplan as of the Effective Date or A&R
Effective Date, or to Exploit the Products as contemplated herein solely by reason of the incorporation of ProQR Technology in such Products.

 

10.2.5      No
Third Party Agreements. Except as set forth on Exhibit 10.2, there are no license or other agreements with Third Parties
regarding the exploitation of any ProQR Technology or other materials contemplated to be provided by ProQR to Lilly hereunder, to which
ProQR or its Affiliate is a party that is inconsistent with or diminishes or would conflict with or prevent the rights and licenses granted
to Lilly under this Agreement, or would otherwise be in violation of or conflict with the exclusivity obligations set forth in Section 7.1.

 

10.2.6      Litigation
and Actions Relating to Intellectual Property. Except as set forth on Exhibit 10.2, ProQR: (a) has not received
any written notice of any threatened claims or litigation seeking to invalidate or otherwise challenge the ProQR Technology, including
the ProQR Patents, or ProQR’s or its Affiliates’ rights therein; and (b) is not aware of any pending or threatened action,
suit, proceeding or claim by a Third Party asserting that ProQR or any of its Affiliates is infringing or has misappropriated or otherwise
is violating any Patent right, trade secret or other proprietary right of any Third Party as would reasonably be expected to impair the
ability of ProQR to fulfill any of its obligations under this Agreement.

 

10.2.7      Other
Material Claims and Actions. There are no claims, actions, or proceedings pending or, to ProQR’s knowledge, threatened by any
Third Party; and to ProQR’s knowledge, there are no formal inquiries initiated or written notices received that may lead to the
institution of any such legal proceedings; in each case (or in aggregate) against ProQR or its properties, assets or business, which
if adversely decided, would, individually or in the aggregate, have a material adverse effect on, or prevent ProQR’s ability to
conduct the Research or to grant the licenses or rights granted to Lilly under this Agreement.

 

10.2.8      Intercompany
Arrangements. Both entities within the definition of “ProQR” have in place present licenses and services agreements with
all of their Affiliates sufficient to ensure compliance with ProQR’s obligations hereunder. Without limiting the generality of
the foregoing, any such Affiliate that owns any right, title or interest in or to ProQR Technology has granted a present license under
such ProQR Technology to ProQR (with appropriate scope of exclusivity) so that such technology is included in the licenses granted hereunder
from the Effective Date.

 

10.2.9      Assignment
by Employees, Agents and Consultants. ProQR has obtained from each of its current employees, consultants and contractors, in each
case who perform research or development activities pursuant to this Agreement, written agreements containing obligations of confidentiality
and non-use and an assignment to ProQR of all inventions (and all of such Person’s rights thereto) for which ProQR or Lilly is
intended to have ownership or license rights under this Agreement such that no such employee, contractor or consultant shall retain any
rights to such inventions that would prevent or conflict with Lilly’s rights of ownership or use of such inventions contemplated
by this Agreement.

 

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10.2.10        No
Government Funding. The inventions claimed or covered by the ProQR Patents: (a) were not conceived, discovered, developed or
otherwise made in connection with any research activities funded, in whole or in part, by, or otherwise using the resources of, any Governmental
Authority (whether of the U.S., the United Kingdom, or otherwise); (b) are not a “subject invention” as that term is
described in 35 U.S.C. Section 201(e) and (c) are not otherwise subject to the provisions of the Patent and Trademark
Law Amendments Act of 1980, as amended, codified at 35 U.S.C. §§ 200-212, as amended, as well as any regulations promulgated
pursuant thereto, including in 37 C.F.R. Part 401 (the “Bayh-Dole Act”). ProQR and its Affiliates have
complied with the applicable provisions of the Bayh-Dole Act, in a manner that protects and preserves ProQR’s right, title and
interest in such inventions to the maximum extent permitted by law.

 

10.2.11        Regulatory
Documentation. No Regulatory Documentation exists or has been generated relating to ProQR’s contemplated activities and obligations
under this Agreement. “Regulatory Documentation” means all: (a) applications (including all INDs, or equivalent,
BLA/NDAs, and applications for Regulatory Approval), registrations, licenses, authorizations and approvals (including Regulatory Approvals);
(b) correspondence and reports submitted to or received from Regulatory Authorities (including minutes and official contact reports
relating to any communications with any Regulatory Authority) and all supporting documents with respect thereto, including all adverse
event files and complaint files; (c) supplements or changes to any of the foregoing following Regulatory Approval; and (d) clinical
and other data, including Clinical Trial data, contained or relied upon in any of the foregoing; in each case ((a)–(d)) relating
to a Lilly Target and Products Directed To a Lilly Target.

 

10.3         Lilly
Representations and Warranties. Lilly represents, warrants and covenants to ProQR that, to Lilly’s knowledge, as of the A&R
Effective Date, (a) all Patent rights contained in the Lilly [***] Technology existing as of the A&R Effective Date that are
issued or subject to a pending application for issuance are listed on Exhibit 10.3 (the “Existing [***]
Patents”); (b) Lilly has not received any written notice of any threatened claims or litigation seeking to invalidate
or otherwise challenge the Lilly [***] Technology, including the Lilly [***] Patents, or Lilly’s or its Affiliates’ rights
therein; and (c) Lilly is not aware of any pending or threatened action, suit, proceeding or claim by a Third Party asserting that
Lilly or any of its Affiliates is infringing or has misappropriated or otherwise is violating any Patent right, trade secret or other
proprietary right of any Third Party as would reasonably be expected to impair the ability of Lilly to grant ProQR the rights to the
Lilly [***] Technology as provided under this Agreement.

 

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10.4         Mutual
Covenants.

 

10.4.1          Debarment.
Each Party represents, warrants and covenants to the other Party that neither it nor its officers, employees, agents, consultants or
any other person used by such Party in the performance of the respective research and development activities under this Agreement is:
(a) debarred or disqualified under the FD&C Act; (b) listed by any government or regulatory agencies as ineligible to participate
in any government healthcare programs or government procurement or non-procurement programs (as that term is defined in 42 U.S.C. § 1320a-7b(f)),
or excluded, debarred, suspended or otherwise made ineligible to participate in any such program; or (c) convicted of a criminal
offense related to the provision of healthcare items or services, or is subject to any such pending action. Each Party will not during
the Term knowingly, employ or use, directly or indirectly, including through Affiliates the services of any such person. In the event
that either Party becomes aware of the debarment or disqualification or threatened debarment or disqualification of any person providing
services to such Party, directly or indirectly, including through Affiliates or, in the case of Lilly, Sublicensees, which directly or
indirectly relate to activities contemplated by this Agreement, such Party shall promptly notify the other Party in writing and such
Party shall cease employing, contracting with, or retaining any such person to perform any such services.

 

10.4.2          Protection
of Information. Each Party agrees that during the Term of this Agreement, and without limiting its obligations hereunder, each Party
shall implement technical and organizational measures to protect all information under the Agreement that are appropriate and that provide
no less protection than both (i) good industry practice (i.e., in accordance with ISO 27001 and/or similar industry standards)
and (ii) such Party’s measures to protect its own information of a similar nature or importance.

 

10.5         Maintenance
of Intercompany Arrangements. ProQR shall maintain the agreements referenced in Section 10.2.8 in full force and effect throughout
the Term and shall ensure that such Affiliates remain compliant with the terms of such agreements. Should any such entity cease to be
an Affiliate of ProQR, ProQR shall ensure that such cessation has no adverse impact on ProQR’s performance hereunder or Lilly’s
rights hereunder.

