Document:

mountainnpaexhibit

EXECUTION VERSION  MOUNTAINEER GAS COMPANY  $40,000,000 4.49% Senior Notes, Series E, due August 16, 2052  __________________  Note Purchase Agreement  __________________  Dated as of June 30, 2022  EXHIBIT 4.2 CERTAIN INFORMATION IDENTIFIED BY BRACKETED ASTERISKS ([***]) HAS  BEEN OMITTED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL  AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED 

 

i  TABLE OF CONTENTS  (Not a part of the Agreement)  SECTION HEADING PAGE  SECTION 1. AUTHORIZATION OF NOTES. ........................................................................... 1  SECTION 2. SALE AND PURCHASE OF NOTES. .................................................................. 1  SECTION 2.1. PURCHASE AND SALE OF NOTES .................................................................. 1  SECTION 2.2. GUARANTY AGREEMENT ............................................................................. 1  SECTION 3. CLOSING. .............................................................................................................. 2  SECTION 4. CONDITIONS TO CLOSING. .............................................................................. 3  SECTION 4.1. REPRESENTATIONS AND WARRANTIES ......................................................... 3  SECTION 4.2. PERFORMANCE; NO DEFAULT ...................................................................... 3  SECTION 4.3. COMPLIANCE CERTIFICATES ........................................................................ 3  SECTION 4.4. OPINIONS OF COUNSEL ................................................................................ 3  SECTION 4.5. PURCHASE PERMITTED BY APPLICABLE LAW, ETC ...................................... 3  SECTION 4.6. PAYMENT OF SPECIAL COUNSEL FEES ......................................................... 4  SECTION 4.7. PRIVATE PLACEMENT NUMBER.................................................................... 4  SECTION 4.8. CHANGES IN CORPORATE STRUCTURE ......................................................... 4  SECTION 4.9. REGULATORY APPROVAL ............................................................................ 4  SECTION 4.10. FUNDING INSTRUCTIONS .............................................................................. 4  SECTION 4.11. PROCEEDINGS AND DOCUMENTS ................................................................. 5  SECTION 4.12. DEBT RATING .............................................................................................. 5  SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. .................. 5  SECTION 5.1. ORGANIZATION; POWER AND AUTHORITY ................................................... 5  SECTION 5.2. AUTHORIZATION, ETC .................................................................................. 5  SECTION 5.3. DISCLOSURE OF COMPANY MATERIALS ....................................................... 5  SECTION 5.4. COMPANY’S AFFILIATES, DIRECTORS AND SENIOR OFFICERS ..................... 6  SECTION 5.5. FINANCIAL STATEMENTS; MATERIAL LIABILITIES ....................................... 6  SECTION 5.6. COMPLIANCE WITH LAWS, OTHER INSTRUMENTS, ETC ................................ 6  SECTION 5.7. GOVERNMENTAL AUTHORIZATIONS, ETC .................................................... 6  SECTION 5.8. LITIGATION; OBSERVANCE OF AGREEMENTS, STATUTES AND ORDERS ....................................................................................................... 6  SECTION 5.9. TAXES .......................................................................................................... 7  SECTION 5.10. TITLE TO PROPERTY; LEASES ....................................................................... 7  SECTION 5.11. LICENSES, PERMITS, ETC ............................................................................. 7  SECTION 5.12. COMPLIANCE WITH ERISA .......................................................................... 8  SECTION 5.13. PRIVATE OFFERING BY THE COMPANY ........................................................ 9  SECTION 5.14. USE OF PROCEEDS; MARGIN REGULATIONS ................................................. 9  SECTION 5.15. EXISTING INDEBTEDNESS; FUTURE LIENS .................................................... 9  

 

ii  SECTION 5.16. FOREIGN ASSETS CONTROL REGULATIONS, ETC ....................................... 10  SECTION 5.17. STATUS UNDER CERTAIN STATUTES .......................................................... 11  SECTION 5.18. NOTES RANK PARI PASSU .......................................................................... 11  SECTION 5.19. ENVIRONMENTAL MATTERS ...................................................................... 11  SECTION 6. REPRESENTATIONS OF THE PURCHASERS. ............................................... 12  SECTION 6.1. PURCHASE FOR INVESTMENT ..................................................................... 12  SECTION 6.2. SOURCE OF FUNDS ..................................................................................... 12  SECTION 7. INFORMATION AS TO THE COMPANY. ....................................................... 13  SECTION 7.1. FINANCIAL AND BUSINESS INFORMATION .................................................. 13  SECTION 7.2. OFFICER’S CERTIFICATE ............................................................................ 16  SECTION 7.3. VISITATION ................................................................................................ 17  SECTION 7.4. ELECTRONIC DELIVERY ............................................................................. 17  SECTION 8. PREPAYMENT OF THE NOTES. ...................................................................... 18  SECTION 8.1. MATURITY ................................................................................................. 18  SECTION 8.2. OPTIONAL PREPAYMENTS .......................................................................... 18  SECTION 8.3. OFFER TO PREPAY NOTES IN THE EVENT OF A CHANGE IN CONTROL ........ 18  SECTION 8.4. ALLOCATION OF PARTIAL PREPAYMENTS .................................................. 20  SECTION 8.5. MATURITY; SURRENDER, ETC .................................................................... 20  SECTION 8.6. PURCHASE OF NOTES ................................................................................. 20  SECTION 8.7. MAKE-WHOLE AMOUNT ............................................................................ 21  SECTION 8.8. PREPAYMENTS IN CONNECTION WITH ASSET DISPOSITIONS ...................... 22  SECTION 8.9. PAYMENTS DUE ON NON-BUSINESS DAYS ................................................. 23  SECTION 9. AFFIRMATIVE COVENANTS. ......................................................................... 23  SECTION 9.1. COMPLIANCE WITH LAW ............................................................................ 23  SECTION 9.2. INSURANCE ................................................................................................ 23  SECTION 9.3. MAINTENANCE OF PROPERTIES .................................................................. 23  SECTION 9.4. PAYMENT OF TAXES AND CLAIMS ............................................................. 24  SECTION 9.5. LEGAL EXISTENCE, ETC ............................................................................. 24  SECTION 9.6. NOTES TO RANK PARI PASSU ..................................................................... 24  SECTION 9.7. GUARANTY BY SUBSIDIARIES; JOINDER OF GUARANTORS ......................... 24  SECTION 9.8. BOOKS AND RECORDS ................................................................................ 25  SECTION 9.9. GAS PURCHASE AGREEMENTS ................................................................... 25  SECTION 9.10. MAINTENANCE OF DEBT RATING ............................................................... 25  SECTION 10. NEGATIVE COVENANTS. ................................................................................ 26  SECTION 10.1. LIENS ......................................................................................................... 26  SECTION 10.2. GUARANTIES .............................................................................................. 26  SECTION 10.3. DIVIDENDS AND RELATED DISTRIBUTIONS ................................................ 26  SECTION 10.4. LIQUIDATIONS, MERGERS, CONSOLIDATIONS, ETC .................................... 26  

 

iii  SECTION 10.5. DISPOSITIONS OF ASSETS OR SUBSIDIARIES ............................................... 27  SECTION 10.6. LIMITATION ON PRIORITY INDEBTEDNESS.................................................. 28  SECTION 10.7. MINIMUM INTEREST COVERAGE RATIO ..................................................... 28  SECTION 10.8. MAXIMUM DEBT TO CAPITAL RATIO ......................................................... 28  SECTION 10.9. CONSOLIDATED TANGIBLE NET WORTH .................................................... 28  SECTION 10.10. TRANSACTIONS WITH AFFILIATES ............................................................ 28  SECTION 10.11. LINE OF BUSINESS .................................................................................... 29  SECTION 10.12. TERRORISM SANCTIONS REGULATIONS .................................................... 29  SECTION 11. EVENTS OF DEFAULT. ..................................................................................... 29  SECTION 12. REMEDIES ON DEFAULT, ETC. ...................................................................... 31  SECTION 12.1. ACCELERATION .......................................................................................... 31  SECTION 12.2. OTHER REMEDIES ...................................................................................... 32  SECTION 12.3. RESCISSION ................................................................................................ 32  SECTION 12.4. NO WAIVERS OR ELECTION OF REMEDIES, EXPENSES, ETC ....................... 32  SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES. ..................... 33  SECTION 13.1. REGISTRATION OF NOTES .......................................................................... 33  SECTION 13.2. TRANSFER AND EXCHANGE OF NOTES ....................................................... 33  SECTION 13.3. REPLACEMENT OF NOTES .......................................................................... 34  SECTION 14. PAYMENTS ON NOTES. ................................................................................... 34  SECTION 14.1. PLACE OF PAYMENT ................................................................................... 34  SECTION 14.2. HOME OFFICE PAYMENT ............................................................................ 34  SECTION 15. EXPENSES, ETC. ................................................................................................ 35  SECTION 15.1. TRANSACTION EXPENSES ........................................................................... 35  SECTION 15.2. CERTAIN TAXES ......................................................................................... 35  SECTION 15.3. SURVIVAL .................................................................................................. 36  SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE  AGREEMENT. ..................................................................................................... 36  SECTION 17. AMENDMENT AND WAIVER. ......................................................................... 36  SECTION 17.1. REQUIREMENTS.......................................................................................... 36  SECTION 17.2. SOLICITATION OF HOLDERS OF NOTES ....................................................... 36  SECTION 17.3. BINDING EFFECT, ETC ................................................................................ 37  SECTION 17.4. NOTES HELD BY COMPANY, ETC ............................................................... 37  SECTION 18. NOTICES. ............................................................................................................. 38  SECTION 19. REPRODUCTION OF DOCUMENTS ................................................................ 38  

 

iv  SECTION 20. CONFIDENTIAL INFORMATION .................................................................... 39  SECTION 21. SUBSTITUTION OF PURCHASER ................................................................... 40  SECTION 22. MISCELLANEOUS ............................................................................................. 40  SECTION 22.1. SUCCESSORS AND ASSIGNS ........................................................................ 40  SECTION 22.2. ACCOUNTING TERMS ................................................................................. 40  SECTION 22.3. SEVERABILITY ........................................................................................... 41  SECTION 22.4. CONSTRUCTION, ETC ................................................................................. 41  SECTION 22.5. COUNTERPARTS ......................................................................................... 41  SECTION 22.6. GOVERNING LAW ....................................................................................... 42  SECTION 22.7. JURISDICTION AND PROCESS; WAIVER OF JURY TRIAL .............................. 42  

 

v  — Information Relating to the Purchasers  — Defined Terms  — Disclosure of Company Materials  — Company’s Affiliates, Directors and Senior Officers  SCHEDULE A*  SCHEDULE B  SCHEDULE 5.3*  SCHEDULE 5.4*  SCHEDULE 5.5* — Financial Statements  SCHEDULE 5.15* — Existing Indebtedness  — Existing Liens  — Form of 4.49% Senior Notes, Series E, due August 16, 2052  SCHEDULE 10.1*  EXHIBIT 1*  EXHIBIT 2.2(a)* — Form of Guaranty Agreement  EXHIBIT 4.4(a)(i)* — Form of Opinion of Latham & Watkins LLP, Counsel for the  Company  EXHIBIT 4.4(a)(ii)* — Form of Opinion of Steptoe & Johnson PLLC, Counsel for the  Company  EXHIBIT 4.4(b)* — Form of Opinion of Special Counsel for the Purchasers  *Certain schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. A copy of  any omitted schedule or exhibit will be furnished to the Securities and Exchange Commission upon request. 

 

MOUNTAINEER GAS COMPANY  501 56th Street SE  Charleston, West Virginia 25304  $40,000,000 4.49% Senior Notes, Series E, due August 16, 2052  Dated as of June 30, 2022  TO THE PURCHASERS LISTED IN  SCHEDULE A HERETO:  Ladies and Gentlemen:  MOUNTAINEER GAS COMPANY, a West Virginia corporation (the “Company”),  agrees with each of the Purchasers whose name appear at the end hereof (the “Purchasers”) as  follows:  SECTION 1. AUTHORIZATION OF NOTES.  The Company will authorize the issue and sale of $40,000,000 aggregate principal amount  of its 4.49% Senior Notes, Series E, due August 16, 2052 (the “Notes”), such term to include any  such notes issued in substitution therefor pursuant to Section 13).  The Notes shall be substantially  in the form set out in Exhibit 1.  Certain capitalized and other terms used in this Agreement are  defined in Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise  specified, to a Schedule or an Exhibit attached to this Agreement.  SECTION 2. SALE AND PURCHASE OF NOTES.  Section 2.1. Purchase and Sale of Notes.  Subject to the terms and conditions of  this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will  purchase from the Company, at the Closing provided for in Section 3, Notes in the principal  amount specified opposite such Purchaser’s name in Schedule A at the purchase price of  100% of the principal amount thereof.  Section 2.2. Guaranty Agreement.  (a) The payment by the Company of all amounts due with respect to the Notes and the performance by the Company of its obligations under this Agreement will from  time to time be absolutely and unconditionally guaranteed by the Guarantors pursuant to  the Guaranty Agreement in accordance with the terms of Section 9.7.  (b) The holders of the Notes acknowledge and agree that such holders will discharge and release any Guarantors from the Guaranty Agreement to which such  Guarantor is a party within thirty (30) days following the date of a written request of the  Company to such effect; provided that (i)(1) the lenders or an administrative agent for and  on behalf of the lenders under each Material Credit Facility have agreed in writing that  such Guarantor concurrently with the release hereunder shall be released, directly and  

 

2  indirectly, from any and all liabilities in respect of Indebtedness due and owing under each  such Material Credit Facility, (2) any such release and discharge shall be expressly  conditioned upon receipt by the holders of the Notes of a written agreement executed by  such Guarantor pursuant to which such Guarantor shall agree that if, for any reason  whatsoever, it thereafter becomes an obligor or guarantor under and in respect of any  Indebtedness of the Company due and owing pursuant to any Material Credit Facility, then  such Guarantor shall contemporaneously provide written notice thereof to the holders of  the Notes accompanied by an executed Guaranty Agreement of the Guarantors, and (3) at  the time of such release and discharge, the Company shall deliver a certificate of a  Responsible Officer to the holders of the Notes to the effect that no Default or Event of  Default exists or (ii)(1) all Indebtedness outstanding pursuant to each Material Credit  Facility has been paid in full and each such Material Credit Facility has been terminated  and not replaced by another credit facility guaranteed by the Guarantor being discharged  and released and (2) the Company has delivered a certificate of a Responsible Officer to  the holders of the Notes to the effect that no Default or Event of Default exists.  (c) The Company agrees that it will not, nor will it permit any Subsidiary or Affiliate to, directly or indirectly, pay or cause to be paid any consideration or  remuneration, whether by way of supplemental or additional interest, fee or otherwise, to  any creditor of the Company or of any Guarantor as consideration for or as an inducement  to the entering into by any such creditor of any release or discharge of any Guarantor with  respect to any liability of such Guarantor as an obligor or guarantor under or in respect of  Indebtedness of the Company (excluding the prepayment of Indebtedness under any  Material Credit Facility), unless such consideration or remuneration is concurrently paid,  on the same terms, ratably to the holders of all of the Notes then outstanding.  SECTION 3. CLOSING.  The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the  offices of Greenberg Traurig, LLP, 77 West Wacker Drive, Chicago, IL 60601, at 10:00 A.M.  Chicago time, at a closing (the “Closing”) on August 16, 2022 (the “Closing Date”).  At the  Closing, the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser  in the form of a single Note (or such greater number of Notes in denominations of at least $250,000  as such Purchaser may request) dated the date of the Closing and registered in such Purchaser’s  name (or in the name of its nominee), against delivery by such Purchaser to the Company of  immediately available funds in the amount of the purchase price therefor by wire transfer of  immediately available funds for the account of the Company to account number [***********]  in the name of Mountaineer Gas Company at Truist Bank, ABA Number [***********], Wilson,  NC. If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided  above in this Section 3, or any of the conditions specified in Section 4 shall not have been  fulfilled to such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of  all further obligations under this Agreement, without thereby waiving any rights such  Purchaser may have by reason of such failure or such nonfulfillment.  

 

3  SECTION 4. CONDITIONS TO CLOSING.  Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser  at the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the Closing,  of the following conditions:  Section 4.1. Representations and Warranties.  The representations and warranties of the Company in this Agreement shall be correct  when made and at the Closing Date.  Section 4.2. Performance; No Default.  The Company shall have performed and complied with all agreements and conditions  contained in this Agreement required to be performed or complied with by it prior to or at the  Closing and from the date of this Agreement to the Closing assuming that Sections 9 and 10 are  applicable from the date of this Agreement.  From the date of this Agreement until the Closing,  before and after giving effect to the issue and sale of the Notes (and the application of the proceeds  thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and  be continuing.  The Company shall have not entered into any transaction since April 5, 2022 that  would have been prohibited by Section 10 had such Section applied since such date.  No Change  in Control shall have occurred.  Section 4.3. Compliance Certificates.  (a) Officer’s Certificate.  The Company shall have delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in  Sections 4.1, 4.2 and 4.8 have been fulfilled.  (b) Secretary’s Certificate.  The Company shall have delivered to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the Closing Date,  certifying as to (i) the resolutions attached thereto and other corporate proceedings relating  to the authorization, execution and delivery of the Notes and this Agreement and (ii) the  Company’s organizational documents as then in effect.  Section 4.4. Opinions of Counsel.  Such Purchaser shall have received opinions  in form and substance satisfactory to such Purchaser, dated the date of the Closing, (a) from  Latham & Watkins LLP and Steptoe & Johnson PLLC, counsel for the Company, covering  the matters set forth in Exhibits 4.4(a)(i) and 4.4(a)(ii), respectively, and covering such  other matters incident to the transactions contemplated hereby as such Purchaser or its  counsel may reasonably request (and the Company hereby instructs its counsel to deliver  such opinion to the Purchasers), and (b) from Greenberg Traurig, LLP, the Purchasers’  special counsel in connection with such transactions, substantially in the form set forth in  Exhibit 4.4(b) and covering such other matters incident to such transactions as such  Purchaser may reasonably request.  Section 4.5. Purchase Permitted by Applicable Law, Etc.  On the date of the  Closing such Purchaser’s purchase of Notes shall (a) be permitted by the laws and  

 

4  regulations of each jurisdiction to which such Purchaser is subject, without recourse to  provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited  investments by insurance companies without restriction as to the character of the particular  investment, (b) not violate any applicable law or regulation (including, without limitation,  Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not  subject such Purchaser to any tax, penalty or liability under or pursuant to any applicable  law or regulation, which law or regulation was not in effect on the date hereof.  If requested  by such Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as  to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser  to determine whether such purchase is so permitted.  Section 4.6. Payment of Special Counsel Fees.  Without limiting the provisions  of Section 15.1, the Company shall have paid on or before the Closing Date, the fees,  charges and disbursements of the Purchasers’ special counsel referred to in Section 4.4 to  the extent reflected in a statement of such counsel rendered to the Company at least one  Business Day prior to the relevant Closing Date.  Section 4.7. Private Placement Number.  A Private Placement Number issued by  CUSIP Global Services (in cooperation with the Securities Valuation Office of NAIC) shall  have been obtained for the Notes.  Section 4.8. Changes in Corporate Structure.  The Company shall not have  changed its jurisdiction of incorporation or organization, as applicable, or been a party to  any merger or consolidation or succeeded to all or any substantial part of the liabilities of  any other entity, at any time following the date of the most recent financial statements  referred to in Schedule 5.5.  Section 4.9. Regulatory Approval.  Prior to the Closing, each Purchaser shall have  received evidence, including, without limitation, an opinion of Steptoe & Johnson PLLC,  counsel for the Company, in form and substance satisfactory to it and its special counsel,  demonstrating that all approvals and authorizations of the WVPSC which are required to be  obtained in connection with the issuance of the Notes and the execution and delivery by the  Company of, and the performance by the Company of its obligations under, this Agreement  and the Notes have been duly obtained, validly issued and are in full force and effect and  final, and all periods for appeal and rehearing by third parties have expired and all conditions  contained in such approvals and authorizations which are to be fulfilled on or prior to the  issuance of the Notes have been fulfilled.  Section 4.10. Funding Instructions.  At least three Business Days prior to the date  of the Closing, each Purchaser shall have received written instructions signed by a  Responsible Officer on letterhead of the Company confirming the information specified in  Section 3 including (a) the name and address of the transferee bank, (b) such transferee  bank’s ABA number, (c) the account name and number into which the purchase price for  the Notes is to be deposited and (d) contact information (including telephone number) of  the representative at the transferee bank and of the Company for the Purchasers to, among  other things, confirm the wiring instructions.  

