Document:

Exhibit

BEFORE
THE PUBLIC UTILITIES COMMISSION OF OHIO

	
			
	In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Its Electric Security Plan

In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Revised Tariffs

In the Matter of the Application of  
The Dayton Power and Light Company for Approval of Certain Accounting Authority Pursuant to Ohio Rev. Code § 4905.13
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	Case No. 16-0395-EL-SSO

Case No. 16-0396-EL-ATA

Case No. 16-0397-EL-AAM

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STIPULATION AND RECOMMENDATION
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Ohio Administrative Code Rule 4901-1-30 provides that any two or more parties to a proceeding may enter into a written stipulation covering the issues presented in that proceeding.  This Stipulation and Recommendation ("Stipulation") sets forth the understanding of the parties that have signed below (the "Signatory Parties").  The Signatory Parties recommend that the Public Utilities Commission of Ohio ("Commission") approve and adopt, as part of its Opinion and Order, this Stipulation which will resolve all of the issues in the above-captioned proceeding.
This Stipulation is a product of lengthy, serious, arm's-length bargaining among the Signatory Parties (who are capable, knowledgeable, and represented by counsel) with the participation of the Commission's Staff, which negotiations were undertaken by the Signatory Parties to settle this proceeding.  This Stipulation was negotiated among all parties to the proceedings and no party was excluded from negotiations.  This Stipulation is supported by adequate data and information; as a package, the Stipulation benefits customers and the public 

interest; promotes effective competition and the development of a competitive marketplace; represents a just and reasonable resolution of all issues in this proceeding; violates no regulatory principle or practice; and complies with and promotes the policies and requirements of Chapter 4928, Revised Code.  Although this Stipulation is not binding on the Commission, it is entitled to careful consideration by the Commission, where, as here, it is sponsored by Signatory Parties representing a wide range of interests.
WHEREAS, in order to comply with Ohio Rev. Code § 4928.143, DP&L filed an Application and Supporting Testimony, Schedules and Workpapers in this proceeding;
WHEREAS, the Signatory Parties engaged in extensive discovery in this proceeding, with The Dayton Power and Light Company ("DP&L" or "the Company") responding to over 1,200 discovery requests; three DP&L witnesses were deposed; DP&L deposed 22 intervenor witnesses; 
WHEREAS, the terms of this Stipulation are reasonable to ensure that DP&L can maintain its financial integrity and modernize its distribution infrastructure so that customers receive stable and reliable service; and 
WHEREAS, the terms and conditions of this Stipulation satisfy the policies of the State of Ohio as set forth in Section 4928.02, Revised Code.
Now, therefore, for the purposes of resolving all issues raised in this proceeding, the Signatory Parties stipulate, agree and recommend as follows:
		
	I.
	Term

1.    To assist in maintaining rate certainty, improving the financial health of the DP&L so as to allow it the opportunity to achieve and maintain an investment grade credit rating, and continue to provide safe and stable service in Ohio, the Signatory Parties agree that the ESP term shall begin upon Commission approval of this Stipulation, and shall run for a period of six (6) years.
		
	II.
	Distribution Service and Grid Modernization

To allow DP&L to provide stable and certain distribution service and to modernize its distribution grid, the Signatory Parties agree to the following terms.
1.    AES/DPL Contributions:  DP&L, on behalf of itself and DPL Inc., agrees to the following:
		
	a.
	During the ESP term, DPL Inc. will not make any dividend payments to AES Corporation or to AES Ohio Generation, LLC.

		
	b.
	During the DMR and DIR-B term, DPL Inc. agrees that it will not make any contractually-required tax sharing payments to AES Corporation.  During the DMR and DIR-B term, AES Corporation agrees that it will not make any effort to collect upon, or receive any monies relating to or in exchange for, DPL Inc.'s (a) currently accrued tax sharing liabilities, including, but not limited to, any accrued interest, penalties, charges, or other fees, and (b) any subsequent additions to those tax sharing liabilities, including, but not limited to, any interest, penalties, charges, or other fees, that accrue during the term of the ESP (collectively, “Tax Sharing Liabilities”).  Pursuant to the preceding sentence, while AES Corporation agrees to forgo collection of the Tax Sharing Liabilities payable throughout the DMR and DIR-B term, DPL Inc. will continue to accrue the Tax Sharing Liabilities in its financial statements.  DP&L hereby agrees not to seek current and future recovery of the accrued Tax Sharing Liabilities from Ohio customers reflected in DPL Inc.’s financial statements at the conclusion of the DMR and DIR-B term in any future filings or proceedings before the Commission, any court, or other administrative agency.  DP&L further agrees that it will not use, reference, incorporate or otherwise rely upon, directly or indirectly, the Tax Sharing Liabilities of DPL Inc. or the indebtedness of DPL Inc. related in any way to those Tax Sharing Liabilities in any future requests, filings, or proceedings before the Commission.  In addition, DP&L and DPL Inc. each acknowledges and agrees that: (i) each is forever releasing, discharging, forgiving, and otherwise holding harmless any and all Ohio customers for any amounts or indebtedness including, arising from, or relating to, either directly or indirectly, the Tax Sharing Liabilities; (ii) each is waiving any and all rights, claims, causes of actions, or other efforts to recover the Tax Sharing Liabilities from any and all Ohio customers; and (iii) the foregoing releases and waivers shall serve as res judicata, collateral estoppel, and/or issue preclusion, and shall have binding precedential effect in any Commission, court, or other administrative proceeding.

		
	c.
	Assuming FERC approval, DP&L agrees to transfer its generation assets and non-debt liabilities to AES Ohio Generation, LLC, an affiliated subsidiary of DPL Inc., within 180 days following final Commission approval of this Stipulation, provided that the Commission approves this Stipulation without material modifications.

		
	d.
	DP&L (or the affiliate to whom the generation assets are transferred) will commit to commence a sale process to sell to a third party its ownership in Conesville, Miami Fort, and Zimmer Stations. 

		
	e.
	AES Corporation will use all proceeds from any sale of the coal generation assets to make discretionary debt repayments at DP&L and DPL Inc.  

2.    Distribution Modernization Rider/Distribution Investment Rider
		
	a.
	DP&L will implement a non-bypassable Distribution Modernization Rider ("DMR") for years 1 through 5 of the term of the ESP, which shall be targeted to achieve a consolidated DPL Inc. adjusted FFO/debt ratio of 11%.  The DMR shall be designed to collect $90 million in revenue per year.1 

		
	b.
	Cash flow from the DMR will be used to (a) pay interest obligations on existing debt at DPL Inc. and DP&L; (b) make discretionary debt prepayments at DPL Inc. and DP&L; and (c) position DP&L to make

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 IGS and RESA agree not to oppose this provision of the Stipulation taking into consideration the stipulation as a package.  IGS’ and RESA’s non-opposition shall not be relied upon in any other forum or proceeding.

capital expenditures to modernize and/or maintain DP&L's transmission and distribution infrastructure.
		
	c.
	The cost allocation of the DMR to tariff classes will balance the bill impact to customers, fairness, and cost-causation principles.  This allocation shall be as follows: 34% allocated based on 5 Coincident Peaks, 33% allocated based on distribution revenue, and 33% based on historic allocation of the currently charged non-bypassable rider.  DMR cost allocation and rate design are shown in Appendix A.  Rate design within the classes is summarized as:

		
	i.
	Residential, secondary and lighting classes will be $/kWh.

		
	ii.
	All other classes will include both energy and demand charges. 

		
	d.
	DP&L will implement a Distribution Investment Rider ("DIR") with two components.  The first component ("DIR-A"), set initially at zero, will recover incremental distribution capital investments recorded in FERC Plant Accounts 360-374.  DIR-A will fully recover revenue requirements associated with projects added to ratebase related to this component.  DP&L will commence a true-up process of DIR-A after the resolution of DP&L's distribution rate case (Case No. 15-1830-EL-AIR).  The second component of the DIR rider ("DIR-B") shall be designed to collect $35 million in revenue per year.  The funds collected under DIR-B will be used for distribution investment as described in the following paragraph.  During the term of the DIR-B, DP&L will collect depreciation (at rates in effect at that time) but not a return on projects added to ratebase related to DIR-B.  At the end of the DIR-B term, the revenue requirements associated with rate base additions related to both DIR-A and DIR-B will be recovered in rates through DIR-A or a distribution rate case.

		
	e.
	In year one of the ESP, the amounts associated with DIR-B will be used to implement back-bone infrastructure projects designed to enable and support a longer term Smart Grid and Advanced Metering Infrastructure (AMI) roll out.  In the remaining years of the ESP, the DIR-B amounts will be used for projects that enable and support a grid modernization plan.  Those projects will consist of initiatives that not only empower Ohio consumers to manage energy usage and to fully utilize the competitive marketplace while avoiding barriers to the development of competitive retail markets but add or upgrade the technologies that will be necessary to facilitate the longer term Smart Grid, including AMI, Conservation Voltage Reduction (CVR), customer programs (e.g., time-of-use and Green Button Connect My Data), data access for suppliers, Electric Vehicle Infrastructure, and the growing use of renewables and distributed generation, as well as micro-grids on the Company's system.  In order to ensure that the grid is capable of handling these uses, the Company will use these funds and other items, including but not limited to updating its substation relays and controls, updating and expanding its telecommunication capabilities, implementing controls and upgrading distribution feeder components, updating its mapping system to complete the connectivity of meters/premises to the distribution system, and migrating its operational systems such as distribution SCADA and outage management system.  DP&L will submit a report at the end of each calendar year of the ESP term to the Commission and the Signatory and Non-Opposing Parties summarizing the projects for which DIR-B amounts were expended and the amounts spent for each project. 

		
	f.
	Rider DMR and DIR-B revenues shall be excluded from Significantly Excessive Earnings Test ("SEET") calculations.  DP&L's SEET threshold will remain at 12%.

		
	g.
	The cost allocation of DIR-A and DIR-B to tariff classes will be based on base distribution revenues.  The DIR-A and DIR-B rate design will be a percentage applied to the customer's monthly base distribution charges.

		
	h.
	DP&L shall be entitled to collect the DMR and DIR-B for five years.  

3.    Smart Grid Rider
		
	a.
	Distribution Infrastructure Modernization Plan:  DP&L will file a comprehensive Distribution Infrastructure Modernization Plan within three months of completion of the Commission's grid modernization initiative or February 1, 2018, whichever is earlier unless an extension is granted by Staff.  That to-be-filed plan, to be consistent with the Commission’s grid modernization initiative, will include a proposal for certain infrastructure improvements including, but not limited to, AMI meters, VoltVar Optimization, Electric Vehicle Charging infrastructure focused on multi-family dwellings, retail locations and workplaces,2 Customer Programs, implementation of the availability of validation, estimation and editing data (“VEE data”) and system-wide Distribution Automation along with suggested timelines for the implementation of the plan and plan components.  Any intervenor in that case may file comments upon DP&L's plan.  DP&L shall not be required to implement the plan until it is approved by the Commission.3  

		
	b.
	The costs of DP&L's grid modernization efforts as outlined in the to-be-filed Distribution Infrastructure Modernization Plan, once approved by the Commission, will be recovered through a new Smart Grid Rider ("SGR").  The SGR shall be set initially at zero.  The cost allocation of the SGR to tariff classes will be based on base distribution revenues.  The SGR rate design will be a percentage applied to the customer's monthly base distribution charges.

		
	III.
	Standard Offer Rate

1.    As originally proposed in DP&L's ESP, DP&L will implement a bypassable, Standard Offer Rate that will be based on competitive bid auctions and charged on a $/kWh basis 
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2 Parties shall have the right to oppose the Electric Vehicle Charging infrastructure in the subsequent Distribution Infrastructure Modernization Plan proceeding.
3 For avoidance of doubt, any signatory party or non-opposing party may advocate for or oppose all or some of the Distribution Infrastructure Modernization Plan.
for all tariff classes.  However, the Standard Offer Rate will be modified from DP&L's original proposal as follows:
		
	a.
	Consistent with the current process, DP&L will procure RECs to meet the requirements in ORC 4928.64 and recover those costs on a bypassable basis.  Although these amounts will be separately identified in supporting schedules, these amounts will be included as a component of the Standard Offer Rate instead of a separate Alternative Energy Rider (AER) Tariff. This maintains the simplicity of one Tariff for bypassable charges that allows for an easy price-to-compare. 

		
	b.
	DP&L shall establish a component to the standard service offer as an addition to the SSO non-shopping rate in order to recognize costs DP&L incurs to provide default service to customers, or costs otherwise avoided by default service, that are not reflected in SSO bypassable rates.  The total collected from this component will first be applied to the Unbilled Fuel deferral (amortized over 3 years) and remaining amounts collected will then be refunded to all customers via the RCR.  The component added to the SSO rate will be $.0033 per kilowatt -hour for all default service customers.  DP&L shall annually reconcile the credit for over- or under-recovery to ensure that the total revenue recovered through this new SSO component other than amounts applied to the Unbilled Fuel deferral matches the revenue credited to customers.  The new SSO Component is revenue neutral to DP&L and cannot be relied upon to support a recommendation that any cost be eliminated from recovery in DP&L’s distribution rates.  The new SSO component shall remain at  $.0033 per kilowatt -hour but may change pending resolution of DP&L’s current distribution rate case pending before the Commission in Case No. 15-1830-EL-AIR and any determinations by the Commission in that proceeding that different allocation of costs should be added for inclusion to the SSO rate. 

		
	IV.
	Economic Development Rider

1.    To further State policy and enhance the State's effectiveness in the global economy, DP&L will offer several different economic development incentives to large customers that are Signatory or Non-Opposing Parties.4  Customers may receive only one of the incentives below, and incentives may not be combined.  The provisions in this Section shall expire when the DMR and DIR-B expire, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another proceeding, expires.  DP&L will implement the following economic development incentives:
		
	a.
	The following economic development incentives will be equal to $(0.0040) per kWh for all kWh:

		
	i.
	Economic Improvement Incentive available to single site customers with MW demand of 10 MW or greater with an average load factor of at least 80%.  The Signatory or Non-Opposing Party that qualifies for the incentive is:  Miami Valley Hospital (OHA). 