 

10.6         Compliance.

 

10.6.1          Compliance
with this Agreement. Each of the Parties shall, and shall cause their respective Affiliates to, comply in all material respects with
the terms of this Agreement.

 

10.6.2          Compliance
with Applicable Laws. Each Party covenants to the other that in the performance of its obligations under this Agreement, such Party
shall comply, and shall cause its Affiliates and its and its Affiliates’ employees and contractors to comply, with all Applicable
Laws. No Party shall, or shall be required to, undertake any activity under or in connection with this Agreement which violates, or which
it believes, in good faith, may violate, any Applicable Laws.

 

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10.6.3          Compliance
with Party-Specific Regulations. In carrying out their respective obligations under this Agreement, the Parties agree to cooperate
with each other as may reasonably be required to help ensure that each is able to fully meet its obligations with respect to all judgments,
decrees, orders or similar decisions issued by any Governmental Authority specific to a Party, and all consent decrees, corporate integrity
agreements, or other agreements or undertakings of any kind by a Party with any Governmental Authority, in each case as the same may
be in effect from time to time and applicable to a Party’s activities contemplated by this Agreement (the “Party-Specific
Regulations”). Each Party shall be responsible for providing the other Party with any Party-Specific Regulations applicable
to the other Party, including any updates to such Party-Specific Regulations, and the covenant in the preceding sentence shall only apply
to the extent such Party-Specific Regulations and any updates thereto have been provided to the other Party. Neither Party shall be obligated
to pursue any course of conduct that would result in such Party being in material breach of any Party-Specific Regulation applicable
to it; provided that in the event that a Party refuses to fulfill its obligations under this Agreement in any material respect on such
basis, the other Party shall have the right to terminate this Agreement in accordance with Section 13.2; however, under such circumstances,
such termination, including the applicable effects of such termination set forth in Sections 13.5 and 13.6, shall be the sole remedy
for such terminating Party and such terminating Party shall not be entitled to any other remedy under law or equity. All Party-Specific
Regulations are binding only in accordance with their terms and only upon the Party to which they relate.

 

10.6.4          Compliance
with Internal Compliance Codes. All Internal Compliance Codes shall apply only to the Party to which they relate. The Parties agree
to cooperate with each other to help ensure that each Party is able to comply with the substance of its respective Internal Compliance
Codes and, to the extent practicable, each Party shall operate in a manner consistent with its Internal Compliance Codes applicable to
its performance under this Agreement. “Internal Compliance Codes,” as used in this Section 10.6.4, means
a Party’s internal policies and procedures intended to ensure that a Party complies with Applicable Laws, Party-Specific Regulations,
and such Party’s internal ethical, medical and similar standards.

 

10.6.5          Compliance
with Anti-Corruption Laws. In connection with this Agreement, the Parties shall comply with all applicable local, national, and international
laws, regulations, and industry codes dealing with government procurement, conflicts of interest, corruption or bribery, including, if
applicable, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and any laws enacted to implement the Organisation of Economic
Cooperation and Development Convention on Combating Bribery of Foreign Officials in International Business Transactions.

 

10.6.6          Compliance
with Privacy Laws. In connection with this Agreement, Lilly and ProQR (and its and their Affiliates), and any Person acting for or
on its or their behalf, will comply with all Applicable Laws with respect to data protection and privacy laws with respect to the receipt,
collection, compilation, use, storage, processing, sharing, safeguarding, security (technical, physical and administrative), disposal,
destruction, disclosure, or transfer (including cross-border) of Personal Information, including providing any notice, obtaining any
consent or prior authorization, and conducting any assessment required under Applicable Laws.

 

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10.6.7          Prohibited
Conduct. Without limiting the other obligations of the Parties set forth in this Section 10.5, each Party covenants to the other
that, as of the Effective Date and in the performance of its obligations under this Agreement through the expiration and termination
of this Agreement, such Party and, to its knowledge, its Affiliates and its and its Affiliates’ employees and contractors, in connection
with the performance of their respective obligations under this Agreement, have not made, offered, given, promised to give, or authorized,
and will not make, offer, give, promise to give, or authorize, any bribe, kickback, payment or transfer of anything of value, directly
or indirectly through Third Parties, to any Government Official for the purpose of: (a) improperly influencing any act or decision
of the Person or Government Official; (b) inducing the Person or Government Official to do or omit to do an act in violation of
a lawful or otherwise required duty; (c) securing any improper advantage; or (d) inducing the Person or Government Official
to improperly influence the act or decision of any organization, including any government or government instrumentality, to assist any
Party in obtaining or retaining business. For the purpose of this Section 10.6.7 “Government Official”
means: (x) any officer, employee (including physicians, hospital administrators, or other healthcare professionals), agent, representative,
department, agency, de facto official, representative, corporate entity, instrumentality or subdivision of any government, military or
international organization, including any ministry or department of health or any state-owned or affiliated company or hospital; (y) any
candidate for political office, any political party or any official of a political party, in each case for the purpose of obtaining or
retaining business for or with, or directing business to, any Person, including either Party; or (z) any Person acting in an official
capacity on behalf of any of the foregoing.

 

10.7         Disclaimer.
EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS Article 10, NEITHER PARTY MAKES ANY REPRESENTATIONS OR EXTENDS ANY WARRANTIES OF
ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, QUALITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT,
OR VALIDITY OF PATENT CLAIMS. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY EITHER PARTY
THAT EITHER PARTY WILL BE SUCCESSFUL IN OBTAINING ANY PATENTS OR THAT ANY PATENTS WILL ISSUE BASED ON A PENDING APPLICATION. WITHOUT
LIMITING THE RESPECTIVE RIGHTS AND OBLIGATIONS OF THE PARTIES EXPRESSLY SET FORTH HEREIN, EACH PARTY SPECIFICALLY DISCLAIMS ANY GUARANTEE
THAT ANY PROGRAM OR PRODUCTS WILL BE SUCCESSFUL, IN WHOLE OR IN PART.

 

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Article 11

 

INDEMNIFICATION

 

11.1         Indemnity.

 

11.1.1          By
ProQR. Subject to Section 11.1.3, ProQR shall defend, indemnify and hold harmless Lilly and its Affiliates, and their
respective directors, officers, employees, and agents (each, a “Lilly Indemnitee”) from and against any
and all costs, fees, expenses, losses, liabilities, and damages, including reasonable legal expenses and attorneys’ fees
(collectively, “Losses”) to which any Lilly Indemnitee may become subject as a result of (a) any
claim, demand, action or other proceeding by any Third Party (a “Claim”) to the extent such Claim and
Losses arise out of: (i) the gross negligence, fraud or willful misconduct of ProQR or its Affiliates in connection with
performance of its activities under this Agreement; (ii) the breach of this Agreement or the representations, warranties, and
covenants made hereunder by ProQR; or (iii) ProQR’s, its Affiliates’ or their respective licensees’ or ProQR
Sublicensees’ conduct of the Research Program during the Research Term (but only to the extent such activities directly cause
such Losses and specifically excluding any product liability-related Claims and Losses); (b) [***] or (c) the Exploitation
of any ProQR Product by or on behalf of ProQR, its Affiliates, or their respective ProQR Sublicensees; except, in each case, to the
extent such Losses result from matters described in clause (a), (b), or (c) of Section 11.1.2.