 

5  Section 4.11. Proceedings and Documents.  All corporate and other proceedings in  connection with the transactions contemplated by this Agreement and all documents and  instruments incident to such transactions shall be satisfactory to such Purchaser and its  special counsel, and such Purchaser and its special counsel shall have received all such  counterpart originals or certified or other copies of such documents as such Purchaser or  such special counsel may reasonably request.  Section 4.12. Debt Rating.  Each Purchaser shall have received evidence of a  current Debt Rating of not less than BBB.  SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company represents and warrants to each Purchaser that:  Section 5.1. Organization; Power and Authority.  The Company is a corporation  duly organized, validly existing and in good standing under the laws of its jurisdiction of  incorporation, and is duly qualified as a foreign corporation and is in good standing in each  jurisdiction in which such qualification is required by law, other than those jurisdictions as  to which the failure to be so qualified or in good standing could not, individually or in the  aggregate, reasonably be expected to have a Material Adverse Effect.  The Company has  the corporate power and authority to own or hold under lease the properties it purports to  own or hold under lease, to transact the business it transacts and proposes to transact, to  execute and deliver this Agreement and the Notes and to perform the provisions hereof and  thereof.  Section 5.2. Authorization, Etc.  This Agreement and the Notes have been duly  authorized by all necessary corporate action on the part of the Company, and this Agreement  constitutes, and upon execution and delivery thereof each Note will constitute, a legal, valid  and binding obligation of the Company enforceable against the Company in accordance  with its terms, except as such enforceability may be limited by (a) applicable bankruptcy,  insolvency, reorganization, moratorium or other similar laws affecting the enforcement of  creditors’ rights generally and (b) general principles of equity (regardless of whether such  enforceability is considered in a proceeding in equity or at law).  Section 5.3. Disclosure of Company Materials.  The Company, through its agent,  Huntington Securities, Inc., has delivered to each Purchaser information and materials  relating to the transactions contemplated hereby as further described in Schedule 5.3 (the  “Company Materials”), relating to the transactions contemplated hereby.  The Company  Materials fairly describe, in all material respects, the general nature of the business and  principal properties of the Company.  This Agreement, the Company Materials and the  documents, certificates or other writings delivered to each Purchaser by or on behalf of the  Company in connection with the transactions contemplated hereby, and the financial  statements listed in Schedule 5.5 (this Agreement, the Company Materials and the  documents, certificates or other writings and such financial statements delivered to each  Purchaser prior to April 5, 2022 being referred to, collectively, as the “Disclosure  Documents”), taken as a whole, do not contain any untrue statement of a material fact or  omit to state any material fact necessary to make the statements therein not misleading in  

 

6  light of the circumstances under which they were made.  Except as disclosed in the  Disclosure Documents, since September 30, 2021, there has been no change in the financial  condition, operations, business, properties or prospects of the Company except changes that  individually or in the aggregate could not reasonably be expected to have a Material Adverse  Effect.  There is no fact known to the Company that could reasonably be expected to have  a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.  Section 5.4. Company’s Affiliates, Directors and Senior Officers.  (a) The Company has no Subsidiary(ies).  (b) Schedule 5.4 contains (except as noted therein) complete and correct lists  (i) of the Company’s Affiliates and (ii) of the Company’s directors and senior officers.      Section 5.5. Financial Statements; Material Liabilities.  The Company has  delivered to each Purchaser copies of the financial statements of the Company listed on  Schedule 5.5.  All of said financial statements (including in each case the related schedules  and notes) described in Schedule 5.5, fairly present in all material respects the financial  position of the Company as of the respective dates specified in such financial statements  and the results of its operations and cash flows for the respective periods so specified and  have been prepared in accordance with GAAP consistently applied throughout the periods  involved except as set forth in the notes thereto (subject, in the case of any interim financial  statements, to normal year-end adjustments).  The Company does not have any Material  liabilities that are not disclosed in the Disclosure Documents.     Section 5.6. Compliance with Laws, Other Instruments, Etc.  The execution,  delivery and performance by the Company of this Agreement and the Notes will not (a)  contravene, result in any breach of, or constitute a default under, or result in the creation of  any Lien in respect of any property of the Company under, any indenture, mortgage, deed  of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other  material agreement or material instrument to which the Company is bound or by which the  Company or any of its respective properties may be bound or affected, (b) conflict with or  result in a breach of any of the terms, conditions or provisions of any order, judgment,  decree, or ruling of any court, arbitrator or Governmental Authority applicable to the  Company or (c) violate any provision of any statute or other rule or regulation of any  Governmental Authority applicable to the Company.  Section 5.7. Governmental Authorizations, Etc.  No consent, approval or  authorization of, or registration, filing or declaration with, any Governmental Authority is  required in connection with the execution, delivery or performance by the Company of this  Agreement or the Notes, other than all required approvals and authorizations of WVSPC, if  any, as further described in an opinion of Steptoe & Johnson PLLC delivered pursuant to  and as further described in Section 4.9.  Section 5.8. Litigation; Observance of Agreements, Statutes and Orders.  (a) There are no actions, suits, investigations or proceedings pending or, to the  knowledge of the Company, threatened against or affecting the Company or any property  

 

7  of the Company in any court or before any arbitrator of any kind or before or by any  Governmental Authority that, individually or in the aggregate, could reasonably be  expected to have a Material Adverse Effect.  (b) The Company is not (a) in default under any term of any agreement or instrument to which it is a party or by which it is bound, or (b) in violation of any order,  judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in  violation of any applicable law, ordinance, rule or regulation (including without limitation  Environmental Laws, or the USA Patriot Act or any of the laws and regulations that are  referred to in Section 5.16) of any Governmental Authority, which default or violation,  individually or in the aggregate, could reasonably be expected to have a Material Adverse  Effect.  Section 5.9. Taxes.  The Company has filed all tax returns that are required to  have been filed in any jurisdiction, and has paid all taxes shown to be due and payable on  such returns and all other taxes and assessments levied upon it or its properties, assets,  income or franchises, to the extent such taxes and assessments have become due and payable  and before they have become delinquent, except for any taxes and assessments (i) the  amount of which is not individually or in the aggregate Material or (ii) the amount,  applicability or validity of which is currently being contested in good faith by appropriate  proceedings and with respect to which the Company, has established adequate reserves in  accordance with GAAP.  The Company knows of no basis for any other tax or assessment  that could, individually or in the aggregate, reasonably be expected to have a Material  Adverse Effect.  The charges, accruals and reserves on the books of the Company in respect  of U.S. federal, state or other taxes for all fiscal periods are adequate.  The U.S. federal  income tax liabilities of the Company have been finally determined (whether by reason of  completed audits or the statute of limitations having run) for all fiscal years up to and  including the fiscal year ended December 31, 2018.  Section 5.10. Title to Property; Leases.  The Company has good and sufficient title  to its properties that individually or in the aggregate are Material, including all such  properties reflected in the most recent audited balance sheet referred to in Section 5.5 or  purported to have been acquired by the Company after said date (except as sold or otherwise  disposed of in the ordinary course of business), except for minor defects in title that do not  interfere with the Company’s ability to conduct its business as currently conducted or to  utilize such properties for their intended use and in each case free and clear of Liens (other  than Permitted Liens).  All leases that individually or in the aggregate are Material are valid  and subsisting and are in full force and effect in all material respects.  Section 5.11. Licenses, Permits, Etc.  (a) The Company owns or possesses all licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and  trade names, or rights thereto, that individually or in the aggregate are Material, without  known conflict with the rights of others, except for those conflicts that, individually or in  the aggregate, would not have a Material Adverse Effect.  

 

8  (b) To the best knowledge of the Company, no product or service of the  Company infringes any license, permit, franchise, authorization, patent, copyright,  proprietary software, service mark, trademark, trade name or other right owned by any  other Person, except for those infringements, individually or in the aggregate, would not  have a Material Adverse Effect.  (c) To the best knowledge of the Company, there is no violation by any Person  of any right of the Company with respect to any license, permit, franchise, authorization,  patent, copyright, proprietary software, service mark, trademark, trade name or other right  owned or used by the Company, except for those violations that, individually or in the  aggregate, would not have a Material Adverse Effect.  Section 5.12. Compliance with ERISA.  (a) The Company and each ERISA Affiliate have operated and administered  each Plan in compliance with all applicable laws except for such instances of  noncompliance as have not resulted in and would not, individually or in the aggregate,  reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor  any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the  penalty or excise tax provisions of the Code relating to employee benefit plans (as defined  in section 3 of ERISA), and no event, transaction or condition has occurred or exists that  could, individually or in the aggregate, reasonably be expected to result in the incurrence  of any such liability by the Company or any ERISA Affiliate, or in the imposition of any  Lien on any of the rights, properties or assets of the Company or any ERISA Affiliate, in  either case pursuant to Title I or IV of ERISA or to section 430(k) of the Code or to any  such penalty or excise tax provisions under the Code or federal law or section 4068 of  ERISA or by granting of a security interest in connection with the amendment of a Plan,  other than such liabilities or Liens as would not, individually or in the aggregate,  reasonably be expected to result in a Material Adverse Effect.  (b) The present value of the aggregate benefit liabilities under each of the Plans  (other than Multiemployer Plans), determined as of the end of such Plan’s most recently  ended plan year on the basis of the actuarial assumptions specified for funding purposes in  such Plan’s most recent actuarial valuation report, did not exceed the aggregate current  value of the assets of such Plan (determined as of the end of such Plan’s most recently  ended plan year) allocable to such benefit liabilities by more than $16,200,000 in the  aggregate for all Plans.  The term “benefit liabilities” has the meaning specified in section  4001 of ERISA and the terms “current value” and “present value” have the meaning  specified in section 3 of ERISA.  (c) The Company and its ERISA Affiliates, if any, have not incurred  withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under  section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in  the aggregate are Material.  (d) The expected postretirement benefit obligation determined as of the last day  of the Company’s most recently ended fiscal year in accordance with Financial Accounting  

 

9  Standards Board Codification Topic 715-60 (without regard to liabilities attributable to  continuation coverage mandated by section 4980B of the Code) of the Company is not  Material.  (e) The execution and delivery of this Agreement and the issuance and sale of  the Notes hereunder will not involve any transaction that is subject to the prohibitions of  section 406 of ERISA or in connection with which a tax could be imposed pursuant to  section 4975(c)(1)(A)-(D) of the Code.  The representation by the Company in the first  sentence of this Section 5.12(e), to the Purchasers is made in reliance upon and subject to  the accuracy of such Purchaser’s representation in Section 6.2 as to the sources of the funds  used to pay the purchase price of the Notes to be purchased by such Purchaser and with the  assumption that such Purchaser has complied with the terms and provisions of ERISA  applicable to it with respect to such sources of funds.   (f) The Company does not have any Non-U.S. Plans.  Section 5.13. Private Offering by the Company.  Neither the Company nor anyone  acting on its behalf has offered the Notes or any similar Securities for sale to, or solicited  any offer to buy the Notes or any similar Securities from, or otherwise approached or  negotiated in respect thereof with, any Person other than the Purchasers.  Neither the  Company nor anyone acting on its behalf has taken, or will take, any action that would  subject the issuance or sale of the Notes to the registration requirements of Section 5 of the  Securities Act or to the registration requirements of any Securities or blue sky laws of any  applicable jurisdiction.  Section 5.14. Use of Proceeds; Margin Regulations.  The Company will apply the  proceeds of the sale of the Notes to refinance existing Indebtedness and for general  corporate purposes.  No part of the proceeds from the sale of the Notes hereunder will be  used, directly or indirectly, for the purpose of buying or carrying any margin stock within  the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12  CFR 221), or for the purpose of buying or carrying or trading in any Securities under such  circumstances as to involve the Company in a violation of Regulation X of said Board (12  CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board  (12 CFR 220).  Margin stock does not constitute more than 2% of the value of the  consolidated assets of the Company and the Company does not have any present intention  that margin stock will constitute more than 2% of the value of such assets.  As used in this  Section, the terms “margin stock” and “purpose of buying or carrying” shall have the  meanings assigned to them in said Regulation U.  Section 5.15. Existing Indebtedness; Future Liens.  (a) Schedule 5.15 sets forth a complete and correct list of all outstanding  Indebtedness of the Company as of March 31, 2022 (including descriptions of the obligors  and obligees, principal amounts outstanding, any collateral therefor, if any, and Guaranty  thereof, if any), since which date, there has been no Material change in the amounts, interest  rates, sinking funds, installment payments or maturities of the Indebtedness of the  Company.  The Company is not in default and no waiver of default is currently in effect,  

 

10  in the payment of any principal or interest on any Indebtedness of the Company and no  event or condition exists with respect to any Indebtedness of the Company the outstanding  principal amount of which exceeds $15,000,000 that would permit (or that with notice or  the lapse of time, or both, would permit) one or more Persons to cause such Indebtedness  to become due and payable before its stated maturity or before its regularly scheduled dates  of payment.   (b) Except as disclosed in Schedule 5.15, the Company has not agreed or consented to cause or permit any of its property, whether now owned or hereafter acquired,  to be subject to a Lien that secures Indebtedness or to cause or permit in the future (upon  the happening of a contingency or otherwise) any of its property, whether now owned or  hereafter acquired, to be subject to a Lien not permitted by Section 10.1.  (c) The Company is not a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company, any agreement  relating thereto or any other agreement (including, but not limited to, its charter or other  organizational document) which limits the amount of, or otherwise imposes restrictions on  the incurring of, Indebtedness of the Company, except as specifically indicated in  Schedule 5.15.  Section 5.16. Foreign Assets Control Regulations, Etc.  (a) Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions  List or (iii) is a target of sanctions that have been imposed by the United Nations or the  European Union.  (b) Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable U.S. Economic  Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the  Company’s knowledge, is under investigation by any Governmental Authority for possible  violation of any U.S. Economic Sanctions Laws, Anti-Money Laundering Laws or Anti- Corruption Laws.  (c) No part of the proceeds from the sale of the Notes hereunder: (i) constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity,  directly or indirectly, (A) in connection with any investment in, or any transactions  or dealings with, any Blocked Person, (B) for any purpose that would cause any  Purchaser to be in violation of any U.S. Economic Sanctions Laws or (C) otherwise  in violation of any U.S. Economic Sanctions Laws;  (ii) will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or  (iii) will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial  

 

11  counterparty in order to obtain, retain or direct business or obtain any improper  advantage, in each case which would be in violation of, or cause any Purchaser to  be in violation of, any applicable Anti-Corruption Laws.  (d) The Company has established procedures and controls which it reasonably  believes are adequate (and otherwise comply with applicable law) to ensure that the  Company and each Controlled Entity is and will continue to be in compliance with all  applicable U.S. Economic Sanctions Laws, Anti-Money Laundering Laws and Anti- Corruption Laws.  Section 5.17. Status under Certain Statutes.  The Company is not an “investment  company” or a company “controlled” by an “investment company” within the meaning of  the Investment Company Act of 1940, as amended.  The Company is not subject to  regulation under the Federal Power Act, as amended.  Section 5.18. Notes Rank Pari Passu.  The obligations of the Company under this  Agreement and the Notes rank at least pari passu in right of payment with all other  unsecured Senior Indebtedness (actual or contingent) of the Company, including, without  limitation, all unsecured Senior Indebtedness of the Company described in Schedule 5.15  hereto.  Section 5.19. Environmental Matters.  (a) The Company does not have knowledge of any claim or has received any  notice of any claim, and no proceeding has been instituted raising any claim against the  Company or any of its real properties now or formerly owned, leased or operated by it or  other assets, alleging any damage to the environment or violation of any Environmental  Laws, except, in each case, such as could not, individually or in the aggregate, reasonably  be expected to result in a Material Adverse Effect.  (b) The Company does not have knowledge of any facts which would give rise  to any claim, public or private, of violation of Environmental Laws or damage to the  environment emanating from, occurring on or in any way related to real properties now or  formerly owned, leased or operated by it or to other assets or their use, except, in each case,  such as could not, individually or in the aggregate, reasonably be expected to result in a  Material Adverse Effect.  (c) The Company has not stored any Hazardous Materials on real properties  now or formerly owned, leased or operated by it or has disposed of any Hazardous  Materials in a manner contrary to any Environmental Laws in each case in any manner that  could, individually or in the aggregate, reasonably be expected to result in a Material  Adverse Effect.  (d) All buildings on all real properties now owned, leased or operated by the  Company are in compliance with applicable Environmental Laws, except where failure to  comply could not, individually or in the aggregate, reasonably be expected to result in a  Material Adverse Effect.  

