Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AGREEMENT 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into by and between Annaly Capital Management, Inc. (the
“Company”) and David L. Finkelstein (the “Executive”) as of March 13, 2020. 
 WHEREAS, the Company
has entered into an internalization agreement, dated as of February 12, 2020, by and among (i) the Company, (ii) AMCO Acquisition LLC, a Delaware limited liability company and direct, wholly-owned subsidiary of the Company,
(iii) AMCO Holding Management Company LLC, a Delaware limited liability company (“HoldCo”), (iv) the members of HoldCo (the “HoldCo Members”), (v) AMCO OpCo Holding Company LLC, a Delaware limited liability
company (“OpCo Holdings”), (vi) AMCO LP Holding Company LP, a Delaware limited partnership (“ALP”), (vii) AMCO Manager Holdings LLC, a Delaware limited liability company (“AMH”), and
(viii) Annaly Management Company LLC, a Delaware limited liability company (“Manager” and, together with OpCo Holdings, ALP and AMH, the “Manager Entities”) pursuant to which the Company will become an
internally managed company (the “Internalization”). 
 WHEREAS, the Company and the Executive entered into (i) an
Employment Agreement and (ii) a Severance Rights Agreement, each dated February 12, 2020 and to become effective upon the closing of the Internalization (collectively, the “Prior Agreements”). 

WHEREAS, the Company desires to employ the Executive, and the Executive desires to accept such employment, on the terms and conditions set
forth in this Agreement to become effective upon the closing of the Internalization, which Agreement will supersede and replace the Prior Agreements in their entirety. 

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, the Company and the
Executive hereby agree as follows: 
 1.    Employment. 

(a)    Term. The term of this Agreement shall begin upon the closing of the Internalization (the “Effective
Date”), and shall continue until the date the Company has paid the cash portion of the 2020 Bonus and granted the 2020 Bonus RSU (each as defined in Section 2(b) below), which shall be no later than March 15, 2021 (the
“Term End Date”), or until the termination of the Executive’s employment in accordance with Section 7 of this Agreement, if earlier. The period commencing on the Effective Date and ending on the date on which the term of
this Agreement terminates is referred to herein as the “Term.” 
 (b)    Duties. During the
Term, the Executive shall serve as the Chief Executive Officer of the Company, with duties, responsibilities and authority commensurate therewith, and shall report to the Board of Directors of the Company (the “Board”). The
Executive shall perform all duties and accept all responsibilities incident to such position as may be reasonably assigned to the Executive by the Board. In addition, the Company shall use its best efforts to cause the Executive to be nominated for
election to the Board. The Executive represents to the Company that the Executive is not subject to or a party to any employment agreement, noncompetition covenant, or other agreement that would be breached by, or prohibit the Executive from,
executing this Agreement and performing fully the Executive’s duties and responsibilities hereunder. 

  
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 (c)    Best Efforts. During the Term, the Executive shall devote
the Executive’s best efforts and full time and attention to promote the business and affairs of the Company and its Affiliates, and shall not be engaged in other business activities. The foregoing shall not be construed as preventing the
Executive from (1) serving on civic, educational, philanthropic or charitable boards or committees, or, with the prior written consent of the Board, which approval will not be unreasonably delayed or denied, on corporate boards, and
(2) managing personal investments; so long as such activities are permitted under the Company’s code of conduct and employment policies, do not violate the provisions of Section 10 below, and do not conflict with or materially
interfere with the Executive’s obligations to the Company hereunder. The Executive shall provide notice of any activity under Section 1(c)(1) to the Company. 

(d)    Principal Place of Employment. The Executive understands and agrees that the Executive’s principal
place of employment will be in the Company’s offices located in the New York City metropolitan area and that the Executive will be required to travel for business in the course of performing the Executive’s duties for the Company. 

(e)    Resignation of Positions. Effective as of the date of any termination of employment, the Executive shall
resign from all Company-related positions, including as an officer and director of the Company and its parents, subsidiaries and Affiliates. 

2.    Compensation. 

(a)    Base Salary. During the Term, the Company shall pay the Executive a base salary (“Base
Salary”), at the annual rate of $1,000,000, which shall be paid in installments in accordance with the Company’s normal payroll practices. The Executive’s Base Salary shall be reviewed annually by the Board pursuant to the normal
performance review policies and during the Term of this Agreement may be increased but not decreased from time to time as the Board deems appropriate. The Compensation Committee of the Board (the “Compensation Committee”) may take
any actions of the Board pursuant to this Agreement. Notwithstanding anything to the contrary, any amounts payable by the Company under this Agreement may be paid through the Company’s direct or indirect wholly owned subsidiaries, as determined
by the Company. 
 (b)    Annual Bonus. 

(1)    For the 2020 calendar year, the Executive shall receive an annual bonus in the target amount of $6,750,000, which
shall be paid to the Executive in December 2020 (or such other time as the Company pays its annual 2020 bonuses, but no later than March 15, 2021) (the “2020 Bonus”) in the form set forth in Section 2(b)(2). To earn and
receive the 2020 Bonus, the Executive must be employed on the date the 2020 Bonus is paid. The 2020 Bonus actually earned shall be in such amount as determined by the Board based upon performance and other factors in accordance with the
Company’s compensation policies and procedures, not to exceed 150% of the target amount of the 2020 Bonus and not less than the target amount of the 2020 Bonus. 

  
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 (2)    The 2020 Bonus shall be paid 80% in cash and 20% in the form of
an award of restricted stock units (the “2020 Bonus RSUs”). The 2020 Bonus RSUs shall cover a number of shares of common stock of the Company (“Shares”) determined by dividing an amount equal to 20% of the total
2020 Bonus earned as determined by the Board by the Share Price (as defined below) as of the date of grant, rounded to the nearest whole number. The 2020 Bonus RSUs shall be granted under the Company’s then current long term equity incentive
plan (the “Equity Incentive Plan”) and the Company’s standard form of RSU agreement, in each case consistent with this Agreement and Exhibit A. The 2020 Bonus RSUs shall be granted on a date determined by the Board on or
after the date it determines the amount of the 2020 Bonus and no later than March 15, 2021. To receive the grant of 2020 Bonus RSUs, the Executive must be employed on the date the 2020 Bonus RSUs are granted. “Share Price”
shall mean the closing price per Share at the close of regular hours trading on the New York Stock Exchange on the relevant date. 