 

11.1.2          By
Lilly. Subject to Section 11.1.3, Lilly shall defend, indemnify and hold harmless ProQR, its Affiliates, and their respective
directors, officers, employees and agents (each, a “ProQR Indemnitee”) from and against any and all Losses
to which any ProQR Indemnitee may become subject as a result of any Claim to the extent such Claim and Losses arise out of: (a) the
gross negligence, fraud or willful misconduct of Lilly, its Affiliates, or their respective Sublicensees in connection with performance
of its or their activities under this Agreement; (b) the breach of this Agreement or the representations, warranties and covenants
made hereunder by Lilly; (c) Lilly’s, its Affiliates’ or their respective Sublicensees’ (excluding ProQR and its
Affiliates and its and their licensees and contractors) conduct of the Research Program during the Research Term, other than where such
activity is performed by ProQR or its Affiliates on behalf of Lilly, its Affiliates or their respective Sublicensees, or (d) the
Exploitation of any Product by or on behalf of Lilly, its Affiliates, or their respective Sublicensees; except, in each case, to the
extent such Losses result from matters subject to clause (a), (b) or (c) of Section 11.1.1.

 

11.1.3          Procedure.
A Party that intends to claim indemnification under this Article 11 (the “Indemnitee”) shall promptly
notify the Indemnitor (the “Indemnitor”) in writing of any Claim in respect of which the Indemnitee intends
to claim such indemnification. The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement
of any action with respect to a Claim shall only relieve the Indemnitor of its indemnification obligations under this Article 11
if and to the extent the Indemnitor is actually and materially prejudiced thereby. The Indemnitor has sole control of the defense or
settlement thereof. The Indemnitee shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any
action with respect to a Claim covered by this indemnification. The Indemnitee may participate at its expense in the Indemnitor’s
defense of and settlement negotiations for any Claim with counsel of the Indemnitee’s own selection. The Indemnitor shall not settle
any Claim without the prior written consent of the Indemnitee, not to be unreasonably withheld, conditioned or delayed. So long as the
Indemnitor is actively defending the Claim in good faith, the Indemnitee shall not settle or compromise any such Claim without the prior
written consent of the Indemnitor. If the Indemnitor does not assume and conduct the defense of the Claim as provided above: (a) the
Indemnitee may defend against, consent to the entry of any judgment, or enter into any settlement with respect to such Claim in any manner
the Indemnitee may deem reasonably appropriate (and the Indemnitee need not consult with, or obtain any consent from, the Indemnitor
in connection therewith); and (b) the Indemnitor shall remain responsible to indemnify the Indemnitee as provided in this Article 11.

 

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11.2         Insurance.
During the Term, each Party shall maintain such types and amounts of liability insurance (including self-insurance) as is normal and
customary in the industry generally for similarly situated parties and adequate to cover its obligations under this Agreement, and [***]
will upon request provide [***] with a certificate of insurance in that regard.

 

Article 12

 

CONFIDENTIALITY

 

12.1         Confidential
Proprietary Information.

 

12.1.1          Confidential
Proprietary Information. In connection with this Agreement, each Party may disclose technical, business or other confidential information
in connection with this Agreement, whether prior to, on, or after the Effective Date, including: (a) any unpublished Patents; and
(b) any information regarding the scientific, regulatory or business affairs or other activities of either Party (such confidential
information, “Confidential Proprietary Information”). Without limiting the foregoing, the terms of this Agreement
are the Confidential Proprietary Information of both Parties and shall be treated confidentially by each of the Parties, subject to the
exceptions set forth in Section 12.1.6. Information exchanged by the Parties pursuant to the Confidentiality Agreement shall be
treated as Confidential Proprietary Information under this Agreement and governed by the terms of this Agreement. Without limiting the
foregoing, until such time as the applicable information has become available to the public in accordance with this Agreement, ProQR
agrees not to disclose the sequence of any Compound except pursuant to Section 12.1.4.

 

12.1.2          Restrictions.
A Party (the “Receiving Party”) that receives Confidential Proprietary Information from the other Party (the
 “Disclosing Party”) shall keep all the Disclosing Party’s Confidential Proprietary Information in confidence
with the same degree of care with which the Receiving Party holds its own confidential information (but in no event less than a commercially
reasonable degree of care). A Receiving Party shall not use the Disclosing Party’s Confidential Proprietary Information except
in connection with the performance of its obligations and exercise of its rights under this Agreement.

 

12.1.3          Exceptions.
The obligations of confidentiality and restriction on use of Confidential Proprietary Information under Section 12.1.2 do not apply
to any information that the Receiving Party can prove by competent written evidence: (a) is now, or hereafter becomes, through no
act or failure to act on the part of the Receiving Party, generally known or available to the public; (b) is known by the Receiving
Party at the time of receiving such information, other than by previous disclosure of the Disclosing Party, or its Affiliates, employees,
agents, consultants, or contractors; (c) is hereafter furnished to the Receiving Party without restriction by a Third Party who
has no obligation of confidentiality or limitations on use with respect thereto, as a matter of right; or (d) is independently discovered
or developed by the Receiving Party without the use of or reference to Confidential Proprietary Information belonging to the Disclosing
Party. Specific information shall not be deemed to be within any of the foregoing exclusions merely because it is embraced by more general
information falling within those exclusions.

 

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12.1.4      Permitted
Disclosures. The Receiving Party may disclose Confidential Proprietary Information belonging to the Disclosing Party as expressly
permitted by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances:

 

(a)            made
by or on behalf of the Receiving Party to a Patent authority as may be reasonably necessary or useful for purposes of Prosecution and
Maintenance of Patents as permitted by this Agreement; provided, that neither Party shall file a patent application that discloses Program
IP that is solely owned by the other Party pursuant to this Agreement without the prior written consent of the owning Party (such consent
not to be unreasonably withheld, conditioned or delayed);

 

(b)            made
by or on behalf of the Receiving Party to Regulatory Authorities as required in connection with any Regulatory Filings for a product
that such Party has a license or right to develop in a given country or jurisdiction;

 

(c)            made
by or on behalf of the Receiving Party as may be reasonably necessary for prosecuting or defending litigation as permitted by this Agreement;

 

(d)            made
by or on behalf of the Receiving Party for the purpose of complying with a valid order of a court of competent jurisdiction or other
Governmental Authority of competent jurisdiction or, if in the opinion of the Receiving Party’s legal counsel, such disclosure
is otherwise required by Applicable Law;

 

(e)            made
by or on behalf of the Receiving Party where such disclosure is required by a Regulatory Authority (including in filings with the Securities
and Exchange Commission or other agency) of certain material developments or material information generated under this Agreement;

 

(f)             made
by or on behalf of the Receiving Party as of the Effective Date in response to a valid request by a U.S., state, foreign, provincial,
or local tax authority, in which case either Party may disclose a copy of this Agreement (including any Exhibits, Appendices, ancillary
agreements, and amendments hereto);

 

(g)            made
by the Receiving Party to its and its Affiliates’ employees, consultants, contractors and agents, and to Sublicensees (in the case
of Lilly), in each case on a need-to-know basis (as reasonably determined by the Receiving Party) in connection with the Exploitation
of Products or Terminated Products (if applicable) in the Field in the Territory, in each case under written obligations of confidentiality
and non-use at least as stringent as those herein; and

 

(h)            made
by the Receiving Party to potential and actual investors, acquirers, licensees and other financial or commercial partners solely for
the purpose of evaluating or carrying out an actual or potential investment, acquisition, or collaboration, in each case under written
obligations of confidentiality and non-use at least as stringent as those herein; provided, however, that with respect to disclosure
to actual or bona fide potential investors, such disclosure is under a written obligation of confidentiality that is consistent with
market terms, including a shorter period of time during which such information must be held confidential.