 

12  SECTION 6. REPRESENTATIONS OF THE PURCHASERS.  Section 6.1. Purchase for Investment.  Each Purchaser severally represents that  (a) it is purchasing the Notes for its own account or for one or more separate accounts  maintained by such Purchaser or for the account of one or more pension or trust funds and  not with a view to the distribution thereof; provided that the disposition of such Purchaser’s  or their property shall at all times be within such Purchaser’s or their control, and (b) such  Purchaser is an “accredited investor” within the meaning of Rule 501(a)(1), (a)(3) or (a)(7)  of Regulation D promulgated under the Securities Act.  Each Purchaser understands that the  Notes have not been registered under the Securities Act and may be resold only if registered  pursuant to the provisions of the Securities Act or if an exemption from registration is  available, except under circumstances where neither such registration nor such an  exemption is required by law, and that the Company is not required to register the Notes.  Section 6.2. Source of Funds.  Each Purchaser severally represents that at least  one of the following statements is an accurate representation as to each source of funds (a  “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be  purchased by such Purchaser hereunder:  (a) the Source is an “insurance company general account” (as the term is  defined in the United States Department of Labor’s Prohibited Transaction Exemption  (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual  statement for life insurance companies approved by the National Association of Insurance  Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held  by or on behalf of any employee benefit plan together with the amount of the reserves and  liabilities for the general account contract(s) held by or on behalf of any other employee  benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95- 60) or by the same employee organization in the general account do not exceed ten percent  (10%) of the total reserves and liabilities of the general account (exclusive of separate  account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such  Purchaser’s state of domicile; or  (b) the Source is a separate account that is maintained solely in connection with  such Purchaser’s fixed contractual obligations under which the amounts payable, or  credited, to any employee benefit plan (or its related trust) that has any interest in such  separate account (or to any participant or beneficiary of such plan (including any  annuitant)) are not affected in any manner by the investment performance of the separate  account; or  (c) the Source is either (i) an insurance company pooled separate account,  within the meaning of PTE 90-1, or (ii) a bank collective investment fund, within the  meaning of the PTE 91-38 and, except as have been disclosed by such Purchaser to the  Company in writing pursuant to this clause (c), no employee benefit plan or group of plans  maintained by the same employer or employee organization beneficially owns more than  10% of all assets allocated to such pooled separate account or collective investment fund;  or  

 

13  (d) the Source constitutes assets of an “investment fund” (within the meaning  of Part VI of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional  asset manager” or “QPAM” (within the meaning of Part VI of the QPAM Exemption), no  employee benefit plan’s assets that are managed by the QPAM in such investment fund,  when combined with the assets of all other employee benefit plans established or  maintained by the same employer or by an affiliate (within the meaning of Part VI(c)(1) of  the QPAM Exemption) of such employer or by the same employee organization and  managed by such QPAM, represent more than 20% of the total client assets managed by  such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,  neither the QPAM nor a person controlling or controlled by the QPAM maintains an  ownership interest in the Company that would cause the QPAM and the Company to be  “related” within the meaning of Part VI(h) of the QPAM Exemption and (i) the identity of  such QPAM and (ii) the names of any employee benefit plans whose assets in the  investment fund, when combined with the assets of all other employee benefit plans  established or maintained by the same employer or by an affiliate (within the meaning of  Part VI(c)(1) of the QPAM Exemption) of such employer or by the same employee  organization, represent 10% or more of the assets of such investment fund, have been  disclosed to the Company in writing pursuant to this clause (d); or  (e) the Source constitutes assets of a “plan(s)” (within the meaning of Part  IV(h) of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager”  or “INHAM” (within the meaning of Part IV(a) of the INHAM Exemption), the conditions  of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a  person controlling or controlled by the INHAM (applying the definition of “control” in  Part IV(d)(3) of the INHAM Exemption) owns a 10% or more interest in the Company and  (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose  assets constitute the Source have been disclosed to the Company in writing pursuant to this  clause (e); or  (f) the Source is a governmental plan; or  (g) the Source is one or more employee benefit plans, or a separate account or  trust fund comprised of one or more employee benefit plans, each of which has been  identified to the Company in writing pursuant to this clause (g); or  (h) the Source does not include assets of any employee benefit plan, other than  a plan exempt from the coverage of ERISA.  As used in this Section 6.2, the terms “employee benefit plan”, “governmental plan”, and  “separate account” shall have the respective meanings assigned to such terms in section 3 of  ERISA.  SECTION 7. INFORMATION AS TO THE COMPANY.  Section 7.1. Financial and Business Information.  The Company shall deliver to  each Purchaser and holder of a Note that is an Institutional Investor:  

 

14  (a) Quarterly Statements — within 45 days after the end of each quarterly fiscal  period in each fiscal year of the Company (other than the last quarterly fiscal period of each  such fiscal year), duplicate copies of,  (i) a consolidated balance sheet of the Company and its Subsidiaries as  at the end of such quarter, and  (ii) consolidated statements of income, changes in shareholders’ equity  and cash flows of the Company and its Subsidiaries for such quarter and (in the  case of the second and third quarters) for the portion of the fiscal year ending with  such quarter,  setting forth in each case in comparative form the figures for the corresponding periods in  the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP  applicable to quarterly financial statements generally, and certified by a Senior Financial  Officer as fairly presenting, in all material respects, the financial position of the companies  being reported on and their results of operations and cash flows, subject to changes  resulting from year-end adjustments;  (b) Annual Statements — within 120 days after the end of each fiscal year of  the Company, duplicate copies of,  (i) a consolidated balance sheet of the Company and its Subsidiaries,  as at the end of such year, and  (ii) consolidated statements of income, changes in shareholders’ equity  and cash flows of the Company and its Subsidiaries, for such year,  setting forth in each case in comparative form the figures for the previous fiscal year (other  than with respect to the fiscal year ending September 30, 2021), all in reasonable detail,  prepared in accordance with GAAP, and accompanied by an opinion thereon (without a  “going concern” or similar qualification or exception (other than a “going concern”  qualification resulting solely from (i) an upcoming maturity date under any Indebtedness  occurring within one year from the time such opinion is delivered or (ii) an anticipated (but  not actual) breach of financial covenants) and without an qualification or exception as to  the scope of the audit on which such opinion is based) of independent public accountants  of recognized national standing, which opinion shall state that such financial statements  present fairly, in all material respects, the financial position of the companies being  reported upon and their results of operations and cash flows and have been prepared in  conformity with GAAP, and that the examination of such accountants in connection with  such financial statements has been made in accordance with generally accepted auditing  standards, and that such audit provides a reasonable basis for such opinion in the  circumstances;  (c) SEC and Other Reports — promptly upon their becoming available, one  copy of (i) each financial statement, report, material notice or proxy statement or similar  document sent by the Company or any Subsidiary to its principal lending banks as a whole  (excluding information sent to such banks in the ordinary course of administration of a  

 

15  bank facility, such as information relating to pricing and borrowing availability or to its  public Securities holders generally) and (ii) each regular or periodic report, each  registration statement (without exhibits except as expressly requested by such Purchaser or  holder), and each prospectus and all amendments thereto filed by the Company or any  Subsidiary with the SEC and of all press releases and other statements made available  generally by the Company or any Subsidiary to the public concerning developments that  are Material;  (d) Notice of Default or Event of Default — promptly, and in any event within  five Business Days after a Responsible Officer becoming aware of the existence of any  Default or Event of Default or that any Person has given any notice or taken any action  with respect to a claimed default hereunder or that any Person has given any notice or taken  any action with respect to a claimed default of the type referred to in Section 11(f), a  written notice specifying the nature and period of existence thereof and what action the  Company is taking or proposes to take with respect thereto;  (e) ERISA Matters — promptly, and in any event within five Business Days  after a Responsible Officer becoming aware of any of the following, a written notice setting  forth the nature thereof and the action, if any, that the Company or an ERISA Affiliate  proposes to take with respect thereto:  (i) with respect to any Plan, any reportable event, as defined in section  4043(c) of ERISA and the regulations thereunder, which could reasonably be  expected to have a Material Adverse Effect and for which notice thereof has not  been waived pursuant to such regulations as in effect on the date hereof; or  (ii) the taking by the PBGC of steps to institute proceedings under  section 4042 of ERISA for the termination of, or the appointment of a trustee to  administer, any Plan, or the receipt by the Company or any ERISA Affiliate of a  notice from a Multiemployer Plan that such action has been taken by the PBGC  with respect to such Multiemployer Plan; or  (iii) any event, transaction or condition that could result in the incurrence  of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of  ERISA or the penalty or excise tax provisions of the Code relating to employee  benefit plans, or in the imposition of any Lien on any of the rights, properties or  assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA  or such penalty or excise tax provisions, if such liability or Lien, taken together  with any other such liabilities or Liens then existing, could reasonably be expected  to have a Material Adverse Effect;   (f) Notices from Governmental Authority — promptly, and in any event within  30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from any  Federal or state Governmental Authority relating to any order, ruling, statute or other law  or regulation that could reasonably be expected to have a Material Adverse Effect;  

 

16  (g) Resignation or Replacement of Auditors — within 10 days following the  date on which the Company’s auditors resign or the Company elects to change auditors, as  the case may be, notification thereof, together with such further information as the  Required Holders may request;   (h) Other Reports and Information — with reasonable promptness,  (i) any reports, including management letters, submitted to the  Company by independent accountants in connection with any annual, interim or  special audit,  (ii) FERC Form 2 and WVPSC Annual Reports, and  (iii) a copy of any order in any proceeding to which the Company or any  of its Subsidiaries is a party issued by any Governmental Authority; and  (i) Requested Information — with reasonable promptness, such other data and  information relating to the business, operations, affairs, financial condition, assets or  properties of the Company or any of its Subsidiaries or relating to the ability of the  Company to perform its obligations hereunder and under the Notes as from time to time  may be reasonably requested by such Purchaser or any such holder of Notes.  Section 7.2. Officer’s Certificate.  Each set of financial statements delivered to a  Purchaser or holder of Notes or any Purchaser pursuant to Section 7.1(a) or Section 7.1(b)  shall be accompanied by a certificate of a Senior Financial Officer setting forth:     (a) Covenant Compliance — the information (including detailed calculations)  required in order to establish whether the Company was in compliance with the  requirements of Section 10.1 through Section 10.9, inclusive, during the quarterly or  annual period covered by the statements then being furnished (including with respect to  each such Section, where applicable, the calculations of the maximum or minimum  amount, ratio or percentage, as the case may be, permissible under the terms of such  Sections, and the calculation of the amount, ratio or percentage then in existence).  In the  event that the Company or any Subsidiary has made an election to measure any financial  liability using fair value (which election is being disregarded for purposes of determining  compliance with this Agreement pursuant to Section 22.2(b)) as to the period covered by  any such financial statement, such Senior Financial Officer’s certificate as to such period  shall include a reconciliation from GAAP with respect to such election; and  (b) Event of Default — a statement that such Senior Financial Officer has  reviewed the relevant terms hereof and has made, or caused to be made, under his or her  supervision, a review of the transactions and conditions of the Company and its  Subsidiaries from the beginning of the quarterly or annual period covered by the statements  then being furnished to the date of the certificate and that such review shall not have  disclosed the existence during such period of any condition or event that constitutes a  Default or an Event of Default or, if any such condition or event existed or exists (including,  without limitation, any such event or condition resulting from the failure of the Company  or any Subsidiary to comply with any Environmental Law), specifying the nature and  

 

17  period of existence thereof and what action the Company shall have taken or proposes to  take with respect thereto; and  (c) Subsidiary Guarantors — setting forth a list of all Subsidiaries that are  Subsidiary Guarantors and certifying that each Subsidiary that is required to be a  Subsidiary Guarantor pursuant to Section 9.7 is a Subsidiary Guarantor in each case, as of  the date of such certificate of Senior Financial Officer.  Section 7.3. Visitation.  The Company shall permit the representatives of each  Purchaser and holder of Notes that is an Institutional Investor:  (a) No Default — if no Default or Event of Default then exists, at the expense  of such Purchaser or such holder or such Purchaser and upon reasonable prior notice to the  Company, to visit the principal executive office of the Company, to discuss the affairs,  finances and accounts of the Company and its Subsidiaries with the Company’s officers,  and (with the consent of the Company, which consent will not be unreasonably withheld)  its independent public accountants, and (with the consent of the Company, which consent  will not be unreasonably withheld) to visit the other offices and properties of the Company  and each Subsidiary, all at such reasonable times and as often as may be reasonably  requested in writing; and  (b) Default — if a Default or Event of Default then exists, at the expense of the  Company, to visit and inspect any of the offices or properties of the Company or any  Subsidiary, to examine all their respective books of account, records, reports and other  papers, to make copies and extracts therefrom, and to discuss their respective affairs,  finances and accounts with their respective officers and independent public accountants  (and by this provision the Company authorizes said accountants to discuss the affairs,  finances and accounts of the Company and its Subsidiaries), all at such times and as often  as may be requested.  Section 7.4. Electronic Delivery.  Financial statements, opinions of independent  certified public accountants, other information and Officer’s Certificates that are required  to be delivered by the Company pursuant to Sections 7.1(a), (b) or (c) and Section 7.2 shall  be deemed to have been delivered if the Company satisfies any of the following  requirements with respect thereto:  (a) such financial statements satisfying the requirements of Section 7.1(a) or  (b) and related Officer’s Certificate satisfying the requirements of Section 7.2 and any  other information required under Section 7.1(c) are delivered to each Purchaser or holder  of a Note by e-mail at the e-mail address set forth in such Purchaser’s or holder’s  Schedule A or as communicated from time to time in a separate writing delivered to the  Company;  (b) the Company shall have timely made such financial statements, satisfying  the requirements of Section 7.1(a) or Section 7.1(b), as the case may be, and the related  Officer’s Certificate satisfying the requirements of Section 7.2 and any other information  required under Section 7.1(c) available on its home page on the internet, which is located  

 

18  at http://www.mountaineergasonline.com as of the date of this Agreement or at  http://ugicorp.com; or  (c) such financial statements satisfying the requirements of Section 7.1(a) or  Section 7.1(b) and related Officer’s Certificate(s) satisfying the requirements of  Section 7.2 and any other information required under Section 7.1(c) are timely posted by  or on behalf of the Company on IntraLinks or on any other similar website to which each  Purchaser and each holder of Notes has free access;  provided however, that in no case shall access to such financial statements, other information and  Officer’s Certificates be conditioned upon any waiver or other agreement or consent (other than  confidentiality provisions consistent with Section 20 of this Agreement); provided further, that in  the case of any of clauses (b) or (c), the Company shall have given each Purchaser and each holder  of a Note prior written notice, which may be by e-mail or in accordance with Section 18, of such  posting or filing in connection with each delivery, provided further, that upon request of any  Purchaser or holder to receive paper copies of such forms, financial statements, other information  and Officer’s Certificates or to receive them by e-mail, the Company will promptly e-mail them  or deliver such paper copies, as the case may be, to such Purchaser or holder.  SECTION 8. PREPAYMENT OF THE NOTES.  Section 8.1. Maturity.  As provided therein, the entire unpaid principal balance of  the Notes shall be due and payable on the stated maturity date.  Section 8.2. Optional Prepayments.  The Company may, at its option, upon notice as provided below, prepay at any time  all, or from time to time any part of, the Notes, in an amount not less than 10% of the  aggregate principal amount of the Notes then outstanding in the case of a partial  prepayment at 100% of the principal amount so prepaid, together with interest accrued  thereon to the date of such prepayment, plus the Make-Whole Amount determined for the  prepayment date with respect to such principal amount.  The Company will give each  holder of Notes written notice of each optional prepayment under this Section 8.2 not less  than 30 days and not more than 60 days prior to the date fixed for such prepayment.  Each  such notice shall specify such date (which shall be a Business Day), the aggregate principal  amount of Notes to be prepaid on such date, the principal amount of each Note held by  such holder to be prepaid (determined in accordance with Section 8.4), and the interest to  be paid on the prepayment date with respect to such principal amount being prepaid, and  shall be accompanied by a certificate of a Senior Financial Officer as to the estimated  Make-Whole Amount due in connection with such prepayment (calculated as if the date of  such notice were the date of the prepayment), setting forth the details of such computation.   Two Business Days prior to such prepayment, the Company shall deliver to each holder of  Notes a certificate of a Senior Financial Officer specifying the calculation of such Make- Whole Amount as of the specified prepayment date.  Section 8.3. Offer to Prepay Notes in the Event of a Change in Control.  

 

19  (a) Notice of Change in Control or Control Event.  The Company will, within  five days after any Responsible Officer has knowledge of the occurrence of any Change in  Control or Control Event, give written notice of such Change in Control or Control Event  to each holder of Notes.  If a Change in Control has occurred and (i) none of Fitch, Moody’s  or Standard & Poor’s at such time is providing a Debt Rating, (ii) at such time the Debt  Rating is below BBB- by Fitch, below Baa3 by Moody’s or below BBB- by Standard &  Poor’s or (iii) a Rating Decline occurs within 60 days thereafter, such notice with respect  to the occurrence of a Change in Control shall contain and constitute an offer (which offer,  in the circumstance contemplated by clause (iii) above, shall be contingent upon a Rating  Decline occurring during the 60-day period referred to in such clause) to prepay the Notes  as described in Section 8.3(c) and shall be accompanied by the certificate described in  Section 8.3(f).  The Company shall, on or before the day on which it gives such written  notice of such Change in Control or Control Event, give telephonic notice thereof to each  holder which shall have designated a recipient of such notices in Schedule A attached  hereto or by notice in writing to the Company.  (b) Condition to Company Action.  The Company will not take any action that  consummates or finalizes a Change in Control unless at least 15 days prior to such action  it shall have given to each holder of Notes written notice of such impending Change in  Control.  The Company shall, on or before the day on which it gives such written notice of  such impending Change in Control, give telephonic notice thereof to each holder which  shall have designated a recipient of such notices in Schedule A attached hereto or by notice  in writing to the Company.  (c) Offer to Prepay Notes.  The offer to prepay Notes contemplated by  Section 8.3(a) shall be an offer to prepay, in accordance with and subject to this  Section 8.3, all, but not less than all, the Notes held by each holder (in this case only,  “holder” in respect of any Note registered in the name of a nominee for a disclosed  beneficial owner shall mean such beneficial owner) on a date specified in such offer (the  “Proposed Prepayment Date”).  In the circumstances contemplated by clause (i) or  clause (ii) of the second sentence of Section 8.3(a), such Proposed Prepayment Date shall  be not less than 20 days and not more than 30 days after the date of such offer (and if the  Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment  Date shall be the 20th day after the date of such offer).  In the circumstances contemplated  by clause (iii) of the second sentence of Section 8.3(a), such Proposed Prepayment Date  shall be not less than 10 days and not more than 30 days after the first Rating Decline  occurs (and if the Proposed Prepayment Date shall not be specified in such offer, the  Proposed Prepayment Date shall be the 20th day after the date of the first Rating Decline).  (d) Acceptance.  The Company shall, on or before the seventh day prior to the  Proposed Prepayment Date, give telephonic renotification and confirmation thereof to each  holder which shall have designated a recipient of such notices in Schedule A attached  hereto or by notice in writing to the Company.  A holder of Notes may accept the offer to  prepay made pursuant to this Section 8.3 by causing a notice of such acceptance to be  delivered to the Company on or before the fifth day prior to the Proposed Prepayment Date.   A failure by a holder of Notes to respond to an offer to prepay made pursuant to this  

 

20  Section 8.3 on or before such date shall be deemed to constitute a rejection of such offer  by such holder.  (e) Prepayment.  Prepayment of the Notes to be prepaid pursuant to this  Section 8.3 shall be at 100% of the principal amount of such Notes, together with interest  accrued to the date of prepayment, with respect to each such Note but without payment of  any Make-Whole Amount.  The prepayment shall be made on the Proposed Prepayment  Date.  (f) Officer’s Certificate.  Each offer to prepay the Notes pursuant to this  Section 8.3 shall be accompanied by a certificate, executed by a Responsible Officer of the  Company and dated the date of such offer, specifying:  (i) the Proposed Prepayment Date;  (ii) that such offer is made pursuant to this Section 8.3; (iii) the principal amount of each  Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be  prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this  Section 8.3 have been fulfilled; and (vi) in reasonable detail, the nature and date of the  Change in Control.  Section 8.4. Allocation of Partial Prepayments.  In the case of each partial  prepayment of the Notes pursuant to Section 8.2 the principal amount of the Notes to be  prepaid shall be allocated pro rata among all of the Notes outstanding in proportion, as  nearly as practicable, to the respective unpaid principal amounts thereof not therefore called  for prepayment or purchase.  In the case of each offer of partial prepayment pursuant to  Section 8.8, the principal amount of the Notes to be offered to be prepaid shall be allocated  among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the  respective unpaid principal amounts thereof not theretofore called for prepayment.  Section 8.5. Maturity; Surrender, Etc.  In the case of each prepayment of Notes  pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and  become due and payable on the date fixed for such prepayment (which shall be a Business  Day), together with interest on such principal amount accrued to such date and the  applicable Make- Whole Amount, if any.  From and after such date, unless the Company  shall fail to pay such principal amount when so due and payable, together with the interest  accrued thereon and the Make-Whole Amount, if any, as aforesaid, interest on such  principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered  to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu  of any prepaid principal amount of any Note.  Section 8.6. Purchase of Notes.  The Company will not and will not permit any  Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the  outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance  with this Agreement and the Notes or (b) pursuant to an offer to purchase made by the  Company or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the  same terms and conditions.  Any such offer shall provide each holder with sufficient  information to enable it to make an informed decision with respect to such offer, and shall  remain open for at least 15 Business Days.  If the holders of more than 50% of the principal  amount of the Notes then outstanding accept such offer, the Company shall promptly notify  

 