(c)    Long-Term Incentive Compensation. At the closing of the Internalization, the Executive shall be entitled to
receive a 2020 long-term incentive compensation opportunity in the target amount of $5,000,000, provided 50% in an award of time-vesting restricted stock units (the “2020 LTI RSUs”) and 50% in an award of performance share units
(the “2020 PSUs”) (collectively, the “2020 LTI Awards”). The number of Shares covering the 2020 LTI RSUs and the target number of shares covering the 2020 PSUs shall be determined by dividing the applicable dollar
amount by the Share Price as of the date of grant, rounded to the nearest whole number. The 2020 LTI Awards shall be granted under the Equity Incentive Plan and the Company’s standard form of RSU Agreement and PSU Agreement, as applicable, in
each case consistent with this Agreement and Exhibit A. The 2020 LTI Awards shall be granted promptly upon the closing of the Internalization. To receive the awards, the Executive must be employed on the date the 2020 LTI Awards are granted.

 3.    Retirement and Welfare Benefits. During the Term, the Executive shall be eligible to participate in the health, life
insurance, long-term disability, retirement and welfare benefit plans and programs available to employees of the Company, pursuant to their respective terms and conditions. Nothing in this Agreement shall preclude the Company or any Affiliate of the
Company from terminating or amending any employee benefit plan or program from time to time after the Effective Date. 

4.    Vacation. During the Term, the Executive shall be entitled to vacation each year and holiday and sick leave at levels
commensurate with those provided to other executives of the Company, in accordance with the Company’s vacation, holiday and other pay-for-time-not-worked policies. 
 5.    Business Expenses. The Company
shall reimburse the Executive for all necessary and reasonable travel (which does not include commuting) and other business expenses incurred by the Executive in the performance of the Executive’s duties hereunder in accordance with such
policies and procedures as the Company may adopt generally from time to time for executives. 

  
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 6.    Definitions. For purposes of this Agreement, the following terms shall have
the following meanings: 
 (a)    “Accrued Benefits” means (i) the Executive’s Base Salary
earned through the termination date that has not been paid as of the termination date; (ii) any amounts or benefits owing to the Executive or to the Executive’s beneficiaries under the then applicable benefit plans of the Company; and
(iii) any amounts owing to the Executive for reimbursement of expenses properly incurred by the Executive prior to the termination date and which are reimbursable in accordance with the Company policy. 

(b)    “Affiliate” shall mean any subsidiary of the Company in which the Company, combined with its other
Affiliates, owns 50% or more of the subsidiary’s outstanding equity or an entity under common control with the Company. 

(c)    “Cause” means any one or more of the following: (i) a majority of the Board reasonably and in
good faith determines the Executive has committed any breach of fiduciary duty; (ii) a majority of the Board reasonably and in good faith determines the Executive has engaged in willful misconduct or gross negligence in connection with the
Executive’s employment, which is materially and demonstrably injurious to the Company; (iii) the Executive is convicted of, or pleads guilty or nolo contendere to, any felony or crime of moral turpitude, including fraud, embezzlement or
misappropriation of funds; or (iv) a majority of the Board reasonably and in good faith determines the Executive has willfully engaged in conduct that materially violates the Company’s written policies, as may be amended from time to time,
or is materially and demonstrably detrimental to the reputation, character or standing of the Company, or otherwise is materially and demonstrably injurious to the Company or its affiliates, monetarily or otherwise. It shall be a condition precedent
to the Company’s right to terminate the Executive’s employment for Cause that, if such breach is susceptible to cure or remedy as determined in the Board’s reasonable discretion, the Executive shall be given a period of 30 days from
the date of written notice of termination for Cause (describing the events which constitute Cause) to cure or remedy the grounds giving rise to Cause and answer such circumstances for termination in person at a meeting with the Board or in writing,
in the Executive’s discretion. For the avoidance of doubt, in the case of clause (iii) above, the Executive’s service may be terminated immediately without any advance written notice. 

(d)    “Code” means Internal Revenue Code of 1986, as amended, or any successor thereto. References to
the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder. 

(e)    “Disability” means a physical or mental illness or disability that prevents the Executive from
substantially performing the duties and responsibilities of the Executive’s employment for a period of more than three consecutive months or for periods aggregating more than sixteen (16) weeks in any year. The Executive agrees, that in
the event of any dispute under the Agreement as to whether a Disability exists and if requested by the Company, to submit to a physical examination by a licensed physician selected by mutual agreement between the Company and the Executive, the cost
of such examination to be paid by the Company. The written medical opinion of such physician shall be conclusive and binding upon the parties as to whether a Disability exists and the date when such Disability arose. This definition of Disability
shall be interpreted and applied so as to comply with the provisions of the Americans with Disabilities Act (to the extent that it is applicable) and any applicable state or local laws. 

  
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 (f)    “Employee Retention and Severance Policy” means
the employee retention and severance policy applicable to all employees of Company as adopted by the Board. 

(g)    “Good Reason” means the occurrence of one or more of the following without the Executive’s
consent, other than on account of the Executive’s Disability: (i) a material diminution by the Company of the Executive’s duties, responsibilities, committee memberships on which the Executive serves, or the supervisor to whom the
Executive is required to report; (ii) a material change in the geographic location at which the Executive must perform services under the Agreement (which, for purposes of the Agreement, means relocation of the offices of the Company at which
the Executive is principally employed to a location that increases the Executive’s commute to work by more than 50 miles in one direction); (iii) a material diminution in the Base Salary; or (iv) any action or inaction that constitutes a
material breach by the Company of the Agreement. The Executive must provide written notice of termination for Good Reason to the Company within 30 days after the initial occurrence of the event constituting Good Reason. The Company shall have a
period of 30 days from the date of the Executive’s written notice in which it may correct the act or failure to act that constitutes the grounds for Good Reason as set forth in the Executive’s notice of termination. If the Company does not
correct the act or failure to act, the Executive’s employment will terminate for Good Reason on the first business day following the Company’s 30-day cure period. A resignation for Good Reason shall
not fail to be treated as a termination during the Term if the event constituting Good Reason occurs during the Term but the Executive’s notice of termination is given and the 30-day cure period ends
after the last day of the Term. 
 (h)    “Release” shall mean a separation agreement and general
release of any and all claims against the Company, its Affiliates, and all related parties including with respect to all matters arising out of the Executive’s employment by the Company, and the termination thereof. The Release will be in the
form reasonably acceptable to the Company and the Executive. 
 7.    Termination of Employment Before the Term End Date. 

(a)    General. The Executive’s employment with the Company may be terminated before the Term End Date in
accordance with the provisions of this Section 7 and subject to the provisions of Section 8 (regarding certain payments due upon such termination of employment). 

(b)    Termination in the Event of Death or Disability. The Executive’s employment with the Company shall end
immediately upon Executive’s death. The Company may terminate the Executive’s employment with the Company effective upon written notice to the Executive in case of the Executive’s Disability. 