 

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Notwithstanding
the foregoing, if a Party is required to make a disclosure of the other Party’s Confidential Proprietary Information pursuant to
Section 12.1.4(c) or Section 12.1.4(d), it shall, except where impracticable, give reasonable advance notice to the other
Party of such disclosure and use efforts to secure confidential treatment of such Confidential Proprietary Information at least
as diligent as such Party would use to protect its own Confidential Proprietary Information, but in no event less than reasonable efforts.
Any information disclosed pursuant to this Section 12.1.4 remains Confidential Proprietary Information and subject to the restrictions
set forth in this Agreement, including the foregoing provisions of this Article 12.

 

12.1.5          Public
Domain Information and Residual Knowledge. Nothing in this Agreement shall prevent a Party from using any information that is in
the public domain. A Party shall also not be restricted under, and shall not be in breach of, this Agreement from using, within or outside
this Agreement and for any purpose, any general knowledge, skill, and expertise acquired by its employees (or its Affiliates’ employees)
in their performance of this Agreement (“Residuals”) solely to the extent such Residuals shall have been retained
in the unaided memory (without intentional memorization) of such employees in intangible form and without use by the Party or such employees
of tangible copies of any Confidential Proprietary Information of the other Party; provided that this provision will not be deemed in
any event to provide any right to infringe, or to grant any license to or under, the Patent rights of the other Party or of Third Parties
that have licensed or provided materials to the other Party; provided, further, that a Party’s use of such Residuals is on an “as
is, where is” basis, with all faults and all representations and warranties disclaimed and at such Party’s sole risk.

 

12.1.6          Disclosure
of Agreement. Notwithstanding the foregoing, either Party or its Affiliates may disclose the relevant terms of this Agreement: (a) to
the extent required or advisable to comply with the rules and regulations promulgated by the U.S. Securities and Exchange Commission
or any equivalent governmental agency in any country in the Territory, provided that such Party shall submit a confidential treatment
request in connection with such disclosure and shall submit with such confidential treatment request only such redacted form of this
Agreement, which redacted form of this Agreement shall be provided to the other Party for review and comment and which comments shall
be considered in good faith by the disclosing Party; (b) upon request from a Governmental Authority (such as a tax authority), provided
the disclosing Party uses reasonable efforts to ensure the Governmental Authority maintains such terms as confidential; (c) to applicable
licensors, to the extent necessary to comply with the terms of any Third Party license agreement, the rights under which are sublicensed
to the other Party under this Agreement; and (d) to the extent necessary to perform obligations or exercise rights under this Agreement,
to any sublicensee, collaborator or potential sublicensee or potential collaborator of such Party, provided that any sublicensee, collaborator
or potential sublicensee or collaborator agree in writing to be bound by obligations of confidentiality and non-use no less protective
of the Disclosing Party than those set forth in this Agreement.

 

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12.1.7          Survival.
Each Party’s obligations under this Section 12.1 (other than Section 12.1.5) shall apply during the Term and continue
for [***] thereafter with respect to Confidential Proprietary Information, except for information which is a “trade secret,”
for which each Party’s obligations under this Section 12.1 shall remain in place as long as the applicable Confidential Proprietary
Information retains its status as a trade secret. Section 12.1.5 shall apply during the Term and shall survive any expiration or
termination of this Agreement.

 

12.2         Publicity.
Promptly following the A&R Effective Date, ProQR and Lilly may issue a joint press release mutually agreed by the Parties. Thereafter,
either Party may make subsequent public disclosure of the contents of such press release and, except as permitted under Section 12.1.4
and this Section 12.2, ProQR shall not issue any subsequent press release or public statement disclosing information relating to
this Agreement or the transactions contemplated hereby or the terms hereof without the prior written consent of Lilly, not to be unreasonably
withheld, conditioned, or delayed; provided however, that ProQR will not be prevented from complying with any duty of disclosure it may
have pursuant to Applicable Laws or pursuant to the rules of any recognized stock exchange or quotation system subject to the restrictions
set forth in Sections 12.1.4 and 12.1.6. If a Party desires to issue a press release disclosing information relating to this Agreement
or the transactions contemplated hereby or the terms hereof, it will provide the other Party with a copy of the proposed press release.
The disclosing Party shall specify with each such proposed press release or public statement, taking into account the urgency of the
matter being disclosed, a reasonable period of time within which the other Party may provide any comments on such proposed press release
or public statement. If such other Party provides any comments, the Parties shall consult with one another on such proposed press release
or public statement and work in good faith to prepare a mutually acceptable press release or public statement. The Parties may repeat
any information relating to this Agreement that has already been publicly disclosed in accordance with this Section 12.2, provided
such information continues as of such time to be accurate.

 

12.3         Publication.
Lilly shall be entitled to issue scientific publications and make presentations with respect to the Research Program, the Project Targets,
the Lilly Targets, the Products, and their testing in accordance with Lilly’s internal guidelines without approval by ProQR, and
Lilly shall be in control of any publications or scientific presentations regarding the Products or their testing subject to this Section 12.3.
ProQR shall not issue any scientific publications regarding the Project Targets, the Lilly Targets, the Products or their testing without
Lilly’s prior written consent.

 

Article 13

 

TERM & TERMINATION

 

13.1         Term.
This Agreement commences on the Effective Date and, unless terminated earlier as provided in this Article 13, shall continue (a) with
respect to Products, on a Product-by-Product basis until the expiration of the last Royalty Term in the Territory for such Product, (b) with
respect to ProQR Products, on a ProQR Product-by-ProQR Product basis until the expiration of the [***] Royalty Term for such Product,
and (c) with respect to any ProQR Sublicense that remains in effect following the expiration of the [***] Royalty Term, on a ProQR
Sublicense-by-ProQR Sublicense basis until the expiration of termination of such Sublicense (the “Term”).

 

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13.2         Termination
for Material Breach.

 

13.2.1          Termination.
Either Party may terminate this Agreement upon written notice to the other Party if such other Party materially breaches its obligations
under this Agreement and, after receiving written notice from the non-breaching Party identifying such material breach in reasonable
detail, fails to cure such material breach within [***] from the date of such notice; provided that if a non-payment related breach is
not reasonably capable of cure within such [***] period, the breaching Party may submit, prior to the end of such [***] period, a reasonable
plan to cure the breach within an additional [***], in which case the other Party may not terminate this Agreement for so long as the
breaching Party is using Commercially Reasonable Efforts to implement such cure plan within such additional [***].

 

13.2.2          Partial
Termination. [***].

 

13.2.3          Dispute.
If the alleged breaching Party disputes in good faith the existence or materiality of a breach specified in a notice provided by the
other Party in accordance with Section 13.2.1, and such alleged breaching Party provides the other Party notice of such dispute
within such [***] period, then the non-breaching Party may not terminate this Agreement under Section 13.2.1 unless and until it
has been finally determined pursuant to Article 14 that the alleged breaching Party has materially breached this Agreement and such
Party fails to cure such breach within [***] following such court’s decision. During the pendency of such dispute, all of the terms
and conditions of this Agreement shall remain in effect and the Parties shall continue to perform all of their respective obligations
hereunder.