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4 "Non-Opposing Parties" shall be those parties that sign this Stipulation as Non-Opposing Parties.

		
	ii.
	Automaker Incentive available to single site customers with MW demand of 4 MW or greater.  The Signatory or Non-Opposing Party that qualifies for the incentive is:  Honda of America Mfg., Inc. ("Honda").

		
	iii.
	Ohio Business Incentive available to businesses headquartered in the State of Ohio; this incentive will aggregate accounts within the DP&L service area and must achieve a total average demand of 2 MW or greater.  The Signatory or Non-Opposing Party that qualifies for the incentive is:  Honda.

2.    The costs of these programs will be recovered through DP&L's non-bypassable Economic Development Rider ("EDR"), consistent with how those costs are allocated and recovered through that rider currently.  
		
	V.
	Economic Development Grant Fund

1.    DP&L agrees to make the following economic development payments, which payments shall not be recoverable from customers.  The provisions in this Section shall expire when the DMR and DIR-B expire, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another proceeding, expires.  
		
	a.
	Economic Development grant fund of $1,000,000 annually for use by customers within DP&L's service territory for energy programs and infrastructure.

		
	b.
	Within 60 days of Commission approval of the Stipulation, DP&L shall provide an additional economic development grant fund totaling $2 million dollars over the term of the ESP to be administered by an independent third parties to be used for economic development, technical assistance, and implementation, studies,  workforce development, and to provide direct financial assistance, for job training, to DP&L employees who work at generation facilities in Adams and Brown Counties, Ohio and surrounding communities.  DP&L further agrees to collaborate with local and statewide economic development organizations to identify and promote potential economic development in Adams and Brown Counties.

		
	VI.
	Renewable Investment

1.    DP&L and/or its affiliates will procure and/or develop a total of at least 300 megawatts (MWs) nameplate capacity of wind and or solar energy projects in Ohio as follows:
2.    The individual projects will be proposed over the course of the next three years, following adoption of the Stipulation.
3.    The Company will file EL-RDR applications to initiate approval for retail cost recovery associated with each project.  DP&L agrees to use its best efforts to seek Commission approval for these filings.
4.    During the ESP term, DP&L affiliates will have the right, based on commercially reasonable terms, to own up to 50% of such projects on an aggregate net basis (up to 150 MWs) based on installed capacity.  Ownership details will be established for each project individually.  Such projects will be competitively bid with preference given to projects that utilize the Ohio supply chain.  To the extent that an affiliate of DP&L or DP&L plans to submit projects for consideration for any particular competitive bid, an independent third party will be used to manage that bidding process, and that independent third  party will consult with the Staff regarding the process by which projects are selected for advancement.  Any costs associated with the independent third party management of the competitive bidding process may be included for recovery through the applicable EL-RDR application.  The RFP process will be commenced within 45 days of a Commission order approving this Stipulation.  Subject to timely regulatory approvals, the projects will commence construction by the deadline for eligibility of benefits available under the Clean Power Plan or its replacement regulation.  The projects are not contingent on the Clean Power Plan or its replacement regulation taking effect. 
5.    DP&L will be the buyer of a long-term power purchase agreements ("PPAs") (i.e., 15 years or longer) for each project, including all capacity, energy, ancillaries and renewable energy credits produced by the project.  Capacity, energy and ancillary services for all projects will be liquidated into the PJM markets with resulting revenues being credited to retail customers.  Renewable energy credits not reserved for compliance will be liquidated into the markets with resulting revenues being credited to retail customers.
6.    The commitment is premised upon DP&L receiving full cost recovery (based on a PPA structure) through a Renewable Energy Rider ("RER") with details (except for the rate design provided for below) to be determined as part of the separate EL-RDR filing.  In reviewing such applications the Commission may consider among other relevant matters the economics and proposed PPA price associated with each project, as compared to other available market prices for such projects.
7.    The wind and or solar energy projects will begin commercial operation by 2022 subject to timely regulatory approvals.  Commercial Operation is defined as generating electricity for sale in the PJM marketplace.  No Signatory Party or Non-Opposing Party waives its right to challenge the renewable investments, the RER or other named rider.  For the avoidance of doubt, any Signatory Party or Non-Opposing Party may challenge the legality of the RER in any other proceeding including, but not limited to, any EL-RDR proceeding. 
8.    The RER shall be established in this case, and shall be nonbypassable and set initially at zero.  The rate design to be used for recovery of any net costs or flow through of any net credits associated with either wind or solar renewable energy projects described above shall be a uniform per kWh charge for all monthly consumption up to 833,000 kWh per customer account.  This rate design shall apply for the life of any PPA.
		
	VII.
	Other Riders and Tariffs

1.    DP&L has proposed riders in both its pending Distribution Rate case and this ESP case.  Those requests will be treated as follows:
		
	a.
	Reconciliation Rider:  

		
	i.
	DP&L shall withdraw its request to recover in this case OVEC costs that it has deferred pursuant to the Commission's Order in Case No. 13-2420-EL-UNC.  DP&L shall file an application in a separate proceeding to seek recovery of those costs.  Signatory and Non-Opposing Parties shall not contest DP&L's request to recover 

the OVEC deferral in that separate proceeding provided DP&L uses good faith efforts to divest from the OVEC units.6 
		
	ii.
	After an Order in this ESP case, DP&L shall defer/recover or credit, the net of proceeds from selling OVEC energy and capacity into the PJM marketplace and OVEC costs.  This Rider will be charged on a non-bypassable basis, allocated to tariff classes based on base distribution revenues and will be a monthly charge per customer account.

		
	iii.
	DP&L agrees to continue pursuing options to discharge its OVEC obligations.  DP&L shall file an annual report no later than February 28 of each year during the Term of the ESP, outlining its efforts made in the prior 12 months to relieve itself of its OVEC obligations.

		
	b.
	Decoupling Rider:  DP&L will implement the Decoupling Rider to include the lost revenues currently recovered through the Energy Efficiency Rider as agreed to in the Stipulation filed in Case No. 16-649-EL-POR on December 13, 2016.  Any methodology changes will be proposed in the Company's next filed energy efficiency portfolio plan.  This Rider will be charged on a non-bypassable basis.  

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6 RESA and IGS do not support but agree not to oppose Section VII(1)(a)(i) and (ii) of this Stipulation.

		
	c.
	Transmission Cost Recovery Rider – Non-Bypassable (TCRR-N):  DP&L's TCRR-N will be implemented as it is currently.  In addition, DP&L agrees to deploy a small-scale pilot program providing an alternative means for customers to obtain and pay for services otherwise provided by or through the TCRR-N.  More specifically, the purpose of this pilot program is to explore whether certain customers could benefit from opting out of DP&L's TCRR-N and obtaining, directly or indirectly through a certified CRES provider registered in DP&L's territory, all transmission and ancillary services through the Open Access Transmission Tariff and other PJM governing documents ("OATT") approved by the Federal Energy Regulatory Commission ("FERC"), in effect from time to time, as modified by FERC, and applicable to the zone in which the end user is located or whether the administrative burden to the Companies, and the cost and risk to the customer, would render this option impractical. This pilot program will be for the term of the ESP and be limited to the first 50 accounts of Signatory or Non-Opposing Parties or members of Signatory or Non-Opposing Parties that do not take DP&L Standard Service Offer generation, are served at the primary voltage level and above, and notify DP&L in writing within 30 days of the approval of this Stipulation ("Pilot Participant").7 Subject to and taking into consideration 

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7Each Signatory Party or Non-Opposing Party (or the members of a Signatory Party or Non-Opposing Party) shall each be eligible to designate one account to participate in the pilot program even if such participation causes the total number of participating accounts to exceed 50.  This provision does not limit any Signatory Party or Non-Opposing Party (or members of a Signatory Party or Non-Opposing Party) from utilizing more than one of the eligible 50 accounts to the extent the account otherwise qualifies for participation in the pilot program pursuant to this Stipulation.
any existing contract with a CRES provider, the Pilot Participant shall work with its CRES provider to complete any necessary steps for the Pilot Participant to participate in the pilot program, including establishing a separate PJM subaccount, registering a DUNS+4 with DP&L and completing related EDI testing.  Contingent on these necessary steps, the effective date for the Pilot Participant’s opt-out of the TCRR-N, or any successor to the TCRR-N, shall be the next available meter read date following acceptance of the CRES provider’s enrollment request via EDI after the date which the CRES provider verifies all of the necessary steps have been taken to provide the Pilot Participant with all services otherwise provided by or through the TCRR-N, including Network Integration Transmission Service ("NITS").  The effective date shall be no earlier than the effective date of an order approving this Stipulation.  Nothing in this provision prevents the Pilot Participant from delaying the effective date of the opt-out of the TCRR-N.  Any increase or decrease in the load and usage characteristics of any Pilot Participant, opening of a replacement account or account transfer shall not affect the right to continue to be eligible in the pilot program.  Any account or successor account voluntarily returning to TCRR-N or any TCRR-N successor, after 60 days advance notice, shall not, thereafter, make such OATT election and eligibility for such election with regard to such account or successor account shall be deemed terminated.  Subject to the maximum of 50 accounts and notwithstanding the requirement to provide notice to DP&L 
within 30 days of the approval of this Stipulation regarding a customer's desire to participate in the pilot program, new accounts of new customers and/or new and expanded accounts of an existing Pilot Participant shall also have the right to make such election regardless of whether the accounts are known or in existence by the election deadline specified herein.  Any such election would be effective subject to the necessary timing steps outlined above.  Such a Pilot Participant that has opted out shall not receive the benefits or be subject to the costs of TCRR-N or any successor to TCRR-N provided that they shall not be deprived of any costs or refunds arising from decisions issued by FERC or the Commission where such costs or refunds would flow through TCRR-N and are associated with the period during which they obtained service by or through TCRR-N and such costs or refunds are not otherwise available through the OATT.  Such refunds (if any) shall be deducted from refund amounts included in TCRR-N.  Such a Pilot Participant shall be eligible, at their election, as long as they continuously remain a Pilot Participant and continue to obtain such services through the applicable OATT until such time as they may elect to discontinue such election and revert to TCRR-N or a TCRR-N successor.
		
	d.
	Regulatory Compliance Rider ("RCR"):    DP&L will implement a nonbypassable RCR to recover the following five separate deferral balances:  (1) Consumer Education Campaign costs; (2) Retail Settlement System costs; (3) Green Pricing Program costs; (4) Generation Separation costs; and (5) Bill Format Redesign costs.  DP&L will recover carrying costs at DP&L's cost of debt on the Bill Format Redesign and Generation Separation starting at the time those costs were incurred.  Additionally, carrying costs at DP&L's cost of debt will be included at the onset of recovery of the RCR for the remaining RCR items.  The Rider will be trued up annually.  The cost allocation of the RCR to tariff classes will be based on base distribution revenues.  The RCR rate design will be a monthly charge per customer account.  The total dollars recovered through the RCR shall not exceed a total of $20 million over the ESP term.  DP&L may also recover costs associated with implementing the non-commodity billing and supplier consolidated billing provisions set forth in Sections IX.1 and IX.2, through the RCR, providing the amount recovered through the RCR does not exceed the aforementioned cap.

		
	e.
	Storm Cost Recovery Rider:  The Storm Cost Recovery Rider ("SCRR") will remain in place as a placeholder tariff.  DP&L will file a future application if it seeks any recovery of costs from major storms.  This non‐bypassable rider will include Operating and Maintenance ("O&M") expenses incurred for all storms that are determined to be "Major Events," which is defined in O.A.C. 4901:1-10-01 as incidents that cause and electric utility’s "System Average Interruption Duration Index" ("SAIDI") to exceed the threshold outlined in section 4.5 of standard 1366-2003 as adopted in the "IEEE Guide for Electric Power Distribution Reliability Indices."  No level of expenses for major storms will be in base rates, meaning that there will be no baseline for which an amount over would be considered.  Therefore, all prudently-incurred expenses that are incremental to base rates would be considered for recovery.  This would include, among other things, the amounts over the first forty hours of labor in a given week as well as overtime paid for union and management employees.  If any mutual assistance revenue is received for storm repairs done in other markets, the straight-time labor portion of this would be deducted from the Company’s storm rider recovery request to avoid potential double-recovery.  Carrying charges at the last approved cost of debt would be accrued from the point of deferral until recovery begins.  Recovery would generally be over one year; however, if the deferred amount is large, the Company may request a longer recovery period to lessen the impact on rates.  The Company will file yearly its SCRR by April 1 of each year and Staff will complete its audit with the Commission’s approval for rates to be effective around August 1 of each year.  The cost allocation of the SCRR to tariff classes will be based on base distribution revenues and will be a monthly charge per customer account.

		
	f.
	Uncollectible Rider:  As originally proposed in DP&L's DRC, DP&L will implement an Uncollectible Rider to recover the uncollectible expense through a non-bypassable, annually filed true-up rider.  This Rider will recover uncollectible expense that has historically been included in individual rate components and will track and recover actual costs.  Implementation of this Rider also represents the removal of uncollectible expense from other individual rate components.  DP&L will address any uncollectible expense included in base distribution rates in the annual true-up filing of this rider, which will include an adjustment to revenue until new base distribution rates are in place.  

		
	VIII.
	Miscellaneous

1.    Each Signatory Party and Non-Opposing Party will withdraw any opposition the Party has filed in PUCO Case Nos. 12-426-EL-SSO, 08-1094-EL-SSO, and FERC Docket EC16-173-000.
2.    DP&L withdraws its request for a Clean Energy Rider.
		