21  the remaining holders of such fact and the expiration date for the acceptance by holders of  Notes of such offer shall be extended by the number of days necessary to give each such  remaining holder at least 5 Business Days from its receipt of such notice to accept such  offer.  The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant  to any payment, prepayment or purchase of Notes pursuant to this Agreement and no Notes  may be issued in substitution or exchange for any such Notes.  Section 8.7. Make-Whole Amount.  The term “Make-Whole Amount” means, with respect to any Note, an amount equal to  the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to  the Called Principal of such Note over the amount of such Called Principal, provided that the  Make-Whole Amount may in no event be less than zero.  For the purposes of determining the  Make-Whole Amount, the following terms have the following meanings:  “Called Principal” means, with respect to any Note, the principal of such Note that  is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due  and payable pursuant to Section 12.1, as the context requires.  “Discounted Value” means, with respect to the Called Principal of any Note, the  amount obtained by discounting all Remaining Scheduled Payments with respect to such  Called Principal from their respective scheduled due dates to the Settlement Date with  respect to such Called Principal, in accordance with accepted financial practice and at a  discount factor (applied on the same periodic basis as that on which interest on such Note  is payable) equal to the Reinvestment Yield with respect to such Called Principal.  “Reinvestment Yield” means, with respect to the Called Principal of any Note, the  sum of (a) 0.50% plus (b) the yield to maturity implied by the “Ask Yield(s)” reported as  of 10:00 a.m. (New York City time) on the second Business Day preceding the Settlement  Date with respect to such Called Principal, on the display designated as “Page PX1” (or  such other display as may replace Page PX1) on Bloomberg Financial Markets for the most  recently issued actively traded on-the-run U.S. Treasury securities (“Reported”) having a  maturity equal to the Remaining Average Life of such Called Principal as of such  Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity  equal to such Remaining Average Life, then such implied yield to maturity will be  determined by (i) converting U.S. Treasury bill quotations to bond equivalent yields in  accordance with accepted financial practice and (ii) interpolating linearly between the “Ask  Yields” Reported for the applicable most recently issued actively traded on-the-run U.S.  Treasury securities with the maturities (1) closest to and greater than such Remaining  Average Life and (2) closest to and less than such Remaining Average Life.  The  Reinvestment Yield shall be rounded to the number of decimal places as appears in the  interest rate of the applicable Note.    If such yields are not Reported or the yields Reported as of such time are not  ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with  respect to the Called Principal of any Note, the sum of (x) 0.50% plus (y) the yield to  maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day  

 

22  for which such yields have been so reported as of the second Business Day preceding the  Settlement Date with respect to such Called Principal, in Federal Reserve Statistical  Release H.15 (or any comparable successor publication) for the U.S. Treasury constant  maturity having a term equal to the Remaining Average Life of such Called Principal as of  such Settlement Date.  If there is no such U.S. Treasury constant maturity having a term  equal to such Remaining Average Life, such implied yield to maturity will be determined  by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with  the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury  constant maturity so reported with the term closest to and less than such Remaining  Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places  as appears in the interest rate of the applicable Note.  “Remaining Average Life” means, with respect to any Called Principal, the number  of years obtained by dividing (i) such Called Principal into (ii) the sum of the products  obtained by multiplying (a) the principal component of each Remaining Scheduled  Payment with respect to such Called Principal by (b) the number of years, computed on the  basis of a 360-day year comprised of twelve 30-day months and calculated to two decimal  places, that will elapse between the Settlement Date with respect to such Called Principal  and the scheduled due date of such Remaining Scheduled Payment.  “Remaining Scheduled Payments” means, with respect to the Called Principal of  any Note, all payments of such Called Principal and interest thereon that would be due after  the Settlement Date with respect to such Called Principal if no payment of such Called  Principal were made prior to its scheduled due date, provided that if such Settlement Date  is not a date on which interest payments are due to be made under such Note, then the  amount of the next succeeding scheduled interest payment will be reduced by the amount  of interest accrued to such Settlement Date and required to be paid on such Settlement Date  pursuant to Section 8.2 or Section 12.1.  “Settlement Date” means, with respect to the Called Principal of any Note, the date  on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or  is declared to be immediately due and payable pursuant to Section 12.1, as the context  requires.  Section 8.8. Prepayments in Connection with Asset Dispositions.  If the Company  is required to offer to prepay Notes in accordance with (and in the aggregate amount  calculated pursuant to) Section 10.5(e), the Company will give written notice thereof to the  holders of all Notes then outstanding, which notice shall (i) refer specifically to this  Section 8.8 and describe in reasonable detail the sale, transfer or lease of assets giving rise  to such offer to prepay Notes, (ii) specify the principal amount of each Note held by such  holder offered to be prepaid (determined in accordance with Section 8.4, the “Ratable  Amount”), (iii) specify a Business Day for such prepayment not less than 30 days and not  more than 60 days after the date of such notice (the “Disposition Prepayment Date”) and  specify the Disposition Response Date (as defined below) and (iv) offer to prepay on the  Disposition Prepayment Date 100% of the Ratable Amount of each Note together with  interest accrued thereon to the Disposition Prepayment Date (the “Prepayment Amount”),  but without payment of any Make-Whole Amount.  Each holder of a Note shall notify the  

 

23  Company of such holder’s acceptance or rejection of such offer by giving written notice of  such acceptance or rejection to the Company on a date at least 10 Business Days prior to  the Disposition Prepayment Date (such date ten Business Days prior to the Disposition  Prepayment Date being the “Disposition Response Date”).  The Company shall prepay on  the Disposition Prepayment Date the Prepayment Amount with respect to each Note held  by the holders who have accepted such offer in accordance with this Section 8.8.  The failure  by a holder of any Note to respond to such offer in writing on or before the Disposition  Response Date shall be deemed to be a rejection of such offer.  Section 8.9. Payments Due on Non-Business Days.  Anything in this Agreement  or the Notes to the contrary notwithstanding, (x) except as set forth in clause (y), any  payment of interest on any Note that is due on a date that is not a Business Day shall be  made on the next succeeding Business Day without including the additional days elapsed in  the computation of the interest payable on such next succeeding Business Day; and (y) any  payment of principal of or Make-Whole Amount on any Note (including principal due on  the Maturity Date of such Note) that is due on a date that is not a Business Day shall be  made on the next succeeding Business Day and shall include the additional days elapsed in  the computation of interest payable on such next succeeding Business Day.  SECTION 9. AFFIRMATIVE COVENANTS.  From the date of this Agreement until the Closing and thereafter, so long as any of the  Notes are outstanding, the Company covenants that:  Section 9.1. Compliance with Law.  Without limiting Section 10.12, the  Company will, and will cause each of its Subsidiaries to, comply with all laws, ordinances  or governmental rules or regulations to which each of them is subject (including, without  limitation, ERISA, the USA Patriot Act, Environmental Laws and the other laws and  regulations that are referred to in Section 5.16), and will obtain and maintain in effect all  licenses, certificates, permits, franchises and other governmental authorizations necessary  to the ownership of their respective properties or to the conduct of their respective  businesses, in each case to the extent necessary to ensure that non-compliance with such  laws, ordinances or governmental rules or regulations or failures to obtain or maintain in  effect such licenses, certificates, permits, franchises and other governmental authorizations  could not, individually or in the aggregate, reasonably be expected to have a Material  Adverse Effect.  Section 9.2. Insurance.  The Company will, and will cause each of its Subsidiaries  to, maintain, with financially sound and reputable insurers, insurance with respect to their  respective properties and businesses against such casualties and contingencies, of such  types, on such terms and in such amounts (including deductibles, co-insurance and self- insurance, if adequate reserves are maintained with respect thereto) as is customary in the  case of entities of established reputations engaged in the same or a similar business and  similarly situated.  Section 9.3. Maintenance of Properties.  The Company will, and will cause each  of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective  

 

24  properties material to the conduct of the business in good repair, working order and  condition (other than ordinary wear and tear), so that the business carried on in connection  therewith may be properly conducted at all times; provided that this Section 9.3 shall not  prevent the Company or any Subsidiary from discontinuing the operation and the  maintenance of any of its properties if such discontinuance is desirable in the conduct of its  business and the Company has concluded that such discontinuance could not, individually  or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Section 9.4. Payment of Taxes and Claims.  The Company will, and will cause  each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to  pay and discharge all taxes shown to be due and payable on such returns and all other taxes,  assessments, governmental charges, or levies imposed on them or any of their properties,  assets, income or franchises, to the extent the same have become due and payable and before  they have become delinquent and all claims for which sums have become due and payable  that have or might become a Lien on properties or assets of the Company or any Subsidiary;  provided that neither the Company nor any Subsidiary need pay any such tax, assessment,  charge, levy or claim if (a) the amount, applicability or validity thereof is contested by the  Company or such Subsidiary on a timely basis in good faith and in appropriate proceedings,  and the Company or a Subsidiary has established adequate reserves therefor in accordance  with GAAP on the books of the Company or such Subsidiary or (b) the nonpayment of all  such taxes, assessments, charges, levies and claims could not, individually in the aggregate,  reasonably be expected to have a Material Adverse Effect.  Section 9.5. Legal Existence, Etc.  Subject to Section 10.4, the Company will at  all times preserve and keep in full force and effect its legal existence.  Subject to  Sections 10.4 and 10.5, the Company will at all times preserve and keep in full force and  effect the legal existence of each of its Subsidiaries (unless merged into the Company or a  Subsidiary of the Company) and all rights and franchises of the Company and its  Subsidiaries unless, in the good faith judgment of the Company, the termination of or failure  to preserve and keep in full force and effect such legal existence, right or franchise could  not, individually or in the aggregate, have a Material Adverse Effect.  Section 9.6. Notes to Rank Pari Passu.  The Notes and all other obligations under  this Agreement of the Company are and at all times shall rank at least pari passu in right of  payment with all other present and future unsecured Senior Indebtedness (actual or  contingent) of the Company.  Section 9.7. Guaranty by Subsidiaries; Joinder of Guarantors.  (a) The Company will cause each of its Subsidiaries that guarantees or  otherwise becomes liable at any time, whether as a borrower or an additional or co- borrower or otherwise, for or in respect of any Indebtedness under any Material Credit  Facility to concurrently enter into a Guaranty Agreement, and within three Business Days  thereafter to deliver to each of the holders of the Notes the following items:  (i) an executed counterpart of such Guaranty Agreement or joinder  agreement in respect of an existing Guaranty Agreement, as appropriate;  

 

25  (ii) a certificate signed by the President, a Vice President or another  authorized senior officer of such Subsidiary making representations and warranties  to the effect of those contained in Sections 5.1, 5.2, 5.6, 5.7 and 5.17, but with  respect to such Subsidiary and such Guaranty Agreement, as applicable;  (iii) a certificate of a Responsible Officer of the Company certifying that  at such time and after giving effect to the execution and delivery of such Guaranty  Agreement or joinder agreement, no Default or Event of Default shall have  occurred and be continuing;  (iv) such documents and evidence with respect to such Subsidiary as the  Required Holders may reasonably request in order to establish the existence and  good standing of such Subsidiary and the authorization of the transactions  contemplated by such Guaranty Agreement; and  (v) an opinion of counsel satisfactory to the Required Holders to the  effect (A) that such Guaranty Agreement has been duly authorized, executed and  delivered and constitutes the legal, valid and binding contract and agreement of  such Subsidiary enforceable in accordance with its terms, except as an enforcement  of such terms may be limited by bankruptcy, insolvency, reorganization,  moratorium and similar laws affecting the enforcement of creditors’ rights  generally and by general equitable principles, and (B) of the matters set forth in  Sections 5.1, 5.6, 5.7 and 5.17.  Section 9.8. Books and Records.  The Company will, and will cause each of its  Subsidiaries to, maintain proper books of record and account in conformity with GAAP and  all material applicable requirements of any Governmental Authority having legal or  regulatory jurisdiction over the Company, or such Subsidiary, as the case may be.    Section 9.9. Gas Purchase Agreements.  The Company and each Subsidiary of  the Company (a) shall comply with all rate case approvals entered into by the WVPSC with  respect to gas purchases, including exercising prudent gas practices and (b) shall at all times  use commercially reasonable efforts to have in effect a fuel adjustment clause or a similar  mechanism approved by the WVPSC by which the rates charged by the Company and its  Subsidiaries are automatically adjusted to reflect variations in natural gas prices paid by the  Company or any of its Subsidiaries, as the case may be.  Section 9.10. Maintenance of Debt Rating.  The Company shall at all times  maintain a Debt Rating from a Rating Agency.   Although it will not be a Default or an Event of Default if the Company fails to comply with any  provision of Section 9 on or after the date of this Agreement and prior to the Closing, if such a  failure occurs, then any of the Purchasers may elect not to purchase the Notes on the date of  Closing that is specified in Section 3.  

 

26  SECTION 10. NEGATIVE COVENANTS.  From the date of this Agreement until the Closing and thereafter, so long as any of the  Notes are outstanding, the Company covenants that:  Section 10.1. Liens.  The Company shall not, and shall not permit any of its  Subsidiaries to, at any time create, incur, assume or suffer to exist any Lien on any of its  property or assets, tangible or intangible, now owned or hereafter acquired, or agree or  become liable to do so, except Permitted Liens.  Section 10.2. Guaranties.  The Company shall not at any time become or be liable  in respect of any Guaranty of Indebtedness, except for Guaranties of Indebtedness of any of  its Subsidiaries permitted hereunder.  The Company shall not permit any of its Subsidiaries  to, at any time, become or be liable in respect of any Guaranty of Indebtedness, except for  Guaranties of Indebtedness of the Company and any other Subsidiary permitted hereunder.  Section 10.3. Dividends and Related Distributions.  The Company shall not, and  shall not permit any of its Subsidiaries to, make or pay, or agree to become or remain liable  to make or pay, any dividend or other distribution of any nature (whether in cash, property,  securities or otherwise) on account of or in respect of its shares of capital stock, partnership  interests or limited liability company interests or on account of the purchase, redemption,  retirement or acquisition of its shares of capital stock (or warrants, options or rights  therefor), partnership interests or limited liability company interests, except (a) dividends  and distributions payable solely in shares of common stock, or in options, warrants or other  rights to acquire common stock, which do not result in a Change in Control, (b) Subsidiaries  may declare and pay dividends ratably with respect to their equity interests and (c) other  dividends and distributions provided that, prior to and after giving effect thereto, no Default  or Event of Default shall have occurred and be continuing.  Section 10.4. Liquidations, Mergers, Consolidations, Etc.  The Company shall not,  and shall not permit any of its Subsidiaries to, dissolve, liquidate or wind-up its affairs, or  become a party to any merger or consolidation, or transfer or lease all or substantially all of  its assets in a single transaction or series of transactions to any Person, provided that  (a) any Subsidiary may consolidate or merge into the Company or another  Subsidiary;  (b)  the Company and any Subsidiary may sell, lease or otherwise dispose of  their respective assets in accordance with the provisions of Section 10.5;   (c) the Company may consolidate or merge with or into any other corporation  or limited liability company if (i) the corporation or limited liability company which results  from such consolidation or merger (the “Surviving Person”) is organized under the laws of  any state of the United States or the District of Columbia, (ii) the due and punctual payment  of the principal of and Make-Whole Amount, if any, and interest on all of the Notes,  according to their tenor, and the due and punctual performance and observation of all of  the covenants in the Notes and this Agreement to be performed or observed by the  Company are expressly assumed in writing by the Surviving Person and the Surviving  

 

27  Person shall furnish to the holders of the Notes an opinion of counsel satisfactory to the  Required Holders to the effect that the instrument of assumption has been duly authorized,  executed and delivered and constitutes the legal, valid and binding contract and agreement  of the Surviving Person enforceable in accordance with its terms, except as enforcement of  such terms may be limited by bankruptcy, insolvency, reorganization, moratorium and  similar laws affecting the enforcement of creditors’ rights generally and by general  equitable principles, (iii) each Guarantor (if any) shall have confirmed in writing the due  and punctual performance and observation of all of its covenants and agreements contained  in the Guaranty Agreement to which it is a party, (iv) the Company complies with the  applicable provisions of Section 8.3 and (v) at the time of such consolidation or merger  and immediately after giving effect thereto, (A) no Default or Event of Default would exist  and (B) the Company shall demonstrate that the Surviving Person shall be in compliance  with the covenants contained in Sections 10.6, 10.7, 10.8 and 10.9, after giving effect to  such merger or consolidation, by delivering at least ten (10) Business Days prior to such  merger or consolidation an Officer’s Certificate evidencing such compliance and copies of  any agreements entered into or proposed to be entered into by the Company or any of its  Subsidiaries in connection with such merger or consolidation; and  (d) any Subsidiary may liquidate or dissolve if the Company determines in  good faith that such liquidation or dissolution is in the best interests of the Company and  is not materially disadvantageous to the holders of each Note.  Section 10.5. Dispositions of Assets or Subsidiaries.  The Company shall not, and  shall not permit any of its Subsidiaries to, sell, convey, assign, lease, abandon or otherwise  transfer or dispose of, voluntarily or involuntarily, any of its properties or assets, tangible  or intangible (including sale, assignment, discount or other disposition of accounts, contract  rights, chattel paper, equipment or general intangibles with or without recourse or of Equity  Interests of a Subsidiary of the Company or such Subsidiary), except:  (a) transactions involving the sale of inventory in the ordinary course of  business;  (b) any sale, transfer or lease of assets in the ordinary course of business which  are no longer necessary or required in the conduct of the Company’s or such Subsidiary’s  business;  (c) any sale, transfer or lease of assets by any Subsidiary to the Company or to  another Subsidiary at the time of such sale, transfer or lease;  (d) transactions involving transfers of cash and cash equivalents in the ordinary  course of business;  (e) any other sale, transfer or lease of assets, not specifically permitted pursuant  to clauses (a) through (d) above; provided, however, that the aggregate amount of the book  value of the assets subject to all such sales, transfers and leases under this clause (e) in any  fiscal year of the Company shall not exceed 15% of Consolidated Total Assets (determined  as of the end of the then most recently ended fiscal year of the Company); provided, further  

 

28  that any such sale, transfer or lease of assets shall not count towards the limitation in this  clause (e) if within 365 days after any such sale, transfer or lease, the net after-tax proceeds  of such sale, transfer or lease (or portion thereof, as the case may be) are used to (i) purchase  or invest in productive properties or assets for use by the Company or any Subsidiary in,  or to form part of, its business or (ii) permanently repay or prepay any unsubordinated  Indebtedness of the Company or any Subsidiary (other than Indebtedness between or  among the Company and its Subsidiaries or Affiliates), including a pro rata offer of  prepayment of the Notes pursuant to Section 8.8, with such pro rata offer to be equal to  the product of (i) the net after-tax proceeds being so applied and (ii) a fraction, the  numerator of which is the aggregate outstanding principal amount of the Notes at such time  and the denominator of which is the aggregate amount of outstanding Indebtedness of the  Company and its Subsidiaries at such time concurrently being offered such prepayment.   For purposes of this Section 10.5, “net after-tax proceeds” shall mean the gross proceeds  from such sale, transfer or lease of assets net of any taxes, costs and expenses associated  therewith.  Section 10.6. Limitation on Priority Indebtedness.  The Company will not at any  time permit Priority Indebtedness to exceed 15% of Consolidated Tangible Net Worth.  Section 10.7. Minimum Interest Coverage Ratio.  The Company shall not permit  the ratio of (a) Consolidated EBITDA to (b) Consolidated Interest Expense of the Company  and its Subsidiaries, calculated as of the end of each fiscal quarter for the four fiscal quarters  then ended, to be less than 2.0 to 1.0.  Section 10.8. Maximum Debt to Capital Ratio.  The Company shall not permit the  Debt to Capital Ratio calculated as of the end of each fiscal quarter to be greater than 0.65  to 1.0.  Section 10.9. Consolidated Tangible Net Worth.  The Company shall not permit  the Consolidated Tangible Net Worth to be less than $70 million at any time.  Section 10.10. Transactions with Affiliates.  The Company will not and will not  permit any Subsidiary to enter into directly or indirectly any transaction or group of related  transactions (including without limitation the purchase, lease, sale or exchange of properties  of any kind or the rendering of any service) with any Affiliate, except (a) pursuant to the  reasonable requirements of the Company’s or such Subsidiary’s business and, upon fair and  reasonable terms no less favorable to the Company or such Subsidiary than would be  obtainable in a comparable arm’s-length transaction (which determination of “arm’s- length” may be determined based on comparable market based transactions) with a Person  not an Affiliate, (b) in the ordinary course of business for the provision of general and  customary corporate services by Affiliates of the Company and its Subsidiaries; and (c) for  transactions in the ordinary course of business in connection with reinsuring the self- insurance programs or other similar forms of retained insurable risks of the business  operated by the Company, its Subsidiaries and its Affiliates.    