(c)    Termination by the Company. The Company may terminate the Executive’s employment with the Company
immediately upon notice to the Executive, with or without Cause. 
 (d)    Termination by the Executive. The
Executive may resign from employment without Good Reason immediately upon notice to the Company, or with Good Reason subject to the applicable notice requirements set forth in the definition of Good Reason. 

  
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 8.    Payments for Termination of Employment Before Term End Date. 

(a)     Termination by the Company for Cause or Disability; Termination by the Executive for any reason other than Good
Reason. If the Company terminates the Executive’s employment for Cause or because of Disability, or the Executive terminates employment for any reason other than Good Reason, in each case before the Term End Date, the Company shall
(1) pay to the Executive the Accrued Benefits and no other amount and (2) if the Executive’s employment ends during the Term as a result of Disability, provide the accelerated vesting in Exhibit A, except that nothing in this
Section 8(a) is intended to preclude the Executive from receiving a right to accelerated vesting as expressly provided in another agreement with the Executive, or from receiving severance benefits to which the Executive is expressly entitled
under the terms of the Employee Retention and Severance Policy. 
 (b)    Termination by the Company without Cause or
Termination by the Executive for Good Reason. If (1) the Company terminates Executive’s employment before the Term End Date other than for Cause, or (2) the Executive resigns for Good Reason before the Term End Date, then the
Company shall pay the Executive (A) the Accrued Benefits; (B) all amounts the Executive is entitled to pursuant to the Employee Retention and Severance Policy (the “Severance Payment”); and (C) provide the accelerated
vesting in Exhibit A. Nothing in this Section 2(b) is intended to preclude Executive from receiving a right to accelerated vesting as expressly provided in another agreement with Executive. For the avoidance of doubt, the Executive is
not entitled to any payments under this Agreement as a result of the expiration of the Term upon the Term End Date, or termination of Executive’s employment after the Term End Date. 

(c)    Death. If the Executive’s employment ends as a result of death before the Term End Date, the Company
shall (1) pay to the Executive’s legal representative or estate, as applicable, the Accrued Benefits and no other amount and (2) provide the accelerated vesting in Exhibit A, except that nothing in this Section 8(c) is
intended to preclude the Executive from receiving a right to accelerated vesting as expressly provided in another agreement with the Executive, or from receiving severance benefits to which the Executive is expressly entitled under the terms of the
Employee Retention and Severance Policy. 
 (d)    Timing of Payment of Accrued Benefits. The Company shall pay
to the Executive (or to the Executive’s legal representative or estate if termination is because of death) the Executive’s Accrued Benefits within 30 days after termination (in the case of earned but unpaid Base Salary) or in accordance
with the terms of the Company’s benefit plan or expense reimbursement policy, as applicable. 

(e)    Requirement of General Release; Timing of Payment of the Severance Payment. As a condition to receiving the
Severance Payment or accelerated vesting in Exhibit A, the Executive (or the Executive’s legal representative or estate, in the case of death) must execute and deliver a Release and the Release must become effective and irrevocable no
later than the 60th day after the termination date. The Severance Payment shall be paid in a lump sum within 10 days after the 60th day after
the Executive’s termination date, or such shorter or longer period as may be required by Section 409A of the Code in order for the Executive to avoid the imposition of additional taxes under Section 409A of the Code, provided that the
Release has become effective and irrevocable as required by the preceding sentence. 

  
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 (f)    Equity Awards. Vesting (including accelerated vesting) and
exercisability of any outstanding equity compensation awards shall be determined under the terms of the Equity Incentive Plan and applicable award agreement(s). 

9.    Section 409A. 

(a)    This Agreement is intended to comply with Section 409A of the Code, and payments may only be made under this
Agreement upon an event and in a manner permitted by Section 409A of the Code, to the extent applicable. Severance benefits under this Agreement or the Employee Retention and Severance Policy are intended to be exempt from Section 409A of
the Code under the “short-term deferral” exception, to the maximum extent applicable, and then under the “separation pay” exception, to the maximum extent applicable. Notwithstanding anything in this Agreement to the contrary, if
required by Section 409A of the Code, if the Executive is considered a “specified employee” for purposes of Section 409A of the Code and if payment of any amounts under this Agreement is required to be delayed for a period of six
months after separation from service pursuant to Section 409A of the Code to avoid the imposition of additional taxes on the Executive, payment of such amounts shall be delayed as required by Section 409A of the Code, and the accumulated
amounts shall be paid in a lump-sum payment within 10 days after the end of the six-month period. If the Executive dies during the postponement period prior to the
payment of benefits, the amounts withheld on account of Section 409A of the Code shall be paid to the personal representative of the Executive’s estate within 60 days after the date of the Executive’s death. 

(b)    All payments to be made upon a termination of employment under this Agreement may only be made upon a
“separation from service” under Section 409A of the Code. For purposes of Section 409A of the Code, each payment hereunder shall be treated as a separate payment, and the right to a series of installment payments under this
Agreement shall be treated as a right to a series of separate payments. In no event may the Executive, directly or indirectly, designate the calendar year of a payment. Notwithstanding any provision of this Agreement to the contrary, in no event
shall the timing of the Executive’s execution of the Release, directly or indirectly, result in the Executive’s designating the calendar year of payment of any amounts of deferred compensation subject to Section 409A of the Code, and
if a payment that is subject to execution of the Release could be made in more than one taxable year, payment shall be made in the later taxable year. 

(c)    All reimbursements and in-kind benefits provided under this Agreement shall
be made or provided in accordance with the requirements of Section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement be for expenses incurred during the period specified in this Agreement,
(ii) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year not affect the expenses eligible for reimbursement, or
in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense be made no later than the last day of the calendar year following the year in which the expense
is incurred, and (iv) the right to reimbursement or in-kind benefits not be subject to liquidation or exchange for another benefit. 

  
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 (d)    The Company makes no representations or warranties that the
payments provided under the Agreement comply with, or are exempt from, Section 409A of the Code, and in no event shall the Company be liable for any portion of any taxes, penalties, interest, or other expenses that may be incurred by the
Executive on account of non-compliance with Section 409A of the Code. 

10.    Restrictive Covenants. 

(a)    Performance Track Record. Notwithstanding any other provisions of this Agreement or other employment
arrangement between the Executive and the Company and its subsidiaries, if, prior to the Term End Date, the Executive’s employment with the Company terminates for any reason, then the Executive shall be permitted to use at any time after
Executive’s employment by the Manager Entities or the Company the track record of the performance, while employed by the Company, of the Company’s comprehensive or any individual business unit’s portfolio and individual assets,
including, records and material pertaining to the track record of the performance of the Company’s comprehensive or any individual business unit’s portfolio and individual assets, for marketing or other use. Such marketing or other use
will be either confidential in nature or in accordance with applicable securities laws, rules and regulations. 