	IX.
	Competitive Retail Market Enhancements

1.    DP&L commits to implement within 12 months of a Commission order approving a Stipulation in these proceedings, subject to the provisions set forth in Section XI.5, a pilot process to provide any CRES provider that is interested and qualified the opportunity to bill customers for non-commodity products and/or services on the customer's DP&L bill using bill-ready billing with the following qualifications:
		
	a.
	Participating CRES providers must agree to pay 50% of the implementation costs associated with system changes to be shared equally by the participating CRES providers, and DP&L will develop and provide all interested CRES providers with an estimate of the total implementation costs.  CRES providers that enter the program after its implementation must agree to reimburse other participating CRES providers on a pro-rata basis to ensure a fair allocation of the implementation costs to be shared by CRES providers.  The other 50% of the implementation costs will be included in the DIR-A, Regulatory Compliance Rider (RCR) or otherwise deferred for future recovery.  Any requests for cost reimbursement by DP&L to participating CRES providers shall include documentation supporting the request for cost reimbursement.

		
	b.
	Payment posting priorities will continue to match those stated in the Ohio Administrative Code Section 4901:1-10-33(H); however, any non-commodity products and/or services will be considered "miscellaneous charges" and be paid last.  If partial payments are made by the customer, it would be the responsibility of the CRES Provider to pursue any collections regarding any non-commodity charges.

2.    DP&L agrees to work with Staff, RESA, and IGS to determine the parameters of a two-year pilot supplier consolidated billing program for any CRES provider that is qualified and interested. The purpose of the pilot will be to provide the industry with data and information on the practicality of a supplier consolidated billing implementation in the Ohio electric choice market. 
		
	a.
	The participating CRES providers will agree to comply with all bill requirement administrative code rules and work with Staff and DP&L on consumer safeguards, including Ohio Administrative Code Chapter 4901:1-21 (without waiver unless recommended by Staff).

		
	b.
	Participating CRES providers agree to provide Staff and DP&L any and all information related to the pilot.

		
	c.
	DP&L and participating CRES providers will meet to determine a methodology to govern implementation, including, but not limited to, the method of transfer and payment to the DP&L of customer charges, as well as credit and collection procedures and purchase of receivables at 100%, without recourse.  Staff will be invited to participate in the meetings.

		
	d.
	The methodology to govern the pilot shall be established no later than twelve months from a final Commission order approving a Stipulation in these proceedings.  

		
	e.
	Due to the nature of a pilot program, the supplier consolidated billing pilot will be limited to 2,500 customers per CRES provider for the first six months of active implementation: 

		
	i.
	Based upon biannual review and approval by Staff, DP&L, and participating CRES providers, the customer participation cap shall be incrementally increased by 2,500 customers each six months not to exceed 10,000 customers for any individual CRES provider over the two-year term of the pilot program.

		
	ii.
	Existing customers may remain on the supplier consolidated billing program upon completion of the two-year term of the pilot until otherwise ordered by the Commission. 

		
	iii.
	RESA and/or participating CRES providers retain the right to petition the Commission to expand the pilot cap or terms pending Commission consideration of future consolidated billing orders. 

		
	f.
	Costs related to DP&L's implementation of the pilot supplier consolidated billing program will be shared 50 percent by participating CRES providers, and DP&L will develop and provide all interested CRES providers with an estimate of the total implementation costs.  CRES providers that enter the program after its implementation must agree to reimburse other participating CRES providers on a pro-rata basis to ensure a fair allocation of the implementation costs to be shared by participating CRES providers.  DP&L's 50 percent share will be recovered in the DIR-A, the Regulatory Compliance Rider (RCR) or otherwise deferred for future recovery.  Any requests for cost reimbursement by DP&L to participating CRES providers shall include documentation supporting the request for cost reimbursement.  Staff may study the costs needed to implement the pilot and include an analysis of the type of costs needed to expand the program and how that should be allocated among the participating CRES providers.  

		
	g.
	During the pilot development and methodology implementation phase, DP&L will work with participating CRES providers and Staff to determine the appropriate implementation timeline in which participating CRES providers may begin billing under the pilot. 

		
	h.
	Participating CRES providers shall not prohibit a customer from returning to DP&L for consolidated billing. 

		
	i.
	Participating CRES providers shall not charge a late payment fee greater than DP&L's tariffed late payment fee. 

		
	j.
	By the conclusion of the two-year pilot program, Staff may file a report on the program that may include recommendations on the program, which may include expansion or retirement. 

		
	k.
	Any participating CRES provider's competitively sensitive information acquired by DP&L and Staff under the pilot supplier consolidated billing program shall be afforded the appropriate confidential treatment.

3.    DP&L agrees to the following Tariff changes:
		
	i.
	Sheet G8, page 6 ¶2.1 first paragraph, retain the existing 30-calendar day time for approving a supplier's registration:  "The Company shall approve or disapprove the supplier's registration within thirty (30) calendar days of receipt of complete registration information from the supplier.  The thirty (30) day time period may be extended for up to thirty (30) days for good cause shown, or until such other time as is mutually agreed to by the supplier and the Company."

		
	ii.
	Sheet G8, page 12 ¶4.1, for clarification, modify the last paragraph of the pre-enrollment customer list section so that the Percentage of Income Payment Plan (PIPP) program is conducted in accordance with the Commission's requirements, including those in Case No. 16-247-EL-UNC:   
"* * * End-use Customers participating in the Percentage of Income Payment Plan (PIPP) program will receive the Standard Offer Rate in accordance with the requirements of the Public Utilities Commission of Ohio."

		
	iii.
	Sheet G8, page 21 ¶9.2, existing language should be modified to recognize that CRES Providers may be required to disclose customer-specific information by the Public Utilities Commission of Ohio or a court:  "* * * The AGS shall keep all Customer-specific information supplied by the Company confidential unless the AGS has the Customer's authorization to do otherwise or unless permitted to be disclosed per Ohio Administrative Code Rule 4901:1-21-10."

		
	iv.
	Sheet G8, page 22 ¶10.1, revise proposed added language that consolidated billing cannot include non-commodity items, new language to read:  “The AGS shall not use the Company’s consolidated billing services for communication of any anti-competitive or disparaging messages.”

		
	v.
	Sheet G8, page 25 ¶12.1(c), modify existing language to not require CRES Providers to pay amounts in bona fide dispute:  "In the event of a dispute as to the amount of any bill, the AGS will notify the Company of the amount in dispute and the AGS will pay to the Company the total bill including the disputed amount not in bona fide dispute."

		
	vi.
	Sheet G8, page 26 ¶12.2, modify existing language to recognize that not paying amounts in bona fide dispute will cause the AGS to be deemed delinquent:  "In the event the AGS fails to make payment to the Company of all amounts not in bona fide dispute on or before the due date as described above, and such failure of payment is not corrected within two (2) calendar days after the Company notifies the AGS to cure such failure, * * *."

		
	X.
	Individual Signatory Parties

1.    The provisions in this Section shall expire when the DMR and DIR-B expire, or when an equivalent economic stability charge intended to provide financial stability to DP&L or DPL Inc., whether proposed in this case or another proceeding, expires.  
2.    City of Dayton
		
	a.
	On or before January 1, 2018, DP&L will explore a joint partnership with the City of Dayton and the University of Dayton’s Hanley Sustainability Institute for a program supporting mutual goals for all three of the organizations.

		
	b.
	DP&L will provide $50,000 annually (no more than five payments total) for residential energy education and reduction programs in the City of Dayton.  During the first year, this $50,000 annual spending shall be funded by shareholders. This $50,000 in annual spending will thereafter be recovered through DP&L's Energy Efficiency Rider.  In the event that the Commission determines that these program costs do not qualify for recovery in the Energy Efficiency Rider, the $50,000 in annual funding will be funded by shareholders.

DP&L will participate in the Property Assessed Clean Energy ("PACE") program in partnership with the Montgomery County Port Authority, for qualifying projects in the City of Dayton. DP&L will contribute $100,000 annually (no more than five payments total) to a fund to be used to pay up to 50% of a property owner's escrowed reserve requirement.  DP&L will also contribute $50,000 annually (no more than five payments total) to a revolving loan fund to support energy upgrades for small and micro businesses within the City that are not eligible for PACE funding.    During the first year, this $150,000 in annual spending shall be funded by shareholders.  This $150,000 in annual spending will thereafter be recovered through DP&L’s Energy Efficiency Rider.  In the event the Commission determines that these program costs do not qualify for recovery in the Energy Efficiency Rider, the $150,000 in annual funding will be funded by shareholders.  DP&L will provide funding for those programs for 2017 within 30 days of the Commission’s approval or modification of the ESP.  DP&L will provide the funding for each subsequent year of the ESP by no later than January 15th of each calendar year.
		
	c.
	DP&L will provide and install all necessary equipment on the DP&L side of the meter to support system safety and reliable service at the Dayton International Airport.  Among other things, DP&L will install three-phase reclosers and load break centers, which will allow the customer to transfer between its circuits and supply and execute all agreements to allow for the instantaneous transfer of power, including any and all interconnect agreements to support system safety and reliable service at the Dayton International Airport.  In addition to making the aforementioned improvements on the DP&L side of the meter, DP&L further agrees to provide all necessary improvements to customer equipment (“customer-side improvements”) to allow the customer to transfer between its circuits.  The cost to DP&L of making those improvements shall not exceed $50,000.  All costs in excess of $50,000 to make customer-side improvements shall be the responsibility of the Dayton International Airport.

		
	d.
	All City of Dayton accounts existing at the time of execution of this Stipulation will be exempt from paying any redundant service charges, including the Redundant Service Rider or equivalent rider, which seek to recover the costs of providing standby or backup service.  

		
	e.
	AES agrees to maintain DP&L’s operating headquarters in the City of Dayton, Ohio.  DP&L agrees to discuss with the City of Dayton any plans to move DP&L’s operating headquarters from MacGregor Park to an alternate location within the City of Dayton, at least ninety (90) days before any move is to occur.  If DP&L’s operating headquarters are moved out of the MacGregor Park facility to an alternate location within the City of Dayton then the City of Dayton shall have an option to purchase the approximately one hundred twenty five (125) acres and improvements comprising DPL’s MacGregor Park facility, under the following terms and conditions:

		
	i.
	If DP&L receives a bona fide offer to purchase the MacGregor Park property, and such offer contains a written commitment that the use for the MacGregor Park property by the bona fide offeror falls within the definition of a Business Park as codified in the City of Dayton Zoning Code, or should the City of Dayton otherwise acknowledge in writing that DP&L has a planned use for the MacGregor Park property that satisfies the City of Dayton's reasonable expectations and requirements regarding land use, planning and development, at the City of Dayton’s sole discretion, then the City of Dayton’s option for the MacGregor Park property shall immediately expire and the requirements of paragraph (ii.) below shall no longer apply and shall be deemed void. Under such circumstances, DP&L shall provide the City of Dayton written notice of the bona fide offer and a complete description of the details of such planned use in order to allow the City of Dayton to certify that such use satisfies the Zoning Code requirements and/or the City of Dayton’s reasonable expectations and requirements at the City of Dayton’s sole discretion. The City of Dayton shall have up to fifteen (15) days after DP&L's written notice to provide to DP&L a written response accepting or rejecting DP&L’s request for certification, which response shall not be unreasonably withheld or delayed. Failure to provide such written response shall cause Dayton's option for the MacGregor Park property to expire without further notice.

		
	ii.
	If DP&L receives a bona fide offer to purchase the MacGregor Park property that DP&L chooses to accept and such bona fide offer does not satisfy the requirements of paragraph (i), then DP&L shall within fifteen (15) days after it receives the offer give to the City Manager of Dayton written notice that shall identify for the City Manager the amount of the bona fide offer and set an option price for the City of Dayton in an amount not to exceed one hundred five percent (105%) of such bona fide offer ("City Option Price"). The City of Dayton must notify DP&L in writing within thirty (30) calendar days of the date DP&L gives written notice to the City of Dayton of its decision to acquire the MacGregor Park property for the City Option Price, or else the option expires without further notice. If within thirty (30) calendar days of the date DP&L gives written notice to the City of Dayton and the City of Dayton provides written notice that it will exercise its option to purchase the MacGregor Park property at the City Option Price, then the City of Dayton must acquire the MacGregor Park property at a closing within ninety (90) days of its written notice to DP&L or else the option expires without further notice.

		
	f.
	DP&L agrees to work with the City of Dayton to develop an "apprenticeship" program targeted at Dayton residents.  The parties agree to work cooperatively to establish the terms of that program.

		
	g.
	DP&L agrees to provide special hiring outreach for City of Dayton residents.  The outreach will include DP&L hosting an annual job fair for City of Dayton residents detailing both current job opportunities and recommended educational pathways.  DP&L will take reasonable measures to provide advance notice to the City of Dayton of upcoming DP&L job postings. DP&L will also make reasonable efforts to identify and recruit City of Dayton residents who graduate from Sinclair Community College to fill open job positions for which they are qualified.

		
	h.
	DP&L will contribute $200,000 annually (no more than five payments total)   to assist the City of Dayton in providing economic development programs and providing essential city services to residents, including low-income residents.  These funds shall not be recoverable from customers.  DP&L will provide the funding for those programs for 2017 within 30 days of the Commission's approval or modification of the ESP, subject to the provisions set forth in Section XI.5.  DP&L will provide the funding for each subsequent year of the ESP by no later than January 15th of each calendar year.

3.    Edgemont 
		
	a.
	DP&L shall contribute $565,000 of shareholder dollars annually to benefit electric consumers at or below 200% of the federal poverty line or customers at risk of losing electric service.  This amount includes $115,000 for DP&L's Gift of Power program and $450,000 for the Community Action Partnership.

4.    Honda
		
	a.
	DP&L agrees that Honda may avail itself of either the Automaker Incentive under Section IV.1.a.ii or the Ohio Business Incentive under Section IV.1.a.iii.

		
	b.
	DP&L agrees to Honda's current energy efficiency opt-out status for the term of the ESP.

		
	c.
	DP&L will conduct meetings with Honda suppliers no less frequently than annually to discuss bill components, to sign up for an energy audit, and a discussion on energy star, conservation and demand response. 

		
	d.
	DP&L and Honda will work together to develop and automate Energy Star bench marking for Honda suppliers in DP&L’s service territory.

		
	e.
	DP&L will conduct a meeting of customers and other interested parties no less frequently than annually to discuss investment in advanced/smart grid infrastructure and renewable infrastructure.  The customer group may provide recommendations to DP&L to set priorities, investment amounts and timing of any construction.  If DP&L follows the recommendations developed in cooperation with this working group then members of the group will support DP&L with a Stipulation if any filing required by this investment is opposed.  DP&L may not use the procedures set forth in this subsection (Section X.4.(e)) to delay or avoid its obligations set forth in Section VI of this Stipulation.