 

13.2.4          Lilly
Option to Continue Agreement. Notwithstanding anything to the contrary under this Agreement, if ProQR materially breaches this Agreement,
as finally determined under Article 14, during the Research Term such that Lilly would otherwise have the right to terminate this
Agreement under Section 13.2.1, Lilly shall have the option to cause the Research Transfer Scenario to occur by written notice to
ProQR. Lilly shall also be entitled, in lieu of terminating this Agreement (if Lilly would otherwise have the right to terminate this
Agreement under either Section 13.2.1 or 13.2.2), to set-off any damages finally determined under Article 14 to have resulted
from ProQR’s material breach from any Milestone Payments and Royalties payable by Lilly to ProQR. For clarity, in such scenario,
the Agreement shall continue in accordance with its terms, save as expressly set forth in this Section 13.2.4.

 

13.3         Termination
by Lilly.

 

13.3.1          Partial
Termination. Lilly may, at any time in its sole discretion and without cause, terminate this Agreement on a Project Target-by-Project
Target, Project-by-Project, or Product-by-Product basis upon [***] days’ prior written notice to ProQR.

 

13.3.2          Entire
Agreement. Lilly may, in its sole discretion, terminate this Agreement in its entirety at any time and without cause upon [***] days’
prior written notice to ProQR.

 

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13.4         Termination
for Patent Challenges. Except to the extent the following is unenforceable under the Applicable Law of a jurisdiction, then:

 

13.4.1          if
Lilly, its Affiliates, or Sublicensees, directly or indirectly: (a) initiate or request an interference or opposition proceeding
with respect to any ProQR Patents; (b) make, file, or maintain any claim, demand, lawsuit, or cause of action to challenge the validity
or enforceability of any ProQR Patents; or (c) oppose any extension of, or the grant of a supplementary protection certificate with
respect to, any ProQR-Controlled Patent, in each case other than in response to a threat of an infringement claim or as necessary to
secure allowance of a ProQR-owned patent claim, then ProQR may terminate this Agreement solely with respect to the challenged ProQR Patent(s) with
respect to any Projects or Products to which such patent challenge relates upon thirty (30) days’ prior written notice to Lilly;
and

 

13.4.2          if
ProQR, its Affiliates, or sublicensees, directly or indirectly, (a) initiate or request an interference or opposition proceeding
with respect to any Lilly Patents, (b) make, file, or maintain any claim, demand, lawsuit, or cause of action to challenge the validity
or enforceability of any Lilly Patents, or (c) oppose any extension of, or the grant of a supplementary protection certificate with
respect to, any Lilly Patents, in each case other than in response to a threat of an infringement claim or as necessary to secure allowance
of a Lilly-owned patent claim, then Lilly may terminate this Agreement with respect to the challenged Lilly Patent(s) with respect
to any Projects or Products to which such patent challenge relates upon thirty (30) days’ prior written notice to ProQR.

 

13.5         Effects
of Termination. Upon any termination of this Agreement, the provisions of this Section 13.5 will apply, provided that if this
Agreement is terminated only with respect to specified Products (“Terminated Products”) or Projects (“Terminated
Projects”) and not in its entirety, then the following will apply to such Terminated Products or Terminated Projects only,
and if this Agreement is terminated in its entirety, then all Products will be deemed Terminated Products and all Projects will be deemed
Terminated Projects. If this Agreement is terminated with respect to a Project Target, all Products Directed To such Project Target will
be deemed Terminated Products and the Project relating to such Project Target will be deemed a Terminated Project. If this Agreement
is terminated solely with respect to specified Projects or a Project Target, the applicable Project Target (the subject of such Project)
shall be deemed to no longer be a Project Target and the Terminated Products shall be deemed to no longer be Compounds or Products, in
each case, except for the purposes of the provisions of this Agreement relating to the effects of such termination.

 

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13.5.1            Termination
of Licenses. All licenses for Terminated Products granted by ProQR under Article 6 shall terminate automatically as of the
termination effective date; provided that, if Lilly (or its Affiliates or Sublicensees) has inventory of usable Product(s) as
of the effective date of termination, then Lilly (and its Affiliates and Sublicensees) may continue to sell off such inventory of
Products in the Field in the Territory (and fulfill customer orders therefor, including to manufacture Products for customer orders
placed prior to the effective date of termination) until the earlier to occur of [***] days after the effective date of termination
and the date on which Lilly (or its Affiliates or Sublicensees) no longer has such inventory of Product(s) and shall pay ProQR
any applicable payments due based on such sales. Any permitted sublicense granted (a) by Lilly or its Affiliate to a Third
Party under the licenses granted to Lilly under this Agreement or (b) by ProQR or its Affiliate to a ProQR Sublicensee shall
survive the termination of this Agreement, provided that, in the case where termination of this Agreement for Lilly’s or
ProQR’s uncured material breach pursuant to Section 13.2, such Sublicensee or ProQR Sublicensee, as applicable, did not
cause such uncured material breach. Except with respect to ProQR Sublicenses as set forth in this Section 13.2.2, if this
Agreement is terminated pursuant to Section 13.2.2, all licenses and rights granted by Lilly to ProQR and its Affiliates to use
or Exploit Lilly [***] Technology shall terminate automatically as of the termination effective date.

 

13.5.2            Destruction
of Confidential Proprietary Information. Subject to the potential transfer of any data and information covered below in Section 13.5.3,
each Receiving Party shall destroy (at the Disclosing Party’s written request) all such Confidential Proprietary Information of
the Receiving Party in its possession as of the effective date of expiration or termination (with the exception of one copy of such Confidential
Proprietary Information, which may be retained by the legal department of the Receiving Party to confirm compliance with the non-use
and non-disclosure provisions of this Agreement), and any Confidential Proprietary Information of the Disclosing Party contained in its
laboratory notebooks or databases, provided that each Receiving Party may retain and continue to use such Confidential Proprietary Information
of the Disclosing Party to the extent necessary to exercise any surviving rights, licenses or obligations under this Agreement. Notwithstanding
the foregoing, a Receiving Party shall not be required to destroy any computer files created during automatic system back up that are
subsequently stored securely by it and not readily accessible to its employees, consultants, or others who received the Disclosing Party’s
Confidential Proprietary Information under this Agreement.

 

13.5.3            Terminated
Product Reversion. Except in connection with any termination by Lilly pursuant to Section 13.2 or Section 13.4.2, in the
event of any termination of this Agreement in its entirety or with respect to a Project, if requested by ProQR, the Parties shall negotiate
in good faith to enter into a separate agreement detailing the potential transition to ProQR of Lilly’s rights and obligations
(or portions thereof) with respect to any Terminated Product or Terminated Project, in each case that is Covered by a Patent contained
in the Lilly or Joint Program IP, which agreement may provide for the payment of royalties or other compensation by ProQR to Lilly for
the Commercialization by ProQR of any such Terminated Product; and provided that: (a) Lilly shall have no obligation to negotiate
or grant a license to any Excluded Technology; (b) Lilly shall have no obligation to provide ProQR any Lilly Background IP or Excluded
Technology used in such Terminated Products (or any rights to any such Excluded Technology); and (c) with respect to any Lilly Technology
that is licensed to Lilly from a Third Party, Lilly shall have no obligation to negotiate with such Third Party for, or grant, any sublicense
rights to ProQR, but shall advise ProQR of the identity of such Third Party licensor and the nature of the relevant Lilly Technology,
and ProQR shall be solely responsible, at its sole cost and expense, for obtaining and negotiating for any rights to such Third Party’s
technology or Intellectual Property Rights. Notwithstanding the foregoing, if the Parties are unable to agree on the terms of such a
transition agreement within ninety (90) days of commencement of discussions with respect thereto despite their good faith efforts, Lilly
shall have no further obligation to enter into such an agreement or negotiate with ProQR with respect thereto.