 

29  Section 10.11. Line of Business.  The Company will not and will not permit any  Subsidiary to engage in any business if, as a result, the general nature of the business in  which the Company and its Subsidiaries, taken as a whole, would then be engaged would  be substantially changed from the general nature of the business in which the Company is  engaged on the Closing Date.  Section 10.12. Terrorism Sanctions Regulations.  The Company will not, and will  not permit any Controlled Entity to (a) become (including by virtue of being owned or  controlled by a Blocked Person), own or control a Blocked Person or (b) directly or  indirectly have any investment in or engage in any dealing or transaction (including any  investment, dealing or transaction involving the proceeds of the Notes) with any Person if  such investment, dealing or transaction (i) would cause any Purchaser or holder or any  affiliate of such Purchaser or holder to be in violation of, or subject to sanctions under, any  law or regulation applicable to such Purchaser or holder, or (ii) is prohibited by or subject  to sanctions under any U.S. Economic Sanctions Laws.  SECTION 11. EVENTS OF DEFAULT.  An “Event of Default” shall exist if any of the following conditions or events shall occur  and be continuing:  (a) the Company defaults in the payment of any principal or Make-Whole  Amount, if any, on or in respect of any Note when the same becomes due and payable,  whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or  (b) the Company defaults in the payment of any interest on any Note for more  than five Business Days after the same becomes due and payable; or  (c) (i) the Company defaults in the performance of or compliance with any term  contained in Section 10.1 or Section 10.2 and such default shall continue unremedied for  a period of 10 Business Days, or (ii) the Company defaults in the performance of or  compliance with any term contained in Section 7.1(d) or any term (other than those  referred to in Section 11(c)(i)) contained in Section 10; or  (d) the Company defaults in the performance of or compliance with any term  contained herein (other than those referred to in Sections 11(a), (b) and (c)), and such  default is not remedied within 30 days after the earlier of (i) a Responsible Officer  obtaining actual knowledge of such default and (ii) the Company receiving written notice  of such default from any holder of a Note (any such written notice to be identified as a  “notice of default” and to refer specifically to this Section 11(d)); or  (e) any representation or warranty made in writing by or on behalf of the  Company, a Guarantor that is a Material Subsidiary or by any officer of the Company or a  Guarantor in this Agreement or a Material Guaranty Agreement, as the case may be, or in  any writing furnished in connection with the transactions contemplated hereby, proves to  have been false or incorrect in any material respect on the date as of which made; or  

 

30  (f) (i) the Company or any Subsidiary is in default (as principal or as guarantor  or other surety) in the payment of any principal of or premium or make-whole amount or  interest on any Indebtedness that is outstanding in an aggregate principal amount of at least  $15,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company  or any Subsidiary is in default in the performance of or compliance with any term of any  evidence of any Indebtedness in an aggregate outstanding principal amount of at least  $15,000,000 or of any mortgage, indenture or other agreement relating thereto or any other  condition exists, and as a consequence of such default or condition such Indebtedness has  become, or has been declared (or one or more Persons are entitled to declare such  Indebtedness to be), due and payable before its stated maturity or before its regularly  scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of  any event or condition (other than the passage of time or the right of the holder of  Indebtedness to convert such Indebtedness into Equity Interests), (x) the Company or any  Subsidiary has become obligated to purchase or repay Indebtedness before its regular  maturity or before its regularly scheduled dates of payment in an aggregate outstanding  principal amount of at least $15,000,000, or (y) one or more Persons have the right to  require the Company or any Subsidiary so to purchase or prepay such Indebtedness; or  (g) the Company or any Material Subsidiary (i) is generally not paying, or  admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by  answer or otherwise to the filing against it of, a petition for relief or reorganization or  arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any  bankruptcy, insolvency, reorganization, moratorium or other similar law of any  jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the  appointment of a custodian, receiver, trustee or other officer with similar powers with  respect to it or with respect to any substantial part of its property, (v) is adjudicated as  insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the  foregoing; or  (h) a court or Governmental Authority of competent jurisdiction enters an order  appointing, without consent by the Company or any of its Material Subsidiaries, a  custodian, receiver, trustee or other officer with similar powers with respect to it or with  respect to any substantial part of its property, or constituting an order for relief or approving  a petition for relief or reorganization or any other petition in bankruptcy or for liquidation  or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering  the dissolution, winding-up or liquidation of the Company or any of its Material  Subsidiaries, or any such petition shall be filed against the Company or any of its Material  Subsidiaries and such petition shall not be dismissed within 60 days; or  (i) one or more final judgments or orders for the payment of money  aggregating in excess of $15,000,000, including any such final order enforcing a binding  arbitration decision are rendered against one or more of the Company and its Subsidiaries  and which judgments are not, within 60 days after entry thereof, bonded, discharged or  stayed pending appeal, or are not discharged within 60 days after the expiration of such  stay; or  

 

31  (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA  or the Code for any plan year or part thereof or a waiver of such standards or extension of  any amortization period is sought or granted under section 412 of the Code, (ii) a notice of  intent to terminate any Plan shall have been filed with the PBGC or the PBGC shall have  instituted proceedings under ERISA section 4042 to terminate or appoint a trustee to  administer any Plan or the PBGC shall have notified the Company or any ERISA Affiliate  that a Plan may become a subject of any such proceedings, (iii) there is any “amount of  unfunded benefit liabilities” (within the meaning of section 4001(a)(18) of ERISA) under  one or more Plans, determined in accordance with Title IV of ERISA, (iv) the Company or  any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability  pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code  relating to employee benefit plans, (v) the Company or any ERISA Affiliate withdraws  from any Multiemployer Plan, or (vi) the Company or any Subsidiary establishes or  amends any employee welfare benefit plan that provides post-employment welfare benefits  in a manner that would increase the liability of the Company or any Subsidiary thereunder;  and any such event or events described in clauses (i) through (vi) above, either individually  or together with any other such event or events, could reasonably be expected to have a  Material Adverse Effect; or  (k) any Material Guaranty Agreement shall cease to be in full force and effect  for any reason whatsoever, including, without limitation, a determination by any  Governmental Authority that such Material Guaranty Agreement is invalid, void or  unenforceable or any Guarantor which is a party to such Material Guaranty Agreement  shall contest or deny in any manner the validity, binding nature or enforceability of any of  its obligations under such Material Guaranty Agreement, but excluding any Material  Guaranty Agreement which ceases to be in full force and effect in accordance with and by  reason of the express provisions of Section 2.2(b).  As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”  shall have the respective meanings assigned to such terms in section 3 of ERISA.  SECTION 12. REMEDIES ON DEFAULT, ETC.  Section 12.1. Acceleration.  (a) If an Event of Default, with respect to the Company or any Material  Subsidiary that is a Guarantor, described in Section 11(g) or (h) (other than an Event of  Default described in clause (i) of Section 11(g) or described in clause (vi) of Section 11(g)  by virtue of the fact that such clause encompasses clause (i) of Section 11(g)) has occurred,  all the Notes then outstanding shall automatically become immediately due and payable.  (b) If any other Event of Default has occurred and is continuing, any holder or  holders of more than 50% in principal amount of the Notes at the time outstanding may at  any time at its or their option, by notice or notices to the Company, declare all the Notes  then outstanding to be immediately due and payable.  

 

32  (c) If any Event of Default described in Section 11(a) or (b) has occurred and  is continuing, any holder or holders of Notes at the time outstanding affected by such Event  of Default may at any time, at its or their option, by notice or notices to the Company,  declare all the Notes held by it or them to be immediately due and payable.  Upon any Notes becoming due and payable under this Section 12.1, whether automatically  or by declaration, such Notes will forthwith mature and the entire unpaid principal amount of such  Notes, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest  accrued thereon at the applicable Default Rate) and (ii) the Make-Whole Amount, if any,  determined in respect of such principal amount (to the full extent permitted by applicable law),  shall all be immediately due and payable, in each and every case without presentment, demand,  protest or further notice, all of which are hereby waived.  The Company acknowledges, and the  parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes  free from repayment by the Company (except as herein specifically provided for), and that the  provision for payment of the Make-Whole Amount, if any, by the Company in the event that the  Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide  compensation for the deprivation of such right under such circumstances.  Section 12.2. Other Remedies.  If any Default or Event of Default has occurred and  is continuing, and irrespective of whether any Notes have become or have been declared  immediately due and payable under Section 12.1, the holder of any Note at the time  outstanding may proceed to protect and enforce the rights of such holder by an action at  law, suit in equity or other appropriate proceeding, whether for the specific performance of  any agreement contained herein or in any Note or any Guaranty Agreement or for an  injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise  of any power granted hereby or thereby or by law or otherwise.  Section 12.3. Rescission.  At any time after any Notes have been declared due and  payable pursuant to Section 12.1(b) or (c), the holders of not less than 50% in principal  amount of the Notes then outstanding, by written notice to the Company, may rescind and  annul any such declaration and its consequences if (a) the Company has paid all overdue  interest on the Notes and all principal of and the Make-Whole Amount, if any on any Notes  that are due and payable and are unpaid other than by reason of such declaration, and all  interest (including interest at the applicable Default Rate to the extent provided in the Notes)  on the principal amount of the Notes and the Make-Whole Amount, if any and (to the extent  permitted by applicable law) any overdue interest in respect of the Notes, at the applicable  Default Rate, (b) neither the Company nor any other Person shall have paid any amounts  which have become due solely by reason of such declaration, (c) all Events of Default and  Defaults, other than non-payment of amounts that have become due solely by reason of such  declaration, have been cured or have been waived pursuant to Section 17, and (d) no  judgment or decree has been entered for the payment of any monies due pursuant hereto or  to the Notes.  No rescission and annulment under this Section 12.3 will extend to or affect  any subsequent Event of Default or Default or impair any right consequent thereon.  Section 12.4. No Waivers or Election of Remedies, Expenses, Etc.  No course of  dealing and no delay on the part of any holder of any Note in exercising any right, power or  remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers  

 

33  or remedies.  No right, power or remedy conferred by this Agreement any Guaranty  Agreement or by any Note upon any holder thereof shall be exclusive of any other right,  power or remedy referred to herein or therein or now or hereafter available at law, in equity,  by statute or otherwise.  Without limiting the obligations of the Company under Section 15,  the Company will pay to the holder of each Note on demand such further amount as shall  be sufficient to cover all costs and expenses of such holder incurred in any enforcement or  collection under this Section 12, including, without limitation, reasonable attorneys’ fees,  expenses and disbursements.  SECTION 13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.  Section 13.1. Registration of Notes.  The Company shall keep at its principal  executive office a register for the registration and registration of transfers of Notes.  The  name and address of each holder of one or more Notes, each transfer thereof and the name  and address of each transferee of one or more Notes shall be registered in such register.  If  any holder of one or more Notes is a nominee, then (a) the name and address of the beneficial  owner of such Note or Notes shall also be registered in such register as an owner and holder  thereof and (b) at any such beneficial owner’s option, either such beneficial owner or its  nominee may execute any amendment, waiver or consent pursuant to this Agreement.  Prior  to due presentment for registration of transfer, the Person in whose name any Note shall be  registered shall be deemed and treated as the owner and holder thereof for all purposes  hereof, and the Company shall not be affected by any notice or knowledge to the contrary.   The Company shall give to any holder of a Note that is an Institutional Investor promptly  upon request therefor, a complete and correct copy of the names and addresses of all  registered holders of Notes.  Section 13.2. Transfer and Exchange of Notes.  Upon surrender of any Note to the  Company at the address and to the attention of the designated officer (all as specified in  Section 18(iii)) for registration of transfer or exchange (and in the case of a surrender for  registration of transfer accompanied by a written instrument of transfer duly executed by  the registered holder of such Note or such holder’s attorney duly authorized in writing and  accompanied by the relevant name, address and other information for notices of each  transferee of such Note or part thereof), within ten Business Days thereafter, the Company  shall execute and deliver, at the Company’s expense (except as provided below), one or  more new Notes and (as requested by the holder thereof) in exchange therefor, in an  aggregate principal amount equal to the unpaid principal amount of the surrendered Note.   Each such new Note shall be payable to such Person as such holder may request and shall  be substantially in the form of Exhibit 1.  Each such new Note shall be dated and bear  interest from the date to which interest shall have been paid on the surrendered Note or dated  the date of the surrendered Note if no interest shall have been paid thereon.  The Company  may require payment of a sum sufficient to cover any stamp tax or governmental charge  imposed in respect of any such transfer of Notes.  Notes shall not be transferred in  denominations of less than $250,000; provided that if necessary to enable the registration  of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of  less than $250,000.  Any transferee, by its acceptance of a Note registered in its name (or  the name of its nominee), shall be deemed to have made the representation set forth in  Section 6.2.  

 

34  Section 13.3. Replacement of Notes.  Upon receipt by the Company at the address  and to the attention of the designated officer (all as specified in Section 18(iii)) of evidence  reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation  of any Note (which evidence shall be, in the case of an Institutional Investor, notice from  such Institutional Investor of such ownership and such loss, theft, destruction or mutilation),  and  (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory  to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser  or another holder of a Note with a minimum net worth of at least $50,000,000 or a Qualified  Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed  to be satisfactory), or  (b) in the case of mutilation, upon surrender and cancellation thereof, within  ten Business Days thereafter, the Company at its own expense shall execute and deliver, in  lieu thereof, a new Note, dated and bearing interest from the date to which interest shall  have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such  lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.  SECTION 14. PAYMENTS ON NOTES.  Section 14.1. Place of Payment.  Subject to Section 14.2, payments of principal,  Make- Whole Amount, if any and interest becoming due and payable on the Notes shall be  made in New York, New York at the principal office of Citibank N.A. in such jurisdiction.   The Company may at any time, by notice to each holder of a Note, change the place of  payment of the Notes so long as such place of payment shall be either the principal office  of the Company in such jurisdiction or the principal office of a bank or trust company in  such jurisdiction.  Section 14.2. Home Office Payment.  So long as any Purchaser or its nominee shall  be the holder of any Note, and notwithstanding anything contained in Section 14.1 or in  such Note to the contrary, the Company will pay all sums becoming due on such Note for  principal, Make- Whole Amount, if any, interest and all other amounts becoming due  hereunder by the method and at the address specified for such purpose below such  Purchaser’s name in Schedule A, or by such other method or at such other address as such  Purchaser shall have from time to time specified to the Company in writing for such  purpose, without the presentation or surrender of such Note or the making of any notation  thereon, except that upon written request of the Company made concurrently with or  reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall  surrender such Note for cancellation, reasonably promptly after any such request, to the  Company at its principal executive office or at the place of payment most recently  designated by the Company pursuant to Section 14.1.  Prior to any sale or other disposition  of any Note held by a Purchaser or its nominee, such Purchaser will, at its election, either  endorse thereon the amount of principal paid thereon and the last date to which interest has  been paid thereon or surrender such Note to the Company in exchange for a new Note or  Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 14.2  to any Institutional Investor that is the direct or indirect transferee of any Note purchased  

 

35  by a Purchaser under this Agreement and that has made the same agreement relating to such  Note as the Purchasers have made in this Section 14.2.  SECTION 15. EXPENSES, ETC.  Section 15.1. Transaction Expenses.  Whether or not the transactions contemplated  hereby are consummated, the Company will pay all costs and expenses (including  reasonable attorneys’ fees of one special counsel for the Purchasers and, if reasonably  required by the Required Holders, one local or other counsel) incurred by the Purchasers  and each other holder of a Note in connection with such transactions and in connection with  any amendments, waivers or consents under or in respect of this Agreement, the Notes or  any Guaranty Agreement (whether or not such amendment, waiver or consent becomes  effective), including, without limitation:  (a) the costs and expenses incurred in enforcing or  defending (or determining whether or how to enforce or defend) any rights under this  Agreement, the Notes or any Guaranty Agreement or in responding to any subpoena or other  legal process or informal investigative demand issued in connection with this Agreement,  the Notes or any Guaranty Agreement or by reason of being a holder of any Note, (b) the  costs and expenses, including financial advisors’ fees, incurred in connection with the  insolvency or bankruptcy of the Company or any Subsidiary or in connection with any  work-out or restructuring of the transactions contemplated hereby and by the Notes and any  Guaranty Agreement, and (c) the costs and expenses incurred in connection with the initial  filing of this Agreement and all related documents and financial information with the SVO,  provided, that such costs and expenses under this clause (c) shall not exceed $5,000.  The  Company will pay, and will save each Purchaser and each other holder of a Note harmless  from, (i) all claims in respect of any fees, costs or expenses, if any, of brokers and finders  (other than those, if any, retained by a Purchaser or other holder in connection with its  purchase of the Notes), (ii) any and all wire transfer fees that any bank or other financial  institution deducts from any payment under such Note to such holder or otherwise charges  to a holder of a Note with respect to a payment under such Note and (iii) any judgment,  liability, claim, order, decree, fine, penalty, cost, fee, expense (including reasonable  attorneys’ fees and expenses) or obligation resulting from the consummation of the  transactions contemplated hereby, including the use of the proceeds of the Notes by the  Company, provided that such indemnity shall not, as to any Purchaser or other holder (each  an “Indemnitee”), be available to the extent that judgment, liability, claim, order, decree,  fine, penalty, cost, fee, expense or obligation (x) arises from a dispute that does not involve  any action or omission by the Company or any of its Affiliates and is solely among the  Indemnitees or (y) is determined by a court of competent jurisdiction by final and  nonappealable judgment to have resulted from the gross negligence or willful misconduct  of such Indemnitee or, pursuant to a claim brought by the Company against such  Indemnitee, for breach in bad faith of such Indemnitee’s material obligations hereunder.  Section 15.2. Certain Taxes.  The Company agrees to pay all stamp, documentary  or similar taxes or fees which may be payable in respect of the execution and delivery or  the enforcement of this Agreement or any Guaranty Agreement or the execution and  delivery (but not the transfer) or the enforcement of any of the Notes in the United States or  any other jurisdiction where the Company or any Subsidiary Guarantor has assets or of any  amendment of, or waiver or consent under or with respect to, this Agreement or any  

 

36  Guaranty Agreement or of any of the Notes, and to pay any value added tax due and payable  in respect of reimbursement of costs and expenses by the Company pursuant to this  Section 15, and will save each holder of a Note to the extent permitted by applicable law  harmless against any loss or liability resulting from nonpayment or delay in payment of any  such tax or fee required to be paid by the Company hereunder.  Section 15.3. Survival.  The obligations of the Company under this Section 15 will  survive the payment or transfer of any Note, the enforcement, amendment or waiver of any  provision of this Agreement, the Notes or any Guaranty Agreement, and the termination of  this Agreement and the Guaranty Agreements.  SECTION 16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE  AGREEMENT.  All representations and warranties contained herein or in any Guaranty Agreement shall  survive the execution and delivery of this Agreement, the Notes and such Guaranty Agreement,  the purchase or transfer by any Purchaser of any Note or portion thereof or interest therein and the  payment of any Note, and may be relied upon by any subsequent holder of a Note, regardless of  any investigation made at any time by or on behalf of such Purchaser or any other holder of a Note.   All statements contained in any certificate or other instrument delivered by or on behalf of the  Company or any Guarantor pursuant to this Agreement or any Guaranty Agreement shall be  deemed representations and warranties of the Company under this Agreement or of a Guarantor  under such Guaranty Agreement, as the case may be.  Subject to the preceding sentence, this  Agreement, the Notes and the Guaranty Agreements, embody the entire agreement and  understanding between each Purchaser and the Company and supersede all prior agreements and  understandings relating to the subject matter hereof.  SECTION 17. AMENDMENT AND WAIVER.  Section 17.1. Requirements.  This Agreement, the Notes and any Guaranty  Agreement, may be amended, and the observance of any term hereof or of the Notes may  be waived (either retroactively or prospectively), with (and only with) the written consent  of the Company and the Required Holders, except that (a) no amendment or waiver of any  of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any defined term (as it is used  therein), will be effective as to any Purchaser unless consented to by such Purchaser in  writing; and (b) no such amendment or waiver may, without the written consent of each  Purchaser and the holder of each Note at the time outstanding, (i) subject to the provisions  of Section 12 relating to acceleration or rescission, change the amount or time of any  prepayment or payment of principal of, or reduce the rate or change the time of payment or  method of computation of interest or of Make-Whole Amount, on the Notes, (ii) change the  percentage of the principal amount of the Notes the holders of which are required to consent  to any such amendment or waiver, or (iii) amend any of Section 8, 11(a), 11(b), 12, 17 or  20.  Section 17.2. Solicitation of Holders of Notes.  