5.    Ohio Hospital Association
		
	a.
	In a manner that is consistent with DP&L's existing EE/PDR plan, DP&L will work with the Ohio Hospital Association (OHA) on an annual energy efficiency program targeted at OHA members in the DP&L territory.  OHA agrees to hold the funds as may be necessary from year to year in order to accomplish the listed purposes.  The intent will be to partner with OHA to encourage and increase OHA members’ participation in cost effective energy efficiency measures at the facilities.

		
	i.
	DP&L will provide OHA $200,000 per year to promote and obtain significant energy/demand savings among OHA members through efforts including Energy Star benchmarking, hospital energy audits, education related to energy efficiency and demand reduction, meetings with hospital facility directors and members of hospital c-suites, and presentations that champion energy efficiency, hospital resilience and energy-related actions to mitigate climate change and related issues.  During the first year, the $200,000 in funding for OHA shall be funded by shareholders.  During the remaining years, the $200,000 in funding shall be recovered through the Energy Efficiency Rider.  In the event that the Commission determines that this $200,000 in funding does not qualify for recovery in the Energy Efficiency Rider, the $200,000 will be funded by shareholders  The funding described in this paragraph of the Stipulation is separate from the commitments set forth in the Case No. 16-649-EL-POR.  In addition, DP&L and OHA will collaborate to determine the level of funding from this pool of dollars to contribute to projects throughout the year to appropriately incentivize OHA members to implement EE/PDR projects, which should include a preference for OHA members that have below average Energy Star scores.

		
	ii.
	DP&L and OHA will work together to develop and automate Energy Star benchmarking for OHA members in DP&L’s service territory.

		
	iii.
	DP&L will eliminate any charges associated with the Alternate Feed Charge that currently are being charged to certain OHA members, and it will exempt OHA members from paying that charge as requested in DP&L's pending Distribution Rate Case.

6.    PWC
		
	a.
	The Company will provide People Working Cooperatively, Inc. ("PWC") $200,000 annually to fund PWC’s programs which assist DP&L’s low-income, elderly, and disabled customers. During the first year, the $200,000 in funding for PWC shall be funded by shareholders.  During the remaining years, the $200,000 in funding shall be recovered through the Energy Efficiency Rider.  In the event the Commission determines that the $200,000 for PWC does not qualify for recovery in the Energy Efficiency Rider, the $200,000 will be funded by shareholders.  The Parties agree that the funding described in this paragraph of the Stipulation is separate from the $200,000 the Company agreed to provide PWC to fund its pilot program in Case No. 16-649-EL-POR, and also agree that this paragraph shall not be cited as precedent regarding any future funding for PWC’s pilot program or any other potential funding for PWC.

		
	XI.
	Other Provisions  

1.    In arm's-length bargaining, the Signatory Parties have negotiated terms and conditions that are embodied in this Stipulation.  This Agreement involves a variety of difficult, complicated issues that would otherwise be resolved only through expensive, complex, 
protracted litigation.  This Stipulation contains the entire Agreement among the Signatory Parties, and embodies a complete settlement of all claims, defenses, issues and objections in these proceedings.  The Signatory Parties agree that this Stipulation is in the best interests of the public and urge the Commission to adopt it.  
2.    All Signatory and Non-Opposing Parties, other than DP&L, will withdraw without prejudice, their filed testimony.  DP&L offers its testimony and exhibits as further evidentiary support for this Stipulation, and will file supplemental testimony in support of this Stipulation.  Except as modified by this Stipulation, DP&L's Application in these matters is approved.  Nothing in this subsection prohibits any Signatory Party or Non-Opposing Party from filing testimony or submitting evidence in support of the Stipulation.
3.    This Stipulation is a consensus among the Signatory Parties of an overall approach to rates in this proceeding.  It is submitted for the purposes of this case alone and should not be understood to reflect the positions that an individual Signatory Party may take as to any individual provision of the Stipulation standing alone, nor the position a Signatory Party may have taken if all of the issues in this proceeding had been litigated.  Nothing in this Stipulation shall be used or construed for any purpose to imply, suggest or otherwise indicate that the results produced through the compromise reflected herein represent fully the objectives of any Signatory Party.  This Stipulation is submitted for purposes of this proceeding only, and is not deemed binding in any other proceeding, except as expressly provided herein, nor is it to be offered or relied upon in any other proceedings, except as necessary to enforce the terms of this Stipulation.  The willingness of Signatory Parties to sponsor this document currently is predicated on the reasonableness of the Stipulation taken as a whole.  
4.    The Signatory Parties will support the Stipulation if the Stipulation is contested.8  In order to provide certainty to customers, parties, and Applicant, the Signatory Parties and Non-Opposing Parties agree that in DP&L's pending Electric Rate Case, Nos. 15-1830-EL-AIR, 15-1831-EL-AAM, 15-1832-EL-ATA, no party will seek to support any attempt to withdraw, curtail, or revise any provision of this settlement or to revise the provisions or benefits of this Stipulation and Recommendation.  However, nothing in this Stipulation prohibits the Signatory Parties and Non-Opposing Parties from contesting issues in the distribution rate case (Case No. 15-1830-EL-AIR) that are not otherwise addressed in this Stipulation.9 
5.    This Stipulation is conditioned upon adoption of the Stipulation by the Commission in its entirety and without material modification.  If the Commission rejects or modifies all or any part of this Stipulation, any Signatory Party shall have the right to apply for rehearing.  If the Commission does not adopt the Stipulation without material modification upon rehearing, or if the Commission makes a material modification to any Order adopting the Stipulation pursuant to any reversal, vacation and/or remand by the Supreme Court of Ohio, then within thirty (30) days of the Commission's Entry on Rehearing or Order on Remand:  (a) any Signatory Party may withdraw from the Stipulation by filing a notice with the Commission ("Notice of Withdrawal"); or (b) DP&L may terminate and withdraw from the Stipulation by filing a notice ("Utility Notice").10  Upon the filing of such Utility Notice by DP&L, the Stipulation shall immediately become null and void.  No Signatory Party shall file a Notice of 
_____________________________

8 RESA and IGS are not obligated to file testimony or briefs supporting the Stipulation.

9For avoidance of doubt and as noted in Section III.1.b, resolution of DP&L's current distribution rate case in Case No. 15-1830-EL-AIR may result in additional allocation of costs to the SSO rate and therefore, IGS and RESA are not prohibited from advocating for unbundling or changes to SSO rate or supplier tariffs in that proceeding or any other distribution rate case.

10 IGS and RESA agree not to oppose part (b) of Section XI(5).
Withdrawal or Utility Notice without first negotiating in good faith with the other Signatory Parties to achieve an outcome that substantially satisfies the intent of the Stipulation.  If a new agreement achieves such an outcome, the Signatory Parties will file the new agreement for Commission review and approval.  If the discussions to achieve an outcome that substantially satisfies the intent of the Stipulation are unsuccessful, and a Signatory Party files a Notice of Withdrawal, then the Commission will convene an evidentiary hearing to afford that Signatory Party the opportunity to contest the Stipulation by presenting evidence through witnesses, to cross-examine witnesses, to present rebuttal testimony, and to brief all issues that the Commission shall decide based upon the record and briefs.  If the discussions to achieve an outcome that substantially satisfies the intent of the Stipulation are successful, then some or all of the Signatory Parties shall submit the amended Stipulation to the Commission for approval after a hearing if necessary.
IN WITNESS THEREOF, the undersigned Signatory Parties agree to this Stipulation and Recommendation as of this 30th day of January, 2017.  The undersigned Signatory Parties request the Commission to issue its Opinion and Order approving and adopting this Stipulation.

	
			
	THE DAYTON POWER AND LIGHT COMPANY

By:    /s/ Jeffrey S. Sharkey        
   Jeffrey S. Sharkey

	 
	DPL INC.

By:   /s/ Jeffrey S. Sharkey           
   Jeffrey S. Sharkey

	
			
	CITY OF DAYTON, OHIO

By:   /s/ N. Trevor Alexander      
   N. Trevor Alexander

	 
	INTERSTATE GAS SUPPLY, INC./IGS ENERGY

By:   /s/ Joseph Oliker                   
   Joseph Oliker

	RETAIL ENERGY SUPPLY ASSOCIATION

By:   /s/ Michael J. Settineri        
   Michael J. Settineri11

	 
	EDGEMONT NEIGHBORHOOD COALITION

By:   /s/ Ellis Jacobs                    
   Ellis Jacobs

	

PEOPLE WORKING COOPERATIVELY, INC.

By:   /s/ Devin D. Parram            
   Devin D. Parram

	 
	

SIERRA CLUB

By:__________________________ 
   Kristin Henry

	

OHIO HOSPITAL ASSOCIATION

By:   /s/ Richard L. Sites             
   Richard L. Sites
	 
	

MID-ATLANTIC RENEWABLE ENERGY COALITION

By:   /s/ Christine M. T. Pirik     
   Christine M.T. Pirik

_____________________________

 RESA's signature and consent to Section VIII.1 of this Stipulation is contingent upon subsequent client approval. As soon as reasonably practicable, RESA will file a letter in this proceeding indicating whether client approval for consent to Section VIII.1 of the Stipulation was received.
IN WITNESS THEREOF, the undersigned Non-Opposing Parties agree not to challenge this Stipulation and Recommendation as of this 30th day of January, 2017.  
	
			
	ENERNOC, INC.

By:___________________________ 
   Gregory J. Poulos
	 
	OHIO ENVIRONMENTAL COUNCIL

By:   /s/ Trent Dougherty             
   Trent Dougherty 

	

HONDA OF AMERICA, MFG., INC.

By:   /s/ N. Trevor Alexander      
   N. Trevor Alexander 

	 
	 

CERTIFICATE OF SERVICE
I certify that a copy of the foregoing Stipulation and Recommendation has been served via electronic mail upon the following counsel of record, this 30th day of January, 
 2017.
	
		
	Thomas McNamee 
Natalia Messenger 
Public Utilities Commission of Ohio 
30 East Broad Street, 16th Floor
Columbus, OH  43215-3793
Email:  
thomas.mcnamee@ohioattorneygeneral.gov
natalia.messenger@ohioattorneygeneral.gov
 
Attorneys for PUCO Staff
	Frank P. Darr (Counsel of Record) 
Matthew R. Pritchard 
McNees Wallace & Nurick  
21 East State Street, 17th Floor 
Columbus, OH  43215 
Email:  fdarr@mwncmh.com 
    mpritchard@mwncmh.com
Attorneys for Industrial Energy Users – Ohio

	Kimberly W. Bojko 
James D. Perko, Jr. 
Carpenter Lipps & Leland LLP 
280 North High Street, Suite 1300 
Columbus, OH  43215 
Email:  bojko@carpenterlipps.com 
    perko@carpenterlipps.com
Attorneys for The Ohio Manufacturers' Association Energy Group
	David F. Boehm 
Michael L. Kurtz 
Kurt J. Boehm 
Jody Kyler Cohn 
Boehm, Kurtz & Lowry  
36 East Seventh Street, Suite 1510 
Cincinnati, OH  45202 
Email:  dboehm@BKLlawfirm.com 
    mkurtz@BKLlawfirm.com 
    kboehm@BKLlawfirm.com 
    jkylercohn@BKLlawfirm.com
Attorneys for The Ohio Energy Group

	Kevin R. Schmidt 
88 East Broad Street, Suite 1770 
Columbus, OH  43215 
Email:  schmidt@sppgrp.com
Attorney for The Energy Professionals of Ohio
	Joseph Oliker (Counsel of Record) 
Matthew White 
Evan Betterton 
IGS Energy 
6100 Emerald Parkway 
Dublin, OH  43016 
Email:  joliker@igsenergy.com 
   mswhite@igsenergy.com 
   Ebetterton@igsenergy.com
Attorney for IGS Energy

	Jeffrey W. Mayes 
Monitoring Analytics, LLC 
2621 Van Buren Avenue, Suite 160 
Valley Forge Corporate Center 
Eagleville, PA  19403 
Email: jeffrey.mayes@monitoringanalytics.com
Attorneys for Monitoring Analytics, LLC as  
The Independent Market Monitor for PJM
	Joel E. Sechler (Counsel of Record) 
Carpenter Lipps & Leland 
280 N. High St., Suite 1300 
Columbus, OH  43215 
Email:  sechler@carpenterlipps.com
Gregory J. Poulos 
EnerNOC, Inc. 
P.O. Box 29492 
Columbus, OH  43229 
Email:  gpoulos@enernoc.com
Attorneys for EnerNOC, Inc.

	Trent Dougherty (Counsel of Record) 
Miranda Leppla 
Ohio Environmental Council  
1145 Chesapeake Ave., Suite 1 
Columbus, OH  43212-3449 
Email:  tdougherty@theoec.org 
   mleppla@theoec.org
Attorney for the Ohio Environmental 
Council and Environmental Defense Fund
	Angela Paul Whitfield 
Carpenter Lipps & Leland LLP 
280 Plaza, Suite 1300 
280 North High Street 
Columbus, OH  43215 
Email:  paul@carpenterlipps.com
Attorney for The Kroger Co.