 

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13.6            Survival.
Expiration or termination of this Agreement shall not relieve the Parties of any obligation or right accruing prior to such expiration
or termination. Except as set forth below or elsewhere in this Agreement, the obligations and rights of the Parties under the following
provisions of this Agreement shall survive expiration or termination of this Agreement: Articles 1 (to the extent defined terms are used
in other surviving provisions), 11, and 14, and Sections 6.3, 6.6, 6.7, 8.3.1 (solely with respect to the conversion of the license granted
in Section 6.1 in the event of the expiration of this Agreement), 8.3.7, 8.4.2 and 8.5 (both only if and as needed for Lilly or
ProQR to provide a final payment and report), 8.7 (for a period of [***] to permit ProQR or Lilly to conduct a final audit if applicable),
9.1-9.4 (inclusive), 9.7.5, 9.8.5, 9.8.6 and 9.8.7 (both solely with respect to Joint Patents), 9.10 (solely with respect to Joint Patents),
12.1.7, 13.5, 13.6, 15.2, 15.4, 15.6, 15.11 and 15.17.

 

13.7            Bankruptcy
Code. If this Agreement is rejected or disclaimed by a Party as a debtor under Section 365 of the United States Bankruptcy Code,
the Dutch Bankruptcy Act (Faillissementswet) and the Insolvency Regulation (and implementations thereof) or similar provisions
in the bankruptcy, insolvency, reorganization or debtor relief laws of another jurisdiction (collectively, the “Code”),
then, notwithstanding anything else in this Agreement to the contrary, all licenses and rights to licenses granted under or pursuant
to this Agreement by the Party in bankruptcy to the other Party are, and shall otherwise be deemed to be, for purposes of Section 365(n) of
the Code (or similar provision in the bankruptcy laws of the jurisdiction), licenses of rights to “intellectual property”
as defined under Section 101(35A) of the Code (or similar provision in the bankruptcy laws of another applicable jurisdiction).
The Parties agree that a Party that is a licensee of rights under this Agreement shall retain and may fully exercise all of its rights
and elections under the Code, and that upon commencement of a bankruptcy proceeding by or against a Party under the Code, the other Party
shall be entitled to a complete duplicate of, or complete access to (as such other Party deems appropriate), any such intellectual property
and all embodiments of such intellectual property, if not already in such other Party’s possession, shall be promptly delivered
to such other Party: (a) upon any such commencement of a bankruptcy proceeding upon written request therefor by such other Party,
unless the bankrupt Party elects to continue to perform all of its obligations under this Agreement; or (b) if not delivered under
the foregoing subclause (a), upon the rejection of this Agreement by or on behalf of the bankrupt Party upon written request therefor
by the other Party. The foregoing provisions of this Section 13.7 are without prejudice to any rights a Party may have arising under
the Code.

 

Article 14

 

GOVERNING LAW; DISPUTE RESOLUTION

 

14.1            Governing
Law. This Agreement is governed by and will be construed in accordance with the laws of the State of New York, without reference
to its conflict of laws principles. The United Nations Convention of International Contracts on the Sale of Goods (the Vienna Convention)
does not apply to this Agreement.

 

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14.2            Disputes.
The Parties recognize that controversies or claims arising out of, relating to, or in connection with this Agreement may arise from time
to time. It is the objective of the Parties to establish procedures to facilitate the resolution of disputes in an expedient manner by
mutual cooperation and without resort to litigation. To accomplish this objective, the Parties shall follow the procedures set forth
in this Article 14 to resolve any dispute. If any dispute, claim or controversy of any nature arising out of or relating to this
Agreement, including any action or claim based on tort, contract or statute, or concerning the interpretation, effect, termination, validity,
performance or breach of this Agreement (each, a “Dispute”), arises between the Parties, either Party may request
in writing that the Dispute be submitted to the Executive Officers of each Party for resolution within [***] of such written notice.
If the Executive Officers have not succeeded in negotiating a resolution of the Dispute within [***] after the notice of Dispute, and
a Party wishes to pursue the matter, the Parties may seek to resolve the Dispute in any federal court having jurisdiction thereof located
in New York, New York as further described in Section 14.3.

 

14.3            Litigation;
Equitable Relief. The Federal courts located in New York, New York shall have exclusive jurisdiction over, and shall be the exclusive
venue for resolution of, any Dispute not resolved through the informal Dispute-resolution procedures described in Section 14.2.
Notwithstanding the foregoing, any challenge to a patent (including, without limitation validity, enforceability, or otherwise) may be
brought before the U.S. Patent and Trademark Office or similar foreign body. If, within [***] following a notice by either Party to the
other that it does not believe the Dispute can be resolved through the Executive Officers, neither Party has commenced proceedings seeking
to resolve such Dispute in any federal court having jurisdiction, then such Dispute and all related rights, demands, claims, actions,
causes of action, suits, proceedings and Losses of every kind and nature shall be deemed to have been irrevocably waived and released,
to the fullest extent permitted under Applicable Laws. Notwithstanding anything to the contrary in this Agreement, either Party may,
at any time and without waiving any remedy under this Agreement, seek from any court having jurisdiction any temporary injunctive or
provisional relief necessary to protect the rights or property of that Party. Any final judgment resolving a Dispute may be enforced
by either Party in any court having appropriate jurisdiction.

 

14.4            Waiver
Of Jury Trial.

 

EXCEPT AS LIMITED BY APPLICABLE LAW, EACH PARTY
HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED IN CONTRACT,
TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF ANY PARTY HERETO IN THE NEGOTIATION, ADMINISTRATION,
PERFORMANCE, AND ENFORCEMENT HEREOF. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS ARTICLE WITH ANY COURT AS WRITTEN
EVIDENCE OF THE KNOWING, VOLUNTARY, AND BARGAINED-FOR AGREEMENT BETWEEN THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN
ANY ACTION, SUIT, PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT WHICH SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

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Article 15

 

MISCELLANEOUS

 

15.1         Entire
Agreement; Amendment; Integration.

 

15.1.1            This
Agreement, including the Exhibits hereto, sets forth the complete, final and exclusive agreement and all the covenants, promises, agreements,
warranties, representations, conditions and understandings between the Parties hereto with respect to the subject matter hereof and supersedes,
as of the A&R Effective Date, all prior and contemporaneous agreements and understandings between the Parties with respect to the
subject matter hereof, including the Confidentiality Agreement. The foregoing may not be interpreted as a waiver of any remedies available
to either Party as a result of any breach, prior to the A&R Effective Date, by the other Party of its obligations under the Confidentiality
Agreement. No subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the Parties unless reduced
to writing and signed by an authorized officer of each Party.

 

15.1.2            The
Parties hereby expressly agree that this Agreement amends and restates in its entirety the Original Agreement as of the A&R Effective
Date, and the terms of the Original Agreement shall apply solely with respect to the period of time beginning on the Effective Date and
continuing until the A&R Effective Date.