(b)    Proprietary Information. Subject to the provisions of Section 10(a), at all times, the Executive will
hold in strictest confidence and will not disclose, use, lecture upon or publish any of the Proprietary Information (defined below) of the Company or an Affiliate, except as such disclosure, use or publication may be required in connection with the
Executive’s work for the Company or as described in Section 10(a) above or Section 10(d) below, or unless the Company expressly authorizes such disclosure in writing. “Proprietary Information” shall mean any and all
confidential and/or proprietary knowledge, data or information of the Company and its Affiliates, including but not limited to information relating to financial matters, investments, budgets, business plans, marketing plans, personnel matters,
business contacts, products, processes, know-how, designs, methods, improvements, discoveries, inventions, ideas, data, programs, and other works of authorship. 

(c)    Reports to Government Entities. Nothing in this Agreement shall prohibit or restrict the Executive from
initiating communications directly with, responding to any inquiry from, providing testimony before, providing confidential information to, reporting possible violations of law or regulation to, or filing a claim or assisting with an investigation
directly with a self-regulatory authority or a government agency or entity, including the Equal Employment Opportunity Commission, the Department of Labor, the National Labor Relations Board, the Department of Justice, the Securities and Exchange
Commission, Congress, any agency Inspector General or any other federal, state or local regulatory authority (collectively, the “Regulators”), or from making other disclosures that are protected under the whistleblower provisions of
state or federal law or regulation. The Executive does not need the prior authorization of the Company to engage in conduct protected by this subsection, and the Executive does not need to notify the Company that the Executive has engaged in such
conduct. Please take notice that federal law provides criminal and civil immunity to federal and state claims for trade secret misappropriation to individuals who disclose trade secrets to their attorneys, courts, or government officials in certain,
confidential circumstances that are set forth 

  
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at 18 U.S.C. §§ 1833(b)(1) and 1833(b)(2), related to the reporting or investigation of a suspected violation of the law, or in connection with a lawsuit for retaliation for reporting a
suspected violation of the law. 
 (d)    Inventions Assignment. The Executive agrees that all inventions,
innovations, improvements, developments, methods, designs, analyses, reports, and all similar or related information which relates to the Company’s or its Affiliates’ actual or anticipated business, research and development or existing or
future products or services and which are conceived, developed or made by the Executive while employed by the Company (“Work Product”) belong to the Company. The Executive will promptly disclose such Work Product to the Board and
perform all actions reasonably requested by the Board (whether during or after the Term) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments). If requested by the
Company, the Executive agrees to execute any inventions assignment and confidentiality agreement that is required to be signed by Company employees generally. 

(e)    Return of Company Property. Upon termination of the Executive’s employment with the Company for any
reason, and at any earlier time the Company requests, the Executive will deliver to the person designated by the Company all originals and copies of all documents and property of the Company or an Affiliate that is in the Executive’s possession
or under the Executive’s control or to which the Executive may have access. The Executive will not reproduce or appropriate for the Executive’s own use, or for the use of others, any property, Proprietary Information or Work Product. 

(f)    Future Cooperation. The Executive agrees that upon the Company’s reasonable request following the
Executive’s termination of employment and provided such cooperation is not adverse to the Executive’s legal interests, the Executive shall use reasonable efforts to assist and cooperate with the Company in connection with the transition of
the Executive’s responsibilities, with the defense or prosecution of any claim with respect to which the Executive may have knowledge that is made against or by the Company or its Affiliates (other than by or against the Executive), or in
connection with any ongoing or future investigation by, or any proceeding before, any arbitral, administrative, regulatory, self-regulatory, judicial, legislative, or other body or agency involving the Company or any Affiliate. The Company shall pay
reasonable out-of-pocket expenses (including travel expenses) incurred in connection with providing such assistance. The Company and the Executive agree that, following
the Executive’s termination of employment, the Executive’s cooperation pursuant to this Section 10(f) shall be at mutually agreed upon times in light of the Executive’s other professional responsibilities and pursuant to a
reasonable schedule. 
 11.    Legal and Equitable Remedies. 

(a)    Because the Executive’s services are personal and unique and the Executive has had and will continue to have
access to and has become and will continue to become acquainted with the Proprietary Information of the Company and its Affiliates, and because any breach by the Executive of any of the restrictive covenants contained in Section 10 would result
in irreparable injury and damage for which money damages would not provide an adequate remedy, the Company shall have the right to enforce Section 10 and any of its provisions by injunction, 

  
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specific performance or other equitable relief, without prejudice to any other rights and remedies that the Company may have for a breach, or threatened breach, of the restrictive covenants set
forth in Section 10. 
 (b)    The Executive irrevocably and unconditionally agrees that any dispute arising as to
the parties’ rights and obligations hereunder shall be resolved by confidential binding arbitration in accordance with the rules of the Judicial Arbitration & Mediation Services, Inc. (JAMS). Such arbitration will take place in the
City of New York. The arbitrator shall be empowered to decide the arbitrability of all disputes, and shall apply the substantive federal, state, or local law and statute of limitations governing any dispute submitted to arbitration and any
arbitration demand must be filed within the applicable limitations period for the claim or claims asserted. In ruling on any dispute submitted to arbitration, the arbitrator shall have the authority to award only such remedies or forms of relief as
are provided for under the substantive law governing such dispute. The arbitrator shall issue a written decision that shall include the essential findings and conclusions on which the decision is based (a standard award). Each party consents to the
jurisdiction of the state of New York for injunctive, specific enforcement or other relief in aid of the arbitration proceedings or to enforce judgment of the award in such arbitration proceeding, but not otherwise. The award entered by the
arbitrator shall be final and binding on all parties to arbitration, and may be entered in any court of competent jurisdiction. The parties shall equally bear all fees and costs unique to the arbitration forum (e.g., filing fees, transcript costs
and arbitrator’s fees), except as provided otherwise in statutory claims. The parties shall be responsible for their own attorneys’ fees and costs, except as provided otherwise in statutory claims. The parties agree that any dispute
between the parties that is determined to be not subject to arbitration shall be subject to exclusive jurisdiction and venue in the New York State Supreme Court sitting in New York County. 

12.    Acknowledgement of Satisfaction of All Pre-Employment Conditions. 

(a)    Right to Work. For purposes of federal immigration law, the Executive will be required to provide to the
Company documentary evidence of the Executive’s identity and eligibility for employment in the United States. Such documentation must be provided to the Company within three days following the Effective Date, or the Company’s employment
relationship with the Executive may be terminated and this Agreement will be void. 
 (b)    Verification of
Information. By entering into this Agreement, the Executive warrants that all information provided by the Executive is true and correct to the best of the Executive’s knowledge, and the Executive expressly releases all parties from any and
all liability for damages that may result from obtaining, furnishing, collecting or verifying such information, as well as from the use of or disclosure of such information by the Company or its agents. 