 

37  (a) Solicitation.  The Company will provide each holder of the Notes  (irrespective of the amount of Notes then owned by it) with sufficient information,  sufficiently far in advance of the date a decision is required, to enable such holder to make  an informed and considered decision with respect to any proposed amendment, waiver or  consent in respect of any of the provisions hereof or of the Notes or any Guaranty  Agreement.  The Company will deliver executed or true and correct copies of each  amendment, waiver or consent effected pursuant to the provisions of this Section 17 or any  Guaranty Agreement to each holder of outstanding Notes promptly following the date on  which it is executed and delivered by, or receives the consent or approval of, the requisite  holders of Notes.  (b) Payment.  The Company will not directly or indirectly pay or cause to be  paid any remuneration, whether by way of supplemental or additional interest, fee or  otherwise, or grant any security or provide other credit support, to any holder of Notes as  consideration for or as an inducement to the entering into by any holder of Notes of any  waiver or amendment of any of the terms and provisions hereof or of the Notes or of any  Guaranty Agreement, as the case may be, unless such remuneration is concurrently paid,  or security is concurrently granted or other credit support concurrently provided, on the  same terms, ratably to each holder of Notes then outstanding even if such holder did not  consent to such waiver or amendment.  (c) Consent in Contemplation of Transfer.  Any consent given pursuant to this  Section 17 or any Guaranty Agreement by a holder of a Note that has transferred or has  agreed to transfer its Note to (i) the Company, (ii) any Subsidiary or any other Affiliate or  (iii) any other Person in connection with, or in anticipation of, such other Person acquiring,  making a tender offer for or merging with the Company and/or any of its Affiliates, in each  case in connection with such consent, shall be void and of no force or effect except solely  as to such holder, and any amendments effected or waivers granted or to be effected or  granted that would not have been or would not be so effected or granted but for such  consent (and the consents of all other holders of Notes that were acquired under the same  or similar conditions) shall be void and of no force or effect except solely as to such holder.  Section 17.3. Binding Effect, Etc.  Any amendment or waiver consented to as  provided in this Section 17 or any Guaranty Agreement applies equally to all holders of  Notes and is binding upon them and upon each future holder of any Note and upon the  Company without regard to whether such Note has been marked to indicate such amendment  or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant,  agreement, Default or Event of Default not expressly amended or waived or impair any right  consequent thereon.  No course of dealing between the Company and the holder of any Note  nor any delay in exercising any rights hereunder or under any Note or any Guaranty  Agreement, shall operate as a waiver of any rights of any holder of such Note.  As used  herein, the term “this Agreement” and references thereto shall mean this Agreement as it  may from time to time be amended or supplemented.  Section 17.4. Notes Held by Company, Etc.  Solely for the purpose of determining  whether the holders of the requisite percentage of the aggregate principal amount of Notes  then outstanding approved or consented to any amendment, waiver or consent to be given  

 

38  under this Agreement, the Notes or any Guaranty Agreement or have directed the taking of  any action provided herein or in the Notes or any Guaranty Agreement to be taken upon the  direction of the holders of a specified percentage of the aggregate principal amount of Notes  then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates  shall be deemed not to be outstanding.  SECTION 18. NOTICES.  All notices and communications provided for hereunder shall be in writing and sent (a) by  telefacsimile or email if the sender on the same day sends a confirming copy of such notice by a  recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with  return receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with  charges prepaid).  Any such notice must be sent:  (i) if to any Purchaser or its nominee, to such Purchaser or nominee at  the address specified for such communications in Schedule A, or at such other  address as such Purchaser or nominee shall have specified to the Company in  writing,  (ii) if to any other holder of any Note, to such holder at such address as  such other holder shall have specified to the Company in writing, or  (iii) if to the Company, to the Company at its address set forth at the  beginning hereof to the attention of Chief Financial Officer, or at such other address  as the Company shall have specified to the holder of each Note in writing.  Notices under this Section 18 will be deemed given only when actually received.  SECTION 19. REPRODUCTION OF DOCUMENTS.  This Agreement, the Guaranty Agreements, and all documents relating thereto, including,  without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b)  documents received by any Purchaser at the Closing (except the Notes themselves), and (c)  financial statements, certificates and other information previously or hereafter furnished to any  Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, electronic,  digital or other similar process and such Purchaser may destroy any original document so  reproduced.  The Company agrees and stipulates that, to the extent permitted by applicable law,  any such reproduction shall be admissible in evidence as the original itself in any judicial or  administrative proceeding (whether or not the original is in existence and whether or not such  reproduction was made by such Purchaser in the regular course of business) and any enlargement,  facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.   This Section 19 shall not prohibit the Company or any other holder of Notes from contesting any  such reproduction to the same extent that it could contest the original, or from introducing evidence  to demonstrate the inaccuracy of any such reproduction.  

 

39  SECTION 20. CONFIDENTIAL INFORMATION.  For the purposes of this Section 20, “Confidential Information” means (a) the Disclosure  Documents and (b) such other information delivered to any Purchaser by or on behalf of the  Company or any Subsidiary in connection with the transactions contemplated by or otherwise  pursuant to this Agreement that is proprietary in nature; provided that such term does not include  information that (a) was publicly known or otherwise known to such Purchaser prior to the time  of such disclosure, (b) subsequently becomes publicly known through no act or omission by such  Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such  Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes  financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly  available.  Each Purchaser will maintain the confidentiality of such Confidential Information in  accordance with procedures adopted by such Purchaser in good faith to protect confidential  information of third parties delivered to such Purchaser; provided that such Purchaser may deliver  or disclose Confidential Information to (i) its directors, trustees, officers, employees, agents,  attorneys and affiliates (to the extent such disclosure reasonably relates to the administration of  the investment represented by its Notes), (ii) its financial advisors and other professional advisors  who agree to hold confidential the Confidential Information substantially in accordance with the  terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional Investor to which  it sells or offers to sell such Note or any part thereof or any participation therein (if such Person  has agreed in writing prior to its receipt of such Confidential Information to be bound by the  provisions of this Section 20), (v) any Person from which it offers to purchase any Security of the  Company (if such Person has agreed in writing prior to its receipt of such Confidential Information  to be bound by the provisions of this Section 20), (vi) any federal or state regulatory authority  having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or, in each case, any similar  organization, or any nationally recognized rating agency that requires access to information about  such Purchaser’s investment portfolio or (viii) any other Person to which such delivery or  disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation  or order applicable to such Purchaser, (x) in response to any subpoena or other legal process, (y)  in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default  has occurred and is continuing, to the extent such Purchaser may reasonably determine such  delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of  the rights and remedies under such Purchaser’s Notes, this Agreement or any Guaranty Agreement.   Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by  and to be entitled to the benefits of this Section 20 as though it were a party to this Agreement.   On reasonable request by the Company in connection with the delivery to any holder of a Note of  information required to be delivered to such holder under this Agreement or requested by such  holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter  into an agreement with the Company embodying the provisions of this Section 20.  In the event that as a condition to receiving access to information relating to the Company  or its Subsidiaries in connection with the transactions contemplated by or otherwise pursuant to  this Agreement, any Purchaser or holder of a Note is required to agree to a confidentiality  undertaking (whether through IntraLinks, another secure website, a secure virtual workspace or  otherwise) which is different from this Section 20, this Section 20 shall not be amended thereby  and, as between such Purchaser or such holder and the Company, this Section 20 shall supersede  any such other confidentiality undertaking.  

 

40  SECTION 21. SUBSTITUTION OF PURCHASER.  Each Purchaser shall have the right to substitute any one of its Affiliates (a “Substitute  Purchaser”) as the purchaser of the Notes that it has agreed to purchase hereunder, by written  notice to the Company, which notice shall be signed by both the Purchaser and such Substitute  Purchaser, shall contain such Substitute Purchaser’s agreement to be bound by this Agreement and  shall contain a confirmation by such Substitute Purchaser of the accuracy with respect to it of the  representations set forth in Section 6.  Upon receipt of such notice, any reference to such Purchaser  in this Agreement (other than in this Section 21), shall be deemed to refer to such Substitute  Purchaser in lieu of such original Purchaser.  In the event that such Substitute Purchaser is so  substituted as a Purchaser hereunder and such Substitute Purchaser thereafter transfers to such  original Purchaser all of the Notes then held by such Substitute Purchaser, upon receipt by the  Company of notice of such transfer, any reference to such Substitute Purchaser as a “Purchaser”  in this Agreement (other than in this Section 21), shall no longer be deemed to refer to such  Substitute Purchaser, but shall refer to such original Purchaser, and such original Purchaser shall  again have all the rights of an original holder of the Notes under this Agreement.    SECTION 22. MISCELLANEOUS.  Section 22.1. Successors and Assigns.  All covenants and other agreements  contained in this Agreement by or on behalf of any of the parties hereto bind and inure to  the benefit of their respective successors and assigns (including, without limitation, any  subsequent holder of a Note) whether so expressed or not, except that, subject to Section  10.4, the Company may not assign or otherwise transfer any of its rights or obligations  hereunder or under the Notes without the prior written consent of each holder.  Nothing in  this Agreement, expressed or implied, shall be construed to confer upon any Person (other  than the parties hereto and their respective successors and assigns permitted hereby) any  legal or equitable right, remedy or claim under or by reason of this Agreement.  Section 22.2. Accounting Terms.  (a) All accounting terms used herein which are not expressly defined in this  Agreement have the meanings respectively given to them in accordance with GAAP.   Except as otherwise specifically provided herein, (i) all computations made pursuant to this  Agreement shall be made in accordance with GAAP and (ii) all financial statements shall  be prepared in accordance with GAAP.  (b) For purposes of determining compliance with this Agreement (including  Section 9, Section 10 and the definition of “Indebtedness”), any election by the Company  to measure any financial liability using fair value (as permitted by Financial Accounting  Standards Board Accounting Standards Codification Topic No. 825-10-25 – Fair Value  Option, International Accounting Standard 39 – Financial Instruments: Recognition and  Measurement or any similar accounting standard) shall be disregarded and such  determination shall be made as if such election had not been made.  Only those leases that  would constitute capital leases in conformity with GAAP prior to the effectiveness of  Financial Accounting Standards Board Accounting Standards Codification Topic No. 842  

 

41  (or any other Accounting Standards Codification or Financial Accounting Standard having  a similar result or effect (and related interpretations, collectively, the “Change in Lease  Accounting Standard”)) shall be considered capital leases, and all calculations and  deliverables under this Agreement shall be made or delivered, as applicable, in accordance  therewith.  The Company and its Subsidiaries shall include relevant reconciliations in  reasonable detail with respect to the Change in Lease Accounting Standard for the  applicable covenant compliance calculations contained in each certificate of a Senior  Financial Officer delivered pursuant to Section 7.2(a) between GAAP in effect at such  time and GAAP in effect as of December 31, 2018.  (c) Anything contained in this Agreement to the contrary notwithstanding,  including, without limitation Section 22.2(a), all accounting terms used in Section 10 (and  all defined terms used in the definition of any accounting term used in Section 10) shall  have the meaning given to such terms (and defined terms) under GAAP as in effect on the  date hereof applied on the basis consistent with those used in preparing the most recent  annual statements described in Schedule 5.5.  In the event of any change after the date  hereof in GAAP, and if such change will result in the inability to determine compliance  with the financial covenants set forth in Section 10 based upon the Company’s regularly  prepared financial statements by reason of the preceding sentence, then the parties hereto  agree to endeavor, in good faith, to agree upon an amendment to this Agreement that would  adjust such financial covenants in the manner that would not affect the substance thereof,  but will allow compliance therewith to be determined in accordance with the Company’s  financial statements at that time.  Section 22.3. Severability.  Any provision of this Agreement that is prohibited or  unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent  of such prohibition or unenforceability without invalidating the remaining provisions  hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full  extent permitted by law) not invalidate or render unenforceable such provision in any other  jurisdiction.  Section 22.4. Construction, Etc.  Each covenant contained herein shall be  construed (absent express provision to the contrary) as being independent of each other  covenant contained herein, so that compliance with any one covenant shall not (absent such  an express contrary provision) be deemed to excuse compliance with any other covenant.   Where any provision herein refers to action to be taken by any Person, or which such Person  is prohibited from taking, such provision shall be applicable whether such action is taken  directly or indirectly by such Person.  For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be  deemed to be a part hereof.  Section 22.5. Counterparts.  This Agreement may be executed in any number of  counterparts, each of which shall be an original but all of which together shall constitute  one instrument.  Each counterpart may consist of a number of copies hereof, each signed by  less than all, but together signed by all, of the parties hereto.  The words “execution”,  “execute”, “signed”, “signature”, and words of like import in or related to any document to  

 

42  be signed in connection with this Agreement and the other Note Documents (other than the  Notes) shall be deemed to include electronic signatures, the electronic matching of  assignment terms and contract formations on electronic platforms approved by the  Company, or the keeping of records in electronic form, each of which shall be of the same  legal effect, validity or enforceability as a manually executed signature or the use of a paper- based recordkeeping system, as the case may be, to the extent and as provided for in any  applicable law, including the Federal Electronic Signatures in Global and National  Commerce Act, the New York State Electronic Signatures and Records Act, or any other  similar state laws based on the Uniform Electronic Transactions Act.  Section 22.6. Governing Law.  This Agreement shall be construed and enforced in  accordance with, and the rights of the parties shall be governed by, the law of the State of  New York, excluding choice-of-law principles of the law of such State that would permit  the application of the laws of a jurisdiction other than such State.  Section 22.7. Jurisdiction and Process; Waiver of Jury Trial.  (a) The Company irrevocably submits to the non-exclusive jurisdiction of any  New York State or federal court sitting in the Borough of Manhattan, The City of New  York, over any suit, action or proceeding arising out of or relating to this Agreement or the  Notes.  To the fullest extent permitted by applicable law, the Company irrevocably waives  and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is  not subject to the jurisdiction of any such court, any objection that it may now or hereafter  have to the laying of the venue of any such suit, action or proceeding brought in any such  court and any claim that any such suit, action or proceeding brought in any such court has  been brought in an inconvenient forum.  (b) The Company agrees, to the fullest extent permitted by applicable law, that  a final judgment in any suit, action or proceeding of the nature referred to in Section 22.7(a)  brought in any such court shall be conclusive and binding upon it subject to rights of appeal,  as the case may be, and may be enforced in the courts of the United States of America or  the State of New York (or any other courts to the jurisdiction of which it or any of its assets  is or may be subject) by a suit upon such judgment.  (c) The Company consents to process being served by or on behalf of any  holder of Notes in any suit, action or proceeding of the nature referred to in Section 22.7(a)  by mailing a copy thereof by registered, certified, priority or express mail (or any  substantially similar form of mail), postage prepaid, return receipt or delivery confirmation  requested, to it at its address specified in Section 18 or at such other address of which such  holder shall then have been notified pursuant to said Section.  The Company agrees that  such service upon receipt (i) shall be deemed in every respect effective service of process  upon it in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted  by applicable law, be taken and held to be valid personal service upon and personal delivery  to it.  Notices hereunder shall be conclusively presumed received as evidenced by a  delivery receipt furnished by the United States Postal Service or any reputable commercial  delivery service.  

 

43  (d) Nothing in this Section 22.7 shall affect the right of any holder of a Note to  serve process in any manner permitted by law, or limit any right that the holders of any of  the Notes may have to bring proceedings against the Company in the courts of any  appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one  jurisdiction in any other jurisdiction.  (e) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY  ACTION BROUGHT ON OR WITH RESPECT TO THIS AGREEMENT, THE NOTES  OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR  THEREWITH.  * * * * *  

 

 

 

 

 

Schedule B-1  (to Note Purchase Agreement)  DEFINED TERMS  As used herein, the following terms have the respective meanings set forth below or set  forth in the Section hereof following such term:  “Affiliate” means, at any time, and with respect to any Person, any other Person that at such  time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is  under common Control with, such first Person, and with respect to the Company, shall include any  Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting  or Equity Interests of the Company or any Subsidiary or any Person of which the Company and its  Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any  class of voting or Equity Interests.  Unless the context otherwise clearly requires, any reference to  an “Affiliate” is a reference to an Affiliate of the Company.  “Anti-Corruption Laws” means any law or regulation in a U.S. or any non-U.S. jurisdiction  regarding bribery or any other corrupt activity, including the U.S. Foreign Corrupt Practices Act  and the U.K. Bribery Act 2010.  “Anti-Money Laundering Laws” means any law or regulation in a U.S. or any non-U.S.  jurisdiction regarding money laundering, drug trafficking, terrorist-related activities or other  money laundering predicate crimes, including the Currency and Foreign Transactions Reporting  Act of 1970 (otherwise known as the Bank Secrecy Act) and the USA Patriot Act.   “Bank Credit Agreement” means that certain Third Amended and Restated Credit  Agreement dated as of November 26, 2019 by and among the Company, the lenders party thereto,  Truist Bank (formerly Branch Banking and Trust Company), as administrative agent, letter of  credit issuer and swing line lender, as amended by that certain First Amendment to Third Amended  and Restated Credit Agreement, dated as of November 13, 2020, and that certain Second  Amendment to Third Amended and Restated Credit Agreement, dated as of April 9, 2021, and as  the same may from time to time be further supplemented, amended, renewed, extended, restated,  refinanced or replaced.  “Blocked Person” means (a) a Person whose name appears on the list of Specially  Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization,  country or regime that is blocked or a target of sanctions that have been imposed under U.S.  Economic Sanctions Laws or (c) a Person that is an agent, department or instrumentality of, or is  otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any  Person, entity, organization, country or regime described in clause (a) or (b).  “Business Day” means (a) for the purposes of Section 8.7 only, any day other than a  Saturday, a Sunday or a day on which commercial banks in New York City are required or  authorized to be closed, and (b) for the purposes of any other provision of this Agreement, any day  other than a Saturday, a Sunday or a day on which commercial banks in New York, New York or  Charleston, West Virginia, are required or authorized to be closed.  “Capital” means as of any date of determination the sum of (a) Stockholders’ Equity, (b)  redeemable common stock (if redeemable common stock is excluded from Stockholders’ Equity)  

 

Schedule B-2  (to Note Purchase Agreement)  and (c) Long Term Debt, in each instance of the Company and its Subsidiaries as of such date  determined and consolidated in accordance with GAAP.  “Capital Lease” means, at any time, a lease with respect to which the lessee is required  concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance  with GAAP.  “Capital Securities” means, with respect to any Person, all of the shares of capital stock of  (or other ownership, membership or profit interests in) such Person, all of the warrants, options or  other rights for the purchase or acquisition from such Person of shares of capital stock of (or other  ownership, membership or profit interests in) such Person, all of the securities convertible into or  exchangeable for shares of capital stock of (or other ownership, membership or profit interests in)  such Person or warrants, rights or options for the purchase or acquisition from such Person of such  shares (or such other interests), and all of the other ownership, membership or profit interests in  such Person (including partnership, member or trust interests therein), whether voting or  nonvoting, and whether or not such shares, warrants, options, rights or other interests are  outstanding on any date of determination.  “Change in Control” means and is deemed to have occurred upon any of the following:  (I) the Company shall cease for any reason to be directly or indirectly majority owned,  beneficially and of record, by UGI Corporation, including, without limitation, that  UGI Corporation shall cease to own (beneficially and of record), directly or  indirectly, Capital Securities of the Company that are entitled to vote for members  of the board of directors or equivalent governing body of the Company (the “Voting  Stock”) (or other securities convertible into Voting Stock) representing 51% or  more of the combined voting power of all Voting Stock of the Company and 51%  or more of the economic interests in the Company; or  (II) any change in control (howsoever defined or characterized) is deemed to have  occurred under any Material Credit Facility.  “Closing” is defined in Section 3.  “Closing Date” is defined in Section 3.  “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the  rules and regulations promulgated thereunder from time to time.  “Company” means Mountaineer Gas Company, a West Virginia corporation or any  successor that becomes such in the manner prescribed in Section 10.4.  “Company Materials” is defined in Section 5.3.  “Confidential Information” is defined in Section 20.  “Consolidated EBITDA” for any period of determination means (a) the sum of  Consolidated Net Income, plus, to the extent deducted in the determination of Consolidated Net  