 

15.2         Limitation
of Liability. NEITHER PARTY MAY RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES
IN CONNECTION WITH THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THIS SECTION 15.2
SHALL NOT BE CONSTRUED TO LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER Article 11,
EITHER PARTY’S LIABILITY FOR BREACH OF ITS EXCLUSIVITY OBLIGATIONS UNDER Article 7 OR CONFIDENTIALITY OBLIGATIONS UNDER Article 12
OR LIABILITY OF A PARTY FOR ITS INFRINGEMENT OR MISAPPROPRIATION OF ANY INTELLECTUAL PROPERTY RIGHTS OR FOR A PARTY’S GROSS
NEGLIGENCE, WILLFUL MISCONDUCT OR FRAUD.

 

15.3         Independent
Contractors. The relationship between Lilly and ProQR created by this Agreement is solely that of independent contractors. This Agreement
does not create any agency, distributorship, employee-employer, partnership, joint venture or similar business relationship between the
Parties. Neither Party is a legal representative of the other Party, nor can either Party assume or create any obligation, representation,
warranty, or guarantee, express or implied, on behalf of the other Party.

 

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15.4         Notice.
Any notice required or permitted to be given by this Agreement must be in writing, in English. Any and all notices or other communications
or deliveries required or permitted to be provided hereunder must be in writing and will be deemed given and effective if: (a) delivered
by hand or by overnight courier with tracking capabilities; (b) mailed postage prepaid by first class, registered, or certified
mail; or (c) delivered by electronic mail, in each case, addressed as set forth below unless changed by notice so given:

 

	If to ProQR:	ProQR Therapeutics N.V.

    Zernikedreef 9

    2333 CK Leiden, the Netherlands

    Attn: Business Development

    [***]

    With
    a copy to (which does not constitute notice): [***]

	 	 
	If to Lilly:	Eli Lilly and Company 

Lilly Corporate Center

Indianapolis, Indiana 46285

Attn:  Vice President, Corporate Business Development 

 

Each Party shall also provide
a copy of any notice (via e-mail if available) to the other Party’s Alliance Manager.

 

15.5         Severability.
If, for any reason, any part of this Agreement is adjudicated invalid, unenforceable, or illegal by a court of competent jurisdiction:
(a) such adjudication shall not, to the extent feasible, affect or impair, in whole or in part, the validity, enforceability, or
legality of any remaining portions of this Agreement; (b) this Agreement shall be construed and enforced as if such invalid, unenforceable
or illegal provision had never comprised a part hereof; and (c) all remaining portions will remain in full force and effect and
shall not be affected by the invalid, unenforceable or illegal provision or by its severance herefrom.

 

15.6         Non-Use
of Names. ProQR shall not use the name, trademark, logo, or physical likeness of Lilly or its respective officers, directors or employees,
or any adaptation of any of them, in any advertising, promotional or sales literature, without Lilly’s prior written consent. ProQR
shall require its Affiliates to comply with the foregoing. Lilly shall not use the name, trademark, logo, or physical likeness of ProQR
or its officers, directors or employees, or any adaptation of any of them, in any advertising, promotional or sales literature, without
ProQR’s prior written consent. Lilly shall require its Affiliates and Sublicensees to comply with the foregoing.

 

15.7         Assignment.
Neither Party may assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the other,
except that a Party may make such an assignment or transfer without the other Party’s consent to: (a) its Affiliate, provided
that such Party shall remain primarily liable for any acts or omissions of such Affiliate; or (b) to an Acquirer in connection with
a Change of Control, subject to Section 15.8. Any permitted assignee shall, in writing to the non-assigning Party, expressly assume
performance of such assigning Party’s rights and obligations. Any permitted assignment is binding on the successors of the assigning
Party. Any assignment or attempted assignment by either Party in violation of the terms of this Section 15.7 is null, void and of
no legal effect.

 

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15.8         ProQR
Change of Control.

 

15.8.1      Notification
of Change of Control. ProQR shall provide Lilly with written notice of any Change of Control of ProQR promptly, [***].

 

15.8.2      Effects
of Change of Control. Except in the scenario set forth in Section 15.8.4(b) below (in which case, the terms of Section 15.8.4(b) shall
apply to such scenario), following a Change of Control of ProQR at any time before expiration of the Research Term, Lilly may elect whether
the Research Transfer Scenario (in subsection (a) below) or the Research Continuance Scenario (in subsection (b) below) shall
apply to such Change of Control, as provided in Section 15.8.3 depending on whether or not such Acquirer is engaged in a Competing
Program as of the closing of the Change of Control transaction.

 

(a)            Research
Transfer Scenario. The “Research Transfer Scenario” means [***]:

 

[***].

 

(b)            Research
Continuance Scenario. The “Research Continuance Scenario” means [***].

 

15.8.3      Acquirer
Engaged in Competing Program. [***].

 

15.8.4      Acquirer
Not Engaged in Competing Program. [***]:

 

[***].

 

15.8.5      Acquirer
Patent Rights. Following any Change of Control of ProQR to an Acquirer that owns or controls any Patent rights Covering Products,
if Lilly thereafter makes any payments to the Acquirer or owes any amounts to the Acquirer on account of such Patent rights and Lilly’s
exploitation of rights hereunder with respect to Products, Lilly may deduct [***] percent ([***]) of such amounts. from any payments
otherwise due to ProQR under Article 8 For avoidance of doubt, this right shall not apply to amounts due under any agreement between
Lilly and the Acquirer that was in effect prior to the Change of Control (which may nonetheless be subject to [***]).

 

15.8.6      Firewalled
Programs. [***].

 

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15.8.7            Firewall
Audits. Lilly shall have the right, through a designated Third Party auditor reasonably acceptable to ProQR, to audit ProQR’s
(and, as applicable, its Affiliates’) obligations under this Agreement regarding implementation and enforcement of Firewalls under
this Section 15.8 for purposes of confirming compliance with the Firewalls, identifying any vulnerabilities or breaches and requiring
ProQR (or its Affiliates) to promptly remediate any non-compliance identified by such audit. In connection with such audit, duly authorized
representatives of Lilly’s designated auditor may make an on-site visit to ProQR (or its Affiliate) for the purpose of conducting
such audit. Lilly may conduct such audits from time to time as reasonably necessary to confirm ProQR’s compliance with such Firewall
requirements no more than [***] or more frequently if Lilly reasonably believes at any time that ProQR is not in compliance with such
Firewall requirements; provided that if the auditor identifies a breach of the Firewall, Lilly will be entitled to [***] additional audits
within the same [***] to verify that appropriate action has been taken to remedy the breach of the Firewall. Any audits described under
this Section 15.8.7 shall be conducted during ProQR’s regular business hours, for a duration only as reasonably necessary
to confirm ProQR’s compliance with the applicable Firewall requirements, and shall not unreasonably interfere with or impede ProQR’s
business operations. Lilly shall provide ProQR with written notice of such audit at least [***] prior to such requested audit (or such
shorter period as may be designated by Lilly if Lilly reasonably believes at any time that ProQR is not in compliance with such Firewall
requirements). All such audits shall be conducted at Lilly’s cost and expense. If the auditor identifies any breach of the Firewall,
Lilly and/or the auditor will notify ProQR, and ProQR will promptly (and will use reasonable efforts to ensure its Affiliates promptly)
take all action necessary to remedy such breach, and will provide Lilly with reasonable assurance that such action has been taken, at
ProQR’s sole expense.