13.    Survival. The respective rights and obligations of the parties under this Agreement (including, but not limited to, under
Sections 10 and 11) shall survive any termination of the Executive’s employment or termination or expiration of this Agreement to the extent necessary to the intended preservation of such rights and obligations. 

14.    No Mitigation or Set-Off. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the 

  
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Executive under any of the provisions of this Agreement, and such amounts shall not be reduced regardless of whether the Executive obtains other employment. The Company’s obligation to make
the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment,
defense or other right which the Company may have against the Executive or others. 
 15.    Section 280G. In the event of a
change in ownership or control under Section 280G of the Code, if it shall be determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the
Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would constitute an “excess parachute payment” within the meaning of Section 280G
of the Code, the aggregate present value of the Payments under the Agreement shall be reduced (but not below zero) to the Reduced Amount (defined below) if and only if the Accounting Firm (described below) determines that the reduction will provide
the Executive with a greater net after-tax benefit than would no reduction. No reduction shall be made unless the reduction would provide the Executive with a greater net
after-tax benefit. The determinations under this Section shall be made as follows: 

(a)    The “Reduced Amount” shall be an amount expressed in present value which maximizes the aggregate
present value of Payments under this Agreement without causing any Payment under this Agreement to be subject to the Excise Tax (defined below), determined in accordance with Section 280G(d)(4) of the Code. The term “Excise
Tax” means the excise tax imposed under Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 

(b)    Payments under this Agreement shall be reduced on a nondiscretionary basis in such a way as to minimize the
reduction in the economic value deliverable to the Executive. Where more than one payment has the same value for this purpose and they are payable at different times, they will be reduced on a pro rata basis. Only amounts payable under this
Agreement shall be reduced pursuant to this Section. 
 (c)    All determinations to be made under this Section shall be
made by an independent certified public accounting firm selected by the Company and agreed to by the Executive immediately prior to the change-in-ownership or -control
transaction (the “Accounting Firm”). The Accounting Firm shall provide its determinations and any supporting calculations both to the Company and the Executive within 10 days of the transaction. Any such determination by the
Accounting Firm shall be binding upon the Company and the Executive. All of the fees and expenses of the Accounting Firm in performing the determinations referred to in this Section shall be borne solely by the Company. 

16.    Notices. All notices and other communications required or permitted under this Agreement or necessary or convenient in
connection herewith shall be in writing and shall be deemed to have been given when hand delivered or mailed by registered or certified mail, as follows (provided that notice of change of address shall be deemed given only when received): 

If to the Company, to: 
 1211
Avenue of the Americas 
 New York, New York 10036 

Attn: Chief Legal Officer 

  
 11 

 If to the Executive, to the most recent address on file with the Company or to such other
names or addresses as the Company or the Executive, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section. 

17.    Withholding. All payments under this Agreement shall be made subject to applicable tax withholding, and the Company shall
withhold from any payments under this Agreement all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation. The Executive shall bear all expense of, and be solely responsible for,
all federal, state and local taxes due from the Executive with respect to any payment received under this Agreement. The Company will use commercially reasonable efforts to establish a relationship with a broker-dealer to facilitate the sale of
Shares acquired on the vesting or exercise of any equity or equity-based compensation granted to the Executive by the Company to enable the Executive to satisfy all applicable withholding taxes due in connection with such vesting or exercise;
provided that if the Company does not establish any such relationship, the Executive may satisfy such withholding obligations through an automatic Share withholding procedure pursuant to which the Company will withhold, at the time of such vesting
or exercise, a portion of the Shares otherwise deliverable to the Executive upon such vesting or exercise with a fair market value not exceeding the minimum amount required to be withheld by applicable law. 

18.    Remedies Cumulative; No Waiver. No remedy conferred upon a party by this Agreement is intended to be exclusive of any other
remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission by a party in exercising any right, remedy or
power under this Agreement or existing at law or in equity shall be construed as a waiver thereof, and any such right, remedy or power may be exercised by such party from time to time and as often as may be deemed expedient or necessary by such
party in its sole discretion. 
 19.    Assignment. All of the terms and provisions of this Agreement shall be binding upon and
inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of the Executive under this Agreement are
of a personal nature and shall not be assignable or delegable in whole or in part by the Executive. The Company may assign its rights, together with its obligations hereunder, in connection with any sale, transfer or other disposition of all or
substantially all of its business and assets, and such rights and obligations shall inure to, and be binding upon, any successor to the business or any successor to substantially all of the assets of the Company, whether by merger, purchase of stock
or assets or otherwise, which successor shall expressly assume such obligations, and the Executive acknowledges that in such event the obligations of the Executive hereunder, including but not limited to those under Section 10, will continue to
apply in favor of the successor. 

  
 12 

 20.    Company Policies. This Agreement and the compensation payable hereunder
shall be subject to any applicable share trading policies, and other policies that may be implemented by the Board from time to time with respect to officers or executives of the Company that do not conflict with this Agreement. 

21.    Entire Agreement. This Agreement sets forth the entire agreement of the parties hereto and supersedes the Prior Agreements
and any and all other prior agreements and understandings concerning the Executive’s employment by the Company and its subsidiaries, including the Manager Entities, other than (a) all employee retention and severance policies applicable
for all employees of Company (including the Executive Retention and Severance Policy), (b) award agreements with respect to the 2020 Bonus RSUs, 2020 LTI RSUs, and 2020 PSUs, and (c) any separate indemnification agreement entered into between
the Company and the Executive and any indemnification obligations set forth in the Company’s bylaws. This Agreement may be changed only by a written document signed by the Executive and the Company. 

22.    Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated
to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement, which can be given effect without the invalid or unenforceable provision or application,
and shall not invalidate or render unenforceable such provision or application in any other jurisdiction. If any provision is held void, invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances. 
 23.    Governing Law. This Agreement shall be governed by, and construed and enforced
in accordance with, the substantive and procedural laws of New York without regard to rules governing conflicts of law. 

24.    Counterparts. This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which
shall be an original, but all of which together shall constitute one instrument. 
 (Signature Page Follows) 

  
 13 

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

			
	ANNALY CAPITAL MANAGEMENT, INC.
	