	William J. Michael (Counsel of Record) 
Kevin F. Moore  
Ajay Kumar 
Office of the Ohio Consumers' Counsel 
10 West Broad Street, Suite 1800 
Columbus, OH  43215-3485 
Email:   william.michael@occ.ohio.gov 
   kevin.moore@occ.ohio.gov 
   ajay.kumar@occ.ohio.gov
Attorneys for the Ohio Consumers' Counsel
	Colleen Mooney 
Ohio Partners for Affordable Energy 
231 West Lima Street 
P.O. Box 1793 
Findlay, OH  45839-1793 
Email:  cmooney@ohiopartners.org
Attorney for Ohio Partners for Affordable Energy

	Michael D. Dortch 
Richard R. Parsons 
Kravitz, Brown & Dortch, LLC 
65 East State Street, Suite 200 
Columbus, OH  43215 
Email:   mdortch@kravitzllc.com 
   rparsons@kravitzllc.com
Attorneys for Calpine Energy Solutions LLC
	Madeline Fleisher 
Kristin Field 
Environmental Law & Policy Center 
21 West Broad Street, Suite 500 
Columbus, OH  43215 
Email:  mfleisher@elpc.org 
   kfield@elpc.org
Attorneys for The Environmental Law & Policy Center

	Richard C. Sahli 
Richard C. Sahli Law Office, LLC 
981 Pinewood Lane 
Columbus, OH  43230-3662 
Email:  rsahli@columbus.rr.com
Christopher M. Bzdok (pro hac vice) 
Olson Bzdok & Howard, P.C. 
420 East Front Street 
Traverse City, MI  49686 
chris@envlaw.com
Tony G. Mendoza, Staff Attorney (pro hac vice) 
Kristin Henry, Senior Staff Attorney (pro hac vice) 
Sierra Club Environmental Law Program 
2101 Webster Street, 13th Floor 
Oakland, CA  94612 
Email:  tony.mendoza@sierraclub.org 
   Kristin.henry@sierraclub.org
Attorneys for Sierra Club
	Steven D. Lesser 
James F. Lang 
N. Trevor Alexander 
Mark T. Keaney 
Calfee, Halter & Griswold LLP 
41 South High Street 
1200 Huntington Center 
Columbus, OH  43215 
Email:    slesser@calfee.com 
   jlang@calfee.com 
   talexander@calfee.com 
   mkeaney@calfee.com
Attorneys for The City of Dayton and  
Honda of America Mfg., Inc.
Lisa M. Hawrot 
Spilman Thomas & Battle, PLLC 
Century Centre Building 
1233 Main Street, Suite 4000 
Wheeling, WV  26003 
Email:  lhawrot@spilmanlaw.com 

	Michael J. Settineri 
Stephen M. Howard 
Gretchen L. Petrucci 
Ilya Batikov 
William A. Sieck 
Vorys, Sater, Seymour and Pease LLP 
52 E. Gay Street 
Columbus, OH 43215 
Email:  mjsettineri@vorys.com 
    smhoward@vorys.com 
    glpetrucci@vorys.com 
    ibatikov@vorys.com 
   wasieck@vorys.com 
 
Attorneys for Dynegy Inc.,  
PJM Power Providers Group, and  
Retail Energy Supply Association
Michelle Grant  
Dynegy Inc. 
601 Travis Street, Suite 1400 
Houston, TX  77002 
Email:  michelle.d.grant@dynegy.com
Attorneys for Dynegy Inc. 
Glen Thomas 
1060 First Avenue, Suite 400 
King of Prussia, PA  19406 
Email:  gthomas@gtpowergroup.com 
Sharon Theodore 
Electric Power Supply Association 
1401 New York Ave. NW 11th Floor 
Washington, DC 
Email:  stheodore@epsa.org
	Derrick Price Williamson 
Spilman Thomas & Battle, PLLC 
1100 Bent Creek Blvd., Suite 101 
Mechanicsburg, PA  17050 
Email:  dwilliamson@spilmanlaw.com 
Carrie M. Harris 
Spilman Thomas & Battle, PLLC 
310 First Street, Suite 1100 
P.O. Box 90 
Roanoke, VA  24002-0090 
Email:  charris@spilmanlaw.com
Steve W. Chriss  
Senior Manager, Energy Regulatory Analysis 
Greg Tillman 
Senior Manager, Energy Regulatory Analysis 
Wal-Mart Stores, Inc. 
2001 SE 10th Street 
Bentonville, AR  72716-0550 
Email:  Stephen.Chriss@walmart.com 
    Greg.Tillman@walmart.com
Attorneys for Wal-Mart Stores East, LP 
  and Sam's East, Inc.
Evelyn R. Robinson 
2750 Monroe Boulevard 
Audubon, PA  19403 
Email:  evelyn.robinson@pjm.com 
 
Attorney for PJM Interconnection, L.L.C.
Richard L. Sites 
Ohio Hospital Association 
155 East Broad Street, 3rd Floor 
Columbus, OH  43215-3620

	Laura Chappelle 
201 North Washington Square, Suite 910 
Lansing, MI  48933 
Email:  laurac@chappelleconsulting.net
Attorneys for PJM Power Providers Group 
Ellis Jacobs 
Advocates for Basic Legal Equality, Inc. 
130 West Second Street, Suite 700 East 
Dayton, OH  45402 
Email:  ejacobs@ablelaw.org
Attorney for Edgemont Neighborhood Coalition
	Email:  rick.sites@ohiohospitals.org
Matthew W. Warnock 
Dylan F. Borchers 
Bricker & Eckler LLP 
100 South Third Street 
Columbus, OH  43215-4291 
Email:  mwarnock@bricker.com 
   dborchers@bricker.com
Attorneys for The Ohio Hospital Association

	Amy B. Spiller 
Jeanne W. Kingery 
Elizabeth H. Watts 
Duke-Energy Ohio, Inc. 
139 East Fourth Street 
1303-Main 
Cincinnati, OH  45202 
Email:  amy.spiller@duke-energy.com 
   jeanne.kingery@duke-energy.com 
   elizabeth.watts@duke-energy.com
Attorneys for Duke-Energy Ohio, Inc.
	Terrence N. O'Donnell  
Raymond D. Seiler 
Christine M.T. Pirik 
William V. Vorys 
Dickinson Wright PLLC 
150 East Gay Street, Suite 2400 
Columbus, OH  43215 
Email:  todonnell@dickinsonwright.com 
   rseiler@dickinsonwright.com 
   cpirik@dickinsonwright.com 
   wvorys@dickinsonwright.com
Attorneys for Mid-Atlantic Renewable 
Energy Coalition

	Devin D. Parram 
Bricker & Eckler LLP 
100 South Third Street 
Columbus, OH  43215-4291 
Email:  dparram@bricker.com
Attorney for People Working  
Cooperatively, Inc.
	John R. Doll 
Matthew T. Crawford Doll, Jansen & Ford 
111 West First Street, Suite 1100 
Dayton, OH  45402-1156 
Email:  jdoll@djflawfirm.com 
            mcrawford@djflawfirm.com
Attorneys for Utility Workers of  
America Local 175

	Carl Tamm 
President 
Classic Connectors, Inc. 
382 Park Avenue East 
Mansfield, OH  44905 
Email:  crtamm@classicconnectors.com
	C. David Kelley, Prosecutor 
Dana N. Whalen 
110 West Main Street 
West Union, OH  45693 
Email:  prosecutorkelley@usa.com 
   dana.whalen@adamscountyoh.gov 
 
Attorneys for Adams County, Ohio, 
Monroe Township, Ohio and 
Manchester Local School District

/s/ Jeffrey S. Sharkey                 
Jeffrey S. Sharkey

1146620.1

	
				
	 
	Appendix A

	 
	

DMR Rate Summary
	 
	 

	

Tariff Class

Residential
	

Rate component

Energy    $/kWh    $0.0080586
	

Revenue

$43,781,087
	

48.6%

	

Secondary
	

Energy    $/kWh    $0.0067707
	

$27,591,878
	

30.7%

	
						
	Primary
	Energy
	$/kWh
	$0.0009794
	$2,807,084
	13.5%

	 
	Demand
	$/kW
	$1.5164053
	$9,262,557
	 

	 
	Maximum
	$/kWh
	$0.0105276
	$39,880
	 

	

Primary Substation
	

Energy
	

$/kWh
	

$0.0009060
	

$585,044
	

2.4%

	 
	Demand
	$/kW
	$1.4152322
	$1,594,268
	 

	

High Voltage
	

Energy
	

$/kWh
	

$0.0009277
	

$908,123
	

4.0%

	 
	Demand
	$/kW
	$1.4171788
	$2,647,755
	 

	

School
	

Energy
	

$/kWh
	

$0.0048224
	

$251,421
	

0.3%

	

Street Lighting
	

Energy
	

$/kWh
	

$0.0029345
	

$163,456
	

0.2%

	

Private Outdoor  Ltg
	

Energy
	

$/kWh
	

$0.0120947
	

$367,445
	

0.4%

	

TOTAL
	 
	 
	 
	

$90,000,000
	 

1Exhibit 10.1

 

 

 

CAPACITY AND SERVICES AGREEMENT

 

By and Among

 

CLINTON GROUP, INC., IMATION
CORP. AND GlassBridge Asset Management, LLC

 

 

 

February 2, 2017

 

     

     

    

 

CAPACITY AND SERVICES AGREEMENT,
dated as of February 2, 2017, by and among:

 

CLINTON GROUP, INC.,
a Delaware corporation (the “Service Provider”); 

 

IMATION
CORP., a Delaware corporation (“Imation”);
and

 

GlassBridge
Asset Management, LLC, a Delaware limited liability company (“Imation RIA”).

 

WITNESSETH:

 

WHEREAS, Imation
RIA intends to manage certain assets of Imation and certain assets of third party clients (“Imation Capital”);
and

 

WHEREAS, Imation
RIA desires to retain the Service Provider to provide certain services and investment capacity to Imation RIA, and the Service
Provider desires to provide such services and investment capacity to Imation RIA, in accordance with the terms and conditions of
the Transaction Documents (as defined below);

 

NOW, THEREFORE,
in consideration of the premises and of the mutual covenants and agreements herein contained, the Service Provider, Imation and
Imation RIA (the “Parties” and each a “Party”) agree as follows:

 

		1.	DEFINITIONS.

 

In this Agreement, the following words and phrases
shall have the following respective meanings, unless the context otherwise requires.

 

“Account” shall have the meaning
set forth in Section 10.A.

 

“Advisers Act” shall mean the Investment
Advisers Act of 1940, as amended, and the rules promulgated thereunder.

 

“Affiliate”
shall mean as to any Person, any other Person, that controls, is controlled by, or is under common control with, such Person. For
these purposes, “control” means the possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement”
shall mean this Capacity and Services Agreement, dated as of February 2, 2017, by and among the Service Provider, Imation and Imation
RIA.

 

“Bloomberg”
means Bloomberg Financial Markets.

 

“Business Day”
means any day except Saturday, Sunday and any day which is a federal legal holiday or a day on which banking institutions in the
State of New York are authorized or required by law or other governmental action to close.

 

    1

     

    

 

“Capacity”
shall have the meaning set forth in Section 3.B.

 

“Capacity Expansion”
shall have the meaning set forth in Section 3.B.

 

“Capacity Extension”
shall have the meaning set forth in Section 3.B.

 

“Capacity-Related Consultation
Services” shall have the meaning set forth in Section 4.A.

 

“Clinton Fund”
shall have the meaning set forth in Section 3.B.

 

“Clinton Indemnified
Party” shall have the meaning set forth in Section 11.C.

 

“Common Stock”
means (a) Imation’s shares of Common Stock, par value $0.01 per share, and (b) any share capital into which such Common Stock
shall have been changed or any share capital resulting from a reclassification of such Common Stock.

 

“Confidential Information”
shall have the meaning set forth in Section 10.A.

 

“Designated Persons”
shall have the meaning set forth in Section 10.B.

 

“Designee”
means Madison Avenue Capital Holdings, Inc., a Delaware corporation and an Affiliate of the Service Provider.

 

“Disclosing Party”
shall have the meaning set forth in Section 10.A.

 

“Governmental Authority”
shall mean any: (a) nation, state, commonwealth, province, territory, county, municipality, district or other jurisdiction of any
nature; (b) federal, state, provincial, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority
of any nature (including any governmental division, department, agency, commission, commissioner, bureau, tribunal, instrumentality,
official, ministry, fund, foundation, center, organization, board, unit, body or Person and any court or other tribunal); or (d)
regulatory or self-regulatory organization.

 

“Imation”
shall have the meaning set forth in the preamble of this Agreement.

 

“Imation Board Approval”
shall mean the approval of the board of directors of Imation, with any directors who are interested in this Agreement or the transactions
contemplated hereby or otherwise in the matter being approved recusing themselves from the discussion and voting on such matter.

 

“Imation Capital”
shall have the meaning set forth in the recitals to this Agreement.

 

“Imation Indemnified
Party” shall have the meaning set forth in Section 11.D.

 

“Imation RIA”
shall have the meaning set forth in the preamble of this Agreement.

 

    2

     

    

 

“Imation RIA Launch-Related
Services” shall have the meaning set forth in Section 4.B.

 

“Initial Closing Date”
shall have the meaning set forth in the Subscription Agreement.

 

“Initial Term”
shall have the meaning set forth in Section 3.B.

 

“Invested Equity”
shall mean the aggregate gross asset value of the funds made available to the Service Provider by Imation and Imation RIA for discretionary
management by the Service Provider, taking into account net capital appreciation and net capital depreciation thereon, and disregarding
any leverage applied to such funds.

 

“Lien” means
any mortgage, deed of trust, lien, charge, claim, encumbrance, security interest, right of first refusal, preemptive right or other
restrictions of any kind.

 

“Losses” shall
have the meaning set forth in Section 11.C.

 

“Party” and
“Parties” shall have the meanings set forth in the recitals to this Agreement.

 

“Person” shall
mean any individual, partnership, corporation, limited liability company, unincorporated organization or association, trust (including
the trustees thereof in their capacity as such) or other entity (including any governmental entity) organized under the laws of
(or, in the case of individuals, resident in) any jurisdiction.

 

“Principal Market”
means The New York Stock Exchange.

 

“Proceeding”
shall mean an action, claim, suit, inquiry, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or, to the applicable Party’s knowledge, threatened in writing.

 

“Registration Rights
Agreement” means a Registration Rights Agreement between the  Designee and Imation, in the form attached hereto
as Exhibit A to the Subscription Agreement.

 

“Required Approvals”
shall have the meaning set forth in Section 8.A.e.

 

“Revenue Share Transaction”
shall have the meaning set forth in Section 6.

 

“SEC” shall
mean the United States Securities and Exchange Commission.

 

“Service Provider”
shall have the meaning set forth in the preamble of this Agreement.

 

“Services”
means the Investment Management Services, the Capacity-Related Consultation Services and the Imation RIA Launch-Related Services.