 

15.9         Waivers.
The failure of a Party to insist upon strict performance of any provision of this Agreement or to exercise any right arising out of this
Agreement shall neither impair that provision or right nor constitute a waiver of that provision or right, in whole or in part, in that
instance or in any other instance. Any waiver by a Party of a particular provision or right shall be in writing, shall be as to a particular
matter and, if applicable, for a particular period of time and shall be signed by such Party.

 

15.10       Force
Majeure. Neither Party shall be responsible to the other for any failure or delay in performing any of its obligations under this
Agreement or for other nonperformance hereunder (excluding, in each case, the obligation to make payments when due) if such delay or
nonperformance is caused by strike, fire, flood, earthquake, accident, war, act of terrorism, epidemics, pandemics, quarantines,
act of God or of the government of any country or of any local government, or by any other cause unavoidable or beyond the control of
any Party hereto. In such event, such affected Party shall use Commercially Reasonable Efforts to resume performance of its obligations
and will keep the other Party informed of actions related thereto.

 

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15.11            Interpretation.
The captions and headings to this Agreement are for convenience only, and are to be of no force or effect in construing or interpreting
any of the provisions of this Agreement. Unless specified to the contrary, references to Articles, Sections, Appendices or Exhibits mean
the particular Articles, Sections, Appendices or Exhibits to this Agreement and references to this Agreement include all Exhibits
hereto. In the event of any conflict between the main body of this Agreement and any Exhibit hereto, the main body of this Agreement
shall prevail. Unless context otherwise clearly requires, whenever used in this Agreement: (a) the words “include” or
 “including” shall be construed as incorporating, also, “but not limited to” or “without limitation”;
(b) the word “day” or “year” means a calendar day or year unless otherwise specified; (c) the word
 “notice” means notice in writing (whether or not specifically stated) and shall include notices, consents, approvals and
other written communications contemplated under this Agreement; (d) the words “hereof,” “herein,” “hereby”
and derivative or similar words refer to this Agreement as a whole and not merely to the particular provision in which such words appear;
(e) the words “shall” and “will” have interchangeable meanings for purposes of this Agreement; (f) provisions
that require that a Party, the Parties or a committee hereunder “agree,” “consent” or “approve” or
the like shall require that such agreement, consent or approval be specific and in writing, whether by written agreement, letter, approved
minutes, email or otherwise; (g) words of any gender include the other gender; (h) words using the singular or plural number
also include the plural or singular number, respectively; (i) references to any specific law, rule or regulation, or article,
section or other division thereof, shall be deemed to include the then-current amendments thereto or any replacement law, rule or
regulation thereof; (j) the phrase “non-refundable” shall not prohibit, limit or restrict either Party’s right
to obtain damages in connection with a breach of this Agreement; and (k) neither Party shall be deemed to be acting on behalf of
the other Party.

 

15.12            Counterparts;
Electronic Signatures. This Agreement may be executed in any number of counterparts, each of which is deemed an original, but all
of which together constitute one instrument. This Agreement may be executed and delivered electronically and upon such delivery such
electronic signature will be deemed to have the same effect as if the original signature had been delivered to the other Party.

 

15.13            Expenses.
Each Party shall pay its own costs, charges and expenses incurred in connection with the negotiation, preparation and execution of this
Agreement.

 

15.14            Further
Assurances. Lilly and ProQR hereby covenant and agree without the necessity of any further consideration, to execute, acknowledge
and deliver any and all documents and take any action as may be reasonably necessary to carry out the intent and purposes of this Agreement.

 

15.15            No
Third Party Beneficiary Rights. This Agreement is not intended to and shall not be construed to give any Third Party any interest
or rights (including any Third Party beneficiary rights) with respect to or in connection with any agreement or provision contained herein
or contemplated hereby, except for Lilly Indemnitees and ProQR Indemnitees as expressly provided in Section 11.1 or as otherwise
expressly provided for in this Agreement.

 

15.16            Construction.
The Parties hereto acknowledge and agree that: (a) each Party and its counsel reviewed and negotiated the terms and provisions of
this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved
against the drafting Party shall not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this
Agreement shall be construed fairly as to all Parties hereto and not in a favor of or against any Party, regardless of which Party was
generally responsible for the preparation of this Agreement.

 

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15.17            Cumulative
Remedies. No remedy referred to in this Agreement is intended to be exclusive unless explicitly stated to be so, but each shall be
cumulative and in addition to any other remedy referred to in this Agreement or otherwise available under law.

 

15.18            Extension
to Affiliates. Except as expressly set forth otherwise in this Agreement, each Party shall have the right to extend the rights and
immunities granted in this Agreement to one or more of its Affiliates. All applicable terms and provisions of this Agreement, except
this right to extend, shall apply to any such Affiliate to which this Agreement has been extended to the same extent as such terms and
provisions apply to the Party extending such rights and immunities. For clarity, Lilly extending the rights and immunities granted hereunder
shall remain primarily liable for any acts or omissions of its Affiliates.

 

15.19            ProQR
Corporate Group. ProQR shall ensure that the multiple entities within the definition of “ProQR” remain Affiliates of
each other throughout the Term and each such entity shall be jointly and severally liable for the performance or failure to perform of
any such other entity hereunder. Lilly may take action to enforce this Agreement against any or all such entities and no such entity
shall raise as a defense that the performance or failure to perform was an obligation of a different entity within the definition of
ProQR.

 

[signature page follows]

 

    68 

     

    

 

In
Witness Whereof, the Parties have caused this Agreement to be executed as of the A&R Effective Date by their duly authorized
representatives.

 

Eli Lilly and Company

 

	By:	/s/ David A. Ricks	 

	Name:	David A. Ricks	 
	Title:	Chair and Chief Executive Officer	 

 

ProQR Therapeutics N.V.

 

	By:	/s/ Daniel de Boer	 

	Name:	Daniel de Boer	 
	Title:	Chief Executive Officer	 

 

ProQR Therapeutics VIII
B.V.

 

	By:	/s/ Daniel de Boer	 

	Name:	Daniel de Boer	 
	Title:	Chief Executive Officer	 

 

[Signature
Page To Amended & Restated Research And Collaboration Agreement]

 

     

     

    

 

Exhibit 1.124
- ProQR Platform Patents

 

[***]

 

    

     

    

 

Exhibit 3.3.1 − Reserved Targets

 

Gene (Disease/Protein)
- Uniprot ID

 

[***]

 

    

    

    

 

Exhibit 4.1 – Research Program
Outline

 

[***]

 

    

    

    

 

Exhibit 4.4.2 - Initial Workplan

 

[***]

 

    

    

    

 

Exhibit 4.7
Part A – Good Research Practices

 

Good Research Practice Expectations for External
Partners

 

[***]

 

    

    

    

 

Exhibit 4.7
Part B – Animal Care

 

Lilly Principles for Animal Care and Use for
Third Party Organizations

 

[***]

 

    75

    

    

 

Exhibit 4.9 - Materials Transfer Record

 

[***]

 

     

     

    

 

Exhibit 10.2 –
Disclosures Regarding ProQR Representations and Warranties

 

[***]

 

     

     

    

 

Exhibit 10.2.4 - Existing
ProQR Patents

 

[***]

 

     

     

    

 

Exhibit 10.3 – Existing [***]
Patents

 

[***]

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