 

Schedule B-3  (to Note Purchase Agreement)  Income, depreciation, amortization (including amortization of debt costs and amortization of loss  on reacquired debt), other non-cash items of expense, interest expense, income tax expense,  nonrecurring items of expense, expenses incurred by the Company, including the fees and  expenses of Huntington Securities, Inc., each Purchaser of the Notes or its special counsel which  the Company has paid pursuant to Section 15.1) in connection with the consummation of the  issuance of the Notes pursuant to this Agreement and expenses and fees of lenders party to the  Bank Credit Agreement charged to and paid by the Company in connection with the negotiation  and execution of an amendment to the Bank Credit Agreement on or about the date of this  Agreement (which reflects and permits the issuance of the Notes pursuant to this Agreement),  minus (b) to the extent included in the determination of Consolidated Net Income, non-cash items  of income, in each case of the Company and its Subsidiaries for such period determined and  consolidated in accordance with GAAP.  “Consolidated Interest Expense” of the Company and its Subsidiaries for any period means  all interest (including the interest component on Capital Leases) for which such calculations are  being made.  “Consolidated Interest Expense” shall not include amortization of debt expense and  amortization of loss or gain on reacquired debt.    “Consolidated Net Income” for any period of determination means net income after income  taxes of the Company and its Subsidiaries on a consolidated basis for such period determined and  consolidated in accordance with GAAP, but excluding:  (a) the amount by which capital gains and other extraordinary credits exceed  capital losses and extraordinary charges;  (b) any gain arising from any write-up of assets or from the acquisition of any  shares of capital stock or other Equity Interest of the Company or any of its Subsidiaries;  (c) earnings of any Person realized prior to the date it becomes a Subsidiary or  its assets are acquired by merger or otherwise by the Company or any Subsidiary;  (d) earnings of any Person (other than a Subsidiary) in which the Company or  any Subsidiary has an ownership interest, not received by the Company or such Subsidiary  in the form of cash distributions, provided that any earnings excluded pursuant to this  clause (d) may be included in the year in which they are actually received as cash  distributions;  (e) earnings denominated in any currency which is not freely convertible into  Dollars, provided that any earnings excluded pursuant to this clause (e) may be included in  the year in which they are actually converted into Dollars;  (f) any portion of the earnings of any Subsidiary which for any reason is  unavailable for payment of dividends to (x) the Company or (y) any Subsidiary that is a  Guarantor; and  (g) any gain arising from the termination of a Plan.  

 

Schedule B-4  (to Note Purchase Agreement)  “Consolidated Tangible Net Worth” means, at any time, Stockholders’ Equity less  the sum of the value (to the extent reflected in determining Stockholders’ Equity) as set  forth or reflected on the most recent consolidated balance sheet of the Company and its  Subsidiaries, on a consolidated basis prepared in accordance with GAAP, of:  (a) except for unamortized debt costs, regulatory assets and other  deferred charges, all assets which would be treated as intangible assets for balance  sheet presentation purposes under GAAP, including without limitation, goodwill  (whether representing the excess of cost over book value of assets acquired or  otherwise), trademarks, tradenames, copyrights, patents and technologies;    (b) to the extent not included in clause (a) of this definition, any amount  at which the Capital Securities of the Company appear as an asset on the balance  sheet of the Company and its Subsidiaries;    (c) loans or advances to any owner of the Capital Securities of the  Company or any Guarantor; and    (d) to the extent not included in clause (a) of this definition, deferred  expenses other than unamortized debt costs, regulatory assets and other deferred  charges.  “Consolidated Total Assets” means the book value, determined on a consolidated basis in  accordance with GAAP, of all assets of the Company and its Subsidiaries.  “Control” means the possession, directly or indirectly, of the power to direct or cause the  direction of the management and policies of a Person, whether through the ownership of voting  securities, by contract or otherwise; and the terms “Controlled” and “Controlling” shall have  meanings correlative to the foregoing.  “Controlled Entity” means (i) any Subsidiaries of the Company and any of their or the  Company’s respective Controlled Affiliates and (ii) if the Company has a parent company, such  parent company and its Controlled Affiliates.   “Control Event” means (i) the execution by the Company or any of its Subsidiaries or  Affiliates of any agreement or letter of intent with respect to any proposed transaction or event or  series of transactions or events which, individually or in the aggregate, may reasonably be expected  to result in a Change in Control, or (ii) the execution of any written agreement which, when fully  performed by the parties thereto, would result in a Change in Control.  “Debt to Capital Ratio” means as of any date of determination, the ratio of Long Term  Debt of the Company and its Subsidiaries to Capital on such date.  “Debt Rating” means a rating of the Company’s senior unsecured debt assigned by the  Rating Agency.  “Default” means an event or condition the occurrence or existence of which would, with  the lapse of time or the giving of notice or both, become an Event of Default.  

 

Schedule B-5  (to Note Purchase Agreement)  “Default Rate” means, for the Notes, that rate of interest per annum that is the greater of  (a) 2.0% above the rate of interest stated in clause (a) of the first paragraph of the Notes or (b) 2.0%  over the rate of interest publicly announced by JPMorgan Chase Bank, N.A. in New York City,  New York as its “base” or “prime” rate.  “Disclosure Documents” is defined in Section 5.3.  “Dollar,” “Dollars,” “U.S. Dollars” and the symbol “$” means lawful money of the United  States of America.  “Environmental Laws” means any and all federal, state, local, and foreign statutes, laws,  regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises,  licenses, agreements or governmental restrictions relating to pollution and the protection of the  environment or the release of any materials into the environment, including but not limited to those  related to Hazardous Materials.  “Equity Interests” means, in the case of a corporation, shares of capital stock of any class  or series, including warrants, rights, participating interests or options to purchase or otherwise  acquire any class or series of capital stock or Securities exchangeable for or convertible into any  class or series of capital stock, and in the case of any limited liability company or other entity shall  mean any class or series of limited liability company interests or like interests constituting equity,  and in the case of each of the foregoing, any part or portion thereof or participation in any of the  foregoing.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from  time to time, and the rules and regulations promulgated thereunder from time to time in effect.  “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated  as a single employer together with the Company under Section 414 of the Code.  “Event of Default” is defined in Section 11.  “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to  time, and the rules and regulations promulgated thereunder from time to time in effect.  “Fitch” means Fitch, Inc. and its successors.  “GAAP” means generally accepted accounting principles as are in effect from time to time  in the United States of America; provided however, that such generally accepted accounting  principles are each subject to the provisions of Section 22.2(c) and shall be applied on a consistent  basis both as to classification of items and amounts.  “Governmental Authority” means  (a) the government of  (i) the United States of America or any State or other political  subdivision thereof, or  

 

Schedule B-6  (to Note Purchase Agreement)  (ii) any other jurisdiction in which the Company or any Subsidiary  conducts all or any part of its business, or which asserts jurisdiction over any  properties of the Company or any Subsidiary, or  (b) any entity exercising executive, legislative, judicial, regulatory or  administrative functions of, or pertaining to, any such government.  “Governmental Official” means any governmental official or employee, employee of any  government-owned or government-controlled entity, political party, any official of a political  party, candidate for political office, official of any public international organization or anyone else  acting in an official capacity.  “Guarantor” means each Person which executes or joins a Guaranty Agreement as a  Guarantor after the date hereof pursuant to Section 9.7.  “Guaranty” of any Person means any obligation of such Person guaranteeing or in effect  guaranteeing any liability or obligation of any other Person in any manner, whether directly or  indirectly, including any performance bond or other suretyship arrangement and any other form of  assurance against loss, except endorsement of negotiable or other instruments for deposit or  collection in the ordinary course of business.  “Guaranty Agreement” means the Guaranty Agreement in substantially the form of  Exhibit 2.2(a) executed and delivered to the holders of the Notes by a Guarantor pursuant to  Section 9.7.  “Hazardous Materials” means any and all pollutants, toxic or hazardous wastes or any  other substances, including all substances listed in or regulated in any Environmental Law that  might pose a hazard to health and safety, the removal of which may be required or the generation,  manufacture, refining, production, processing, treatment, storage, handling, transportation,  transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is or shall be  restricted, regulated, prohibited or penalized by any applicable law including, but not limited to,  asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum, petroleum  products, lead based paint, radon gas or similar restricted, prohibited or penalized substances.  “holder” means, with respect to any Note, the Person in whose name such Note is registered  in the register maintained by the Company pursuant to Section 13.1, provided, however, that if  such Person is a nominee, then for the purposes of Sections 7, 12, 17.2 and 18 and any related  definitions in this Schedule B, “holder” shall mean the beneficial owner of such Note whose name  and address appears in such register.  “Hybrid Security” means any of the following:  (a) beneficial interests issued by a trust or  other entity which constitutes a Subsidiary, substantially all of the assets of which trust or other  entity are unsecured Indebtedness of the Company or any of its Subsidiaries or proceeds thereof,  and all payments of which Indebtedness are required to be, and are, distributed to the holders of  beneficial interests in such trust promptly after receipt by such trust, or (b) any shares of Capital  Securities or other Equity Interest that, other than solely at the option of the issuer thereof, by their  terms (or by the terms of any security into which they are convertible or exchangeable) are, or  upon the happening of an event or the passage of time would be, required to be redeemed or  

 

Schedule B-7  (to Note Purchase Agreement)  repurchased, in whole or in part, or have, or upon the happening of an event or the passage of time  would have, a redemption or similar payment.  “Indebtedness” of any Person means at any date, without duplication, (i) all obligations of  such Person for borrowed money (whether current or long- term); (ii) all obligations of such Person  evidenced by bonds, debentures, notes, loan agreements or other similar instruments; (iii) all  obligations of such Person to pay the deferred purchase price of property or services, except trade  accounts payable arising in the ordinary course of business and, in each case, not past due for more  than thirty (30) days after due; (iv) all obligations of such Person as lessee under Capital Leases;  (v) all obligations of such Person to reimburse any bank or other Person in respect of amounts  payable under a banker’s acceptance, bank guarantees, surety bonds and similar instruments; (vi)  all Redeemable Preferred Securities of such Person; (vii) all obligations (absolute or contingent)  of such Person to reimburse any bank or other Person in respect of amounts which are available to  be drawn or have been drawn under a letter of credit (including standby and commercial) or similar  instrument; (viii) all Indebtedness of others secured by (or for which the holder of such  Indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien on or payable  out of the proceeds from any asset of such Person, whether or not such Indebtedness is assumed  by such Person; (ix) all Indebtedness of others Guaranteed by such Person; (x) all obligations of  such Person with respect to interest rate protection agreements, foreign currency exchange  agreements or other hedging agreements (valued as the termination value thereof computed in  accordance with a method approved by the International Swap Dealers Association and agreed to  by such Person in the applicable hedging agreement, if any); (xi) all obligations of such Person  under any synthetic lease, tax retention operating lease, Sale/Leaseback Transaction, asset  securitization, off-balance sheet loan or other off-balance sheet financing product; (xii) all  obligations of such Person to purchase securities or other property arising out of or in connection  with the sale of the same or substantially similar securities or property; (xiii) all obligations of such  Person created or arising under any conditional sale or other title retention agreement with respect  to property acquired by such Person; and (xiv) all Hybrid Securities.  The Indebtedness of any  Person shall include the Indebtedness of any other entity (including any partnership in which such  Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s  ownership interest in or other relationship with such entity, except to the extent the terms of such  Indebtedness provide that such Person is not liable therefor.  For purposes hereof, the amount of  any direct obligation arising under letters of credit (including standby and commercial), bankers’  acceptances, bank guaranties, surety bonds and similar instruments shall be the maximum amount  available to be drawn thereunder.    “INHAM Exemption” is defined in Section 6.2(e).  “Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding  (together with one or more of its affiliates) more than 5% of the aggregate principal amount of the  Notes then outstanding, (c) any bank, trust company, savings and loan association or other  financial institution, any pension plan, any investment company, any insurance company, any  broker or dealer, or any other similar financial institution or entity, regardless of legal form, and  (d) any Related Fund of any holder of any Note.  “Lien” means, with respect to any person, any mortgage, deed of trust, pledge, lien, security  interest, charge or other encumbrance or security arrangement of any nature whatsoever, whether  

 

Schedule B-8  (to Note Purchase Agreement)  voluntarily or involuntarily given, including any conditional sale or title retention arrangement or  Capital Lease upon or respect to any property or asset of such person, and any assignment, deposit  arrangement or lease intended as, or having the effect of, security and any filed financing statement  or other notice of any of the foregoing (whether or not a lien or other encumbrance is created or  exists at the time of the filing).  “Long Term Debt” means at any time the sum of (i) Indebtedness, on a consolidated basis,  classified as “Long Term Debt” in accordance with GAAP, including the current portion thereof  and (without duplication) the outstanding balance of the Notes, and (ii) the lowest average balance  of “Short Term Debt”, if any, in accordance with GAAP outstanding for a period of 30 consecutive  days during the 12 months immediately preceding such time.  “Make-Whole Amount” is defined in Section 8.7.  “Material” means material in relation to the business, properties, assets, financial condition  or results of operations of the Company and its Subsidiaries taken as a whole.  “Material Adverse Effect” means any set of circumstances or events which (a) has or could  reasonably be expected to have any material adverse effect whatsoever upon the validity or  enforceability of this Agreement, the Notes or a Guaranty Agreement, (b) is or could reasonably  be expected to have a material adverse effect on the business, properties, assets, financial condition  or results of operations of the Company and its Subsidiaries taken as a whole, (c) impairs materially  or could reasonably be expected to impair materially the ability of the Company to duly and  punctually perform and pay any of its Indebtedness, including, without limitation, the Notes, or  (d) impairs materially or could reasonably be expected to impair materially the ability of the  holders of the Notes, to the extent permitted, to enforce their legal remedies pursuant to this  Agreement, the Notes or a Guaranty Agreement.  “Material Credit Facility” means, as to the Company and its Subsidiaries,   (a) the Bank Credit Agreement, including any renewals, extensions, amendments,  supplements, restatements, replacements or refinancing thereof;   (b) the 2017 Note Purchase Agreement, including any renewals, extensions,  amendments, supplements, restatements, replacements or refinancing thereof;   (c) the 2019 Note Purchase Agreement, including any renewals, extensions,  amendments, supplements, restatements, replacements or refinancing thereof; and  (d) any other agreement(s) creating or evidencing indebtedness for borrowed money  entered into on or after the date of Closing by the Company or any Subsidiary, or in respect of  which the Company or any Subsidiary is an obligor or otherwise provides a guarantee or other  credit support (“Credit Facility”), in a principal amount outstanding or available for borrowing  equal to or greater than $30,000,000 (or the equivalent of such amount in the relevant currency of  payment, determined as of the date of the closing of such facility based on the exchange rate of  such other currency); and if no Credit Facility or Credit Facilities equal or exceed such amounts,  then the largest Credit Facility shall be deemed to be a Material Credit Facility.  

 

Schedule B-9  (to Note Purchase Agreement)  “Material Guaranty Agreement” means a Guaranty Agreement to which a Material  Subsidiary is a party.  “Material Subsidiary” means any Subsidiary of the Company that, together with its  Subsidiaries, (a) generates more than 10% of Consolidated EBITDA on a pro forma basis for the  four (4) consecutive fiscal quarters most recently ended or (b) accounts for (or to which may be  attributed) 10% or more of the Consolidated Total Assets of the Company and its Subsidiaries on  a pro forma basis for the four (4) consecutive fiscal quarters most recently ended; provided,  however, that if at any time there are Subsidiaries of the Company which are not classified as  “Material Subsidiaries” but which collectively (i) generate more than 10% of Consolidated  EBITDA on a pro forma basis or (ii) account for more than 10% of Consolidated Total Assets of  the Company and its Subsidiaries on a pro forma basis, then such Subsidiaries shall constitute  Material Subsidiaries.  “Moody’s” means Moody’s Investors Service, Inc. and its successors.  “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is  defined in section 4001(a)(3) of ERISA).  “NAIC” means the National Association of Insurance Commissioners or any successor  thereto.  “Non-U.S. Plan” means any plan, fund or other similar program that (a) is established or  maintained outside the United States of America by the Company or any Subsidiary primarily for  the benefit of employees of the Company or one or more Subsidiaries residing outside the United  States of America, which plan, fund or other similar program provides, or results in, retirement  income, a deferral of income in contemplation of retirement or payments to be made upon  termination of employment, and (b) is not subject to ERISA or the Code.  “Notes” is defined in Section 1.  “OFAC” means the Office of Foreign Assets Control of the United States Department of  the Treasury.  “OFAC Sanctions Program” means any economic or trade sanction that OFAC is  responsible for administering and enforcing.  A list of OFAC Sanctions Programs may be found  at http://www.treasury.gov/resource-center/sanctions/Programs/Pages/Programs.aspx.  “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other  officer of the Company whose responsibilities extend to the subject matter of such certificate.  “Outstanding Senior Notes” means the Mountaineer Gas Company 4.20% Senior Notes,  Series A, due December 20, 2027, the Mountaineer Gas Company 4.27% Senior Notes, Series B,  due December 20, 2029, the Mountaineer Gas Company 4.41% Senior Notes, Series C, due  December 20, 2032 and the Mountaineer Gas Company 3.50% Senior Notes, Series D, due  December 20, 2034.  