	 /s/ Donnell A. Segalas

	Name:	 	Donnell A. Segalas
	Title:	 	Chair of the Compensation Committee
	Date:	 	March 13, 2020
	
	EXECUTIVE
	
	 /s/ David L. Finkelstein

	Name:	 	David L. Finkelstein
	Date:	 	March 13, 2020

  
 14 

 EXHIBIT A 

2020 Bonus RSUs 
 Vesting Date: 

 

	 	•	 	 One-third on December 31, 2021 

 

	 	•	 	 One-third on December 31, 2022 

 

	 	•	 	 One-third on December 31, 2023 

Accelerated vesting if (1) the Company terminates the Executive’s employment during the Term other than for Cause, (2) the Executive’s
employment ends during the Term as a result of death or Disability, or (3) the Executive resigns for Good Reason during the Term. Accelerated vesting is subject (except in case of death) to the Executive signing and not revoking a Release. 

2020 LTI RSUs 
 Vesting Date: 

 

	 	•	 	 One-third on the first anniversary of closing of Internalization

  

	 	•	 	 One-third on the second anniversary of closing of Internalization

  

	 	•	 	 One-third on the third anniversary of closing of Internalization

 Accelerated vesting if (1) the Company terminates the Executive’s employment during the Term other than for Cause,
(2) the Executive’s employment ends during the Term as a result of death or Disability, or (3) the Executive resigns for Good Reason during the Term. Accelerated vesting is subject (except in case of death) to the Executive signing
and not revoking a Release. 
 2020 PSUs 

Vesting Date: 
  

	 	•	 	 December 31, 2022 

 

	 	•	 	 Subject to adjustment for performance for the three-year performance 2020-2022 based on formulaic performance
goal(s) to be established by the Board before the grant date, with payout ranging from 0% (for performance below threshold of the goals set by the Board) to 150% of the target number of PSUs (for performance at or above maximum of the goals set by
the Board). 

 Continued vesting as of December 31, 2022 determined based on the achievement of the performance results for the
performance period, prorated for the period the Executive remained employed during the performance period, if (1) the Company terminates the Executive’s employment during the Term other than for Cause, (2) the Executive’s
employment ends during the Term as a result of Disability, or (3) the Executive resigns for Good Reason during the Term. 

  
 15 

 
Vesting on those cases is subject to the Executive signing and not revoking a Release. In case of the Executive’s death during the performance period, a pro rata portion of the PSUs will
vest and pay immediately based on assumed target performance (with no release requirement). 

  
 16INCREMENTAL
FACILITY AMENDMENT AGREEMENT

Incremental
Facility Amendment Agreement (this “Amendment”), dated as of March 13, 2020, by and among ESSENTIAL UTILITIES,
INC. (formerly known as Aqua America, Inc.) (the “Borrower”), each of the entities listed under the caption
“Incremental Lenders” on the signature pages hereto (each, an “Incremental Lender” and, collectively,
the “Incremental Lenders”) and PNC Bank, National Association,
as Administrative Agent (in such capacity, the “Administrative Agent”).

RECITALS:

WHEREAS,
reference is hereby made to the Credit Agreement dated as of December 5, 2018, by and among the Borrower, the lenders from
time to time party thereto (the “Lenders”) and the Administrative Agent (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”);

WHEREAS,
pursuant to Section 2.22 of the Credit Agreement, the Borrower has requested (a) Incremental Tranche 1 Commitments (as
defined in the Credit Agreement) of $300,000,000, and (b) that the Credit Agreement be amended in the manner provided for
herein to reflect such increase in the Tranche 1 Commitments and certain other modifications, such increase and amendments
to become effective on the Incremental Amendment Effective Date (as defined below); and

WHEREAS,
the Incremental Lenders are willing to provide such Incremental Tranche 1 Commitments on the terms hereof.

NOW, THEREFORE,
in consideration of the premises herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows, intending to be legally bound:

1.                 
Defined Terms. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the
Credit Agreement. This Amendment constitutes an “Incremental Facility Agreement” and a “Loan Document”,
each as defined in the Credit Agreement.

2.                 
Incremental Tranche 1 Commitments. Each Incremental Lender hereby agrees, severally and not jointly, to provide
an Incremental Tranche 1 Commitment to the Borrower on the Incremental Amendment Effective Date in an aggregate principal
amount equal to the amount set forth opposite such Incremental Lender’s name on Exhibit A attached hereto (each, an “Incremental
Tranche 1 Commitment” and, collectively, the “Incremental Tranche 1 Commitments”), on the
terms set forth herein and in the Credit Agreement (as amended hereby), and subject to the conditions set forth herein. The Incremental
Tranche 1 Commitments shall be deemed to be “Tranche 1 Commitments” as defined in the Credit Agreement for
all purposes of the Loan Documents having terms and provisions identical to those applicable to the Tranche 1 Commitments
outstanding immediately prior to the Incremental Amendment Effective Date (the “Existing Tranche 1 Commitments”).
The Existing Tranche 1 Commitments of the Tranche 1 Lenders and the Incremental Tranche 1 Commitments of the Incremental
Lenders hereunder shall constitute a single Class for all purposes under the Credit Agreement.

    	 

    	 

    

3.                 
Incremental Amendment Effective Date. Each Incremental Lender and the Borrower shall, before 2:00 p.m. (New York
City time) on the Incremental Amendment Effective Date, make available to the Administrative Agent at the account of the Administrative
Agent in same day funds, an amount specified by the Administrative Agent to each such Incremental Lender and the Borrower as provided
in Subsection 2.22(e) of the Credit Agreement and the Administrative Agent shall in turn distribute all such amounts received
by it in accordance with the provisions of such Subsection. On the Incremental Amendment Effective Date, the Administrative Agent
shall record in the Register the relevant information with respect to the Tranche 1 Commitment of each Incremental Lender
after giving effect to this Amendment. The requirements under Section 9.04 of the Credit Agreement and requirements in respect
of minimum borrowing, pro rata borrowing and pro rata payments elsewhere in the Credit Agreement shall not apply to the transactions
effected pursuant to this Amendment and the provisions of Section 2.22 of the Credit Agreement.

4.                 
Reallocation of Letters of Credit and Swing Line Advances. On the Incremental Amendment Effective Date, each Tranche 1
Lender whose Applicable Percentage is increasing as a result of this Amendment shall be deemed to have automatically and without
further act irrevocably and unconditionally purchased and received, and each of the Tranche 1 Lenders whose Applicable Percentage
is decreasing as a result of this Amendment shall automatically and without further act be deemed to have irrevocably sold and
assigned, in each case without recourse or warranty, an undivided interest and participation in any Letter of Credit and Swing
Line Loan outstanding on the Incremental Amendment Effective Date, ratably, such that each Tranche 1 Lender (including each
Incremental Lender) holds a participation interest in each such Letter of Credit and Swing Line Loan in the amount of its then
Applicable Percentage thereof (calculated based on its Applicable Percentage after giving effect to this Amendment).