 

    3

     

    

 

“Subscription Agreement”
means the subscription agreement between the Service Provider and Imation dated as of November 22, 2016, as amended by Amendment
No. 1 to the Subscription Agreement, dated as of January 9, 2017 and any subsequent amendment thereto in accordance with its terms.

 

“Subsidiary”
means any joint venture or entity in which Imation, directly or indirectly, owns any of the capital stock or holds an equity or
similar interest.

 

“Transaction Documents”
means this Agreement, the Subscription Agreement, the Registration Rights Agreement and any other documents, certificates or agreements
executed or delivered in connection with the transactions contemplated hereby and thereby, including without limitation any further
agreements entered into between the Service Provider and Imation RIA pursuant to which Invested Equity is invested in accordance
with this Agreement.

 

		2.	APPOINTMENT OF SERVICE PROVIDER; GOVERNANCE AND MANAGEMENT OF IMATION RIA.

 

		A.	Appointment of Service Provider. Imation RIA hereby appoints the Service Provider to provide
the Services and the Capacity to Imation RIA, and the Service Provider hereby agrees to provide the Services and the Capacity to
Imation RIA, in accordance with this Agreement.

 

		B.	Imation RIA Governance and Management. Upon the Initial Closing Date, Imation RIA’s
initial board of directors will be comprised of Joseph De Perio, Daniel Strauss, Donald H. Putnam, Alex Spiro and one additional
or substitute director, as shall be mutually agreed upon by the Parties in a separate writing. The Service Provider shall, upon
request from Imation RIA, provide reasonable assistance and consultation to Imation RIA regarding the selection and retention of
the executive management team for Imation RIA. For the avoidance of doubt, Imation RIA will determine the leverage and underlying
strategies in which the Imation Capital is invested, and will have complete discretion over how the Imation Capital will be invested
and the structure in which it will be held, provided that the provision of Investment Management Services by the Service Provider
shall be subject to the terms of this Agreement, including without limitation Section 3A. The Imation Capital, including the Invested
Equity, may be held in one or more private investment funds or similar investment vehicles managed by Imation RIA and/or one or
more separately managed accounts managed by Imation RIA. The Imation Capital may utilize a single investment strategy or a combination
of investment strategies.

 

		3.	INVESTMENT MANAGEMENT SERVICES; CAPACITY

 

		A.	Investment Management Services. During the Term, Imation RIA may place under the Service
Provider’s management from time to time, subject at all times to the supervision of the Service Provider, the Invested Equity
which shall be held in a private investment fund or a similar investment vehicle sponsored by Imation RIA or a managed account
established by Imation RIA, subject to the terms of this Agreement, with terms not specified in this Agreement to be as mutually
agreed in writing by the Parties. The services provided by the Service Provider with respect to such Invested Equity pursuant to
this Agreement are referred to herein as the “Investment Management Services.”

 

    4

     

    

 

If and to the extent Imation
RIA requests the Service Provider to provide Investment Management Services for Invested Equity, the Service Provider shall, subject
to the supervision of Imation RIA, manage such Invested Equity, on a discretionary basis, using the Service Provider’s quantitative
equity strategy, split evenly between long and short, with a leverage ratio not to exceed 5X per side, unless otherwise approved
by the Service Provider and Imation RIA in writing (subject to Imation Board Approval).

 

Imation RIA shall give the Service
Provider at least 45 days’ prior written notice of the date that it first allocates Invested Equity to the Service Provider
so that the Service Provider may attend to the necessary arrangements to manage the Invested Equity. Imation RIA shall give the
Service Provider prior written notice of all additional contributions of Invested Equity to the Service Provider’s management.

 

The Service Provider agrees
that it shall not knowingly accept any investments in any investment vehicle or account managed by the Service Provider or any
of its Affiliates directly from Imation RIA’s third party clients with whom the Service Provider does not have a pre-existing
relationship, without the prior written consent of Imation RIA.

 

At all times during the Term,
the Service Provider shall maintain sufficient personnel and facilities to perform its obligations under this agreement in accordance
with industry standards.

 

		B.	Capacity. Subject to the exceptions set forth below in this paragraph, the Invested Equity
shall not exceed $1 billion in the aggregate (the “Capacity”). For the avoidance of doubt, Imation’s current
investment in Clinton Lighthouse Equity Strategies Fund (Offshore), Ltd. (the “Clinton Fund”), as the amount
of such investment is adjusted to reflect net profits, losses, redemptions and subscriptions, counts towards Imation’s and
Imation RIA’s usage of the Capacity.

 

Imation RIA shall be permitted
to cause the Invested Equity to exceed the Capacity by any amount up to an additional $500 million for a maximum Capacity of up
to $1.5 billion upon Imation Board Approval and at least 45 days prior written notice to the Service Provider (the “Capacity
Expansion”). The Capacity rights shall survive for up to five years from the Initial Closing Date (the “Initial
Term”); provided that Imation RIA will have the option to extend the Capacity for two subsequent one-year periods upon
Imation Board Approval and at least 45 days’ prior written notice to the Service Provider (individually, each a “Capacity
Extension,” collectively, the “Capacity Extensions”; the Initial Term and the Capacity Extensions,
to the extent triggered, are collectively referred to as the “Term”).

 

    5

     

    

 

In the event that the Invested
Equity (for the avoidance of doubt, including returns from such investment) must be reduced in order to avoid exceeding the Capacity,
(i) Imation’s assets will be withdrawn before the capital of Imation RIA’s third party investors is withdrawn, (ii)
the Service Provider shall identify and offer capacity in other strategies managed by the Service Provider at commercially reasonable
rates no greater than would be charged another client of Service Provider having the same amount invested as such excess, and (iii)
at the election of Imation RIA, its third party clients may continue to invest with the Service Provider such that the Capacity
is exceeded, provided only that such excess capacity shall be provided by the Service Provider as needed on commercially reasonable
terms at no greater fees and performance compensation than would be charged to another client of the Service Provider having the
same amount invested as such excess.

 

The calculation of the amount
of Capacity utilized shall be based on the fair value of the Invested Equity, as calculated by a nationally recognized third-party
fund administrator (“Administrator”), in consultation with the Service Provider, and in accordance with the Service
Provider’s valuation policies and U.S. generally accepted accounting principles, as issued and amended from time to time.
For the avoidance of doubt, the Administrator shall be a third-party service provider to Imation RIA. Imation RIA shall have the
right to review (i) the Service Provider’s valuation policies and/or (ii) the valuation of any specific investment. The Service
Provider will provide Imation RIA with a written estimate of the amount of Capacity utilized based on the Administrator’s
valuation of Invested Equity on a monthly basis, as soon as reasonably practicable following its receipt of the Administrator’s
calculation of fair value of the Invested Equity.

 

		4.	SCOPE OF SERVICES.

 

		A.	Capacity-Related Consultation Services. During the Term and for a 3-month transition period
thereafter, upon the request of Imation RIA, the Service Provider will consult with Imation RIA regarding operational, management
and other matters relating to the enumerated responsibilities of Imation RIA set forth in this Section 4.A, solely to the extent
that the following directly relate to Imation RIA’s use of the Capacity. Imation RIA and its third party service providers
shall in all cases, remain solely responsible for the following: (i) account reconciliation, (ii) P&L reporting, (iii) position
monitoring, (iv) cash management, (v) collateral management, (vi) liaising with the administrator, counsel and auditor engaged
by Imation RIA, (vii) fund formation documentation, (viii) regulatory filing assistance, (ix) IT support and maintenance and (x)
investor relations (such services, the “Capacity-Related Consultation Services”). For the avoidance of doubt,
the Service Provider shall have no responsibility for the management, compliance, operation and administration of Imation RIA.

 

		B.	Imation RIA Launch-Related Services. Upon the request of Imation RIA, the Service Provider
will consult with Imation RIA regarding Imation RIA’s management and compliance functions for up to one year commencing no
later than 90 days from the date hereof (such services, the “Imation RIA Launch-Related Services”), provided
that Imation RIA shall remain solely responsible for such functions.

 

    6

     

    

 

		C.	Meetings with Imation RIA. During the Term, at the request of Imation RIA, the Service Provider
shall make one of its representatives available to address questions that Imation RIA may have regarding the Service Provider’s
obligations with respect to the Capacity and/or the Services.

 

		D.	Provision of Information. The Service Provider shall furnish such reports, evaluations,
certifications, financial statements, information or analyses to Imation RIA with respect to the Invested Equity as Imation RIA
and the Service Provider may agree following Imation RIA’s request from time to time. For the avoidance of doubt, the Service
Provider is not obligated to provide Imation RIA with any information with respect to any discretionary investment funds or accounts
managed by the Service Provider or its Affiliates (whether discretionary or non-discretionary) of the Service Provider’s
other individual or institutional clients. Imation RIA acknowledges and agrees that the Service Provider shall provide the types
of information described above to Imation RIA only to the extent that such provision does not conflict with confidentiality agreements,
confidentiality considerations or privacy requirements.

 

		E.	No Legal Advice. The Parties (i) agree that the Services provided by the Service Provider
pursuant to this Agreement shall not constitute legal advice, and (ii) acknowledge that Imation RIA shall consult with its legal,
tax or other advisors, as deemed necessary in its discretion.

 

		F.	Exclusivity. During the Initial Term (and any Capacity Extension) the Service Provider will
not provide opportunities or services substantially similar to the Capacity-Related Consultation Services (regardless of pricing)
to any other publicly traded or quoted entity, or any Affiliate thereof.

 

		5.	COMPENSATION
AND EXPENSES.

 

		A.	Compensation.

 

As consideration for the Capacity
and the Services, the Parties shall enter into, and perform their respective obligations set forth in, the other Transaction Documents,
which obligations include the obligation for Imation to make the following payments:

 

		(i)	Imation shall issue to the Designee
12,500,000 shares of Common Stock (as adjusted for any stock split, stock dividend, stock combination, reclassification or similar
transaction occurring after the date hereof) on the Initial Closing Date, pursuant to, and subject to the terms and conditions
of, the Subscription Agreement. 

 

    7

     

    

 

		(ii)	If Imation RIA triggers the Capacity Expansion, Imation
                                                                  shall issue to the Designee 2,500,000 shares of Common Stock (as adjusted for any stock split, stock dividend, stock
                                                                  combination, reclassification or similar transaction occurring after the date hereof) within 10 Business Days of
                                                                  receipt of an invoice from the Service Provider, pursuant to, and
                                                                  subject to the terms and conditions of, the Subscription Agreement.

 

		(iii)	If Imation RIA triggers the first Capacity Extension, Imation shall pay the Service Provider $1.75
million for the first Capacity Extension ($2.5 million if Imation RIA has previously opted for the Capacity Expansion) within 10
Business Days of receipt of an invoice from the Service Provider. Further, if Imation RIA triggers the second Capacity Extension,
Imation shall pay the Service Provider an additional $1.75 million for the first Capacity Extension ($2.5 million if Imation RIA
has previously opted for the Capacity Expansion) within 10 Business Days of receipt of an invoice from the Service Provider.

 

		B.	No Other Fees. Except as provided in Section 5.A., none of the Service Provider or its Affiliates
shall be entitled to any asset-based fee, performance-based fee or any other fee or form of compensation, payable in cash or Common
Stock, from Imation, Imation RIA or their Affiliates, for its provision of the Capacity and the Services, nor shall the Invested
Equity be subject to any asset-based fee, performance-based fee/allocation or any other fee payable or allocable to the Service
Provider or its Affiliate(s) from the Clinton Fund. Nothing in this Agreement shall be construed as prohibiting any Party from
pursuing any remedies available at law or in equity for breach or threatened breach, including the recovery of damages.

 

		C.	Expenses. Each of the Parties shall pay its own legal and other expenses relating to the
negotiation and execution of this Agreement. The Service Provider shall bear its own operating and overhead expenses, including
any expenses attributable to the Capacity and Services provided hereunder (such as salaries, bonuses, rent, office, utilities and
administrative expenses, depreciation and amortization, and auditing expenses), and Imation RIA shall not be responsible for such
expenses. Except to the extent constituting operating and overhead expenses of the Service Provider, Imation RIA will be responsible
for, and will promptly reimburse the Service Provider for, the following reasonable third-party direct expenses borne by the Service
Provider attributable to its performance of the Services and provision of the Capacity: legal, marketing, administrative and accounting
costs and expenses and research costs and expenses excluding data.

 

		6.	[RESERVED]

 

		7.	TERM AND TERMINATION.

 

		A.	This Agreement shall commence as of the date hereof and, subject to the rights of the Parties to
terminate this Agreement as set forth below, shall remain in full force and effect until the termination of the Term; provided
that Sections 10 through 14 and 18 through 20 hereof shall survive any termination of this Agreement, including any termination
contemplated under Sections 7.B and 7.C below.

 

    8

     

    

 

		B.	Notwithstanding Section 7.A above, Imation and Imation RIA may terminate this Agreement at any
time upon 30 days prior written notice to the Service Provider upon the occurrence of any of the following events: (i) if the Service
Provider’s registration as an investment adviser with the SEC is revoked, suspended, terminated, or not renewed, or limited
or qualified in any respect; (ii) if the Service Provider sells or otherwise transfers its advisory business, or all or a substantial
portion of its assets, all or a substantial portion of its trading systems or methods, or its goodwill, to any individual or entity
that is not an Affiliate of the Service Provider; (iii) if the Service Provider fails in a material manner to perform any of its
obligations under this Agreement or the other Transaction Documents and, after being given written notice thereof by Imation RIA,
fails to cure such breach within 30 days of such notice, (iv) if the Service Provider engages in any act of fraud or embezzlement
in connection with the Services; (v) the Service Provider’s gross negligence or willful misconduct in connection with the
Services; or (vi) the Service Provider makes a general assignment for the benefit of its creditors, institutes proceedings to be
adjudicated voluntarily bankrupt, consents to the filing of a petition of bankruptcy against it, is adjudicated by a court of competent
jurisdiction as being bankrupt or insolvent, seeks reorganization under any bankruptcy law or consents to the filing of a petition
seeking such reorganization or has a decree entered against it by a court of competent jurisdiction appointing a receiver liquidator,
trustee, or assignee in bankruptcy or in insolvency; provided that in the event that Imation and Imation RIA terminate this Agreement
in accordance with clause (i) or clause (vi) of this paragraph, the Service Provider shall promptly pay to Imation, in cash by
wire transfer of immediately available funds pursuant to wire instructions delivered by Imation in writing to the Service Provider,
an amount equal to $2,000,000.