 

Schedule B-10  (to Note Purchase Agreement)  “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in  ERISA or any successor thereto.  “Permitted Liens” means:  (a) Liens for taxes, assessments, or similar charges, incurred in the ordinary  course of business and which are not yet due and payable;  (b) pledges or deposits made in the ordinary course of business to secure  payment of workmen’s compensation, or to participate in any fund in connection with  workmen’s compensation, unemployment insurance, old-age pensions or other social  security programs;  (c) Liens of mechanics, materialmen, warehousemen and carriers, or similar  statutory, nonconsensual Liens, in each case securing obligations incurred in the ordinary  course of business that are not yet due and payable and Liens of landlords securing  obligations to pay lease payments that are not yet due and payable or in default;  (d) good-faith pledges or deposits made in the ordinary course of business to  secure performance of bids, tenders, contracts (other than for the repayment of borrowed  money) or leases, not in excess of the aggregate amount due thereunder, or to secure  statutory obligations, or surety, appeal, indemnity, performance or other similar bonds  required in the ordinary course of business;  (e) any Lien existing on the Closing Date and described on Schedule 10.1;  provided that the principal amount secured thereby is not hereafter increased, and no  additional assets become subject to such Lien;  (f) such other rights, liens, imperfections in or failures of title, charges,  easements, leases, licenses, restrictions, encumbrances, encroachments and defects and  zoning, entitlement, conservation restriction and other land use and environmental  regulations by any Governmental Authority, which, in each case, do not secure  Indebtedness and do not materially interfere with the present use of the properties owned  by the Company or its Subsidiaries, as the case may be;  (g) provided that such matters do not materially interfere with the present use  of the properties owned by the Company or any of its Subsidiaries, as the case may be,  such matters as an accurate survey would show;  (h) the following, (i) if the validity or amount thereof is being contested in good  faith by appropriate and lawful proceedings diligently conducted so long as levy and  execution thereon have been stayed and continue to be stayed or (ii) if a final judgment is  entered and such judgment is discharged within thirty (30) days of entry, and in either case  they do not, in the aggregate, materially impair the ability of the Company or any  Subsidiary that is a Guarantor to perform its obligations hereunder or under the Notes or  any Guaranty Agreement:  

 

Schedule B-11  (to Note Purchase Agreement)  (1) claims or Liens for taxes, assessments or charges due and payable  and subject to interest or penalty, provided that the Company or applicable  Subsidiary maintains such reserves or other appropriate provisions as shall be  required by GAAP and pays all such taxes, assessments or charges forthwith upon  the commencement of proceedings to foreclose any such Lien; and  (2) claims, Liens or encumbrances upon, and defects of title to, real or  personal property, including any attachment of personal or real property or other  legal process prior to adjudication of a dispute on the merits;  (i) Purchase Money Security Interest created by the Company, and liens on  properties subject to Capital Leases to which the Company is the lessee, in each case  securing Indebtedness of the Company or any Subsidiary other than Indebtedness under  any Material Credit Facility;  (j) judgment Liens the existence of which does not constitute an Event of  Default under Section 11(i); and  (k)  other Liens securing Indebtedness of the Company or any Subsidiary not  otherwise permitted by clauses (a) through (j) above, provided that the Indebtedness  secured thereby is permitted by Section 10.6, and provided, further, that notwithstanding  the foregoing, the Company shall not, and shall not permit any of its Subsidiaries to, secure  pursuant to this clause (k) any Indebtedness outstanding under or pursuant to any Material  Credit Facility unless and until the Notes (and any guaranty delivered in connection  therewith) shall concurrently be secured equally and ratably with such Indebtedness  pursuant to documentation reasonably acceptable to the Required Holders in substance and  in form, including, without limitation, an intercreditor agreement and opinions of counsel  to the Company and/or any such Subsidiary, as the case may be, from counsel that is  reasonably acceptable to the Required Holders.  “Person” means any individual, corporation, partnership, limited liability company,  association, joint-stock company, trust, unincorporated organization, joint venture, government or  political subdivision or agency thereof, Governmental Authority or any other entity.    “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to  Title I of ERISA with respect to which the Company or any ERISA Affiliate may have any  liability.  “Priority Indebtedness” means the sum, without duplication, of (i) all Indebtedness of the  Company or any Subsidiary secured by Liens pursuant to clause (k) of the definition of Permitted  Liens, plus (ii) all Indebtedness of Subsidiaries (excluding any such Indebtedness described in this  clause (ii) of any Guarantor or of any Subsidiary owing to the Company or to another Wholly- owned Subsidiary).  “property” or “properties” means, unless otherwise specifically limited, real or personal  property of any kind, tangible or intangible, choate or inchoate.  “PTE” is defined in Section 6.2(a).  

 

Schedule B-12  (to Note Purchase Agreement)  “Purchase Money Security Interest” means Liens upon tangible real or personal property  securing loans to the Company or any of its Subsidiaries or deferred payments by the Company or  such Subsidiary for the purchase of such tangible real or personal property, provided that such  Liens are created at the time of such loans or purchase, as the case may be, or within 90 days  thereafter.  “Purchaser” or “Purchasers” means each of the Purchasers that has executed and delivered  this Agreement to the Company and such Purchaser’s successors and assigns (so long as any such  assignment complies with Section 13.2), provided, however, that any Purchaser of a Note that  ceases to be the registered holder or a beneficial owner (through a nominee) of such Note as the  result of a transfer thereof pursuant to Section 13.2, it shall cease to be included within the meaning  of “Purchaser” of such Note for the purposes of this Agreement upon such transfer.  “QPAM Exemption” is defined in Section 6.2(d).  “Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer”  within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.  “Rating Agency” means (a) Fitch or (b) another Nationally Recognized Statistical Rating  Organization designated with such status by the SEC which is approved by the Required Holders  in their reasonable discretion; provided, however, no consent shall be required for Moody’s or  Standard & Poor’s.  “Rating Categories” means:  (1) with respect to Standard & Poor’s, any of the following categories:  AAA,  AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor categories);  (2) with respect to Moody’s, any of the following categories:  Aaa, Aa, A, Baa,  Ba, B, Caa, Ca, C and D (or equivalent successor categories); and  (3) with respect to Fitch, any of the following categories:  AAA, AA, A, BBB,  BB, B, CCC, CC, C and D (or equivalent successor categories).  “Rating Decline” means a decrease in the Debt Rating by Fitch, Moody’s or Standard &  Poor’s by one or more gradations (including gradations within Rating Categories as well as  between Rating Categories) to any rating below (i) BBB- in the case of Fitch, (ii) Baa3 in the case  of Moody’s or (iii) BBB- in the case of Standard & Poor’s.  In determining whether the Debt  Rating has decreased by one or more gradations, gradations within Rating Categories, namely +  or – for Fitch and Standard & Poor’s, and 1, 2, and 3 for Moody’s, will be taken into account; for  example, in the case of Standard & Poor’s, a rating decline either from BBB+ to BBB or BBB- to  BB+ will constitute a decrease of one gradation.   “Redeemable Preferred Securities” of any Person means any preferred stock or similar  Capital Securities (including, without limitation, limited liability company membership interests  and limited partnership interests) issued by such Person which is at any time prior to August 16,  2050, either (i) mandatorily redeemable (by sinking fund or similar payments or otherwise) or (ii)  redeemable at the option of the holder thereof.  

 

Schedule B-13  (to Note Purchase Agreement)  “Related Fund” means, with respect to any holder of any Note, any fund or entity that (a)  invests in Securities or bank loans, and (b) is advised or managed by such holder, the same  investment advisor as such holder or by an affiliate of such holder or such investment advisor.  “Required Holders” means at any time on or after the Closing, the holders of at least 51%  in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the  Company or any of its Affiliates).  “Responsible Officer” means any Senior Financial Officer and any other officer of the  Company with responsibility for the administration of the relevant portion of this Agreement.  “Sale/Leaseback Transaction” means, with respect to the Company or any Subsidiary, any  arrangement, directly or indirectly, with any Person whereby the Company or such Subsidiary shall  sell or transfer any property used or useful in its business, whether now owned or hereafter  acquired, and thereafter rent or lease such property or other property that it intends to use for  substantially the same purpose or purposes as the property being sold or transferred.  “SEC” shall mean the Securities and Exchange Commission of the United States, or any  successor thereto.  “Securities” or “Security” shall have the meaning specified in Section 2(a)(1) of the  Securities Act.  “Securities Act” means the Securities Act of 1933, as amended from time to time, and the  rules and regulations promulgated thereunder from time to time in effect.  “Senior Financial Officer” means the chief financial officer, principal accounting officer,  treasurer or comptroller of the Company.  “Senior Indebtedness” means all Indebtedness of the Company which is not expressed to  be subordinate or junior in rank to any other Indebtedness of the Company.  “Short Term Debt” means any Indebtedness, on a consolidated basis, that is not classified  as “Long Term Debt” in accordance with GAAP.  “Source” is defined in Section 6.2.  “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The  McGraw-Hill Companies, Inc., and its successors.  “State Sanctions List” means a list that is adopted by any state Governmental Authority  within the United States of America pertaining to Persons that engage in investment or other  commercial activities in Iran or any other country that is a target of economic sanctions imposed  under U.S. Economic Sanctions Laws.  “Stockholders’ Equity” means, at any time, the shareholders’ and other interest owners’  equity of the Company and its consolidated Subsidiaries, as set forth or reflected on the most recent  consolidated balance sheet of the Company and its consolidated Subsidiaries prepared in  

 

Schedule B-14  (to Note Purchase Agreement)  accordance with GAAP, but excluding any Redeemable Preferred Securities of the Company or  any of its respective consolidated Subsidiaries.  Shareholders’ and other interest owners’ equity  generally would include, but not be limited to, (i) the par or stated value of all outstanding Capital  Securities, (ii) capital surplus, (iii) retained earnings and (iv) various deductions such as (A)  purchases of treasury stock, (B) valuation allowances, (C) receivables due from an employee stock  ownership plan, (D) employee stock ownership plan debt guarantees and (E) translation  adjustments for foreign currency transactions.  “Subsidiary” of any Person at any time means (a) any corporation or trust of which 50%  or more (by number of shares or number of votes) of the outstanding capital stock or shares of  beneficial interest normally entitled to vote for the election of one or more directors or trustees  (regardless of any contingency which does or may suspend or dilute the voting rights) is at such  time owned directly or indirectly by such Person or one or more of such Person’s Subsidiaries, (b)  any partnership of which such Person is a general partner or of which 50% or more of the  partnership interests is at the time directly or indirectly owned by such Person or one or more of  such Person’s Subsidiaries, (c) any limited liability company of which such Person is a member  or of which 50% or more of the limited liability company interests is at the time directly or  indirectly owned by such Person or one or more of such Person’s Subsidiaries or (d) any  corporation, trust, partnership, limited liability company or other entity which is controlled or  capable of being controlled by such Person or one or more of such Person’s Subsidiaries.  “Substitute Purchaser” is defined in Section 21.  “Surviving Person” is defined in Section 10.4(b).  “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.  “2017 Note Purchase Agreement” means that certain Note Purchase Agreement dated as  of April 12, 2017, as amended, pursuant to which the Company issued the Outstanding Senior  Notes.  “2019 Note Purchase Agreement” means that certain Note Purchase Agreement dated as  of December 20, 2019, as amended, pursuant to which the Company issued the Outstanding Senior  Notes.  “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening  America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA  PATRIOT ACT) Act of 2001, as amended from time to time, and the rules and regulations  promulgated thereunder from time to time in effect.  “U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation  or regulations administered and enforced by the United States pursuant to which economic  sanctions have been imposed on any Person, entity, organization, country or regime, including the  Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran  Sanctions Act, the Sudan Accountability and Divestment Act and any other OFAC Sanctions  Program.  

 

Schedule B-15  (to Note Purchase Agreement)  “Wholly-owned Subsidiary” means, at any time, any Subsidiary one hundred percent  (100%) of all of the Equity Interests (except directors’ qualifying shares) and voting interests of  which are owned by any one or more of the Company and the Company’s other Wholly-owned  Subsidiaries at such time.  “WVPSC” means the Public Service Commission of West Virginia, or any successor  thereto.Exhibit
10.1

 

TERMINATION
AGREEMENT

 

This
TERMINATION AGREEMENT (the “Agreement”), dated as of July 1, 2022, is made by and between eToro Group Ltd., a company
organized under the laws of the British Virgin Islands (“eToro”), and FinTech Acquisition Corp. V, a Delaware corporation
(“SPAC”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Merger Agreement.

 

W
I T N E S E T H:

 

WHEREAS,
eToro and SPAC entered into that certain Agreement and Plan of Merger, dated as of March 16, 2021 (the “Original Merger Agreement”),
by and among eToro, Buttonwood Merger Sub Corp., a Delaware corporation and a direct, wholly-owned subsidiary of eToro (“Merger
Sub”), and SPAC, as amended by Amendment No. 1 to Agreement and Plan of Merger, dated as of December 30, 2021 (the Original
Merger Agreement, as so amended, the “Merger Agreement”);

 

WHEREAS,
Section 9.1(a) of the Merger Agreement provides that the Merger Agreement may be terminated at any time prior to the Closing by mutual
written agreement of eToro and SPAC; and

 

WHEREAS,
the Closing has not occurred as of the date hereof and eToro and SPAC desire to terminate the Merger Agreement pursuant to Section 9.1(a)
thereof, subject to the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and agreements set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, eToro and SPAC
accordingly agree as follows:

 

Section
1. In accordance with Section 9.1(a) and Section 9.2 of the Merger Agreement and subject to the terms set forth herein,
eToro and SPAC hereby mutually terminate the Merger Agreement effective as of the date hereof, with such termination having the effect
set forth in Section 9.2(g) of the Merger Agreement.

 

Section
2.

 

2.1 Each
of eToro and SPAC, for itself, its Affiliates and any of its and their Affiliates’ respective former, current or future officers,
directors, agents, advisors, attorneys-in-fact, representatives, managers, members, partners, equityholders, employees, Subsidiaries,
financing sources, predecessor entities, successors, assigns, parents, Affiliates, principals, administrators and other Persons that
have or could potentially derive rights through them (collectively, the “Related Parties”), hereby generally, irrevocably,
unconditionally and completely release and forever discharge the other and any of their Related Parties from any and all disputes, liability,
claims, controversies, contentions, demands, duties, actions, debts, contracts, obligations, agreements, causes of action, suits, joinders,
damages, losses, costs, expenses (including attorneys’ fees and costs), liens, indemnification rights, contributions, judgments
and rights, at law of any kind whatsoever (each, a “Claim”), whether known or unknown, suspected or unsuspected, asserted
or unasserted, fixed or contingent, matured or unmatured, in each case, arising from any matter concerning, based upon, in connection
with, or relating to any of the Transactions, including (x) this Agreement, (y) the Merger Agreement and (z) the other Transaction Agreements,
including, in each case, the transactions contemplated hereby or thereby, and the events leading to the termination of the Transactions,
the Merger Agreement and the other Transaction Agreements (collectively, the “Released Claims”); provided that
nothing contained herein shall be deemed to release any party hereto from its obligations under this Agreement or the obligations or
provisions of the Merger Agreement, in each case, expressly deemed to survive under this Agreement or Section 9.2(g) of the Merger Agreement.

 

     

     

    

 

2.2 It
is understood and agreed that Section 2.1 is a full and final release covering the respective Released Claims of the parties and
their respective Related Parties relating to this Agreement or any of the Transactions or arising out of the Transaction Agreements.
Therefore, each of the parties expressly waives any rights it may have under any statute or common law principle under which a general
release does not extend to respective Released Claims that such party does not know or suspect to exist in its favor at the time of executing
the release in this Agreement, which if known by such party would have affected such party’s settlement with the other. In connection
with such waiver and relinquishment, the parties acknowledge that they or their respective attorneys or agents may hereafter discover
Claims or facts in addition to or different from those which they now know or believe to exist with respect to the Released Claims, and
which, if known on the date of the execution of this Agreement, might have materially affected such party’s decision to enter into
and execute this Agreement, but that it is their respective intention hereby fully, finally and forever to settle and release all of
their respective Released Claims. In furtherance of such intention, the respective releases herein given by the parties shall be and
remain in effect as full and complete releases with regard to their respective Released Claims notwithstanding the discovery or existence
of any such additional or different Claim or fact. Each party further agrees that by reason of the releases contained herein, such party
is expressly assuming the risk of such unknown Released Claims and agrees that this Agreement applies thereto.

 

2.3 Each
party, on behalf of itself and its Related Parties, hereby covenants to each other party and their respective Related Parties not to,
with respect to any Released Claim, directly or indirectly encourage or solicit or voluntarily assist or participate in any way in the
filing, reporting or prosecution by such party or its Related Parties or any third party of a suit, arbitration, mediation or claim (including
a third party or derivative claim, cross-claim, counterclaim or otherwise) against any other party and/or its Related Parties relating
to any Released Claim. Each Related Party may plead this Agreement as a complete bar to any Released Claim brought in derogation of this
Section 2.3.

 

2.4 Each
of the parties hereby expressly waives to the fullest extent permitted by law the provisions, rights, and benefits of California Civil
Code § 1542 (or any similar Law of any jurisdiction), which provides:

 

A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR
AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE
DEBTOR OR RELATED PARTY.

 

Each
party acknowledges that it may hereafter discover facts in addition to or different from those that such party now knows or believes
to be true with respect to the subject of this Section 2.4.

 

2.5 The
covenants contained in this Section 2 shall survive the execution and delivery of this Agreement indefinitely regardless of any
statute of limitations.

 

Section
3. eToro and SPAC shall issue a joint press release with respect to this mutual termination of the Merger Agreement pursuant to this
Agreement, in the form attached hereto as Exhibit A, on July 5, 2022.

 

    2

     

    

 

Section
4. Other than as eToro or SPAC may determine is factually accurate and, based on advice of counsel, necessary (a) to respond to any
legal or regulatory process or proceeding or (b) to give testimony or file any documents in any legal or regulatory proceeding, each
of eToro and SPAC, on behalf of itself and its Affiliates, officers and directors, agrees that for a period of two (2) years from and
after the date hereof, it will not, and will not authorize, induce or encourage any other Person to, directly or indirectly, make any
public or private statements or other communications that disparage, denigrate or malign the other party or its Affiliates or Representatives.

 

Section
5. SPAC shall promptly return to eToro or destroy all Evaluation Material (as defined in the Confidentiality Agreement) of eToro
subject to and in accordance with the terms of the Confidentiality Agreement.

 

Section
6. Each party hereby represents and warrants to the other party that: (a) such party has full corporate power and authority to execute,
deliver and perform its obligations under this Agreement; (b) the execution and delivery of this Agreement, the termination of the Merger
Agreement and consummation of the other transactions contemplated hereby have been duly and validly approved and authorized by the Board
of Directors or any other necessary corporate or other action on the part of such party; (c) no other corporate proceedings on the part
of such party are necessary to approve this Agreement or the termination of the Merger Agreement or to consummate the other transactions
contemplated hereby; (d) this Agreement has been duly executed and delivered by such party and assuming due authorization, execution
and delivery of this Agreement by the other party, this Agreement is a valid and legally binding obligation, enforceable in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium
and similar laws affecting the enforcement of rights of creditors or by general principles of equity; and (e) the execution and delivery
of this Agreement by such party does not, and the performance by such party of the transactions contemplated by this Agreement does not:
(i) conflict with, or result in a violation or breach of, any provision of its charter or bylaws (or equivalent organizational documents);
(ii) conflict with, or result in any violation or breach of, or constitute (with our without notice of lapse of time, or both) a default
under or require a consent or waiver under, any of the terms, conditions or provisions of any contractual restriction binding on such
party or affecting such party or any of its assets; or (iii) conflict with or violate any order or judgment of any court or other
Governmental Entity applicable to such party or any of its assets.

 

Section
7. With respect to the subject matter hereof, except for the obligations or provisions of the Merger Agreement, in each case, expressly
deemed to survive under the Merger Agreement, this Agreement embodies the complete agreement of the parties hereto and supersedes any
prior understandings, agreements or representations by or between the parties hereto, written or oral, which are related to the subject
matter hereof.

 

Section
8. Each party hereto acknowledges and agrees that each of the non-party Related Parties are express third party beneficiaries of
the releases and covenants not to sue of such non-party Related Parties contained in Section 2 of this Agreement and are entitled
to enforce rights under such sections to the same extent that such non-party Related Parties could enforce such rights if they were a
party to this Agreement. Except as provided in the preceding sentence, there are no third party beneficiaries to this Agreement, and
this Agreement is not otherwise intended to and shall not otherwise confer upon any Person other than the parties hereto any rights or
remedies hereunder.

 

Section
9. Section 11.1 (Notices), Section 11.2 (Interpretation), Section 11.3. (Counterparts; Electronic Delivery),
Section 11.5 (Severability), Section 11.6 (Other Remedies; Specific Performance), Section 11.7 (Governing
Law), Section 11.8 (Consent to Jurisdiction; Waiver of Jury Trial), Section 11.9 (Rules of Construction),
Section 11.10 (Expenses), Section 11.11 (Assignment), Section 11.12 (Amendment), Section 11.13 (Waiver) and
Section 11.14 (Non-Recourse) of the Merger Agreement are hereby incorporated by reference into this Agreement, mutatis mutandis.

 

[Signature
Pages Follow]

 

    3

     

    

 

IN
WITNESS WHEREOF, the undersigned have caused this Agreement to be duly executed as of the date first above written.

 

	 	eToro Group LTD.
	 	 	 
	 	By:	/s/
Johnathan Assia
	 	 	Name: 	Johnathan Assia
	 	 	Title:	Chief Executive Officer

 

	 	By:	/s/
Shalom Berkovitz
	 	 	Name: 	Shalom
    Berkovitz
	 	 	Title:	Chief Financial Officer & Deputy CEO

 

	 	FinTech Acquisition Corp. V
	 	 	 
	 	By:	/s/
James McEntee III
	 	 	Name: 	James McEntee IIII
	 	 	Title:	President

 

 

4

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