5.                 
No Reliance. Each Incremental Lender agrees that it will, independently and without reliance upon the Administrative
Agent or any other Lender or agent and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Credit Agreement and the other Loan Documents, including
this Amendment.

6.                 
Amendment to Credit Agreement. Effective as of the Incremental Amendment Effective Date, the Credit Agreement is
hereby amended as follows:

     (a)           
The following Section 9.18 is hereby added to the Credit Agreement immediately following
Section 9.17:

“9.18Acknowledgement
Regarding Any Supported QFCs. To the extent that the Loan Documents provide support, through a guarantee or otherwise, for
interest rate hedge agreements or contracts or any other agreement or instrument that is a QFC (such support, “QFC Credit
Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with
respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title
II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the
“U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions
below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws
of the State of New York and/or of the United States or any other state of the United States):

    	2

    	 

    

(i)In
the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a
proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support
(and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing
such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would
be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest,
obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event
a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime,
Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be
exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised
under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States
or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of
the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported
QFC or any QFC Credit Support.

(ii)As
used in this Section 9.18, the following terms have the following meanings:

“BHC
Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance
with, 12 U.S.C. 1841(k)) of such party.

“Covered Entity”
means any of the following:

(a)a
“covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

(b)a
“covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

(c)a
“covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

“Default
Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§
252.81, 47.2 or 382.1, as applicable.

“QFC”
has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with,
12 U.S.C. 5390(c)(8)(D).”

    	3

    	 

    

     (b)          
Schedule 2.01 to the Credit Agreement shall be amended and restated to read as set
forth on Exhibit B hereto to reflect the increases in the Tranche 1 Commitments and the amounts of the Tranche 1 Commitments
following the Conversion as provided in Section 2.21 of the Credit Agreement.

7.                 
Conditions Precedent. This Amendment, and each Incremental Lender’s obligation to provide its Incremental
Tranche 1 Commitment pursuant to this Amendment, shall become effective as of the date on which the following conditions
precedent are satisfied (such date, the “Incremental Amendment Effective Date”).

     (a)           
The Borrower shall have paid all accrued fees owed to the Administrative Agent and
the Incremental Lenders in connection with this Amendment and the Incremental Tranche 1 Commitments and all expenses of the Administrative
Agent (including, to the extent invoiced, the reasonable fees and expenses of counsel to the Administrative Agent) in connection
therewith.

     (b)          
On the Incremental Amendment Effective Date, the following statements shall be true
and the Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower, dated the Incremental
Amendment Effective Date, stating that:

     (i)                
The representations and warranties of the Borrower contained in the Loan Documents are true and correct in all material
respects (except that any representation or warranty which is already qualified as to materiality, Material Adverse Effect or
by similar language is true and correct in all respects) on and as of the Incremental Amendment Effective Date, except to the
extent any such representation or warranty expressly relates to an earlier date, in which case such representation or warranty
was true and correct as of such earlier date in all material respects (or in all respects if already qualified as to materiality,
Material Adverse Effect or by similar language); and

     (ii)              
No Default or Event of Default shall have occurred and be continuing on the Incremental Amendment Effective Date, both
immediately prior to and immediately after giving effect to such Incremental Tranche 1 Commitments and the making of Loans and
issuance of Letters of Credit thereunder to be made on such date.

     (c)           
The Administrative Agent shall have received the following in form and substance satisfactory
to the Administrative Agent:

     (i)                
 Either (x) a counterpart of this Amendment signed on behalf of the Administrative Agent, the Borrower and each Incremental
Lender or (y) evidence satisfactory to the Administrative Agent (which may include electronic transmission) that each such party
signed a counterpart of this Amendment.

     (ii)              
A new or replacement promissory note in favor of each Incremental Lender, to the extent requested by such Incremental Lender
(collectively, the “New Notes”), signed by the Borrower.

     (iii)            
Such documents and certificates as the Administrative Agent may reasonably request relating to the organization, existence
and good standing of the Borrower.

    	4

    	 

    

     (iv)            
Certified copies of the resolutions of the Board of Directors of the Borrower approving this Amendment and the New Notes
and all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to this Amendment
and the New Notes.

     (v)              
A certificate of the Secretary or an Assistant Secretary of the Borrower certifying the names and true signatures of the
officers of the Borrower authorized to sign this Amendment and the New Notes.

     (vi)            
A favorable opinion of counsel for the Borrower acceptable to the Administrative Agent, as to such matters as the Administrative
Agent may reasonably request.

     (d)           The Administrative Agent and the Incremental Lenders shall have received all documentation
and other information about the Borrower and its Subsidiaries as shall have been reasonably requested at least three Business
Days prior to the Incremental Amendment Effective Date by the Administrative Agent or such Incremental Lender under applicable
“know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT
Act and the beneficial ownership regulations set forth in 31 C.F.R. §1010.230.

The Administrative
Agent shall notify the Borrower and the Incremental Lenders of the Incremental Amendment Effective Date, and such notice shall
be conclusive and binding.

8.                 
Representations and Warranties. In order to induce the Incremental Lenders and the Administrative Agent to enter
into this Amendment and to induce each Incremental Lender to provide its Incremental Tranche 1 Commitment on the terms hereof,
the Borrower hereby represents and warrants to the Incremental Lenders and the Administrative Agent on and as of the Incremental
Amendment Effective Date that:

     (a)            Power, Authorization; No Contravention. The Borrower has all requisite power
and authority and all Governmental Approvals required to execute, deliver and perform its obligations under this Amendment and
the other Loan Documents (as modified hereby). The execution, delivery and performance by the Borrower of this Amendment and the
New Notes have been duly authorized by all necessary corporate or other organizational and, if required, stockholder or other
equityholder action of the Borrower, and (i) do not require any consent or approval of, registration or filing with or any other
action by any Governmental Authority, (ii) will not violate any applicable law, including any order of any Governmental Authority,
(iii) will not violate the organizational documents of the Borrower, (iv) will not violate or result (alone or with notice or
lapse of time or both) in a default under any indenture or other agreement or instrument binding upon the Borrower or any of its
assets, or give rise to a right thereunder to require any payment, repurchase or redemption to be made by the Borrower, or give
rise to a right of, or result in, any termination, cancellation, acceleration or right of renegotiation of any obligation thereunder
and (v) will not result in the creation or imposition of any Lien on any asset of the Borrower not permitted under the Credit
Agreement, in the case of clauses (i), (ii) and (iv) above, except to the extent that the foregoing, individually or in the aggregate,
would not reasonably be expected to result in a Material Adverse Effect.