 

		C.	Notwithstanding Section 7.A above, the Service Provider may terminate this Agreement at any time
upon reasonable prior written notice to Imation RIA upon the occurrence of any of the following events: (i) a breach of Section
8.A.g or 8.A.h; (ii) if, at such time when Imation RIA is required under applicable state law or the Advisers Act to be registered
as an investment adviser, Imation RIA is not so registered or, if after and during such time when Imation RIA is required to be
registered as an investment adviser, Imation RIA’s registration with the applicable state securities authority or the SEC
is revoked, suspended, terminated, or not renewed, or limited or qualified in any respect; (iii) if Imation RIA sells or otherwise
transfers its advisory business, or all or a substantial portion of its assets, all or a substantial portion of its trading systems
or methods, or its goodwill, to any individual or entity that is not an Affiliate of Imation; (iv) if Imation or Imation RIA fails
in a material manner to perform any of its obligations under the Transaction Documents and, after being given written notice thereof
by the Service Provider, fails to cure such breach within 30 days of such notice; or (v) Imation or Imation RIA makes a general
assignment for the benefit of its creditors, institutes proceedings to be adjudicated voluntarily bankrupt, consents to the filing
of a petition of bankruptcy against it, is adjudicated by a court of competent jurisdiction as being bankrupt or insolvent, seeks
reorganization under any bankruptcy law or consents to the filing of a petition seeking such reorganization or has a decree entered
against it by a court of competent jurisdiction appointing a receiver liquidator, trustee, or assignee in bankruptcy or in insolvency.

 

    9

     

    

 

		8.	REPRESENTATIONS,
WARRANTIES AND COVENANTS.

 

A.     Each of
Imation and Imation RIA, as set forth below, hereby represents, warrants and covenants to the Service Provider that:

 

		(a)	Imation RIA (i) has the sole discretion and responsibility to direct the allocation of the Invested
Equity, and (ii) has received a copy of the Service Provider’s Form ADV Part 2 prior to its execution of this Agreement.

 

		(b)	Imation RIA has the sole responsibility for all aspects of its business, including management,
compliance, operation and administration, and has retained the Service Provider to provide it with the Services as set forth herein.

 

		(c)	Each of Imation and Imation RIA has the requisite corporate power and authority to enter into and
to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its respective obligations
hereunder and thereunder. Other than the Required Approvals, as defined below, the execution and delivery by Imation and Imation
RIA of this Agreement and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary
action on the part of Imation and Imation RIA, and no further consent or action is required by Imation or its board of directors.
This Agreement has been duly executed by, and, when delivered in accordance with the terms hereof, will constitute the valid and
binding obligation of, Imation and Imation RIA, enforceable against Imation and Imation RIA, in accordance with its terms, except
as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies
and except as rights to indemnification and to contribution may be limited by federal or state securities law.

 

		(d)	The execution, delivery and performance of this Agreement by Imation and Imation RIA and the consummation
by Imation and Imation RIA of the transactions contemplated hereby, do not and will not (i) conflict with or violate any provision
of Imation’s or Imation RIA’s certificate or articles of incorporation, bylaws or other organizational or charter documents,
(ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, indenture or instrument to which Imation or Imation RIA is a party, or (iii) result in a violation of
any law, rule, regulation, order, judgment, injunction, decree or other restriction of any Governmental Authority to which Imation
or Imation RIA is subject (including, without limitation, foreign, federal and state securities laws and regulations and the rules
and regulations of the Principal Market); except in the case of clause (ii) or (iii) above, as would not, reasonably be expected
to have, individually or in the aggregate, a material adverse effect on the ability of Imation or Imation RIA to perform fully
on a timely basis its obligations under this Agreement.

 

    10

     

    

 

		(e)	Neither Imation nor Imation RIA is required to obtain any consent, waiver, authorization, permit
or order of, give any notice to, or make any filing or registration with, any Governmental Authority or other Person in connection
with the execution, delivery and performance by Imation and Imation RIA of this Agreement, other than any filings required in connection
with Imation RIA’s registration with the SEC or any state securities authority as a registered investment adviser, such filings
with the SEC and pursuant to state securities laws as may be required in the determination of its counsel and other than any filings
that may be required under the Registration Rights Agreement (collectively, the “Required Approvals”). All Required
Approvals have been obtained or effected timely, and neither Imation nor Imation RIA are aware of any facts or circumstances which
might prevent Imation or Imation RIA from obtaining or effecting any of the registration, application or filings contemplated by
the Transaction Documents. Imation RIA is registered as an investment adviser to the extent required by applicable state law and
the Advisers Act and shall remain so registered throughout the Term.

 

		(f)	To the best of Imation’s and Imation RIA’s knowledge, there has not been and there
is not pending any Proceeding to which Imation or Imation RIA is or was a party, or to which any of the assets of Imation or Imation
RIA are or were subject and which resulted in or would reasonably be expected to result in a material adverse effect on the condition,
financial or otherwise, or business of Imation or Imation RIA.

 

		(g)	The conduct of the business of Imation RIA, its investment advisory affiliates, and the vehicles
and accounts managed by Imation RIA, complies, and shall at all times comply, with applicable law, except where the failure to
so comply would not reasonably be expect to have a material adverse effect on the Service Provider, Imation RIA, its investment
advisory affiliates, or the vehicles or accounts managed by Imation RIA.

 

		(h)	Each of Imation and Imation RIA shall inform the Service Provider promptly as soon as Imation or
Imation RIA is notified that it has become subject to a Proceeding materially affecting (or which may, with the passage of time,
materially affect) the business of Imation or Imation RIA.

 

		(i)	Imation RIA represents, warrants and covenants that the Invested Equity shall not, and, for the
duration of this Agreement, such Invested Equity will not constitute “plan assets” for the purpose of Section 3(42)
of the Employee Retirement Income Security Act of 1974, as amended and any regulations promulgated thereunder, without the prior
written consent of the Service Provider.

 

    11

     

    

 

		(j)	Imation RIA represents, warrants and covenants that the Invested Equity shall not, and, for the
duration of this Agreement, such Invested Equity will not constitute assets of an investment company registered under the U.S.
Investment Company Act of 1940, as amended, without the prior written consent of the Service Provider.

 

		(k)	Each of Imation and Imation RIA understands that the representations, warranties, agreements, undertakings
and acknowledgments made by Imation and Imation RIA in this Agreement shall be relied upon by the Service Provider for its compliance
with various securities laws. If this Agreement or the Services contemplated herein gives rise to any compliance obligations for
the Service Provider other than its requirement to be a registered investment adviser, each of Imation and Imation RIA shall upon
reasonable request by the Service Provider cooperate with the Service Provider to address and resolve any such issues in good faith.

 

		(l)	Each of Imation and Imation RIA shall inform the Service Provider promptly if Imation, Imation
RIA or any of their respective officers becomes aware of any change in the foregoing representations, warranties and covenants,
or of any material breach of this Agreement by Imation.

 

B. The Service Provider hereby
represents, warrants and covenants to Imation and Imation RIA that:

 

		(a)	The Service Provider is an entity duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution,
delivery and performance by the Service Provider of this Agreement and the consummation by it of the transactions contemplated
hereunder have been duly authorized by all necessary action on the part of the Service Provider. This Agreement has been duly executed
by the Service Provider, and, when delivered by the Service Provider in accordance with the terms hereof, will constitute the valid
and legally binding obligation of the Service Provider, enforceable against it in accordance with its terms, except as such enforceability
may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

    12

     

    

 

		(b)	The execution, delivery and performance of this Agreement by the Service Provider and the consummation
by the Service Provider of the transactions contemplated hereby does not and will not (i) conflict with or violate any provision
of the Service Provider’s certificate or articles of incorporation, bylaws or other organizational or charter documents,
(ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or
both) of, any agreement, indenture or instrument to which the Service Provider is a party, or (iii) result in a violation of any
law, rule, regulation, order, judgment, injunction, decree or other restriction of any Governmental Authority to which the Service
Provider is subject (including, without limitation, foreign, federal and state securities laws and regulations); except in the
case of clause (ii) or (iii) above, as would not, reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the ability of the Service Provider to perform its obligations thereunder.

 

		(c)	The Service Provider (i) has all federal, state and foreign governmental, regulatory and exchange
licenses, approvals and memberships and has effected all filings and registrations with federal, state and foreign governmental
and regulatory agencies required to perform its obligations under this Agreement and to at all times comply in all respects with
all applicable laws, rules and regulations, and (ii) shall maintain all such registrations, licenses, approvals and memberships
to the extent that the failure to so comply would have a materially adverse effect on the Service Provider’s ability to act
as described herein.

 

		(d)	To the best of the Service Provider’s knowledge, there has not been and there is not pending
any Proceeding to which the Service Provider is or was a party, or to which any of the assets of the Service Provider are or were
subject and which resulted in or might reasonably be expected to result in any material adverse change in the condition, financial
or otherwise, business or prospects of the Service Provider.

 

		(e)	The Service Provider shall inform Imation and Imation RIA promptly as soon as the Service Provider
is notified that it has become subject to a Proceeding materially affecting (or which may, with the passage of time, materially
affect) the business of the Service Provider.

 

		(f)	The Service Provider understands that the representations, warranties, agreements, undertakings
and acknowledgments made by the Service Provider in this Agreement shall be relied upon by Imation and Imation RIA for their compliance
with various securities laws.

 

		(g)	The Service Provider shall inform Imation or Imation RIA promptly if the Service Provider or any
of its officers becomes aware of any change in the foregoing representations, warranties and covenants, or of any material breach
of this Agreement by the Service Provider.

 

		9.	INDEPENDENT
CONTRACTOR.

 

For all purposes of this Agreement,
the Service Provider shall be an independent contractor and not an employee or dependent agent of Imation RIA; nor shall anything
herein be construed as making Imation RIA a partner or co-venturer with the Service Provider or any of its Affiliates or clients.
Except as expressly provided in this Agreement, the Service Provider shall have no authority to bind, obligate or represent Imation
RIA.

 

    13

     

    

 

		10.	CONFIDENTIALITY
AND DATA PROTECTION.

 

		A.	Each Party covenants that, subject to the proviso at the end of this sentence, during the effectiveness
of this Agreement and for two (2) years following the termination of this Agreement in accordance with its terms, it will (a) hold
in strictest confidence non-public and proprietary information, whether written, oral or otherwise, recorded and transmitted by
any means, relating to this Agreement or received by a Party from the Disclosing Party (as defined below) or its Affiliates (whether
or not marked as confidential), including, without limitation, the terms hereof; trade secrets of the Disclosing Party; software
of the Disclosing Party; proprietary technology of the Disclosing Party; information relating to historical and current performance,
investments, processes, procedures, clients, investors, trading positions, models, financial and investment strategies, and other
activities of the Disclosing Party or its Affiliates and any accounts or vehicles managed by any Disclosing Party (each, an “Account”);
the terms and structure of each Account; the clients of or Accounts managed by any Disclosing Party or its Affiliates; organizational,
financial, accounting, operational or other information relating to the Disclosing Party or its Affiliates or its Accounts and
their respective directors, officers, members, partners, shareholders, affiliates, employees, agents, representatives or service
providers; information relating to transactions hereunder considered and/or effected by either Party; the business, policies, and
plans of Imation and/or the Service Provider, and any other aspects of the Parties’ performance or compensation under this
Agreement (“Confidential Information”), whether received prior or subsequent to the execution of this Agreement;
(b) exercise reasonable care to safeguard the confidentiality of the Confidential Information under all circumstances; (c) not
disclose Confidential Information to any third party without the express written consent of the Party that initially disclosed
the same (“Disclosing Party”); (d) not use the Confidential Information for any purpose other than to fulfill
its obligations pursuant to this Agreement or, with respect to Imation or any of its Designated Persons (as defined below), for
evaluation or investment purposes, and (e) not use the Disclosing Party’s Confidential Information to copy or reverse engineer,
or attempt to derive the composition or underlying information or structure of the Disclosing Party; provided, that the restriction
set forth in this clause (e) shall survive the termination of this Agreement indefinitely. Notwithstanding the foregoing, “Confidential
Information” does not include any information which: (i) is in the public domain at the time of disclosure or becomes
available thereafter to the public without restriction, and in either case not as a result of the act or omission of the receiving
party; (ii) is rightfully obtained by the receiving party from a third party without restriction as to disclosure pursuant to applicable
law or written agreement; (iii) is lawfully in the possession of the receiving party at the time of disclosure by the Disclosing
Party and not otherwise subject to restriction on disclosure by written agreement; (iv) is approved for disclosure by prior written
authorization of the Disclosing Party; or (v) is demonstrated by the receiving party to have been previously developed independently
and separately by the receiving party without use of the Disclosing Party’s Confidential Information.

 

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		B.	Each Party agrees to restrict the disclosure of Confidential Information to its partners, directors,
officers, employees, representatives, advisors or service providers that (a) “need to know” and (b) have an employment,
contractual or professional duty to keep Confidential Information confidential (collectively the “Designated Persons”)
and to cause the Designated Persons to hold Confidential Information in strictest confidence. Each Party shall be responsible for
any breach of this Section 10 by any of its Designated Persons.

 

		C.	When disclosure of Confidential Information of the Disclosing Party is required by law (including
legal process), governmental regulation (including, without limitation, any applicable securities exchange regulations), any self-regulatory,
regulatory or taxing authority having jurisdiction over either Party, the receiving party required to disclose such Confidential
Information shall, to the extent permitted by law or regulation, promptly give the Disclosing Party notice of such requirements
and, to the extent reasonable under the circumstances and permitted by law or regulation, (i) consult with the Disclosing Party
in advance of disclosure as to the form, nature, and purpose of such disclosure, (ii) only disclose such Confidential Information
as is required to be disclosed by applicable laws, (iii) to the extent permissible, request to restrict the further disclosure
of the Confidential Information required to be disclosed, and (iv) cooperate in any legal action initiated by the Disclosing Party,
provided that such cooperation shall not be unduly burdensome, to seek a protective order to prevent such disclosure.