    	5

    	 

    

     (b)           Execution and Delivery; Binding Effect. This Amendment and the New Notes have
been duly executed and delivered by the Borrower. Each of this Amendment, the New Notes and the Loan Documents (as modified hereby)
constitutes a legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium, winding-up or other laws affecting creditors’ rights generally
and to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

     (c)            Representations and Warranties. The representations and warranties of the Borrower
contained in the Loan Documents are true and correct in all material respects (except that any representation or warranty which
is already qualified as to materiality, Material Adverse Effect or by similar language is true and correct in all respects) on
and as of the Incremental Amendment Effective Date, except to the extent any such representation or warranty expressly relates
to an earlier date, in which case such representation or warranty was true and correct as of such earlier date in all material
respects (or in all respects if already qualified as to materiality, Material Adverse Effect or by similar language).

9.                 
Affirmations. The Borrower hereby (a) ratifies and affirms all the provisions of the Credit Agreement and the other
Loan Documents, as modified hereby and (b) agrees that the terms and conditions of the Credit Agreement and the other Loan Documents
shall continue in full force and effect as amended hereby and that all of its obligations thereunder are valid and enforceable
and shall not be impaired or limited by the execution or effectiveness of this Amendment or any other documents or instruments
executed in connection herewith and (c) acknowledges and agrees that, as of the Incremental Amendment Effective Date, it has no
defense, set-off, counterclaim or challenge against the payment of any sums currently owing under the Credit Agreement and the
other Loan Documents or the enforcement of any of the terms or conditions thereof and agrees to be bound thereby and perform thereunder.

10.               
Limited Effect. Except as expressly modified hereby, the Credit Agreement and the other Loan Documents shall continue
to be, and shall remain, unaltered and in full force and effect in accordance with their respective terms.

11.               
Integration. This Amendment constitutes the sole agreement of the parties with respect to the transactions contemplated
hereby and shall supersede all oral negotiations and the terms of prior writings with respect thereto. From and after the Incremental
Amendment Effective Date, all references in the Credit Agreement and each of the other Loan Documents to the Credit Agreement
shall be deemed to be references to the Credit Agreement, as amended hereby.

12.               
Severability. Any provision of this Amendment which is held to be invalid, illegal or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without invalidating
the remaining provisions hereof, and any such invalidity, illegality or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.

    	6

    	 

    

13.               
Miscellaneous.

     (a)           Expenses. In accordance with Section 9.03(a) of the Credit Agreement, the Borrower
agrees to pay all of the Administrative Agent’s reasonable out-of-pocket fees and expenses incurred in connection with this
Amendment and the transactions contemplated hereby, including, without limitation, the reasonable fees and expenses of counsel
to the Administrative Agent.

     (b)           GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

     (c)           Successor and Assigns. This Amendment shall inure to the benefit of, and be
binding upon, the parties hereto and their respective successors and assigns.

     (d)           Counterparts. This Amendment may be executed in one or more counterparts, each
of which counterparts when executed and delivered shall be deemed to be an original, and all of which shall constitute one and
the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile or in electronic (i.e.,
“pdf” or “tif”) format will be effective as delivery of a manually executed counterpart hereof.

     (e)           Headings. The headings of any paragraph of this Amendment are for convenience
only and shall not be used to interpret any provision hereof.

     (f)            Modifications. No modification hereof or any agreement referred to herein shall
be binding or enforceable unless in writing and signed on behalf of the party against whom enforcement is sought.

    	7

    	 

    

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

	 	ESSENTIAL UTILITIES, INC.
	 	(formerly known as Aqua America,
    Inc.)
	 	 	 
	 	By	 
	 		Name:
	 	 	Title:
	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,
	 		as Administrative Agent
	 	 	 
	 	By	 
	 		Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	Incremental
    Lenders
	 	 
	 	PNC BANK, NATIONAL ASSOCIATION
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	COBANK, ACB
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	BANK OF AMERICA, N.A.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	BARCLAYS BANK PLC
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	CITIZENS BANK, N.A.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	MORGAN STANLEY BANK, N.A.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	MUFG BANK, LTD.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	ROYAL BANK OF CANADA
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	THE HUNTINGTON NATIONAL
    BANK
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

	 	WELLS FARGO BANK, NA.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

[Signature Page to Incremental Facility Amendment Agreement]

    	 

    	 

    

EXHIBIT A TO

INCREMENTAL FACILITY
AMENDMENT AGREEMENT

 

	INCREMENTAL LENDER	 	INCREMENTAL 

    TRANCHE 1 

    COMMITMENT	 
	 	 	 	 	 
	PNC Bank, National Association	 	$	58,500,000	 
	CoBank ACB	 	 	46,500,000	 
	Bank of America, N.A.	 	 	37,500,000	 
	Barclays Bank PLC	 	 	22,500,000	 
	Citizens Bank, N.A.	 	 	22,500,000	 
	Morgan Stanley Bank, N.A.	 	 	22,500,000	 
	MUFG Bank, Ltd.	 	 	22,500,000	 
	Royal Bank of Canada	 	 	22,500,000	 
	The Huntington National Bank	 	 	22,500,000	 
	Wells Fargo Bank, N.A.	 	 	22,500,000	 
	 	 	 	 	 
	TOTAL	 	$	300,000,000	 

    	A-1

    	 

    

EXHIBIT B TO

INCREMENTAL
FACILITY AMENDMENT AGREEMENT

Schedule
2.01

to the Credit Agreement

	 	 	Commitments 
 Prior to the Conversion Date	 	 	Post
                                         Conversion Date
	 
	LENDER	 	TRANCHE 1

    COMMITMENT	 	 	TRANCHE 2

    COMMITMENT	 	 	TRANCHE 1
    

COMMITMENT	 
	 	 	 	 	 	 	 	 	 	 
	PNC Bank, National Association	 	$	165,750,000	 	 	$	29,250,000	 	 	$	195,000,000	 
	CoBank, ACB	 	 	131,750,000	 	 	 	23,250,000	 	 	 	155,000,000	 
	Bank of America, N.A.	 	 	106,250,000	 	 	 	18,750,000	 	 	 	125,000,000	 
	Barclays Bank PLC	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	Citizens Bank, N.A.	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	Morgan Stanley Bank, N.A.	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	MUFG Bank, Ltd.	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	Royal Bank of Canada	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	The Huntington National Bank	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	Wells Fargo Bank, N.A.	 	 	63,750,000	 	 	 	11,250,000	 	 	 	75,000,000	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	$	850,000,000	 	 	$	150,000,000	 	 	$	1,000,000,000	 

    	B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]