 

		D.	Each Party shall only use the other Parties’ names,
in any written materials or oral discussion (in connection with the Invested Equity or this Agreement) with the other Parties’
prior written consent, which shall not be unreasonably withheld, save for the documentation or other communications which are
for the other Parties’ internal purposes only, unless required for legal or regulatory reasons, or required by the other
Party’s advisors and/or service providers in order to render service to such Party.

 

		11.	SCOPE OF LIABILITY; INDEMNIFICATION.

 

		A.	No Clinton Indemnified Party (as defined in Section 11.C below) shall be liable, responsible or
accountable in damages or otherwise to Imation or its shareholders for any action taken or failure to act on behalf of Imation
within the scope of the Services to be provided by the Service Provider pursuant to this Agreement, unless such action or omission
was performed or omitted fraudulently, or constituted willful misconduct or gross negligence.

 

		B.	No Imation Indemnified Party (as defined in Section 11.D below) shall be liable, responsible or
accountable in damages or otherwise to the Service Provider or its Affiliates for any action taken or failure to act pursuant to
this Agreement, unless such action or omission was performed or omitted fraudulently, or constituted willful misconduct or gross
negligence.

 

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		C.	Imation will, to the maximum extent permitted under applicable law, indemnify and hold harmless
the Service Provider, any Person controlling, controlled by or under common control with the Service Provider or any of its Affiliates
and each of their respective members, partners, principals, managers, officers, employees, agents, consultants and the legal representatives
of any of them (each, a “Clinton Indemnified Party”), from and against any loss or expense suffered or
sustained by a Clinton Indemnified Party arising out of the Services and/or Capacity provided hereunder, including, without limitation,
any judgment, settlement, attorneys’ fees and other costs or expenses incurred in connection with the defense of any actual
or threatened Proceeding (collectively, “Losses”), provided that such Losses did not result from the fraud,
gross negligence or willful misconduct of a Clinton Indemnified Party. Clinton Indemnified Parties will be indemnified with respect
to gross negligence, dishonesty or bad faith of any broker or agent of such Clinton Indemnified Party, provided that such broker
or agent was selected, engaged or retained by such Clinton Indemnified Party in good faith. Imation will advance to any Clinton
Indemnified Party attorneys’ fees and other costs and expenses incurred in connection with the defense of any Proceeding
for which such Clinton Indemnified Party is entitled to be indemnified by Imation pursuant to this Agreement; provided, that it
receive a written acknowledgement in form and substance reasonably acceptable to Imation that such Clinton Indemnified Party shall
promptly repay to Imation the amount of any such advance paid to it if it shall be determined by a court order that such Clinton
Indemnified Party was not entitled to be indemnified by Imation in connection with such action or proceeding. The Clinton Indemnified
Parties may consult with counsel and accountants in respect of the services provided to Imation hereunder, and be fully protected
and justified in any action or inaction which is taken in accordance with the advice or opinion of such counsel or accountants,
provided that they will have been selected in good faith. The foregoing provisions will survive the termination of this Agreement.

 

		D.	The Service Provider will, to the maximum extent permitted under applicable law, indemnify and
hold harmless Imation, Imation RIA, their Affiliates and each of their respective members, partners, principals, managers, officers,
employees, agents, consultants and the legal representatives of any of them (each, an “Imation Indemnified Party”),
from and against any Losses suffered or sustained by an Imation Indemnified Party arising out of the fraud, gross negligence or
willful misconduct of a Clinton Indemnified Party. The Service Provider and/or its Affiliate(s) will advance to any Imation Indemnified
Party attorneys’ fees and other costs and expenses incurred in connection with the defense of any Proceeding for which such
Imation Indemnified Party is entitled to be indemnified by the Service Provider pursuant to this Agreement; provided, that they/it
receive a written acknowledgement in form and substance reasonably acceptable to the Service Provider and/or its Affiliate(s) that
such Imation Indemnified Party shall promptly repay to the Service Provider and/or its Affiliate(s) the amount of any such advance
paid to it if it shall be determined by a court order that such Imation Indemnified Party was not entitled to be indemnified by
the Service Provider in connection with such Proceeding. The Imation Indemnified Parties may consult with counsel and accountants
in respect of its obligations under this Agreement, and be fully protected and justified in any action or inaction which is taken
in accordance with the advice or opinion of such counsel or accountants, provided that they will have been selected in good faith.
The foregoing provisions will survive the termination of this Agreement.

 

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		E.	Notwithstanding any of the foregoing to the contrary, the provisions of this Section 11 will not
be construed so as to provide for the indemnification of any Clinton Indemnified Party or any Imation Indemnified Party for any
liability (including liability under U.S. Federal securities laws which, under certain circumstances, impose liability even on
Persons that act in good faith), to the extent (but only to the extent) that such indemnification would be in violation of applicable
law, but will be construed so as to effectuate the foregoing provisions to the fullest extent permitted by law.

 

		12.	ENTIRE AGREEMENT; AMENDMENTS.

 

This Agreement and the other
Transaction Documents supersede all other prior oral or written agreements between the Service Provider, Imation, Imation RIA,
their respective Affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement,
the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding of the Parties
with respect to the matters covered herein and therein. There are no representations, promises, warranties or undertakings, other
than as set forth or referred to herein and therein. No provision of this Agreement may be amended other than by an instrument
in writing signed by Imation, Imation RIA and the Service Provider, and any amendment to this Agreement made in conformity with
the provisions of this Section 12 shall be binding on the Service Provider. No provision hereof may be waived other than by an
instrument in writing signed by the Party against whom enforcement is sought. Neither Imation nor Imation RIA has, directly or
indirectly, made any agreements with the Service Provider relating to the terms or conditions of the transactions contemplated
by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, each of Imation
and the Imation RIA confirms that, except as set forth in the Transaction Documents, the Service Provider has not made any commitment
or promise or has any other obligation to Imation or the Imation RIA. The only duties and obligations of the Parties are as specifically
set forth in the Transaction Documents, and no other duties or obligations shall be implied in fact, law or equity, or under any
principle of fiduciary obligation. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification
of any provision of any of the Transaction Documents unless the same consideration (other than the reimbursement of legal fees)
also is offered to all of the Parties to the Transaction Documents.

 

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		13.	ASSIGNMENT.

 

The rights and obligations hereunder
shall not, except as otherwise expressly provided herein, be assignable, transferable or delegable without the written consent
of the other Party hereto and any attempted assignment, transfer or delegation thereof without such consent shall be void; provided,
that a Party will not unreasonably withhold consent for an assignment by a Party to its Affiliate. For purposes of this Section
13, with respect to the Service Provider, the term “assignment” shall have the meaning defined in Section 202(a)(1)
of the Advisers Act.

 

		14.	NOTICES.

 

Any and all notices or other
communications or deliveries required or permitted to be provided under this Agreement shall be in writing and shall be deemed
given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile
or e-mail at the facsimile number or e-mail address specified in this Section 14 prior to 6:30 p.m. (New York City time) on a Trading
Day (as defined in the Subscription Agreement), (b) the Trading Day after the date of transmission, if such notice or communication
is delivered via facsimile or e-mail at the facsimile number or e-mail address specified in this Agreement later than 6:30 p.m.
(New York City time) on any date and earlier than 11:59 p.m. (New York City time) on such date, (c) the Trading Day following the
date of mailing, if sent by nationally recognized overnight courier service, specifying next Business Day delivery or (d) upon
actual receipt by the Party to whom such notice is required to be given if delivered by hand, in each case properly addressed to
the Party to receive the same. The address for such notices and communications shall be as follows:

 

	If to Imation:	Imation Corp.  
	 	1099 Helmo Avenue N, Suite 250
	 	Oakdale, Minnesota 55128
	 	Telephone: (651) 340-8062
	 	Attention: Tavis Morello, General Counsel
	 	Email: tmorello@imation.com
	 	 
	If to Imation RIA:	GlassBridge Asset Management, LLC
	 	1099 Helmo Avenue N, Suite 250
	 	Oakdale, Minnesota 55128
	 	Telephone: (651) 340-8062
	 	Attention: Tavis Morello, General Counsel
	 	Email: tmorello@imation.com

 

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	With copies (for information purposes 	Winston & Strawn LLP
	only) to:	200 Park Avenue
	 	New York, New York 10166-4193
	 	Telephone: (212) 294-5336
	 	Facsimile: (212) 294-4700
	 	Attention: Joel L. Rubinstein, Esq.
	 	Email: jrubinstein@winston.com
	 	 
	 	Weinberg Zareh & Geyerhahn LLP
	 	45 Rockefeller Plaza, Suite 2000
	 	New York, New York 10111
	 	Attention: Seth B. Weinberg, Esq.
	 	Email: seth@wzgllp.com
	 	 
	If to the Service Provider:	Clinton Group, Inc.
	 	510 Madison Ave., 9th Floor
	 	New York, New York 10022
	 	Attention: George Hall
	 	Daniel Strauss
	 	Telephone: (212) 825-0400
	 	Facsimile: (646) 346-5650
	 	E-mail: geh@clinton.com
	 	dstrauss@clinton.com
	 	 
	With a copy (for information purposes 	Schulte Roth & Zabel LLP
	only) to:	919 Third Avenue
	 	New York, NY 10022
	 	Telephone: (212) 756-2000
	 	Facsimile: (212) 593-5955
	 	Attention:    David Efron, Esq.
	 	 	Eleazer Klein, Esq.
	 	Email:	david.efron@srz.com
	 	 	eleazer.klein@srz.com

 , or to such other address, facsimile number and/or email address to the
attention of such other Person as the recipient party has specified by written notice given to each other party two (2) days prior
to the effectiveness of such change in accordance with this Section 14. Written confirmation of receipt (i) given by the recipient
of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s facsimile
machine or e-mail transmission containing the time, date, recipient facsimile number or e-mail address and an image of the first
page of such transmission, or (iii) provided by a courier or overnight courier service shall be rebuttable evidence of personal
service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (a),
(b), (c) or (d) above, respectively.

 

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		15.	COUNTERPARTS.

 

This Agreement may be executed
in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each Party and delivered to the other Party, it being understood that all Parties need not
sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by an e-mail which contains
a portable document format (.pdf) filed of an executed signature page, such signature page shall create a valid and binding obligation
of the Party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such signature
page were an original thereof.

 

		16.	NO IMPLIED REPRESENTATIONS
OR WARRANTIES.

 

			The Service Provider makes no representations or warranties as to the sufficiency of the Capacity
or the Services or its investment policies and procedures or their suitability for any particular purpose which Imation may have.
No express or implied warranty or representation is given by the Service Provider as to the performance or profitability of any
particular investments or other property forming part of, or constituting the Invested Equity or any other investments of Imation
with the Service Provider. It is possible that Imation may incur losses at any time with respect to assets invested with the Service
Provider. Imation makes no implied representations or warranties except for those expressly provided herein.

 

		17.	DISCLOSURE OF
CONFLICT OF INTERESTS.

 

			Imation acknowledges that the Service Provider may engage, invest and participate in, and otherwise
enter into, other business ventures of any kind, nature and description with others, and Imation agrees that no additional disclosure
shall be required in that regard, except as may be required by law. The Service Provider and its Affiliates and any of their respective
members, partners, officers, employees shall devote so much of their time to the provision of Services hereunder as in the judgment
of the Service Provider the provision of such Services shall reasonably require, and none of the Service Provider or its Affiliates
shall be obligated to do or perform any act or thing in connection with this Agreement not expressly set forth herein. Nothing
herein contained in this Section 17 shall be deemed to preclude the Service Provider or its Affiliates from exercising investment
responsibility, from engaging directly or indirectly in any other business or from directly or indirectly purchasing, selling,
holding or otherwise dealing with any securities and instruments for the account of any such other business, for their own accounts,
for any of their family members or for other clients. Persons associated with the Service Provider or its Affiliates have an ownership
interest in Imation as well as Accounts managed by the Service Provider. Furthermore, certain Affiliates of the Service Provider
may have greater financial interest in the performance of such other Accounts than the performance of the Invested Equity. Imation
shall not have any right to participate in any manner in any profits or income earned or derived by or accruing to the Service
Provider or any Affiliate thereof from the conduct of any business or from any transaction in securities or instruments effected
by the Service Provider or such Affiliate for any Account.

 

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		18.	CONSTRUCTION.

 

The headings herein are for convenience
only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. No specific
representation or warranty shall limit the generality or applicability of a more general representation or warranty. The Parties
agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise this Agreement and, therefore,
the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement or any amendments hereto.

 

		19.	NO THIRD-PARTY
BENEFICIARIES.

 

This Agreement is intended
for the benefit of the Parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person, except that (i) each Clinton Indemnified Party and each
Imation Indemnified Party is an intended third party beneficiary of the indemnification provisions hereof and may enforce
such provisions directly against the Parties with obligations thereunder and (ii) the Designee is an intended third party
beneficiary of the compensation provisions of this Agreement.

 

		20.	GOVERNING
LAW; VENUE; WAIVER OF JURY TRIAL.

 

All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of
New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each
Party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York,
Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated
hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an
inconvenient forum or that the venue of such suit, action or proceeding is improper. Each Party hereby irrevocably waives personal
service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such
Party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process
in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

 

[Signature page follows]

 

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IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the day and year first above written.

 

	 	CLINTON GROUP, INC.
	 	 
	 	By:	/s/ George Hall	 
	 	Name:  	George Hall
	 	Title:   	Chief Executive Officer
	 	 
	 	IMATION CORP.
	 	 
	 	By:	/s/ Danny Zheng	 
	 	Name:  	Danny Zheng
	 	Title:   	Chief Financial Officer
	 	
	 	GLASSBRIDGE ASSET MANAGEMENT, LLC 
	 	 
	 	By:	/s/ Tavis J. Morello	 
	 	Name:  	Tavis J. Morello
	 	Title:   	General Counsel

 

[Signature Page to Capacity and Services
Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00266-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00266-of-00352.parquet"}]]